[Title 45 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1998 Edition]
[From the U.S. Government Printing Office]


          45



          Public Welfare



[[Page i]]

          PARTS 200 TO 499

                         Revised as of October 1, 1998

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF OCTOBER 1, 1998
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1998



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 45:
    Subtitle B--Regulations Relating to Public Welfare:
            Chapter I--[Reserved]
          Chapter II--Office of Family Assistance (Assistance 
          Programs), Administration for Children and Families, 
          Department of Health and Human Services                    5
          Chapter III--Office of Child Support Enforcement 
          (Child Support Enforcement Program), Administration 
          for Children and Families, Department of Health and 
          Human Services                                           117
          Chapter IV--Office of Refugee Resettlement, 
          Administration for Children and Families, Department 
          of Health and Human Services                             199
  Finding Aids:
      Table of CFR Titles and Chapters........................     247
      Alphabetical List of Agencies Appearing in the CFR......     265
      List of CFR Sections Affected...........................     275



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

                     Cite this Code:  CFR
                       To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  45 CFR 201.0 refers 
                       to title 45, part 201, 
                       section 0.

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

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 1998), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
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parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected]

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ELECTRONIC SERVICES

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[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
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site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

October 1, 1998.



[[Page ix]]



                               THIS TITLE

    Title 45--Public Welfare is composed of four volumes. The parts in 
these volumes are arranged in the following order: Parts 1-199, 200-499, 
500-1199, and 1200 to end. Volume one (parts 1-199) contains all current 
regulations issued under subtitle A--Department of Health and Human 
Services. Volume two (parts 200-499) contains all current regulations 
issued under subtitle B--Regulations Relating to Public Welfare, chapter 
II--Office of Family Assistance (Assistance Programs), Administration 
for Children and Families, Department of Health and Human Services, 
chapter III--Office of Child Support Enforcement (Child Support 
Enforcement Program), Administration for Children and Families, 
Department of Health and Human Services, and chapter IV--Office of 
Refugee Resettlement, Administration for Children and Families, 
Department of Health and Human Services. Volume three (parts 500-1199) 
contains all current regulations issued under chapter V--Foreign Claims 
Settlement Commission of the United States, Department of Justice, 
chapter VI--National Science Foundation, chapter VII--Commission on 
Civil Rights, chapter VIII--Office of Personnel Management, chapter X--
Office of Community Services, Administration for Children and Families, 
Department of Health and Human Services, and chapter XI--National 
Foundation on the Arts and the Humanities. Volume four (part 1200 to 
end) contains all current regulations issued under chapter XII--
Corporation for National and Community Service, chapter XIII--Office of 
Human Development Services, Department of Health and Human Services, 
chapter XVI--Legal Services Corporation, chapter XVII--National 
Commission on Libraries and Information Science, chapter XVIII--Harry S 
Truman Scholarship Foundation, chapter XXI--Commission of Fine Arts, 
chapter XXII--Christopher Columbus Quincentenary Jubilee Commission, 
chapter XXIV--James Madison Memorial Fellowship Foundation, and chapter 
XXV--Corporation for National and Community Service. The contents of 
these volumes represent all of the current regulations codified under 
this title of the CFR as of October 1, 1998.

    A subject index to 45 CFR parts 680-684 appears in the Finding Aids 
section of the volume containing parts 500-1199. Those amendments to 
part 801--Voting Rights Program, Appendixes A, B, and D, which apply to 
Texas also appear in Spanish following Appendix D.

    Redesignation tables appear in the Finding Aids section of volumes 
one and four.

    For this volume, Karen A. Thornton was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]





[[Page 1]]



                        TITLE 45--PUBLIC WELFARE




                  (This book contains parts 200 to 499)

  --------------------------------------------------------------------
                                                                    Part

           SUBTITLE B--Regulations Relating to Public Welfare

chapter i--[Reserved]


chapter ii--Office of Family Assistance (Assistance 
  Programs), Administration for Children and Families, 
  Department of Health and Human Services...................         201


chapter iii--Office of Child Support Enforcement (Child 
  Support Enforcement Program), Administration for Children 
  and Families, Department of Health and Human Services.....         301


chapter iv--Office of Refugee Resettlement, Administration 
  for Children and Families, Department of Health and Human 
  Services..................................................         400

[[Page 3]]

           Subtitle B--Regulations Relating to Public Welfare



                          CHAPTER I--[RESERVED]




[[Page 5]]



     CHAPTER II--OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), 
ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES




  --------------------------------------------------------------------
Part                                                                Page
200             [Reserved]

201             Grants to States for public assistance 
                    programs................................           7
204             General Administration--State plans and 
                    grant appeals...........................          18
205             General administration--public assistance 
                    programs................................          19
206             Application, determination of eligibility 
                    and furnishing assistance--public 
                    assistance programs.....................          39
211             Care and treatment of mentally ill nationals 
                    of the United States, returned from 
                    foreign countries.......................          42
212             Assistance for United States citizens 
                    returned from foreign countries.........          47
213             Practice and procedure for hearings to 
                    States on conformity of public 
                    assistance plans to Federal requirements          50
225             Training and use of subprofessionals and 
                    volunteers..............................          55
233             Coverage and conditions of eligibility in 
                    financial assistance programs...........          56
234             Financial assistance to individuals.........         103
235             Administration of financial assistance 
                    programs................................         111
237             Fiscal administration of financial 
                    assistance programs.....................         116
282-299         [Reserved]

[[Page 7]]

                           PART 200 [RESERVED]



PART 201--GRANTS TO STATES FOR PUBLIC ASSISTANCE PROGRAMS--Table of Contents




Sec.
201.0  Scope and applicability.
201.1  General definitions.

     Subpart A--Approval of State Plans and Certification of Grants

201.2  General.
201.3  Approval of State plans and amendments.
201.4  Administrative review of certain administrative decisions.
201.5  Grants.
201.6  Withholding of payment; reduction of Federal financial 
          participation in the costs of social services and training.
201.7  Judicial review.

                      Subpart B--Review and Audits

201.10  Review of State and local administration.
201.11  Personnel merit system review.
201.12  Public assistance audits.
201.13  Action on audit and review findings.
201.14  Reconsideration under section 1116(d) of the Act.
201.15  Deferral of claims for Federal financial participation.
201.66  Repayment of Federal funds by installments.
201.67  Treatment of uncashed or cancelled checks.
201.70  Treatment of replacement checks.

    Authority: 42 U.S.C. 303, 603, 1203, 1301, 1302, 1316, 1353 and 1383 
(note).

    Source: 35 FR 12180, July 29, 1970, unless otherwise noted.



Sec. 201.0  Scope and applicability.

    Titles I, X, XIV and XVI (as in effect without regard to section 301 
of the Social Security Amendments of 1972) shall continue to apply to 
Puerto Rico, the Virgin Islands, and Guam. The term State as used in 
such titles means Puerto Rico, the Virgin Islands, and Guam.

[39 FR 8326, Mar. 5, 1974]



Sec. 201.1  General definitions.

    When used in this chapter, unless the context otherwise indicates:
    (a) Act means the Social Security Act, and titles referred to are 
titles of that Act;
    (b) Department means the Department of Health and Human Services;
    (c) Administrator means the Administrator, Family Support 
Administration;
    (d) Secretary means the Secretary of Health and Human Services;
    (e) Administration means the Family Support Administration;
    (f) Regional Administrator means the Regional Administrator of the 
Family Support Administration;
    (g) State means the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 
Samoa. The term ``State'' with respect to American Samoa applies to the 
programs set forth in title IV-A and IV-F of the Act;
    (h) State agency means the State agency administering or supervising 
the administration of the State plan or plans under title I, IV-A, IV-F, 
X, or XVI (AABD) of the Act;
    (i) The terms regional office and central office refer to the 
regional offices and the central office of the Family Support 
Administration, respectively.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34543, Sept. 26, 1974; 
53 FR 36578, Sept. 21, 1988; 57 FR 30425, July 9, 1992]



     Subpart A--Approval of State Plans and Certification of Grants



Sec. 201.2  General.

    The State plan is a comprehensive statement submitted by the State 
agency describing the nature and scope of its program and giving 
assurance that it will be administered in conformity with the specific 
requirements stipulated in the pertinent title of the Act, the 
regulations in subtitle A and this chapter of this title, and other 
applicable official issuances of the Department. The State plan contains 
all information necessary for the Administration to determine whether 
the plan can be approved, as a basis for Federal financial participation 
in the State program.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36578, Sept. 21, 1988]

[[Page 8]]



Sec. 201.3  Approval of State plans and amendments.

    The State plan consists of written documents furnished by the State 
to cover each of its programs under the Act: Old-age assistance (title 
I); aid and services to needy families with children (part A of title 
IV); aid to the blind (title X); aid to the permanently and totally 
disabled (title XIV); or aid to the aged, blind or disabled (title XVI). 
The State may submit the common material on more than one program as an 
integrated plan. However, it must identify the provisions pertinent to 
each title since a separate plan must be approved for each public 
assistance title. A plan submitted under title XVI encompasses, under a 
single plan, the programs otherwise covered by three separate plans 
under titles I, X, and XIV. After approval of the original plan by the 
Administration, all relevant changes, required by new statutes, rules, 
regulations, interpretations, and court decisions, are required to be 
submitted currently so that the Administration may determine whether the 
plan continues to meet Federal requirements and policies.
    (a) Submittal. State plans and revisions of the plans are submitted 
first to the State governor or his designee for review in accordance 
with Sec. 204.1 of this chapter, and then to the regional office. The 
States are encouraged to obtain consultation of the regional staff when 
a plan is in process of preparation or revision.
    (b) Review. Staff in the regional offices are responsible for review 
of State plans and amendments. They also initiate discussion with the 
State agency on clarification of significant aspects of the plan which 
come to their attention in the course of this review. State plan 
material on which the regional staff has questions concerning the 
application of Federal policy is referred with recommendations as 
required to the central office for technical assistance. Comments and 
suggestions, including those of consultants in specified areas, may be 
prepared by the central office for use by the regional staff in 
negotiations with the State agency.
    (c) Action. The Regional Administrator, exercised delegated 
authority to take affirmative action on State plans and amendments 
thereto on the basis of policy statements or precedents previously 
approved by the Administrator. The Administrator retains authority for 
determining that proposed plan material is not approvable, or that a 
previously approved plan no longer meets the requirements for approval, 
except that a final determination of disapproval may not be made without 
prior consultation and discussion by the Administrator with the 
Secretary. The Regional Administrator, or the Administrator formally 
notifies the State agency of the actions taken on State plans or 
revisions.
    (d) Basis for approval. Determinations as to whether State plans 
(including plan amendments and administrative practice under the plans) 
originally meet or continue to meet, the requirements for approval are 
based on relevant Federal statutes and regulations. Guidelines are 
furnished to assist in the interpretation of the regulations.
    (e) Prompt approval of State plans. Pursuant to section 1116 of the 
Act, the determination as to whether a State plan submitted for approval 
conforms to the requirements for approval under the Act and regulations 
issued pursuant thereto shall be made promptly and not later than the 
90th day following the date on which the plan submittal is received in 
the regional office, unless the Regional Administrator, has secured from 
the State agency a written agreement to extend that period.
    (f) Prompt approval of plan amendments. Any amendment of an approved 
State plan may, at the option of the State, be considered as a 
submission of a new State plan. If the State requests that such 
amendment be so considered the determination as to its conformity with 
the requirements for approval shall be made promptly and not later than 
the 90th day following the date on which such a request is received in 
the regional office with respect to an amendment that has been received 
in such office, unless the Regional Administrator, has secured from the 
State agency a written agreement to extend that period. In absence of 
request by a State that an amendment of an approved State plan shall be 
considered as a submission of a new State plan,

[[Page 9]]

the procedures under Sec. 201.6 (a) and (b) shall be applicable.
    (g) Effective date. The effective date of a new plan may not be 
earlier than the first day of the calendar quarter in which an 
approvable plan is submitted, and with respect to expenditures for 
assistance under such plan, may not be earlier than the first day on 
which the plan is in operation on a statewide basis. The same applies 
with respect to plan amendments that provide additional assistance or 
services to persons eligible under the approved plan or that make new 
groups eligible for assistance or services provided under the approved 
plan. For other plan amendments the effective date shall be as specified 
in other sections of this chapter.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34542, Sept. 26, 1974; 
42 FR 43977, Sept. 1, 1977; 53 FR 36579, Sept. 21, 1988]



Sec. 201.4  Administrative review of certain administrative decisions.

    Pursuant to section 1116 of the Act, any State dissatisfied with a 
determination of the Administrator pursuant to Sec. 201.3 (e) or (f) 
with respect to any plan or amendment may, within 60 days after the date 
of receipt of notification of such determination, file a petition with 
the Regional Administrator, asking the Administrator for reconsideration 
of the issue of whether such plan or amendment conforms to the 
requirements for approval under the Act and pertinent Federal 
requirements. Within 30 days after receipt of such a petition, the 
Administrator shall notify the State of the time and place at which the 
hearing for the purpose of reconsidering such issue will be held. Such 
hearing shall be held not less than 30 days nor more than 60 days after 
the date notice of such hearing is furnished to the State, unless the 
Administrator and the State agree in writing on another time. For 
hearing procedures, see part 213 of this chapter. A determination 
affirming, modifying, or reversing the Administrator's original decision 
will be made within 60 days of the conclusion of the hearing. Action 
pursuant to an initial determination by the Administrator described in 
such Sec. 201.3 (e) or (f) that a plan or amendment is not approvable 
shall not be stayed pending the reconsideration, but in the event that 
the Administrator subsequently determines that his original decision was 
incorrect he shall certify restitution forthwith in a lump sum of any 
funds incorrectly withheld or otherwise denied.

[35 FR 12180, July 29, 1970, as amended at 42 FR 43977, Sept. 1, 1977; 
53 FR 36579, Sept. 21, 1988]



Sec. 201.5  Grants.

    To States with approved plans, grants are made each quarter for 
expenditures under the plan for assistance, services, training and 
administration. The determination as to the amount of a grant to be made 
to a State is based upon documents submitted by the State agency 
containing information required under the Act and such other pertinent 
facts, including title IV-A the appropriate Federal share of child 
support collections made by the State, as may be found necessary.
    (a) Form and manner of submittal. (1) Time and place: The estimates 
for public assistance grants for each quarterly period must be forwarded 
to the regional office 45 days prior to the period of the estimate. They 
include a certification of State funds available and a justification 
statement in support of the estimates. A statement of quarterly 
expenditures and any necessary supporting schedules must be forwarded to 
the Department of Health and Human Services, Family Support 
Administration, not later than 30 days after the end of the quarter.
    (2) Description of forms: ``State Agency Expenditure Projection--
Quarterly Projection by Program'' represents the State agency's estimate 
of the total amount and the Federal share of expenditures for 
assistance, services, training, and administration to be made during the 
quarter for each of the public assistance programs under the Act. From 
these estimates the State and Federal shares of the total expenditures 
are computed. The State's computed share of total estimated expenditures 
is the amount of State and local funds necessary for the quarter. The 
Federal share is the basis for the funds to be advanced for the quarter. 
The

[[Page 10]]

State agency must also certify, on this form or otherwise, the amount of 
State funds (exclusive of any balance of advances received from the 
Federal Government) actually on hand and available for expenditure; this 
certification must be signed by the executive officer of the State 
agency submitting the estimate or a person officially designated by him, 
or by a fiscal officer of the State if required by State law or 
regulation. (A form ``Certificate of Availability of State Funds for 
Assistance and Administration during Quarter'' is available for 
submitting this information, but its use is optional.) If the amount of 
State funds (or State and local funds if localities participate in the 
program), shown as available for expenditures is not sufficient to cover 
the State's proportionate share of the amount estimated to be expended, 
the certification must contain a statement showing the source from which 
the amount of the deficiency is expected to be derived and the time when 
this amount is expected to be made available.
    (3) The State agency must also submit a quarterly statement of 
expenditures for each of the public assistance programs under the Act. 
This is an accounting statement of the disposition of the Federal funds 
granted for past periods and provides the basis for making the 
adjustments necessary when the State's estimate for any prior quarter 
was greater or less than the amount the State actually expended in that 
quarter. The statement of expenditures also shows the share of the 
Federal Government in any recoupment, from whatever source, including 
for title IV-A the appropriate share of child support collections made 
by the State, of expenditures claimed in a prior period, and also in 
expenditures not properly subject to Federal financial participation 
which are acknowledged by the State agency, including the share of the 
Federal Government for uncashed and cancelled checks as described at 45 
CFR 201.67 and replacement checks as described at 45 CFR 201.70 in this 
part, or which have been revealed in the course of an audit.
    (b) Review. The State's estimates are analyzed by the regional 
office staff and are forwarded with recommendations as required to the 
central office. The central office reviews the State's estimate, other 
relevant information, and any adjustments to be made for prior periods, 
and computes the grant.
    (c) Grant award. The grant award computation form shows, by program, 
the amount of the estimate for the ensuing quarter, and the amounts by 
which the estimate is reduced or increased because of over- or under-
estimate for the prior quarter and for other adjustments. This form is 
transmitted to the State agency to draw the amount of the grant award, 
as needed, to meet the Federal share of disbursements. The draw is 
through a commercial bank and the Federal Reserve system against a 
continuing letter of credit certified to the Secretary of the Treasury 
in favor of the State payee. A copy of the grant award notice is sent to 
the State Central Information Reception Agency in accord with section 
201 of the Intergovernmental Cooperation Act of 1968.
    (d) Letter of credit payment system. The letter of credit system for 
payment of advances of Federal funds was established pursuant to 
Treasury Department regulations (Circular No. 1075), published in the 
Federal Register on July 11, 1967 (32 FR 10201). The HEW ``Instructions 
to Recipient Organizations for Use of Letter of Credit'' was transmitted 
to all grantees by memorandum from the Assistant Secretary-Comptroller 
on January 15, 1968.
    (e) General administrative requirements. With the following 
exceptions, the provisions of part 74 of this title, establishing 
uniform administrative requirements and cost principles, shall apply to 
all grants made to States under this part:

                             45 CFR Part 74

Subpart G--Matching and Cost Sharing.
Subpart I--Financial Reporting Requirements.

[35 FR 12180, July 29, 1970, as amended at 38 FR 26320, Sept. 19, 1973; 
46 FR 48003, Sept. 30, 1981; 53 FR 24269, June 28, 1988; 53 FR 36579, 
Sept. 21, 1988]

[[Page 11]]



Sec. 201.6  Withholding of payment; reduction of Federal financial participation in the costs of social services and training.

    (a) When withheld. Further payments to a State are withheld in whole 
or in part if the Administrator, after reasonable notice and opportunity 
for hearing to the State agency administering or supervising the 
administration of an approved plan, finds:
    (1) That the plan no longer complies with the provisions of section 
2, 402, 1002, 1402, or 1602 of the Act; or
    (2) That in the administration of the plan there is failure to 
comply substantially with any such provision.
    A question of noncompliance of a State plan may arise from an 
unapprovable change in the approved State plan, the failure of the State 
to change its approved plan to conform to a new Federal requirement for 
approval of State plans, or the failure of the State in practice to 
comply with a Federal requirement, whether or not its State plan has 
been amended to conform to such requirement.
    (b) When the rate of Federal financial participation is reduced. 
Under title I, X, XIV, or XVI (AABD) of the Act, Federal financial 
participation in the costs of social services and training approved at 
the rate of 75 per centum is reduced to 50 per centum if the 
Administrator, after reasonable notice and opportunity for a hearing to 
the State agency, finds:
    (1) That the plan provision under such title for prescribed services 
no longer complies with the Federal requirements with respect to such 
prescribed services; or
    (2) That in the administration of the plan there is a failure to 
comply substantially with such plan provision.
    (c) Information discussions. Hearings with respect to matters under 
paragraph (a) or (b) of this section are generally not called, however, 
until after reasonable effort has been made by the Administration to 
resolve the questions involved by conference and discussion with State 
officials. Formal notification of the date and place of hearing does not 
foreclose further negotiations with State officials.
    (d) Conduct of hearings. For hearing procedures, see part 213 of 
this chapter.
    (e) Notification of withholding. If the Administrator makes a 
finding of noncompliance with respect to a matter under paragraph (a) of 
this section, the State agency is notified that further payments will 
not be made to the State (or, in his discretion, that payments will be 
limited to categories under or parts of the plan not affected by such 
failure), until the Administrator is satisfied that there will no longer 
be any such failure to comply. Until he is so satisfied, no further 
payments will be made to the State (or will be limited to categories 
under or parts of the plan not affected by such failure).
    (f) Notification of reduction in the rate of Federal financial 
participation. If the Administrator makes a finding of noncompliance 
with respect to a matter under paragraph (b) of this section, the State 
agency is notified that further payments will be made to the State at 
the rate of 50 per centum of the costs of services and training, until 
the Administrator is satisfied that there will no longer be any failure 
to comply.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34542, Sept. 26, 1974; 
53 FR 36579, Sept. 21, 1988]



Sec. 201.7  Judicial review.

    Any State dissatisfied with a final determination of the Secretary 
pursuant to Sec. 201.4 or Sec. 201.6(a) may, within 60 days after it has 
been notified of such determination, file with the U.S. Court of Appeals 
for the circuit in which such State is located a petition for review of 
such determination. After a copy of the petition is transmitted by the 
clerk of the court to the Secretary, the Secretary thereupon shall file 
in the court the record of proceedings upon which such determination was 
based as provided in section 2112 of title 28, United States Code. The 
court is bound by the Secretary's findings of fact, if supported by 
substantial evidence. The court has jurisdiction to affirm the 
Secretary's decision, or set it aside in whole or in part, or, for good 
cause, to remand the case for additional evidence. If the case is 
remanded, the Secretary may thereupon make new or modified findings of 
fact, and may modify his previous determination. The Secretary shall 
certify to the court the transcript and record of the further

[[Page 12]]

proceedings. The judgment of the court is subject to review by the 
Supreme Court of the United States upon certiorari or certification as 
provided in 28 U.S.C. 1254.



                      Subpart B--Review and Audits



Sec. 201.10  Review of State and local administration.

    (a) In order to provide a basis for determining that State agencies 
are adhering to Federal requirements and to the substantive legal and 
administrative provisions of their approved plans, the Administration 
conducts a review of State and local public assistance administration. 
This review includes analysis of procedures and policies of State and 
local agencies and examination of case records of individual recipients.
    (b) Each State agency is required to carry out a continuing quality 
control program primarily covering determination of eligibility in 
statistically selected samples of individual cases. The Service conducts 
a continuing observation of these State systems.
    (c) Adherence to other Federal requirements set forth in the 
pertinent titles of the Act and the regulations in this title is 
evaluated through review of selected case records and aspects of agency 
operations.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36579, Sept. 21, 1988]



Sec. 201.11  Personnel merit system review.

    A personnel merit system review is carried out by the Office of 
State Merit Systems of the Office of the Assistant Secretary for 
Administration of the Department. The purpose of the review is to 
evaluate the effectiveness of the State merit system relating to the 
public assistance programs and to determine whether there is compliance 
with Federal requirements in the administration of the merit system 
plan. See part 70 of this title.



Sec. 201.12  Public assistance audits.

    (a) Annually, or at such frequencies as are considered necessary and 
appropriate, the operations of the State agency are audited by 
representatives of the Audit Agency of the Department. Such audits are 
made to determine whether the State agency is being operated in a manner 
that:
    (1) Encourages prudent use of program funds, and
    (2) Provides a reasonable degree of assurance that funds are being 
properly expended, and for the purposes for which appropriated and 
provided for under the related Act and State plan, including State laws 
and regulations.
    (b) Reports of these audits are released by the Audit Agency 
simultaneously to program officials of the Department, and to the 
cognizant State officials. These audit reports relate the opinion of the 
Audit Agency on the practices reviewed and the allowability of costs 
audited at the State agency. Final determinations as to actions required 
on all matters reported are made by cognizant officials of the 
Department.



Sec. 201.13  Action on audit and review findings.

    (a) If the audit results in no exceptions, the State agency is 
advised by letter of this result. The general course for the disposition 
of proposed exceptions resulting from audits involves the submittal of 
details of these exceptions to the State agency which then has an 
opportunity to concur in the proposed exceptions or to assemble and 
submit additional facts for purposes of clearance. Provision is made for 
the State agency to appeal proposed audit exceptions in which it has not 
concurred and which have not been deleted on the basis of clearance 
material. After consideration of a State agency's appeal by the 
Administrator, the Administration advises the State agency of any 
expenditures in which the Federal Government may not participate and 
requests it to include the amount as adjustments in a subsequent 
statement of expenditures. Expenditures in which it is found the Federal 
Government may not participate and which are not properly adjusted 
through the State's claim will be deducted from subsequent grants made 
to the State agency.
    (b) If the Federal or State reviews reveal serious problems with 
respect to compliance with any Federal requirement, the State agency is 
required to

[[Page 13]]

correct its practice so that there will be no recurrence of the problem 
in the future.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36579, Sept. 21, 1988]



Sec. 201.14  Reconsideration under section 1116(d) of the Act.

    (a) Applicability. This section applies to any disallowance of any 
item or class of items for which FFP is claimed under title I, IV, X, 
XIV, XVI(AABD), or XX of the Act, with respect to which reconsideration 
was requested prior to March 6, 1978, unless the State by filing a 
written notice to that effect with the Executive Secretary, Departmental 
Grant Appeals Board (with proof of service on the head of the 
constituent agency), within 30 days after mailing of the confirmation of 
the disallowance by the agency head, elects to have the reconsideration 
governed by 45 CFR part 16.
    (1) Reduction of the Federal share of assistance payments under 
title IV-A, for failure to certify WIN registrants (section 402(e) of 
the Act);
    (2) Reduction by one per centum of the quarterly amount payable to a 
State for all expenditures under title IV-A for failure, in certain 
cases, to carry out the provisions of section 402(a)(15) of the Act 
which require the offering of and arrangement for the provision of 
family planning services (section 402(f) of the Act);
    (3)--(5) [Reserved]
    (6) Any other decision pursuant to sections 3, 403, 422, 455, 1003, 
1403, 1603, or 2003, of the Act.
    (b) Notice of disallowance determination. (1) When the Regional 
Administrator, determines that a State claim for FFP in expenditures for 
a particular item or class of items is not allowable, he shall promptly 
issue a disallowance letter to the State.
    (2) This disallowance letter shall include where appropriate:
    (i) The date or dates on which the State's claim for FFP was made;
    (ii) The time period during which the expenditures in question were 
made or claimed to have been made;
    (iii) The date and amount of any payment or notice of deferral;
    (iv) A statement of the amount of FFP claimed, allowed, and 
disallowed and the manner in which these amounts were calculated;
    (v) Findings of fact on which the disallowance determination is 
based or a reference to other documents previously or contemporaneously 
furnished to the State (such as a report of a financial review or audit) 
which contain the findings of fact on which the disallowance 
determination is based;
    (vi) Pertinent citations to the law, regulations, guides and 
instructions supporting the action taken; and
    (vii) Notice of the State's right to request reconsideration of the 
disallowance under this section and the time within such request must be 
made.
    (c) Request for reconsideration. (1) To obtain reconsideration of a 
disallowance of an item or class of items for FFP, a State shall, within 
30 days of the date of the disallowance letter, request reconsideration 
by the Administrator, with copy to the Regional Administrator, and 
enclose a copy of the disallowance letter.
    (2) The request for reconsideration must be accompanied by a brief 
statement of the issues in dispute, including an explanation of the 
State's position with respect to each issue.
    (d) Reconsideration procedures. (1) The Administrator will promptly 
acknowledge receipt of a State's request for reconsideration.
    (2) Upon receipt of a copy of the request for reconsideration, the 
Regional Administrator, shall, within 30 days of the request, provide to 
the Administrator a complete record of all material which he believes to 
have a bearing on the reconsideration, including any reports of audit or 
review which were the basis for his decision.
    (3) The Administrator shall promptly forward to the State a list of 
all items currently in the record, including those received from the 
Regional Administrator, or with respect to the medical assistance 
program under title XIX, Regional Medicaid Director and make available 
for examination, inspection and copying any such items not previously 
received by the State.
    (4) Within 60 days from the date of the Administrator's transmittal 
to the State under paragraph (d)(3) of this

[[Page 14]]

section, the State shall submit in writing to the Administrator any new 
relevant evidence, documentation, or argument and shall simultaneously 
submit a copy thereof to the Regional Administrator, or with respect to 
the medical assistance program under title XIX, Regional Medicaid 
Director.
    (5) The Regional Administrator, or with respect to the medical 
assistance program under title XIX, Regional Medicaid Director shall, 
within 60 days of submittal by the State, submit to the Administrator 
(with a copy to the State) an analysis of the issues relevant to the 
disallowance including:
    (i) A restatement of the findings on which the disallowance was 
based;
    (ii) A response to each issue raised by the State with respect to 
such findings;
    (iii) A response to any other issues raised by the State, providing 
additional documentation when necessary; and
    (iv) Any additional documentation which he deems relevant.
    (6) The State may respond to the material submitted by the Regional 
Administrator, or with respect to the medical assistance program under 
title XIX, Regional Medicaid Director by submitting to the Administrator 
within 15 days any supplemental material the State wishes to have 
entered into the record.
    (7) At the time of submitting any additional material pursuant to 
paragraph (d)(4), the State may obtain, upon request to him, a 
conference with the Administrator, during which it may discuss with the 
Administrator its position on the issues. The State may, at its own 
expense, have such conference transcribed; the transcript shall become 
part of the administrative record.
    (8) In reconsidering the disallowance, the Administrator may request 
any additional information or documents necessary to his decision.
    (9) New relevant evidence received into the record by the 
Administrator pursuant to paragraph (d)(8) of this section which is not 
received from, or previously otherwise made available to, the State 
shall promptly be made available to the State for examination, 
inspection, and copying and the State will be given appropriate 
additional time for comment.
    (10) All documents, reports, correspondence, and other materials 
considered by the Administrator in reaching his decision shall 
constitute the record of the reconsideration proceedings.
    (11) After consideration of such record and the laws and regulations 
pertinent to the issues in question, the Administrator shall issue a 
written decision, based on the administrative record, which summarizes 
the facts and cites the regulations or statutes that support the 
decision. The decision shall constitute final administrative action on 
the matter and shall be promptly mailed to the head of the State agency.
    (12) Either the state or the Regional Administrator, or with respect 
to the medical assistance program under title XIX, Regional Medicaid 
Director may request from the Administrator, for good cause, an 
extension of any of the time limits specified in this section.
    (13) No section of this regulation shall be interpreted as waiving 
the Department's right to assert any provision or exemption in the 
Freedom of Information Act.
    (e) Implementation of the decision. If the decision requires an 
adjustment in the Federal share, either upward or downward, this will be 
reflected in subsequent grant awards.
    (f) For purposes of this section, the Administrator includes the 
Deputy Administrator, except that whichever official conducts the 
conference requested pursuant to paragraph (d)(7) of this section will 
also issue the final administrative decision pursuant to paragraph 
(d)(11) of this section.

Appendix--Reconsideration of Disallowances Under Section 1116 (d) of the 
                           Social Security Act

                          transfer of functions

    Under the authority of Reorganization Plan No. 1 of 1953, and 
pursuant to the authorities vested in me as Secretary of Health amd 
Human Services, I hereby order that, with respect to reconsiderations of 
disallowances imposed under titles I, IV, VI, X, XIV, XVI (AABD), XIX 
and XX of the Social Security Act, 42 U.S.C. 301 et seq., 601 et seq., 
801 et seq., 1201 et seq., 1351 et seq., 1381 et seq. (AABD), 1396 et 
seq. and 1397 et seq., all references to ``Administrator'' appearing in 
45

[[Page 15]]

CFR 201.14 shall be deemed to read ``Chairman, Departmental Grant 
Appeals Board'' and all references to ``Deputy Administrator'' appearing 
therein shall be deemed to refer to one or more members of the 
Departmental Grant Appeals Board, designated by the Chairman to decide a 
reconsideration. States which have previously had or requested a 
conference pursuant to 45 CFR 201.14(d)(7) will be entitled to a 
conference with the Chairman of the Departmental Grant Appeals Board 
acting (as provided above) as successor to the Administrator of the 
Social and Rehabilitation Service (SRS), or with a member or members of 
the Board designated by the Chairman to decide the matter, acting as 
successor to the Deputy Administrator of SRS. The Chairman may, at his 
option, utilize a Grant Appeals Panel, designated pursuant to 45 CFR 
516.4(b), to decide the matter, and may supplement the Sec. 201.14 
procedures by utilizing the procedures of 45 CFR part 16 including the 
authority provided in 45 CFR 16.51 to waive or modify any procedural 
provision upon a determination that no party will be prejudiced and that 
the ends of justice will be served.

[40 FR 34592, Aug. 18, 1975; 40 FR 44326, Sept. 26, 1975, as amended at 
41 FR 42205, Sept. 27, 1976; 42 FR 43977, Sept. 1, 1977; 42 FR 51583, 
Sept. 29, 1977; 43 FR 9266, Mar. 6, 1978; 51 FR 9202, Mar. 18, 1986; 53 
FR 36579, Sept. 21, 1988]



Sec. 201.15  Deferral of claims for Federal financial participation.

    (a) Scope. Except as otherwise provided, this section applies to all 
claims for Federal financial participation submitted by States pursuant 
to titles I, IV, X, XIV, XVI (AABD), of the Social Security Act.
    (b) Definitions. (1) Deferral Action means the process of suspending 
payment with respect to a claim within the scope of paragraph (a) of 
this section, pending the receipt and analysis of further information 
relating to the allowability of the claim, under the procedures 
specified in this section.
    (2) Deferred claim means a claim within the scope of paragraph (a) 
of this section upon which a deferral action has been taken.
    (c) Procedures. (1) A claim or any portion of a claim for 
reimbursement for expenditures reported on the Quarterly Statement of 
Expenditures shall be deferred only when the Regional Administrator 
believes the claim or a specific portion of the claim is of questionable 
allowability. The deferral action will be taken within 60 days after 
receipt of a Quarterly Statement of Expenditures prepared in accordance 
with instructions issued by the Administration.
    (2) When deferral action is taken on a claim, the Regional 
Administrator or the Administrator will within 15 days send written 
notice to the State identifying the type and amount of the claim and the 
reason for deferral. In the written notice of the deferral action, the 
Regional Administrator or the Administrator will request the State to 
make available for inspection all documents and materials which the 
Regional office then believes necessary to determine the allowability of 
the claim.
    (3) Within 60 days of receipt of the notice of deferral action 
described in paragraph (c)(2) of this section the State shall make 
available to the Regional office, in readily reviewable form, all 
requested documents and materials, or when necessary, shall identify 
those documents and items of information which are not available. If the 
State requires additional time to make the documents and material 
available, it shall upon request be given an additional 60 days.
    (4) The Regional office will normally initiate the review within 30 
days of the date that materials become available for review.
    (5) If the Regional Administrator finds that the documents and 
materials are not in readily reviewable form or that supplemental 
information is required, he will promptly notify the State. The State 
will have 15 days from the date of notification to complete the action 
requested. If the Regional Commissioner or the Administrator finds that 
the documents necessary to determine the allowability of the claim are 
not made available within the allowed time limits, or that the documents 
are not made available in readily reviewable form, he shall promptly 
disallow the claim.
    (6) The Regional Administrator or the Administrator will have 90 
days after all documentation is available in readily reviewable form to 
determine the allowability of the deferred claim. If he is unable to 
complete the review within the time period the claim will be paid 
subject to a later determination of allowability.

[[Page 16]]

    (7) It is the responsibility of the State agency to establish the 
allowability of a deferred claim.
    (8) The Regional Office or the Administrator will notify the State 
in writing of the decision on the allowability of the deferred claim.
    (9) If a deferred claim is disallowed, the Regional Administrator or 
the Administrator shall advise the State of its right to reconsideration 
pursuant to Sec. 201.14.
    (10) A decision to pay a deferred claim shall not preclude a 
subsequent disallowance as a result of an audit exception or financial 
management review. If a subsequent disallowance should occur, the State, 
upon request shall be granted reconsideration pursuant to Sec. 201.14.

[41 FR 7104, Feb. 17, 1976, as amended at 42 FR 51583, Sept. 29, 1977; 
47 FR 7669, Feb. 22, 1982; 53 FR 36579, Sept. 21, 1988]



Sec. 201.66  Repayment of Federal funds by installments.

    (a) Basic Conditions. When a State has been reimbursed Federal funds 
for expenditures claimed under titles I, IV-A, X, XIV, XVI (AABD) which 
are later determined to be unallowable for Federal financial 
participation, the State may make repayment of such Federal funds in 
installments provided:
    (1) The amount of the repayment exceeds 2\1/2\ percent of the 
estimated annual State share for the program in which the unallowable 
expenditure occurred as set forth in paragraph (b) of this section; and
    (2) The State has notified the Regional Administrator in writing of 
its intent to make installment repayments. Such notice must be given 
prior to the time repayment of the total was otherwise due.
    (b) Criteria governing installment repayments. (1) The number of 
quarters over which the repayment of the total unallowable expenditures 
will be made will be determined by the percentage the total of such 
repayment is of the estimated State share of the annual expenditures for 
the specific program against which the recovery is made, as follows:

------------------------------------------------------------------------
                                                               Number of
   Total repayment amount as percentage of State share of      quarters
        annual expenditures for the specific program            to make
                                                               repayment
------------------------------------------------------------------------
2.5 pct. or less............................................           1
Greater than 2.5, but not greater than 5....................           2
Greater than 5, but not greater than 7.5....................           3
Greater than 7.5, but not greater than 10...................           4
Greater than 10, but not greater than 15....................           5
Greater than 15, but not greater than 20....................           6
Greater than 20 but not greater than 25.....................           7
Greater than 25, but not greater than 30....................           8
Greater than 30, but not greater than 47.5..................           9
Greater than 47.5, but not greater than 65..................          10
Greater than 65, but not greater than 82.5..................          11
Greater than 82.5, but not greater than 100.................          12
------------------------------------------------------------------------


The quarterly repayment amounts for each of the quarters in the 
repayment schedule shall not be less than the following percentages of 
the estimated State share of the annual expenditures for the program 
against which the recovery is made.

------------------------------------------------------------------------
                                                              Repayment
                                                             installment
                                                              may not be
             For each of the following quarters               less than
                                                                these
                                                             percentages
------------------------------------------------------------------------
1 to 4.....................................................          2.5
5 to 8.....................................................          5.0
9 to 12....................................................         17.5
------------------------------------------------------------------------


If the State chooses to repay amounts representing higher percentages 
during the early quarters, any corresponding reduction in required 
minimum percentages would be applied first to the last scheduled 
payment, then to the next to the last payment, and so forth as 
necessary.
    (2) The latest State Agency Statement of Financial Plan for AFDC 
submitted by the State shall be used to estimate the State's share of 
annual expenditures for the specific program in which the unallowable 
expenditures occurred. That estimated share shall be the sum of the 
State's share of the estimates (as shown on the latest State Agency 
Statement of Financial Plan for AFDC) for four quarters, beginning with 
the quarter in which the first installment is to be paid.
    (3) In the case of a program terminated by law or by the State, the 
actual State share--rather than the estimate--shall be used for 
determining whether the amount of the repayment exceeds 2\1/2\% of the 
annual State share for the program. The annual State

[[Page 17]]

share in these cases will be determined using payments computable for 
Federal funding as reported for the program by the State on its 
Quarterly Statement of Expenditures reports submitted for the last four 
quarters preceding the date on which the program was terminated.
    (4) Repayment shall be accomplished through adjustment in the 
quarterly grants over the period covered by the repayment schedule.
    (5) The amount of the repayment for purpose of paragraphs (a) and 
(b) of this section may not include any amount previously approved for 
installment repayment.
    (6) The repayment schedule may be extended beyond 12 quarterly 
installments if the total repayment amount exceeds 100% of the estimated 
State share of annual expenditures. In these circumstances, the criteria 
in paragraphs (b) (1) and (2) or (3) of this section, as appropriate, 
shall be followed for repayment of the amount equal to 100% of the 
annual State share. The remaining amount of the repayment shall be in 
quarterly amounts not less than those for the 9th through 12th quarters.
    (7) The amount of a retroactive claim to be paid a State will be 
offset against any amounts to be, or already being, repaid by the State 
in installments, under the same title of the Social Security Act. Under 
this provision the State may choose to:
    (i) Suspend payments until the retroactive claim due the State has, 
in fact, been offset; or
    (ii) Continue payments until the reduced amount of its debt 
(remaining after the offset), has been paid in full. This second option 
would result in a shorter payment period. A retroactive claim for the 
purpose of this regulation is a claim applicable to any period ending 12 
months or more prior to the beginning of the quarter in which the 
payment is to be made by the Administration.

[42 FR 28884, June 6, 1977, as amended at 47 FR 7669, Feb. 22, 1982; 52 
FR 273, Jan. 5, 1987; 53 FR 36579, Sept. 21, 1988]



Sec. 201.67  Treatment of uncashed or cancelled checks.

    (a) Purpose. This section provides the rules to ensure that States 
refund the Federal portion of uncashed or cancelled (voided) checks 
under titles I, IV-A, X, XIV, and XVI (AABD).
    (b) Definitions. As used in this section--Check means a check or 
warrant that the State or local agency uses to make a payment.
    Cancelled (voided) check means a check issued by the State agency or 
local agency which prior to its being cashed is cancelled (voided) by 
State or local agency action, thus preventing disbursement of funds.
    Uncashed check means a check issued by the State agency or local 
agency which has not been cashed by the payee.
    (c) Refund of Federal financial participation (FFP) for uncashed 
checks--(1) General provisions. If a check remains uncashed beyond a 
period of 180 days from the date it was issued, i.e., the date of the 
check, it will no longer be regarded as an amount expended because no 
funds have actually been disbursed. If the State agency has claimed and 
received FFP for the amount of the uncashed check, it must refund the 
amount of FFP received.
    (2) Report of refund. At the end of each calendar quarter, the State 
agency must identify those checks which remain uncashed beyond a period 
of 180 days after issuance. The State agency must report on the 
Quarterly Statement of Expenditures for that quarter all FFP that it 
received for uncashed checks. Once reported on the Quarterly Statement 
of Expenditures for a quarter, an uncashed check is not to be reported 
on a subsequent Quarterly Statement of Expenditures. If an uncashed 
check is cashed after the refund is made, the State agency may submit a 
new claim for FFP.
    (d) Refund of FFP for cancelled (voided) checks--(1) General 
provisions. If the State agency has claimed and received FFP for the 
amount of a cancelled (voided) check, it must refund the amount of FFP 
received.
    (2) Report of refund. At the end of each calendar quarter, the State 
agency must identify those checks which were cancelled (voided). The 
State

[[Page 18]]

agency must report on the Quarterly Statement of Expenditures for that 
quarter all FFP received by the State agency for these checks. Once 
reported on the Quarterly Statement of Expenditures for a quarter, a 
cancelled (voided) check is not to be reported on a subsequent Quarterly 
Statement of Expenditures.

[50 FR 37661, Sept. 17, 1985]



Sec. 201.70  Treatment of replacement checks.

    (a) Purpose. This section provides the rules to ensure States do not 
claim Federal financial participation (FFP) for replacement checks under 
titles I, VI-A, X, XIV XVI (AABD) except under the circumstances 
specified in paragraph (c) of this section.
    (b) Definitions. As used in this section--
    Check means a check or warrant that the State or local agency uses 
to make a payment.
    Replacement check means a check issued by the State or local agency 
to replace an earlier check.
    (c) Claiming of FFP for replacement checks. The State agency may not 
claim FFP for the amount of a replacement check unless:
    (1) It makes no claim for FFP for the earlier check;
    (2) The earlier check has been cancelled (voided) and FFP refunded, 
where claimed, pursuant to 45 CFR 201.67(d); or
    (3) The earlier check has been cashed and FFP has been refunded.
    The State agency shall report the amount of the refund of FFP for 
the earlier check on the Quarterly Statement of Expenditures for the 
quarter no later than the quarter in which the replacement check is 
issued.

[53 FR 24269, June 28, 1988]



PART 204--GENERAL ADMINISTRATION--STATE PLANS AND GRANT APPEALS--Table of Contents




Sec.
204.1  Submittal of State plans for Governor's review.
204.2  State plans--format.
204.3  Responsibilities of the State.
204.4  Grant appeals.

    Authority: 42 U.S.C. 602(a)(44) and 1302 and sections 1, 5, 6, and 7 
of Reorganization Plan No. 1 of 1953, 67 Stat. 631.



Sec. 204.1  Submittal of State plans for Governor's review.

    A State plan under title I, IV-A, IV-B, X, XIV, XVI(AABD) of the 
Social Security Act, section 101 of the Rehabilitation Act of 1973, or 
title I of the Mental Retardation Facilities and Community Mental Health 
Centers Construction Act, must be submitted to the State Governor for 
his review and comments, and the State plan must provide that the 
Governor will be given opportunity to review State plan amendments and 
long-range program planning projections or other periodic reports 
thereon. This requirement does not apply to periodic statistical or 
budget and other fiscal reports. Under this requirement, the Office of 
the Governor will be afforded a specified period in which to review the 
material. Any comments made will be transmitted to the Family Support 
Administration with the documents.

(Sec. 1102, 49 Stat. 647 (42 U.S.C. 1302))

[39 FR 34542, Sept. 26, 1974, as amended at 53 FR 36579, Sept. 21, 1988]



Sec. 204.2  State plans--format.

    State plans for Federally-assisted programs for which the Family 
Support Administration has responsibility must be submitted to the 
Administration in the format and containing the information prescribed 
by the Administration, and within time limits set in implementing 
instructions issued by the Administration. Such time limits will be 
adequate for proper preparation of plans and submittal in accordance 
with the requirements for State Governors' review (see Sec. 204.1 of 
this chapter).

(Sec. 1102, 49 Stat. 647, 42 U.S.C. 1302; sec. 7(b), 68 Stat. 658, 29 
U.S.C. 37(b); sec. 139, 84 Stat. 1323, 42 U.S.C. 2677(b))

[38 FR 16872, June 27, 1973, as amended at 53 FR 36579, Sept. 21, 1988]



Sec. 204.3  Responsibilities of the State.

    The State agency shall be responsible for assuring that the benefits 
and services available under titles IV-A, IV-D,

[[Page 19]]

and IV-F are furnished in an integrated manner.

[57 FR 30425, July 9, 1992]



Sec. 204.4  Grant appeals.

    (a) Scope. This section applies to certain determinations (as set 
forth in part 16, appendix A, section C of this title), made with 
respect to direct, discretionary project grants awarded by the Family 
Support Administration, and such other grants or grant programs as the 
Administrator, with the approval of the Secretary, may designate. The 
statutory authority for current grant programs to which this section 
applies appears in the appendix to this section. This section is also 
applicable to determinations with respect to grants which were made 
under authority which has expired or been repealed since the grants were 
made, even though such authority does not appear in the appendix.
    (b) Submission. (1) A grantee who has received notification, as 
described in Sec. 16.3 (b) and (c) of this title, of a determination 
described in part 16, appendix A, section C of this title, may request 
reconsideration by informing the Grants Appeals Officer as identified in 
the final adverse determination or otherwise designated by the 
Administrator, Family Support Administration, Washington, DC 20201 of 
the grantee's intent to contest the determination. The grantee's request 
for reconsideration must be postmarked no later than 30 days after the 
postmark date of the written notification of such determination, except 
when the Grant Appeals Officer grants an extension of time for good 
cause.
    (2) Although the request need not follow any prescribed form, it 
shall clearly identify the question or questions in dispute and contain 
a full statement of the grantee's position with respect to such question 
or questions, and the pertinent facts and reasons in support of such 
position. The grantee shall attach to his submission a copy of the 
agency notification specified in Sec. 16.3(b) of this title.
    (c) Action by the Administration on requests for reconsideration. 
(1) Upon receipt of such an application the Grant Appeals Officer will 
inform the grantee that:
    (i) His request is under review, and
    (ii) If no decision is received within 90 days of the postmark date 
of the grantee's request for reconsideration, the determination may be 
appealed to the Departmental Grant Appeals Board.
    (2) The Grant Appeals Officer will reconsider the determination 
appealed from, considering any material submitted by the grantee and any 
other material necessary.
    (3) If the response to the grantee is adverse to the grantee's 
position, the response will include notification of the grantee's right 
to appeal to the Departmental Grant Appeals Board.

                                Appendix

    This section is issued under sections 1, 5, 6, and 7 of 
Reorganization Plan No. 1 of 1953, 18 FR 2053, 67 Stat. 631 and is 
applicable to programs carried out under the following authorities:
    (1) Section 222(a) and (b) of the Social Security Amendments of 1972 
(Pub. L. 92-603).
    (2) Section 426 of the Social Security Act (42 U.S.C. 262).
    (3) Section 707 of the Social Security Act (42 U.S.C. 907).
    (4) Section 1110 of the Social Security Act (42 U.S.C. 1310).
    (5) Section 1115 of the Social Security Act (42 U.S.C. 1315).

(Secs. 1, 5, 6, 7 Reorganization Plan No. 1 of 1953, 67 Stat. 631)

[40 FR 51443, Nov. 5, 1975, as amended at 53 FR 36579, Sept. 21, 1988]



PART 205--GENERAL ADMINISTRATION--PUBLIC ASSISTANCE PROGRAMS--Table of Contents




Sec.
205.5  Plan amendments.
205.10  Hearings.
205.25  Eligibility of supplemental security income beneficiaries for 
          food stamps or surplus commodities.
205.30  Methods of administration.
205.32  Procedures for issuance of replacement checks.
205.35  Mechanized claims processing and information retrieval systems; 
          definitions.
205.36  State plan requirements.
205.37  Responsibilities of the Administration for Children and Families 
          (ACF).
205.38  Federal financial participation (FFP) for establishing a 
          statewide mechanized system.
205.44  [Reserved].

[[Page 20]]

205.45  Federal financial participation in relation to State emergency 
          welfare preparedness.
205.50  Safeguarding information for the financial assistance programs.
205.51  Income and eligibility verification requirements.
205.52  Furnishing of social security numbers.
205.55  Requirements for requesting and furnishing eligibility and 
          income information.
205.56  Requirements governing the use of income and eligibility 
          information.
205.57  Maintenance of a machine readable file; requests for income and 
          eligibility information.
205.58  Income and eligibility information; specific agreements required 
          between the State agency and the agency supplying the 
          information.
205.60  Reports and maintenance of records.
205.70  Availability of agency program manuals.
205.100  Single State agency.
205.101  Organization for administration.
205.120  Statewide operation.
205.130  State financial participation.
205.150  Cost allocation.
205.160  Equipment--Federal financial participation.
205.170  State standards for office space, equipment, and facilities.
205.190  Standard-setting authority for institutions.

    Authority: 42 U.S.C. 602, 603, 606, 607, 1302, 1306(a), and 1320b-7: 
42 U.S.C. 1973gg-5.



Sec. 205.5  Plan amendments.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act must provide that the plan 
will be amended whenever necessary to reflect new or revised Federal 
statutes or regulations, or material change in any phase of State law, 
organization, policy or State agency operation.
    (b) Federal financial participation. Except where otherwise 
provided, Federal financial participation is available in the additional 
expenditures resulting from an amended provision of the State plan as of 
the first day of the calendar quarter in which an approvable amendment 
is submitted or the date on which the amended provision becomes 
effective in the State, whichever is later.

[39 FR 34542, Dec. 26, 1974, as amended at 53 FR 36579, Sept. 21, 1988]



Sec. 205.10  Hearings.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI(AABD) of the Social Security Act shall provide for a system 
of hearings under which:
    (1) The single State agency responsible for the program shall be 
responsible for fulfillment of hearing provisions which shall provide 
for:
    (i) A hearing before the State agency, or
    (ii) An evidentiary hearing at the local level with a right of 
appeal to a State agency hearing. Where a State agency adopts a system 
of evidentiary hearings with an appeal to a State agency hearing, it 
may, in some political subdivisions, permit local evidentiary hearings, 
and in others, provide for a single hearing before the State agency. 
Under this requirement hearings shall meet the due process standards set 
forth in the U.S. Supreme Court decision in Goldberg v. Kelly, 397 U.S. 
254 (1970) and the standards set forth in this section.
    (2) Hearing procedures shall be issued and publicized by the State 
agency. Such procedures shall provide for a face-to-face hearing or, at 
State option, a hearing by telephone when the applicant or recipient 
also agrees. Under this provision, the State shall assure that the 
applicant or recipient is afforded all rights as specified in this 
section, whether the hearing is face-to-face or by telephone;
    (3) Every applicant or recipient shall be informed in writing at the 
time of application and at the time of any action affecting his claim:
    (i) Of his right to a hearing, as provided in paragraph (a)(5) of 
this section;
    (ii) Of the method by which he may obtain a hearing;
    (iii) That he may be represented by an authorized representative, 
such as legal counsel, relative, friend, or other spokesman, or he may 
represent himself.
    (4) In cases of intended action to discontinue, terminate, suspend 
or reduce assistance or to change the manner or form of payment to a 
protective, vendor, or two-party payment under Sec. 234.60:

[[Page 21]]

    (i) The State or local agency shall give timely and adequate notice, 
except as provided for in paragraphs (a)(4) (ii), (iii), or (iv) of this 
section. Under this requirement:
    (A) Timely means that the notice is mailed at least 10 days before 
the date of action, that is, the date upon which the action would become 
effective;
    (B) Adequate means a written notice that includes a statement of 
what action the agency intends to take, the reasons for the intended 
agency action, the specific regulations supporting such action, 
explanation of the individual's right to request an evidentiary hearing 
(if provided) and a State agency hearing, the circumstances under which 
assistance is continued if a hearing is requested, and if the agency 
action is upheld, that such assistance must be repaid under title IV-A, 
and must also be repaid under titles I, X, XIV or XVI (AABD) if the 
State plan provides for recovery of such payments.
    (ii) The agency may dispense with timely notice but shall send 
adequate notice not later than the date of action when:
    (A) The agency has factual information confirming the death of a 
recipient or of the AFDC payee when there is no relative available to 
serve as new payee;
    (B) The agency receives a clear written statement signed by a 
recipient that he no longer wishes assistance, or that gives information 
which requires termination or reduction of assistance, and the recipient 
has indicated, in writing, that he understands that this must be the 
consequence of supplying such information;
    (C) The recipient has been admitted or committed to an institution, 
and further payments to that individual do not qualify for Federal 
financial participation under the State plan;
    (D) The recipient has been placed in skilled nursing care, 
intermediate care or long-term hospitalization;
    (E) The claimant's whereabouts are unknown and agency mail directed 
to him has been returned by the post office indicating no known 
forwarding address. The claimant's check must, however, be made 
available to him if his whereabouts become known during the payment 
period covered by a returned check;
    (F) A recipient has been accepted for assistance in a new 
jurisdiction and that fact has been established by the jurisdiction 
previously providing assistance;
    (G) An AFDC child is removed from the home as a result of a judicial 
determination, or voluntarily placed in foster care by his legal 
guardian;
    (H) For AFDC, the agency takes action because of information the 
recipient furnished in a monthly report or because the recipient has 
failed to submit a complete or a timely monthly report without good 
cause. (See Sec. 233.37);
    (I) A special allowance granted for a specific period is terminated 
and the recipient has been informed in writing at the time of initiation 
that the allowance shall automatically terminate at the end of the 
specified period;
    (J) The agency has made a presumption of mismanagement as a result 
of a recipient's nonpayment of rent and provides for post hearings in 
such circumstances;
    (K) An individual's payment is suspended or reduced for failure to 
meet a payment after performance obligation as set forth at 
Sec. 233.101(b)(2)(iv) (B) or (C) of this chapter. In addition to the 
contents set forth in paragraph (a)(4)(i)(B) of this section, the 
adequate notice must advise the individual of the right to have 
assistance immediately reinstated retroactive to the date of action at 
the previous month's level pending the hearing decision if he or she 
makes a request for a hearing and reinstatement within 10 days after the 
date of the notice.
    (iii) When changes in either State or Federal law require automatic 
grant adjustments for classes of recipients, timely notice of such grant 
adjustments shall be given which shall be ``adequate'' if it includes a 
statement of the intended action, the reasons for such intended action, 
a statement of the specific change in law requiring such action and a 
statement of the circumstances under which a hearing may be obtained and 
assistance continued.
    (iv) When the agency obtains facts indicating that assistance should 
be discontinued, suspended, terminated, or reduced because of the 
probable

[[Page 22]]

fraud of the recipient, and, where possible, such facts have been 
verified through collateral sources, notice of such grant adjustment 
shall be timely if mailed at least five (5) days before action would 
become effective.
    (5) An opportunity for a hearing shall be granted to any applicant 
who requests a hearing because his or her claim for financial assistance 
(including a request for supplemental payments under Secs. 233.23 and 
233.27) is denied, or is not acted upon with reasonable promptness, and 
to any recipient who is aggrieved by any agency action resulting in 
suspension, reduction, discontinuance, or termination of assistance, or 
determination that a protective, vendor, or two-party payment should be 
made or continued. A hearing need not be granted when either State or 
Federal law requires automatic grant adjustments for classes of 
recipients unless the reason for an individual appeal is incorrect grant 
computation.
    (i) A request for a hearing is defined as a clear expression by the 
claimant (or his authorized representative acting for him), to the 
effect that he wants the opportunity to present his case to higher 
authority. The State may require that such request be in written form in 
order to be effective;
    (ii) The freedom to make such a request shall not be limited or 
interfered with in any way. The agency may assist the claimant to submit 
and process his request;
    (iii) The claimant shall be provided reasonable time, not to exceed 
90 days, in which to appeal an agency action;
    (iv) Agencies may respond to a series of individual requests for 
hearing by conducting a single group hearing. Agencies may consolidate 
only cases in which the sole issue involved is one of State or Federal 
law or policy or changes in State or Federal law. In all group hearings, 
the policies governing hearings must be followed. Thus, each individual 
claimant shall be permitted to present his own case or be represented by 
his authorized representative;
    (v) The agency may deny or dismiss a request for a hearing where it 
has been withdrawn by the claimant in writing, where the sole issue is 
one of State or Federal law requiring automatic grant adjustments for 
classes of recipients, where a decision has been rendered after a WIN 
hearing before the manpower agency that a participant has, without good 
cause, refused to accept employment or participate in the WIN program, 
or has failed to request such a hearing after notice of intended action 
for such refusal, or where it is abandoned. Abandonment may be deemed to 
have occurred if the claimant, without good cause therefor, fails to 
appear by himself or by authorized representative at the hearing 
scheduled for such claimant.
    (6) If the recipient requests a hearing within the timely notice 
period:
    (i) Assistance shall not be suspended, reduced, discontinued or 
terminated (but is subject to recovery by the agency if its action is 
sustained), until a decision is rendered after a hearing, unless:
    (A) A determination is made at the hearing that the sole issue is 
one of State or Federal law or policy, or change in State or Federal law 
and not one of incorrect grant computation;
    (B) A change affecting the recipient's grant occurs while the 
hearing decision is pending and the recipient fails to request a hearing 
after notice of the change;
    (C) The recipient specifically requests that he or she not receive 
continued assistance pending a hearing decision; or
    (D) The agency has made a presumption of mismanagement as a result 
of a recipient's nonpayment of rent and provides for the opportunity for 
a hearing after the manner or form of payment has been changed for such 
cases in accordance with Sec. 234.60 (a)(2) and (a)(11).
    (ii) The agency shall promptly inform the claimant in writing if 
assistance is to be discontinued pending the hearing decision; and
    (iii) In any case where the decision of an evidentiary hearing is 
adverse to the claimant, he shall be informed of and afforded the right 
to make a written request, within 15 days of the mailing of the 
notification of such adverse decision, for a State agency hearing and of 
his right to request a de novo hearing. Unless a de novo hearing is 
specifically requested by the appellant,

[[Page 23]]

the State agency hearing may consist of a review by the State agency 
hearing officer of the record of the evidentiary hearing to determine 
whether the decision of the evidentiary hearing officer was supported by 
substantial evidence in the record. Assistance shall not be continued 
after an adverse decision to the claimant at the evidentiary hearing.
    (7) A State may provide that a hearing request made after the date 
of action (but during a period not in excess of 10 days following such 
date) shall result in reinstatement of assistance to be continued until 
the hearing decision, unless (i) the recipient specifically requests 
that continued assistance not be paid pending the hearing decision; or 
(ii) at the hearing it is determined that the sole issue is one of State 
or Federal law or policy. In any case where action was taken without 
timely notice, if the recipient requests a hearing within 10 days of the 
mailing of the notice of the action, and the agency determines that the 
action resulted from other than the application of State or Federal law 
or policy or a change in State or Federal law, assistance shall be 
reinstated and continued until a decision is rendered after the hearing, 
unless the recipient specifically requests that continued assistance not 
be paid pending the hearing decision.
    (8) The hearing shall be conducted at a reasonable time, date, and 
place, and adequate preliminary written notice shall be given.
    (9) Hearings shall be conducted by an impartial official (officials) 
or designee of the agency. Under this requirement, the hearing official 
(officials) or designee shall not have been directly involved in the 
initial determination of the action in question.
    (10) When the hearing involves medical issues such as those 
concerning a diagnosis, an examining physician's report, or a medical 
review team's decision, a medical assessment other than that of the 
person or persons involved in making the original decision shall be 
obtained at agency expense and made part of the record if the hearing 
officer considers it necessary.
    (11) In respect to title IV-C, when the appeal has been taken on the 
basis of a disputed WIN registration requirement, exemption 
determination or finding of failure to appear for an appraisal 
interview, a representative of the local WIN manpower agency shall, 
where appropriate, participate in the conduct of the hearing.
    (12) The hearing shall include consideration of:
    (i) An agency action, or failure to act with reasonable promptness, 
on a claim for financial assistance, which includes undue delay in 
reaching a decision on eligibility or in making a payment, refusal to 
consider a request for or undue delay in making an adjustment in 
payment, and discontinuance, termination or reduction of such 
assistance;
    (ii) Agency decision regarding:
    (A) Eligibility for financial assistance in both initial and 
subsequent determinations,
    (B) Amount of financial assistance or change in payments,
    (C) The manner or form of payment, including restricted or 
protective payments, even though no Federal financial participation is 
claimed.
    (13) The claimant, or his representative, shall have adequate 
opportunity:
    (i) To examine the contents of his case file and all documents and 
records to be used by the agency at the hearing at a reasonable time 
before the date of the hearing as well as during the hearing;
    (ii) At his option, to present his case himself or with the aid of 
an authorized representative;
    (iii) To bring witnesses;
    (iv) To establish all pertinent facts and circumstances;
    (v) To advance any arguments without undue interference;
    (vi) To question or refute any testimony or evidence, including 
opportunity to confront and cross-examine adverse witnesses.
    (14) Recommendations or decisions of the hearing officer or panel 
shall be based exclusively on evidence and other material introduced at 
the hearing. The transcript or recording of testimony and exhibits, or 
an official report containing the substance of what transpired at the 
hearing, together with all papers and requests filed in the proceeding, 
and the recommendation or decision of the hearing officer or

[[Page 24]]

panel shall constitute the exclusive record and shall be available to 
the claimant at a place accessible to him or his representative at a 
reasonable time.
    (15) Decisions by the hearing authority shall:
    (i) In the event of an evidentiary hearing, consist of a memorandum 
decision summarizing the facts and identifying the regulations 
supporting the decision;
    (ii) In the event of a State agency de novo hearing, specify the 
reasons for the decision and identify the supporting evidence and 
regulations.

Under this requirement no persons who participated in the local decision 
being appealed shall participate in a final administrative decision on 
such a case.
    (16) Prompt, definitive, and final administrative action shall be 
taken within 90 days from the date of the request for a hearing.
    (17) The claimant shall be notified of the decision in writing and, 
to the extent it is available to him, of his right to appeal to State 
agency hearing or judicial review.
    (18) When the hearing decision is favorable to the claimant, or when 
the agency decides in favor of the claimant prior to the hearing, the 
agency shall promptly make corrective payments retroactively to the date 
the incorrect action was taken.
    (19) All State agency hearing decisions shall be accessible to the 
public (subject to provisions of safeguarding public assistance 
information).
    (b) Federal financial participation. Federal financial participation 
is available for the following items:
    (1) Payments of assistance continued pending a hearing decision.
    (2) Payments of assistance made to carry out hearing decisions, or 
to take corrective action after an appeal but prior to hearing, or to 
extend the benefit of a hearing decision or court order to others in the 
same situation as those directly affected by the decision or order. Such 
payments may be retroactive in accordance with applicable Federal 
policies on corrective payments.
    (3) Payments of assistance within the scope of Federally aided 
public assistance programs made in accordance with a court order.
    (4) Administrative costs incurred by the agency for:
    (i) Providing transportation for the claimant, his representative 
and witnesses to and from the place of the hearing;
    (ii) Meeting other expenditures incurred by the claimant in 
connection with the hearing;
    (iii) Carrying out the hearing procedures, including expenses of 
obtaining an additional medical assessment.

[38 FR 22007, Aug. 15, 1973, as amended at 44 FR 17941, Mar. 23, 1979; 
45 FR 20480, Mar. 28, 1980; 47 FR 5673, Feb. 5, 1982; 47 FR 47827, Oct. 
28, 1982; 51 FR 9202, Mar. 18, 1986; 53 FR 36579, Sept. 21, 1988; 57 FR 
30425, July 9, 1992]



Sec. 205.25  Eligibility of supplemental security income beneficiaries for food stamps or surplus commodities.

    (a) In respect to any individual who is receiving supplemental 
security income benefits under title XVI of the Social Security Act, the 
State agency shall make the following determinations:
    (1) The amount of assistance such individual would have been 
entitled to receive for any month under the appropriate State plan in 
effect for December 1973, under title I, X, XIV, or XVI, and for such 
purpose such individual shall be deemed to be aged, blind, or 
permanently and totally disabled, as the case may be, under the 
provisions of such plan.
    (2) The bonus value of the food stamps (according to the Food Stamp 
Schedule effective for July 1973) such individual would have been 
entitled to receive for such month, assuming the individual were 
receiving the assistance determined under paragraph (a)(1) of this 
section.
    (3) The amount of benefits such individual is receiving for such 
month under Title XVI, plus supplementary payments as defined in section 
1616(a) of the Social Security Act and payments pursuant to section 212 
of Pub. L. 93-66, if any.
    (b) If the amount determined in paragraph (a)(1) of this section 
plus the amount determined in paragraph (a)(2)

[[Page 25]]

of this section exceeds the amount determined in paragraph (a)(3) of 
this section, such individual shall be eligible to participate in the 
food stamp program established by the Food Stamp Act of 1964 or surplus 
commodities distribution programs established by the Secretary of 
Agriculture pursuant to section 416 of the Agricultural Act of 1949, 
section 32 of Pub. L. 74-320, or any other law, in accordance with 
regulations and procedures established by the Secretary of Agriculture.
    (c) For purposes of paragraph (a)(3) of this section, the State 
agency shall obtain the amount of the title XVI payment and the amount 
of any Federally administered State supplementary payment from the 
Social Security Administration.
    (d) The State agency shall redetermine the eligibility of 
individuals to participate in the food stamp or surplus commodities 
distribution programs hereunder at such times as the Secretary of 
Agriculture requires re-certification for such stamps or commodities.

[38 FR 34324, Dec. 13, 1973]



Sec. 205.30  Methods of administration.

    State plan requirements: A State plan for financial assistance under 
title I, IV-A, X, XIV or XVI (AABD) of the Social Security Act must 
provide for such methods of administration as are found by the Secretary 
to be necessary for the proper and efficient operation of the plan.

[45 FR 56684, Aug. 25, 1980]



Sec. 205.32  Procedures for issuance of replacement checks.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act shall provide that (1) procedures are in effect to 
ensure that no undue delays occur in issuing a replacement check; and 
(2) when applicable, prior to the issuance of a replacement check, the 
State agency must:
    (i) Issue a stop payment order on the original AFDC check through 
appropriate banking procedures; and
    (ii) Require recipients to execute a signed statement attesting to 
the nonreceipt, loss, or theft of the original FDC check. However, if 
obtaining such a statement from the recipient will cause the issuance of 
the check to be unduly delayed, the statement may be obtained within a 
reasonable time after the check is issued.
    (b) State option. A State plan may provide that as a condition for 
issuance of a replacement check, a recipient is required to report a 
lost or stolen AFDC check to the police or other appropriate 
authorities. Under this provision, the State agency may require that the 
recipient verify that a report was made to the police or other 
appropriate authorities and, if so, the agency will establish procedures 
for such verification.

[51 FR 9203, Mar. 18, 1986]



Sec. 205.35  Mechanized claims processing and information retrieval systems; definitions.

    Section 205.35 through 205.38 contain State plan requirements for an 
automated statewide management information system, conditions for FFP 
and responsibilities of the Administration for Children and Families 
(ACF). For purposes of Secs. 205.35 through 205.38:
    (a) A mechanized claims processing and information retrieval system, 
hereafter referred to as an automated application processing and 
information retrieval system (APIRS), or the system, means a system of 
software and hardware used:
    (1) To introduce, control and account for data items in providing 
public assistance under the Aid to Families with Dependent Children 
(AFDC) State plan; and
    (2) To retrieve and produce utilization and management information 
about such aid and services as required by the single State agency and 
Federal government for program administration and audit purposes.
    (b) Planning means:
    (1) The preliminary project activity to determine the requirements 
necessitating the project, the activities to be undertaken, and the 
resources required to complete the project;
    (2) The preparation of an APD;
    (3) The preparation of a detailed project plan describing when and 
how the computer system will be designed and developed; and
    (4) The preparation of a detailed implementation plan describing 
specific

[[Page 26]]

training, testing, and conversion plans to install the computer system.
    (c) The following terms are defined at 45 CFR part 95, subpart F, 
Sec. 95.605:

    Annually updated advance automatic data processing planning 
document;
    Design or System Design;
    Development;
    Initial advance automatic data processing planning document;
    Installation;
    Operation; and
    Software.

[51 FR 45330, Dec. 18, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
55 FR 4379, Feb. 7, 1990; 59 FR 30708, June 15, 1994]



Sec. 205.36  State plan requirements.

    A State plan under title IV-A of the Social Security Act shall, at 
the option of the State, provide for the establishment and operation, in 
accordance with an (initial and annually updated) advance automated data 
processing planning document approved by SSA, of an automated statewide 
management information system designed effectively and efficiently, to 
assist management in the administration of an approved AFDC State plan. 
The submission process to amend the State plan is explained in 
Sec. 201.3. This system must be designed:
    (a) To automatically control and account for--
    (1) All the factors in the total eligibility determination process 
under the plan for aid, including but not limited to:
    (i) Identifiable correlation factors (such as social security 
numbers, names, dates of birth, home addresses, and mailing addresses 
(including postal ZIP codes), of all applicants and recipients of AFDC 
and the relative with whom any child who is an applicant or recipient is 
living).
    (A) To assure sufficient compatibility among the systems of 
different jurisdictions, and
    (B) To permit periodic screening to determine whether an individual 
is or has been receiving benefits from more than one jurisdiction.
    (ii) Checking records of applicants and recipients of such aid on a 
periodic basis with other agencies, both intra and inter-state, for 
eligibility determination, verification and payment as required by other 
provisions of the Social Security Act.
    (2) The costs, quality, and delivery of funds and services furnished 
to applicants for and recipients of such aid.
    (b) To notify the appropriate State officials of child support, food 
stamp, social service, and medical assistance programs approved under 
title XIX whenever a case/recipient for aid and services becomes 
ineligible or the amount of aid or services is changed.
    (c) To electronically refer and exchange information with programs 
under titles IV-D and IV-F for purposes of assuring that benefits and 
services are provided in an integrated manner.
    (d) To provide for security against unauthorized access to, or use 
of, the data in the system.

[51 FR 13006, Apr. 17, 1986, as amended at 57 FR 47002, Oct. 14, 1992]



Sec. 205.37  Responsibilities of the Administration for Children and Families (ACF).

    (a) ACF shall not approve the initial and annually updated advance 
automatic data processing planning document unless the document, when 
implemented, will carry out the requirements of the law and the 
objectives of title IV-A (AFDC) Automated Application Processing and 
Information Retrieval System Guide. The initial advance automatic data 
processing planning document must include:
    (1) A requirements analysis, including consideration of the program 
mission, functions, organization, services, constraints and current 
support relating to such system;
    (2) A description of the proposed statewide management system, 
including the description of information flows, input data formats, 
output reports and uses;
    (3) The security and interface requirements to be employed in such 
statewide management system;
    (4) A description of the projected resource requirements including 
staff and other needs; and the resources available or expected to be 
available to meet these requirements;
    (5) A cost benefit analysis of alternative systems designs, data 
processing services and equipment in terms of qualitative and 
quantitative measures.

[[Page 27]]

The alternative systems considered should include the advantages of the 
proposed system over the alternatives and should indicate the period of 
time the system will be operated to justify the funds invested. ACF 
certified systems that are already in place in other States must be 
included in the alternatives to be considered and evaluated;
    (6) A plan for distribution of costs, containing the basis for 
rates, both direct and indirect, to be in effect under such a statewide 
management system;
    (7) An implementation plan with charts of development events, 
testing description, proposed acceptance criteria, and backup and 
fallback procedures to handle possible failure of a system; and
    (8) Evidence that the State's system will be compatible with those 
of the FSA to facilitate the exchange of data between the State and 
Federal system.
    (b) ACF shall on a continuing basis, review, assess, and inspect the 
planning, design, and operation of, statewide management information 
systems, with a view to determining whether, and to what extent, these 
systems meet and continue to meet the requirements under these 
regulations.
    (c) If ACF finds that any statewide management information system 
referred to in Sec. 205.38 fails to comply substantially with criteria, 
requirements, and other undertakings prescribed by the approved advance 
automatic data processing planning document, approval of such document 
shall be suspended. The State will be given written notice of the 
suspension. The notice of suspension will state the reason for the 
suspension, whether the suspended system complies with the criteria for 
50 percent FFP under 45 CFR part 95, the actions required for future 
Federal funding, and the effective date of the suspension. The 
suspension shall be effective as of the date that the system failed to 
comply substantially with the approved APD. The suspension shall remain 
in effect until ACF makes a determination that such system complies with 
prescribed criteria, requirements, and other undertakings for future 
Federal funding. Should a State cease development of their approved 
system, either by voluntary withdrawal or as a result of Federal 
suspension, all Federal incentive funds invested to date that exceed the 
normal administrative FFP rate (50 percent) will be subject to 
recoupment.
    (d) ACF shall provide technical assistance to States as is deemed 
necessary to assist States to plan, design, develop, or install and 
provide for the security of the management information systems.
    (e) Approvals of the systems by ACF under the provisions of this 
section will be undertaken only as a result of State applications for 
increased matching. The requirements of 45 CFR part 95, subpart E and 
subpart F apply.

[51 FR 13006, Apr. 17, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
55 FR 4379, Feb. 7, 1990; 56 FR 1493, Jan. 15, 1991; 59 FR 30709, June 
15, 1994]



Sec. 205.38  Federal financial participation (FFP) for establishing a statewide mechanized system.

    (a) Effective July 1, 1981 through March 31, 1994, FFP is available 
at 90 percent of expenditures incurred for planning, design, development 
or installation of a statewide automated application processing and 
information retrieval system which are consistent with an approved ADP. 
(Beginning April 1, 1994 the match rate available for development of 
title IV-A automated systems is 50 percent.) The 90 percent FFP includes 
the purchase or rental of computer equipment and software directly 
required for and used in the operation of this system.
    (b) ACF will approve the system provided the following conditions 
are met--
    (1) ACF determines that the system is likely to provide more 
efficient, economical, and effective administration of the AFDC program.
    (2) The system is compatible with the claims processing and 
information retrieval systems used in the administration of State plans 
approved under title XIX, and State programs where there is FFP under 
title XX.
    (3) The system meets the requirements referred to in Sec. 205.36.
    (4) The system meets criteria established in the title IV-A (AFDC) 
Automated Application Processing and Information Retrieval System Guide

[[Page 28]]

issued by ACF and which provides specific standard requirements for 
major functions, such as automated eligibility determination, grant 
computation, verification, referral, management control, compability, 
and data security.
    (5) The State agency certifies that--
    (i) The State will have all ownership rights in software or 
modifications thereof and associated documentation designed or developed 
with 90 percent FFP under this section, except that the Department of 
Health and Human Services 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;
    (ii) Methods and procedures for properly charging the cost of all 
systems whether acquired from public or private sources shall be in 
accordance with Federal regulations in part 74 of this title and the 
applicable ACF title IV-A (AFDC) Automated Application Processing and 
Information Retrieval System Guide;
    (iii) The complete system planned, designed, developed, installed, 
and hardware acquired, with FFP under these regulations will be used for 
a period of time which is consistent with the advance planning document 
as approved, or which ACF determines is sufficient to justify the 
Federal funds invested;
    (iv) Information in the system will be safeguarded in accordance 
with applicable Federal law; and
    (v) Access to the system in all of its aspects, including design, 
development, and operation, including work performed by any source, and 
including cost records of contractors and subcontractors, shall be made 
available to the Federal Government by the State at intervals deemed 
necessary by ACF to determine whether the conditions for approval are 
being met and to determine its efficiency, economy and effectiveness.
    (c) If ACF suspends approval, as described in Sec. 205.37, of the 
advance automated data processing planning document and/or system, FFP 
at the higher matching rate shall not be allowed for any costs incurred, 
until such time as the conditions for approval are met. Should the State 
fail to correct the deficiencies which led to the suspension within 90 
days of the date of notification of suspension or within a longer period 
of time agreed to by both the State and ACF, all Federal incentive funds 
invested to date that exceed the normal administrative FFP rate (50 
percent) will be disallowed.
    (d) Should a State voluntarily withdraw its approved APD and cease 
development of the approved system, all Federal incentive funds invested 
to date that exceed the normal administrative FFP rate (50 percent) will 
be disallowed.
    (e) Once a State is certified as having met the requirements 
referred to in Sec. 205.36 incentive funding will not be allowable for 
enhancements or other modifications unless these modifications are 
authorized by the Administation for Children and Families as a result of 
Federal legislative or regulatory change.

[51 FR 13007, Apr. 17, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
59 FR 30709, June 15, 1994]



Sec. 205.44  [Reserved]



Sec. 205.45  Federal financial participation in relation to State emergency welfare preparedness.

    (a) Under title IV-A, Federal financial participation is available 
at the rate of 50 percent in expenditures for development and planning 
activities for emergency welfare preparedness. Such activities must 
relate to emergency welfare situations resulting from natural disasters, 
civil disorders, and enemy caused disasters, as prescribed in 
``Guidelines for the Preparation of State Emergency Welfare Services 
Plan'' issued by Social and Rehabilitation Service, DHHS publication No. 
(SRS) 72-23004. These activities include:
    (1) Safekeeping essential documents and records;
    (2) Planning and developing emergency operating capability for 
providing food, lodging, clothing, and welfare registration and inquiry;
    (3) Assuring that qualified individuals are responsible for the 
planning and operation of each welfare function

[[Page 29]]

essential under emergency conditions for care and services for public 
assistance recipients and potential recipients;
    (4) Coordinating with other government and voluntary welfare 
agencies, and welfare-related business and professional organizations 
and associations, in developing emergency operating plans and attaining 
operational readiness;
    (5) Preparing and maintaining data on kinds, numbers, and locations 
of essential welfare resources, including manpower;
    (6) Developing ability to assess emergency welfare resources and 
determining requirements necessary to care for public assistance cases 
in the event of disaster or attack;
    (7) Preparing plans for claiming and distributing the above 
resources;
    (8) Developing mutual aid agreements at State and local levels with 
neighboring welfare organizations;
    (9) Preparing and distributing written emergency operations plans 
for public assistance agencies and operating units;
    (10) Participating in preparedness exercises for the purpose of 
testing plans and determining the role of public assistance programs in 
relation to the overall preparedness program; and
    (11) Travel incidental to any of the above activities.
    (b) Federal financial participation is available at 50 percent under 
title IV-A for providing training in emergency welfare preparedness for 
all staff and for volunteers.
    (c) In Guam, Puerto Rico, and the Virgin Islands, Federal financial 
participation is available at the rate of 75 percent in expenditures for 
emergency welfare preparedness under titles I, X, XIV, XVI (AABD) of the 
Social Security Act.
    (d) The cost of these activities must be allocated to all programs 
benefited in accordance with part 74, subtitle A of title 45 of the Code 
of Federal Regulations.

[41 FR 23387, June 10, 1976, as amended at 51 FR 9203, Mar. 18, 1986]



Sec. 205.50  Safeguarding information for the financial assistance programs.

    (a) State plan requirements. A State plan for financial assistance 
under title IV-A of the Social Security Act, must provide that:
    (1) Pursuant to State statute which imposes legal sanctions:
    (i) The use or disclosure of information concerning applicants and 
recipients will be limited to purposes directly connected with:
    (A) The administration of the plan of the State approved under title 
IV-A, the plan or program of the State under title IV-B, IV-D, IV-E, or 
IV-F or under title I, X, XIV, XVI(AABD), XIX, XX, or the Supplemental 
Security Income (SSI) program established by title XVI. Such purposes 
include establishing eligibility, determining the amount of assistance, 
and providing services for applicants and recipients.
    (B) Any investigation, prosecution, or criminal or civil proceeding 
conducted in connection with the administration of any such plans or 
programs.
    (C) The administration of any other Federal or federally assisted 
program which provides assistance, in cash or in kind, or services, 
directly to individuals on the basis of need.
    (D) The verification to the Employment Security Agency, or other 
certifying agency that an individual has been an AFDC recipient for at 
least 90 days or is a WIN or WIN Demonstration participant pursuant to 
Pub. L. 97-34, the Economic Recovery Tax Act of 1981.
    (E) Any audit or similar activity, e.g., review of expenditure 
reports or financial review, conducted in connection with the 
administration of any such plan or program by any governmental entity 
which is authorized by law to conduct such audit or activity.
    (F) The administration of a State unemployment compensation program.
    (G) The reporting to the appropriate agency or official of 
information on known or suspected instances of physical or mental 
injury, sexual abuse or exploitation, or negligent treatment or 
maltreatment of a child receiving aid under circumstances which indicate 
that the child's health or welfare is threatened.

[[Page 30]]

    (ii) The State agency has authority to implement and enforce the 
provisions for safeguarding information about applicants and recipients:
    (iii) Disclosure of any information that identifies by name or 
address any applicant or recipient to any Federal, State, or local 
committee or legislative body other than in connection with any activity 
under paragraph (a)(1)(i)(E) of this section is prohibited.
    (iv) Publication of lists or names of applicants and recipients will 
be prohibited. Exception. In respect to a State plan for financial 
assistance under title I, IVA, X, XIV, or XVI (AABD) of the Social 
Security Act, an exception to this restriction may be made by reason of 
the enactment or enforcement of State legislation, prescribing any 
conditions under which public access may be had to records of the 
disbursement of funds or payments under such titles within the State, if 
such legislation prohibits the use of any list or names obtained through 
such access to such records for commercial or political purposes.
    (v) The State or local agency responsible for the administration of 
the State plan has authority to disclose the current address of a 
recipient to a State or local law enforcement officer at his or her 
request. Such information is disclosed only to law enforcement officers 
who provide the name and Social Security number of the recipient and 
satisfactorily demonstrate that:
    (A) The recipient is a fugitive felon (as defined by the State);
    (B) The location or apprehension of such felon is within the law 
officer's official duties; and
    (C) The request is made in the proper exercise of those duties.
    (2) The agency will have clearly defined criteria which govern the 
types of information that are safeguarded and the conditions under which 
such information may be released or used. Under this requirement:
    (i) Types of information to be safeguarded include but are not 
limited to:
    (A) The names and addresses of applicants and recipients and amounts 
of assistance provided (unless excepted under paragraph (a)(1)(iv) of 
this section);
    (B) Information related to the social and economic conditions or 
circumstances of a particular individual including information obtained 
from any agency pursuant to Sec. 205.55; information obtained from the 
Internal Revenue Service (IRS) and the Social Security Administration 
(SSA) must be safeguarded in accordance with procedures set forth by 
those agencies;
    (C) Agency evaluation of information about a particular individual;
    (D) Medical data, including diagnosis and past history of disease or 
disability, concerning a particular individual.
    (ii) The release or use of information concerning individuals 
applying for or receiving financial assistance is restricted to persons 
or agency representatives who are subject to standards of 
confidentiality which are comparable to those of the agency 
administering the financial assistance programs.
    (iii) Except in the case of information requested pursuant to 
Secs. 205.55 and 205.56, or in the case of an emergency situation when 
the individual's prior consent for the release of information cannot be 
obtained, the family or individual is informed whenever possible of a 
request for information from an outside source, and permission is 
obtained to meet the request. In an emergency situation when the 
individual's consent for the release of information cannot be obtained, 
the individual will be notified immediately.
    (iv) In the event of the issuance of a subpoena for the case record 
or for any agency representative to testify concerning an applicant or 
recipient, the court's attention is called, through proper channels to 
the statutory provisions and the policies or rules and regulations 
against disclosure of information.
    (v) The same policies are applied to requests for information from a 
governmental authority, the courts, or a law enforcement officer (except 
as provided for under paragraph (a)(1)(v) with respect to fugitive 
felons) as from any other outside source.
    (3)(i) The agency will publicize provisions governing the 
confidential nature of information about applicants and recipients, 
including the legal sanctions imposed for improper disclosure and

[[Page 31]]

use, and will make these provisions available to applicants and 
recipients and to other persons and agencies to whom information is 
disclosed.
    (ii) All information obtained pursuant to the income and eligibility 
verification requirements at Secs. 205.55 and 205.56 will be stored and 
processed so that no unauthorized personnel can acquire or retrieve the 
information by any means.
    (iii) All persons with access to information obtained pursuant to 
the income and eligibility verification requirements under Secs. 205.55 
and 205.56 will be advised of the circumstances under which access is 
permitted and the sanctions imposed for illegal use or disclosure of the 
information.
    (4) All materials sent or distributed to applicants, recipients, or 
medical vendors, including material enclosed in envelopes containing 
checks, will be limited to those which are directly related to the 
administration of the program and will not have political implications 
except to the extent required to implement the National Voter 
Registration Act of 1993 (NVRA), Pub. L. 103-31. Under this requirement:
    (i) Specifically excluded from mailing or distribution are materials 
such as ``holiday'' greetings, general public announcements, alien 
registration notices, and partisan voting information.
    (ii) Not prohibited from such mailing or distribution are materials 
in the immediate interest of the health and welfare of applicants and 
recipients, such as announcements of free medical examinations, 
availability of surplus food, and consumer protection information;
    (iii) Only the names of persons directly connected with the 
administration of the program are contained in material sent or 
distributed to applicants, recipients, and vendors, and such persons are 
identified only in their official capacity with the State or local 
agency.
    (iv) Under NVRA, the agency must distribute voter information and 
registration materials as specified in NVRA.
    (b) Voluntary voter registration activities. For States that are 
exempt from the requirements of NVRA, voter registration may be a 
voluntary activity so long as the provisions of section 7(a)(5) of NVRA 
are observed.
    (c) State plan requirements for programs of financial assistance in 
Puerto Rico, the Virgin Islands, and Guam. A State plan under title I, 
X, XIV, or XVI (AABD) of the Social Security Act must meet all the 
requirements of paragraph (a) of this section, with the exception of 
paragraphs (a)(1)(i) (D) and (E), of this section, and also provide for 
disclosure of information concerning applicants and recipients for use 
by public officials who require such information in connection with 
their official duties. Under this requirement, such information shall be 
available only to public officials who certify in writing that:
    (1) They are public officials as defined by State or Federal law of 
general applicability; and
    (2) The information to be disclosed and used is required in 
connection with their official duties.

[45 FR 56684, Aug. 25, 1980, as amended at 47 FR 46506, Oct. 19, 1982; 
49 FR 35599, Sept. 10, 1984; 51 FR 7214, Feb. 28, 1986; 51 FR 9203, Mar. 
18, 1986; 54 FR 42243, Oct. 13, 1989; 57 FR 30157, July 8, 1992; 58 FR 
49220, Sept. 22, 1993; 59 FR 26142, May 19, 1994; 61 FR 58143, Nov. 13, 
1996]



Sec. 205.51  Income and eligibility verification requirements.

    (a) A State plan under title I, IV-A, X, XIV or XVI (AABD) of the 
Social Security Act must provide that there be an Income and Eligibility 
Verification System in the State. Income and Eligibility Verification 
System (IEVS) means a system through which the State agency:
    (1) Co-ordinates data exchanges with other Federally-assisted 
benefit programs covered by section 1137(b) of the Act;
    (2) Requests and uses income and benefit information as specified in 
section 1137(a)(2) of the Act and Secs. 205.55 and 205.56; and
    (3) Adheres to standardized formats and procedures in exchanging 
information with the other programs and agencies and in providing such 
information as may be useful to assist Federal, State and local agencies 
in the administration of the child support program and the Social 
Security Administration in the administration of the title II and title 
XVI (SSI) programs. The

[[Page 32]]

State agency (UC) information from the State Wage Information Collection 
Agency, described in paragraph (b) of this section; from the agency 
administering the State's unemployment compensation program (UC) under 
section 3304 of the Internal Revenue Code; from agencies in other States 
cited in Sec. 205.55(a)(5), as set forth by the Secretary; from SSA, as 
set forth by the Commissioner of Social Security; and from IRS, as set 
forth by the Commissioner of Internal Revenue.
    (b) A State plan under title I, IV-A, X, XIV or XVI (AABD) of the 
Social Security Act must provide that, as part of its Income and 
Eligibility Verification System, there be a State Wage Information 
Collection Agency in the State. State Wage Information Collection Agency 
(SWICA) means the State agency receiving quarterly wage reports from 
employers in the State (which may be the agency administering the 
State's unemployment compensation program), or an alternative system 
which has been determined by the Secretary of Labor, in consultation 
with the Secretary of Agriculture and the Secretary of Health and Human 
Services, to be as effective and timely in providing employment related 
income and eligibility information.
    (c) Wage information maintained by a SWICA which receives quarterly 
wage reports from employers but does not use these reports for 
computation of employment compensation shall:
    (1) Contain the social security number, first and last name and 
middle initial, wages earned for the period of the report, and an 
identifier of the employer (such as name and address) for each employee;
    (2) Include all employers covered by the State's UC law and require 
such employers to report wage information (as specified above) for each 
employee within 30 days from the end of each calendar quarter;
    (3) Accumulate earnings reported by employers for periods no longer 
than calendar quarters;
    (4) Be machine readable; i.e., maintained in a fashion that permits 
automated processing; and
    (5) Be available to other agencies in the State, to agencies in 
other States, and to Social Security Administration for establishing or 
verifying eligibility and benefit amounts under titles II and XVI of the 
Social Security Act, pursuant to agreements as required in Sec. 205.58.
    (d) A State shall obtain prior written approval from the Department, 
where appropriate, in accordance with 45 CFR 95.611, for any new 
developmental costs for automatic data processing equipment and services 
incurred in meeting IEVS requirements.

[51 FR 7214, Feb. 28, 1986]



Sec. 205.52  Furnishing of social security numbers.

    The State plan under title I, IV-A, X, XIV, or CVI (AABD) of the 
Social Security Act must provide that:
    (a) As a condition of eligibility, each applicant for or recipient 
of aid will be required:
    (1) To furnish to the State or local agency a social security 
account number, hereinafter referred to as the SSN (or numbers, if more 
than one has been issued); and
    (2) If he cannot furnish a SSN (either because such SSN has not been 
issued or is not known), to apply for such number through procedures 
adopted by the State or local agency with the Social Security 
Administration. If such procedures are not in effect, the applicant or 
recipient shall apply directly for such number, submit verification of 
such application, and provide the number upon its receipt.
    (b) The State or local agency will assist the applicant or recipient 
in making applications for SSNs and will comply with the procedures and 
requirements established by the Social Security Administration for 
application, issuance, and verification of social security account 
numbers.
    (c) The State or local agency will not deny, delay, or discontinue 
assistance pending the issuance or verfication of such numbers if the 
applicant or recipient has complied with the requirements of paragraph 
(a) of this section.
    (d) The State or local agency will use such account numbers, in 
addition to any other means of identification it may determine to 
employ, in the administration of the plan.
    (e) ``Applicant'' and ``recipient'' include for the purposes of this 
section

[[Page 33]]

the individuals seeking or receiving assistance and any other individual 
whose needs are considered in determining the amount of assistance.
    (f) The State or local agency shall notify the applicant or 
recipient that the furnishing of the SSN is a condition of eligibility 
for assistance required by section 1137 of the Social Security Act and 
that the SSN will be utilized in the administration of the program.
    (g) The State agency will submit all unverified social security 
numbers to the Social Security Administration (SSA) for verification. 
The State agency may accept as verified a social security number 
provided directly to the State agency by SSA or by another Federal or 
federally-assisted benefit program which has received the number from 
SSA or has submitted it to SSA for verification.

[51 FR 7217, Feb. 28, 1986]



Sec. 205.55  Requirements for requesting and furnishing eligibility and income information.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) Except as provided in paragraph (b), the State agency will 
request through the IEVS:
    (1) Wage information from the SWICA for all applicants at the first 
opportunity following receipt of the application and for all recipients 
on a quarterly basis.
    (2) Unemployment compensation information from the agency 
administering the State's unemployment compensation program under 
section 3304 of the Internal Revenue Code of 1954 and section 303 of the 
Act as follows:
    (i) For applicants at the first opportunity following receipt of the 
application and in each of the first three months in which the 
individual is receiving aid, unless the individual is found to be 
receiving unemployment compensation, in which case the information will 
be requested until benefits are exhausted; and
    (ii) In each of the first three months following any recipient-
reported loss of employment, unless the individual is found to be 
receiving unemployment compensation, in which case the information will 
be requested until the benefits are exhausted.
    (3) All available information maintained by the Social Security 
Administration for all applicants at the first opportunity following 
receipt of the application in the manner set forth by the Commissioner 
of Social Security. The State agency will also request such information 
for all recipients as of the effective date of this provision for whom 
such information has not previously been requested.
    (4) Unearned income information from the Internal Revenue Service 
available under section 6103 (l)(7)(B) of the Internal Revenue Code of 
1954, for all applicants at the first opportunity following receipt of 
the application for all recipients on a yearly basis. The request shall 
be made at the time and in the manner set forth by the Commissioner of 
Internal Revenue.
    (5) As necessary, any income or other information affecting 
eligibility available from agencies in the State or other States 
administering:
    (i) An AFDC program (in another State) under title IV-A of the 
Social Security Act;
    (ii) A Medicaid program under title XIX of the Social Security Act;
    (iii) An unemployment compensation program (in another State) under 
section 3304 of the Internal Revenue Code of 1954;
    (iv) A Food Stamp program under the Food Stamp Act of 1977, as 
amended;
    (v) Any State program administered under plan approved under title 
I, X, XIV, or XVI (AABD) of the Social Security Act; and
    (vi) A SWICA (in another State).
    (b)(1) With respect to individuals who cannot furnish an SSN at 
application, information specified in paragraph (a) will be requested at 
the first opportunity provided by each source after the State agency is 
provided with the SSN.
    (2) For the purposes of this section, applicants and recipients 
shall also include any other individuals whose income or resources are 
considered in determining the amount of assistance, if the State agency 
has obtained the SSN of such individuals.

[[Page 34]]

    (c) The State agency must furnish, when requested, income, 
eligibility and benefit information to:
    (1) Agencies in the State or other States administering the programs 
cited in paragraph (a)(5) of this section, in accordance with specific 
agreements as described in Sec. 205.58;
    (2) The agency in the State or other States administering a program 
under title IV-D of the Social Security Act; and
    (3) The Social Security Administration for purposes of establishing 
or verifying eligibility or benefit amounts under title II and XVI (SSI) 
of the Social Security Act.
    (d) The Secretary may, based upon application from a State, permit a 
State to obtain and use income and eligibility information from an 
alternate source or sources in order to meet any requirement of 
paragraph (a) of this section. The State agency must demonstrate to the 
Secretary that the alternate source or sources is as timely, complete 
and useful for verifying eligibility and benefit amounts. The Secretary 
will consult with the Secretary of Agriculture and the Secretary of 
Labor prior to approval of a request. The State must continue to meet 
the requirements of this section unless the Secretary has approved the 
request.
    (e) The State agency must, upon request, reimburse another agency 
for reasonable costs incurred in furnishing income and eligibility 
information as prescribed in this section, including new developmental 
costs associated with furnishing such information, in accordance with 
specific agreements as described in Sec. 205.58.

[51 FR 7215, Feb. 28, 1986]



Sec. 205.56  Requirements governing the use of income and eligibility information.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will use the information obtained under 
Sec. 205.55, in conjunction with other information, for:
    (1) Determining individuals' eligibility for assistance under the 
State plan and determining the amount of assistance. States wishing to 
exclude categories of information items from follow-up must submit for 
the Secretary's approval a follow-up plan describing the categories of 
information items which it proposes to exclude. For each category, the 
State must provide a reasonable justification that follow-up is not 
cost-effective. A formal cost-benefit analysis is not required. A State 
may exclude information items from the following data sources without 
written justification if followed up previously from another source: 
Unemployment compensation information received from the Internal Revenue 
Service, and earnings information received from the Social Security 
Administration. Information items in these categories which are not 
duplicative, but provide new leads, may not be excluded without written 
justification. A State may submit a follow-up plan or alter its plan at 
any time by notifying the Secretary and submitting the necessary 
justification. The Secretary will approve or disapprove categories of 
information items to be excluded under the plan within 60 days of its 
submission. Those categories approved by the Secretary will constitute 
an approved State follow-up plan for IEVS. For those information items 
not excluded from follow-up,
    (i) The State agency shall review and compare the information 
obtained from each data exchange against information contained in the 
case record to determine whether it affects the applicant's or the 
recipient's eligibility or the amount of assistance.
    (ii) The State agency shall verify that the information is accurate 
and applicable to case circumstances either through the applicant or 
recipient or through a third party, if such verification is determined 
appropriate based on agency experience or is required under paragraph 
(b) of this section.
    (iii) For applicants, if the information is received during the 
application period, the State agency shall use such information, to the 
extent possible, in making the eligibility determination.
    (iv) For individuals who are recipients when the information is 
received or for whom a decision could not be made prior to authorization 
of benefits, the State agency shall within forty-five (45) days of its 
receipt, initiate a

[[Page 35]]

notice of case action or an entry in the case record that no case action 
is necessary, except that: Completion of action may be delayed beyond 
forty-five (45) days on no more than twenty (20) percent of the 
information items targeted for follow-up, if:
    (A) The reason that the action cannot be completed within forty-five 
(45) days is the nonreceipt of requested third-party verification; and
    (B) Action is completed promptly, when third party verification is 
received or at the next time eligibility is redetermined, whichever is 
earlier. If action is completed when eligibility is redetermined and 
third party verification has not been received, the State agency shall 
make its decision based on information provided by the recipient and any 
other information in its possession.
    (v) The State agency shall use appropriate procedures to monitor the 
timeliness requirements specified in this subparagraph;
    (2) Investigations to determine whether recipients received 
assistance under the State plan to which they were not entitled; and
    (3) Criminal or civil prosecutions based on receipt of assistance 
under the State plan to which recipients were not entitled.
    (b)(1) State agencies shall not take any adverse action to 
terminate, deny, suspend or reduce benefits to an applicant or 
recipient, based on information produced by a Federal computer matching 
program that is subject to the requirements in the Computer Matching and 
Privacy Protection Act (CMPPA) unless (i) The information has been 
independently verified in accordance with the independent verification 
requirements set out in the State agency's written agreement as required 
by Sec. 205.58 or (ii) The independent verification requirement has been 
waived by the Department's Data Integrity Board.
    (2) The CMPPA defines a matching program as any computerized 
comparison of (i) Two or more automated systems of records or a system 
of records with non-Federal records for the purpose of (A) Establishing 
or verifying the eligibility of, or continuing compliance with statutory 
and regulatory requirements by, applicants for, recipients or 
beneficiaries of, participants in, or providers of services with respect 
to, cash or in-kind assistance or payments under Federal benefit 
programs, or (B) Recouping payments or delinquent debts under such 
Federal benefit programs, or (ii) Two or more automated Federal 
personnel or payroll system of records or a system of Federal personnel 
or payroll record with non-Federal records.
    (c) If the agency intends to reduce, suspend, terminate or deny 
benefits as a result of the actions taken pursuant to this section, the 
agency must provide notice and the opportunity for a fair hearing in 
accordance with Sec. 205.10(a).

[51 FR 7215, Feb. 28, 1986, as amended at 53 FR 52712, Dec. 29, 1988; 57 
FR 53859, Nov. 13, 1992]



Sec. 205.57  Maintenance of a machine readable file; requests for income and eligibility information.

    A State plan under title I, IV--A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will maintain a file which is machine readable, 
i.e., which is maintained in a fashion that permits automated 
processing, and which contains the first and last name and verified 
social security number of each person applying for or receiving 
assistance under the plan.
    (b) The State agency will use this file to exchange data with other 
agencies pursuant to Sec. 205.55.

[51 FR 7216, Feb. 28, 1986]



Sec. 205.58  Income and eligibility information; specific agreements required between the State agency and the agency supplying the information.

    (a) A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that, in carrying out the requirements 
of Secs. 205.55 and 205.56, the State agency will enter into specific 
written agreements as described in paragraph (b) of this section with 
those agencies providing income and eligibility information. Agreements 
with Federal agencies are subject to the approval by the appropriate 
Federal Data Integrity Boards. The

[[Page 36]]

agreements will contain the procedure to be used in requesting and 
providing information.
    (b) These agreements will include, but need not be limited to, the 
following:
    (1) Purpose of the request;
    (2) Identification of all agency officials, by position with 
authority to request information;
    (3) Methods and timing of the requests for information, including 
the machine readable format to be used, the period of time needed to 
furnish the requested information and the basis for establishing this 
period. Agreements with the SWICA and the agency administering the 
Unemployment Compensation program in the State must provide that the 
State agency shall obtain information no less frequently than twice 
monthly;
    (4) The type of information and reporting periods for which 
information will be provided and the verification methodologies to be 
used;
    (5) Safeguards limiting release or redisclosure as required by 
Federal or State law or regulation, including the requirements of 
Sec. 205.50 and as may be required by guidelines issued by the 
Secretary; and
    (6) Reimbursement, if any, for the costs of furnishing the 
information requested by the State agency, including new developmental 
costs associated with furnishing such information.

[51 FR 7216, Feb. 28, 1986, as amended at 57 FR 53860, Nov. 13, 1992]



Sec. 205.60  Reports and maintenance of records.

    A State plan under title I, IV--A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will maintain or supervise the maintenance of 
records necessary for the proper and efficient operation of the plan, 
including records regarding applications, determination of eligibility, 
the provision of financial assistance, and the use of any information 
obtained under Sec. 205.55, with respect to individual applications 
denied, recipients whose benefits have been terminated, recipients whose 
benefits have been modified, and the dollar value of these denials, 
terminations and modifications. Under this requirement, the agency will 
keep individual records which contain pertinent facts about each 
applicant and recipient. The records will include information concerning 
the date of application and the date and basis of its disposition; facts 
essential to the determination of initial and continuing eligibility 
(including the individual's social security number, need for, and 
provision of financial assistance); and the basis for discontinuing 
assistance.
    (b) The agency shall report as the Secretary prescribes for the 
purpose of determining compliance with the requirements of Secs. 205.55 
and 205.56 and for evaluating the effectiveness of the Income and 
Eligibility Verification System.

[51 FR 7216, Feb. 28, 1986]



Sec. 205.70  Availability of agency program manuals.

    State plan requirements. A State plan for financial assistance under 
title I, IV-A, IV-B, X, XIV, or XVI (AABD) of the Social Security Act 
must provide that:
    (a) Program manuals and other policy issuances which affect the 
public, including the State agency's rules and regulations governing 
eligibility, need and amount of assistance, and recipient rights and 
responsibilities will be maintained in the State office and in each 
local and district office for examination on regular workdays during 
regular office hours by individuals, upon request for review, study, or 
reproduction by the individual.
    (b)(1) A current copy of such material will be made available 
without charge or at a charge related to the cost of reproduction for 
access by the public through custodians who (i) request the material for 
this purpose, (ii) are centrally located and publicly accessible to a 
substantial number of the recipient population they serve, and (iii) 
agree to accept responsibility for filing all amendments and changes 
forwarded by the agency.
    (2) Under this requirement the material, if requested, must be made 
available without charge or at a charge related to the cost of 
reproduction to public or university libraries, the local

[[Page 37]]

or district offices of the Bureau of Indian Affairs, and welfare or 
legal services offices or organizations. The material may also be made 
available, with or without charge, to other groups and to individuals. 
Wide availability of agency policy materials is recommended.
    (c) Upon request, the agency will reproduce without charge or at a 
charge related to the cost of reproduction the specific policy materials 
necessary for an applicant or recipient, or his representative, to 
determine whether a fair hearing should be requested or to prepare for a 
fair hearing; and will establish policies for reproducing policy 
materials without charge, or at a charge related to cost, for any 
individual who requests such material for other purposes.

[38 FR 26378, Sept. 20, 1973, as amended at 44 FR 17941, Mar. 23, 1979; 
45 FR 56685, Aug. 25, 1980]



Sec. 205.100  Single State agency.

    (a)(1) State plan requirements. A State plan for financial 
assistance under title I, IV-A, X, XIV, or XVI (AABD) of the Social 
Security Act must:
    (i) Provide for the establishment or designation of a single State 
agency with authority to administer or supervise the administration of 
the plan.
    (ii) Include a certification by the attorney general of the State 
identifying the single State agency and citing the legal authority under 
which such agency administers, or supervises the administration of, the 
plan on a statewide basis including the authority to make rules and 
regulations governing the administration of the plan by such agency or 
rules and regulations that are binding on the political subdivisions, if 
the plan is administered by them.
    (2) [Reserved]
    (b) Conditions for implementing the requirements of paragraph (a) of 
this section. (1) The State agency will not delegate to other than its 
own officials its authority for exercising administrative discretion in 
the administration or supervision of the plan including the issuance of 
policies, rules, and regulations on program matters.
    (2) In the event that any rules and regulations or decisions of the 
single State agency are subject to review, clearance, or other action by 
other offices or agencies of the State government, the requisite 
authority of the single State agency will not be impaired.
    (3) In the event that any services are performed for the single 
State agency by other State or local agencies or offices, such agencies 
and offices must not have authority to review, change, or disapprove any 
administrative decision of the single State agency, or otherwise 
substitute their judgment for that of the agency as to the application 
of policies, rules, and regulations promulgated by the State agency.

[45 FR 56685, Aug. 25, 1980]



Sec. 205.101  Organization for administration.

    (a) A State plan for financial assistance under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act shall include a 
description of the organization and functions of the single State agency 
and an organizational chart of the agency.
    (b) Where applicable, a State plan for financial assistance under 
title I, IV-A, X, XIV, or XVI (AABD) of the act shall identify the 
organizational unit within the State agency which is responsible for 
operation of the plan and shall include a description of its 
organization and functions and an organizational chart of the unit.

[45 FR 56685, Aug. 25, 1980]



Sec. 205.120  Statewide operation.

    (a) State plan requirements. A State plan for financial assistance 
under title I, IV-A, X, XIV, or XVI (AABD) of the Social Security Act 
must provide that:
    (1) It shall be in operation, through a system of local offices, on 
a statewide basis in accordance with equitable standards for assistance 
and administration that are mandatory throughout the State;
    (2) If administered by political subdivisions of the State, the plan 
will be mandatory on such political subdivisions;
    (3) The State agency will assure that the plan is continuously in 
operation in all local offices or agencies through:

[[Page 38]]

    (i) Methods for informing staff of State policies, standards, 
procedures and instructions; and
    (ii) Regular planned examination and evaluation of operations in 
local offices by regularly assigned State staff, including regular 
visits by such staff; and through reports, controls, or other necessary 
methods.
    (b)  [Reserved]

[39 FR 16971, May 10, 1974, as amended at 44 FR 17942, Mar. 23, 1979; 45 
FR 56686, Aug. 25, 1980]



Sec. 205.130  State financial participation.

    State plan requirements:
    (a) A State plan for financial assistance under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act must provide that:
    (1) State (as distinguished from local) funds will be used in both 
assistance and administration; and
    (2) State and Federal funds will be apportioned among the political 
subdivisions of the State on a basis consistent with equitable treatment 
of individuals in similar circumstances throughout the State.
    (b) A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Act must provide further that State funds will be used to pay a 
substantial part of the total costs of the assistance programs.

[45 FR 56686, Aug. 25, 1980]



Sec. 205.150  Cost allocation.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that the State agency will have an 
approved cost allocation plan on file with the Department in accordance 
with the requirements contained in subpart E of 45 CFR part 95. Subpart 
E also sets forth the effect on FFP if the requirements contained in 
that subpart are not met.

[47 FR 17508, Apr. 23, 1982]



Sec. 205.160  Equipment--Federal financial participation.

    Claims for Federal financial participation in the cost of equipment 
for the cash assistance programs under titles I, IV-A, X, XIV, XVI 
[AABD] and for the separate administrative unit established under 
section 402(a)(19)(G) of the Social Security Act are to be determined in 
accordance with subpart G or 45 CFR part 95. Requirements concerning the 
management and disposition of equipment under these titles are also 
prescribed in subpart G of 45 CFR part 95.

[47 FR 41576, Sept. 21, 1982]



Sec. 205.170  State standards for office space, equipment, and facilities.

    State plan requirements: A State plan for financial assistance under 
title I, IV-A, X, XIV, or XVI(AABD) of the Social Security Act must 
provide that:
    (a) The State agency will establish and maintain standards for 
office space, equipment, and facilities that will adequately and 
effectively meet program and staff needs. Under this requirement, 
offices must be well marked and clearly identifiable in the community as 
a public service.
    (b) The State agency will assure that the standards are continuously 
in effect in all State and local offices or agencies, including agency 
suboffices, and special centers through:
    (1) Making information about the standards available to State and 
local staff and other appropriate persons;
    (2) Regular planned evaluation of housing and facilities by 
regularly assigned staff through visits, reports, controls and other 
necessary methods;
    (3) Methods for enforcement when necessary to secure compliance with 
State standards.

[36 FR 3862, Feb. 27, 1971, as amended at 45 FR 56686, Aug. 25, 1980]



Sec. 205.190  Standard-setting authority for institutions.

    (a) State plan requirements. If a State plan for financial 
assistance under title I, X, XIV, or XVI(AABD) of the Social Security 
Act includes aid or assistance to individuals in institutions as defined 
in Sec. 233.60(b) (1) and (2) of this chapter the plan must:
    (1) Provide for the designation of a State authority or authorities 
which shall be responsible for establishing and maintaining standards 
for such institutions;
    (2) Provide that the State agency will keep on file and make 
available to FSA, OFA upon request:

[[Page 39]]

    (i) A listing of the types or kinds of institutions in which an 
individual may receive financial assistance;
    (ii) A record naming the State authority(ies) responsible for 
establishing and maintaining standards for such types of institutions;
    (iii) The standards to be utilized by such State authority(ies) for 
approval or licensing of institutions including, to the extent 
applicable, standards related to the following factors:
    (a) Health (dietary standards and accident prevention);
    (b) Humane treatment;
    (c) Sanitation;
    (d) Types of construction;
    (e) Physical facilities, including space and accommodations per 
person;
    (f) Fire and safety,
    (g) Staffing, in number and qualifications, related to the purposes 
and scope of services of the institution;
    (h) Resident records;
    (i) Admission procedures;
    (j) Administrative and fiscal records;
    (k) The control by the individual, or his guardian or protective 
payee, of the individual's personal affairs.
    (3) Provide for cooperative arrangements with the standard-setting 
authority(ies) in the development of standards directed toward assuring 
adequate quality of care; in upgrading of institutional programs and 
practice; in actions necessary to close institutions that mistreat or 
are hazardous to the safety of the patients; and in planning so that 
institutions may be geographically located in accordance with need.
    (b) Federal financial participation. (1) Federal financial 
participation is available in staff and related costs of the State or 
local agency that are necessary to discharge the responsibilities of the 
State agency under this section, including such costs for staff:
    (i) Participating with other agencies and community groups in 
activities to set up the authority(ies) and to advise on the formulation 
of policy for the establishment and maintenance of standards;
    (ii) On loan for a time limited period to work with the standard-
setting authority(ies) in upgrading institutional care;
    (iii) Engaged in the function of coordination in States where there 
is more than one authority; and
    (iv) Engaged in adjusting complaints and making reports and 
recommendations to the standard-setting authority(ies) on conditions 
which appear to be in violation of such standards.
    (2) Federal financial participation is not available in the costs 
incurred by the standard-setting authority(ies) in establishing and 
maintaining standards for institutions.

[36 FR 3862, Feb. 27, 1971, as amended at 45 FR 56686, Aug. 25, 1980; 53 
FR 36580, Sept. 21, 1988]



PART 206--APPLICATION, DETERMINATION OF ELIGIBILITY AND FURNISHING ASSISTANCE--PUBLIC ASSISTANCE PROGRAMS--Table of Contents




    Authority: Sections 402 and 1102 of the Social Security Act (42 
U.S.C. 602 and 1302) and Pub. L. No. 97-248, 96 Stat. 324, and Pub. L. 
No. 99-603, 100 Stat. 3359.



Sec. 206.10  Application, determination of eligibility and furnishing of assistance.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI(AABD), of that Social Security Act shall provide that:
    (1) Each individual wishing to do so shall have the opportunity to 
apply for assistance under the plan without delay. Under this 
requirement:
    (i) Each individual may apply under whichever of the State plan 
plans he chooses;
    (ii) The agency shall require a written application, signed under a 
penalty of perjury, on a form prescribed by the State agency, from the 
applicant himself, or his authorized representative, or, where the 
applicant is incompetent or incapacitated, someone acting responsibly 
for him. When an individual is required to be included in an existing 
assistance unit pursuant to paragraph (a)(1)(vii), such individual will 
be considered to be included in the application, as of the date he is 
required to be included in the assistance unit;
    (iii) An applicant may be assisted, if he so desires, by an 
individual(s) of his choice (who need not be a lawyer) in

[[Page 40]]

the various aspects of the application process and the redetermination 
of eligibility and may be accompanied by such individual(s) in contacts 
with the agency and when so accompanied may also be represented by them.
    (iv)--(v) [Reserved]
    (vi) Every recipient in a State which provides a supplemental 
payment under Sec. 233.27 of this chapter shall have an opportunity to 
request that payment without delay.
    (vii) For AFDC only, in order for the family to be eligible, an 
application with respect to a dependent child must also include, if 
living in the same household and otherwise eligible for assistance:
    (A) Any natural or adoptive parent, or stepparent (in the case of 
States with laws of general applicability); and
    (B) Any blood-related or adoptive brother or sister; Exception: 
needs and income of disqualified alien siblings, pursuant to 
Sec. 233.50(c), are not considered in determining the eligibility and 
payment of an otherwise eligible dependent child.
    (2)(i) Applicants shall be informed about the eligibility 
requirements and their rights and obligations under the program. Under 
this requirement individuals are given information in written form, and 
orally as appropriate, about coverage, conditions of eligibility, scope 
of the program, and related services available, and the rights and 
responsibilities of applicants for and recipients of assistance. 
Specifically developed bulletins or pamphlets explaining the rules 
regarding eligibility and appeals in simple, understandable terms are 
publicized and available in quantity.
    (ii) Procedures shall be adopted which are designed to assure that 
recipients make timely and accurate reports of any change in 
circumstances which may affect their eligibility or the amount of 
assistance.
    (iii) All applicants for and recipients of assistance shall be 
notified in writing at the time of application and on redetermination 
that eligibility and income information will be regularly requested from 
agencies specified in Sec. 205.55 and will be used to aid in determining 
their eligibility for assistance.
    (3) A decision shall be made promptly on applications, pursuant to 
reasonable State-established time standards not in excess of:
    (i) 45 days for OAA, AFDC, AB, AABD (for aged and blind); and
    (ii) 60 days for APTD, AABD (for disabled). Under this requirement, 
the applicant is informed of the agency's time standard in acting on 
applications which covers the time from date of application under the 
State plan to the date that the assistance check, or notification of 
denial of assistance or change of award is mailed to the applicant or 
recipient. The State's time standards apply except in unusual 
circumstances (e.g., where the agency cannot reach a decision because of 
failure or delay on the part of the applicant or an examining physician, 
or because of some administrative or other emergency that could not be 
controlled by the agency), in which instances the case record shows the 
cause for the delay. The agency's standards of promptness for acting on 
applications or redetermining eligibility shall not be used as a waiting 
period before granting aid, or as a basis for denial of an application 
or for terminating assistance.
    (4) Adequate notice shall be sent to applicants and recipients to 
indicate that assistance has been authorized (including the amount of 
financial assistance) or that it has been denied or terminated. Under 
this requirement, adequate notice means a written notice that contains a 
statement of the action taken, and the reasons for and specific 
regulations supporting such action, and an explanation of the 
individual's right to request a hearing.
    (5)(i) Financial assistance and medical care and services included 
in the plan shall be furnished promptly to eligible individuals without 
any delay attributable to the agency's administrative process, and shall 
be continued regularly to all eligible individuals until they are found 
to be ineligible. Under this requirement there must be arrangements to 
assist applicants and recipients in obtaining medical care and services 
in emergency situations on a 24-hour basis, 7 days a week.
    (ii) Assistance will not be denied, delayed, or discontinued pending 
receipt

[[Page 41]]

of income or other information requested under Sec. 205.55, if other 
evidence establishes the individual's eligibility for assistance.
    (6) Assistance shall begin as specified in the State plan, which:
    (i) For financial assistance.
    (A) Must be no later than:
    (1) The date of authorization of payment, or
    (2) Thirty days in OAA, AFDC, AB, and AABD (as to the aged and 
blind), and 60 days in APTD and AABD (as to the disabled), from the date 
of receipt of a signed and completed application form, whichever is 
earlier: Provided, That the individuals then met all the eligibility 
conditions, and
    (B) For purposes of Federal financial participation in OAA, AB, 
APTD, and AABD, may be as early as the first of the month in which an 
application has been received and the individual meets all the 
eligibility conditions; and
    (C) In AFDC, for purposes of Federal financial participation, may be 
as early as the date of application provided that the assistance unit 
meets all the eligibility conditions; and
    (D) In AFDC, States that pay for the month of application must 
prorate the payment for that month by multiplying the amount payable if 
payment were made for the entire month including special needs in 
accordance with Sec. 233.34 by the ratio of the days in the month 
including and following the date of application (or, at State option, 
the date of authorization of payment) to the total number of days in 
such month. The State plan may provide for using a standard 30-day month 
to determine the prorated amount.
    (7) In cases of proposed action to terminate, discontinue, suspend 
or reduce assistance, the agency shall give timely and adequate notice. 
Such notice shall comply with the provisions of Sec. 205.10 of this 
chapter.
    (8) Each decision regarding eligibility or ineligibility will be 
supported by facts in the applicant's or recipient's case record. Under 
this requirement each application is disposed of by a finding of 
eligibility or ineligibility unless:
    (i) The applicant voluntarily withdraws his application, and there 
is an entry in the case record that a notice has been sent to confirm 
the applicant's notification to the agency that he does not desire to 
pursue his application; or
    (ii) There is an entry in the case record that the application has 
been disposed of because the applicant died or could not be located.
    (9) Where an individual has been determined to be eligible, 
eligibility will be reconsidered or redetermined:
    (i) When required on the basis of information the agency has 
obtained previously about anticipated changes in the individual's 
situation;
    (ii) Promptly, after a report is obtained which indicates changes in 
the individual's circumstances that may affect the amount of assistance 
to which he is entitled or may make him ineligible; and
    (iii) Periodically, within agency established time standards, but 
not less frequently than every 12 months in OAA, AB, APTD, and AABD, on 
eligibility factors subject to change. For recipients of AFDC, all 
factors of eligibility will be redetermined at least every 6 months 
except in the case of monthly reporting cases or cases covered by an 
approved error-prone profiling system as specified in paragraph 
(a)(9)(iv) of this section. Under the AFDC program, at least one face-
to-face redetermination must be conducted in each case once in every 12 
months.
    (iv) In accordance with paragraph (a)(9)(iii) of this section, under 
an alternative redetermination plan based on error-prone profiling, 
which has been approved by the Secretary, and includes:
    (A) A description of the statistical methodology used to develop the 
error-prone profile system upon which the redetermination schedule is 
based;
    (B) The criteria to be used to vary the scope of review and to 
assign different types of cases; and
    (C) A detailed outline of the evaluation system, including 
provisions for necessary changes in the error-prone output, such as 
types of cases, types of errors, frequencies of redeterminations and 
corrective action.

[[Page 42]]

    (10) Standards and methods for determination of eligibility shall be 
consistent with the objectives of the programs, and will respect the 
rights of individuals under the United States Constitution, the Social 
Security Act, title VI of the Civil Rights Act of 1964, and all other 
relevant provisions of Federal and State laws.
    (11) [Reserved]
    (12) The State agency shall establish and maintain methods by which 
it shall be kept currently informed about local agencies' adherence to 
the State plan provisions and to the State agency's procedural 
requirements for determining eligibility, and it shall take corrective 
action when necessary.
    (b) Definitions. For purposes of this section:
    (1) Applicant is a person who has, directly, or through his 
authorized representative, or where incompetent or incapacitated, 
through someone acting responsibly for him, made application for public 
assistance from the agency administering the program, and whose 
application has not been terminated.
    (2) Application is the action by which an individual indicates in 
writing to the agency administering public assistance (on a form 
prescribed by the State agency) his desire to receive assistance. The 
relative with whom a child is living or will live ordinarily makes 
application for the child for AFDC. An application is distinguished from 
an inquiry, which is simply a request for information about eligibility 
requirements for public assistance. Such inquiry may be followed by an 
application. When an individual is required to be included in an 
existing assistance unit pursuant to paragraph (a)(1)(vii), such 
individual will be considered to be included in the application, as of 
the date he is required to be included in the assistance unit.
    (3) Date of Application is the date on which the action described in 
paragraph (b)(2) of this section occurs.
    (4) Redetermination is a review of factors affecting AFDC 
eligibility and payment amount; e.g. continued absence, income 
(including child and spousal support), etc.
    (5) Assistance Unit is the group of individuals whose income, 
resources and needs are considered as a unit for purposes of determining 
eligibility and the amount of payment.

[48 FR 28407, June 21, 1983 as amended at 49 FR 35599, Sept. 10, 1984; 
51 FR 7217, Feb. 28, 1986; 51 FR 9203, Mar. 18, 1986; 52 FR 48689, Dec. 
24, 1987; 53 FR 30433, Aug. 12, 1988; 57 FR 30157, July 8, 1992]



PART 211--CARE AND TREATMENT OF MENTALLY ILL NATIONALS OF THE UNITED STATES, RETURNED FROM FOREIGN COUNTRIES--Table of Contents




Sec.
211.1  General definitions.
211.2  General.
211.3  Certificates.
211.4  Notification to legal guardian, spouse, next of kin, or 
          interested persons.
211.5  Action under State law; appointment of guardian.
211.6  Reception; temporary care, treatment, and assistance.
211.7  Transfer and release of eligible person.
211.8  Continuing hospitalization.
211.9  Examination and reexamination.
211.10  Termination of hospitalization.
211.11  Request for release from hospitalization.
211.12  Federal payments.
211.13  Financial responsibility of the eligible person; collections, 
          compromise, or waiver of payment.
211.14  Disclosure of information.
211.15  Nondiscrimination.

    Authority: Secs. 1-11, 74 Stat. 308-310; 24 U.S.C. 321-329.

    Source: 39 FR 26546, July 19, 1974, unless otherwise noted.



Sec. 211.1  General definitions.

    When used in this part:
    (a) Act means Pub. L. 86-571, approved July 5, 1960, 74 Stat. 308, 
entitled ``An Act to provide for the hospitalization, at Saint 
Elizabeths Hospital in the District of Columbia or elsewhere, of certain 
nationals of the United States adjudged insane or otherwise found 
mentally ill in foreign countries, and for other purposes'';
    (b) The term Secretary means the Secretary of Health and Human 
Services;
    (c) The term Department means the Department of Health and Human 
Services;
    (d) The term Administrator means the Administrator, Family Support 
Administration, Department of Health and Human Services;

[[Page 43]]

    (e) The term eligible person means an individual with respect to 
whom the certificates referred to in Sec. 211.3 are furnished to the 
Administrator in connection with the reception of an individual arriving 
from a foreign country;
    (f) The term Public Health Service means the Public Health Service 
in the Department of Health and Human Services;
    (g) The term agency means an appropriate State or local public or 
nonprofit agency with which the Administrator has entered into 
arrangements for the provision of care, treatment, and assistance 
pursuant to the Act;
    (h) The term State includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, and Guam;
    (i) The term residence means residence as determined under the 
applicable law or regulations of a State or political subdivision for 
the purpose of determining the eligibility of an individual for 
hospitalization in a public mental hospital;
    (j) The term legal guardian means a guardian, appointed by a court, 
whose powers, duties, and responsibilities include the powers, duties, 
and responsibilities of guardianship of the person.

[39 FR 26546, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec. 211.2  General.

    The Administrator shall make suitable arrangements with agencies to 
the end that any eligible person will be received, upon request of the 
Secretary of State, at the port of entry or debarkation upon arrival in 
the United States from a foreign country and be provided, to the extent 
necessary, with temporary care, treatment, and assistance, pending 
transfer and release or hospitalization pursuant to the Act. The 
Administrator shall also make suitable arrangements with appropriate 
divisions of the Public Health Service, with Saint Elizabeths Hospital 
in the District of Columbia, with Federal hospitals outside of the 
Department, or with other public or private hospitals to provide the 
eligible person with care and treatment in a hospital. The Administrator 
shall maintain a roster setting forth the name and address of each 
eligible person currently receiving care and treatment, or assistance, 
pursuant to the Act.



Sec. 211.3  Certificates.

    The following certificates are necessary to establish that an 
individual is an eligible person:
    (a) Certificates as to nationality. A certificate issued by an 
authorized official of the Department of State, stating that the 
individual is a national of the United States.
    (b) Certificate as to mental condition. Either (1) a certificate 
obtained or transmitted by an authorized official of the Department of 
State that the individual has been legally adjudged insane in a named 
foreign country; or (2) a certificate of an appropriate authority or 
person stating that at the time of such certification the individual was 
in a named foreign country and was in need of care and treatment in a 
mental hospital. A statement shall, if possible, be incorporated into or 
attached to the certificate furnished under this paragraph setting forth 
all available medical and other pertinent information concerning the 
individual.
    (c) Appropriate authority or person. For the purpose of paragraph 
(b)(2) of this section a medical officer of the Public Health Service or 
of another agency of the United States, or a medical practitioner 
legally authorized to provide care or treatment of mentally ill persons 
in the foreign country, is an ``appropriate authority or person,'' and 
shall be so identified in his execution of the certificate. If such a 
medical officer or practitioner is unavailable, an authorized official 
of the Department of State may serve as an ``appropriate authority or 
person,'' and shall, in the execution of the certificate, identify 
himself as serving as such person due to the unavailability of a 
suitable medical officer or practitioner.



Sec. 211.4  Notification to legal guardian, spouse, next of kin, or interested persons.

    (a) Whenever an eligible person arrives in the United States from a 
foreign country, or when such person is transferred from one State to 
another, the Administrator shall, upon such arrival or transfer (or in 
advance thereof, if possible), provide for notification of

[[Page 44]]

his legal guardian, or in the absence of such a guardian, of his spouse 
or next of kin, or in the absence of any of these, of one or more 
interested persons, if known.
    (b) Whenever an eligible person is admitted to a hospital pursuant 
to the Act, the Administrator shall provide for immediate notification 
of his legal guardian, spouse, or next of kin, if known.



Sec. 211.5  Action under State law; appointment of guardian.

    Whenever an eligible person is incapable of giving his consent to 
care and treatment in a hospital, either because of his mental condition 
or because he is a minor, the agency will take appropriate action under 
State law, including, if necessary, procuring the appointment of a legal 
guardian, to ensure the proper planning for and provision of such care 
and treatment.



Sec. 211.6  Reception; temporary care, treatment, and assistance.

    (a) Reception. The agency will meet the eligible person at the port 
of entry or debarkation, will arrange for appropriate medical 
examination, and will plan with him, in cooperation with his legal 
guardian, or, in the absence of such a guardian, with other interested 
persons, if any, for needed temporary care and treatment.
    (b) Temporary care, treatment, and assistance. The agency will 
provide for temporary care, treatment, and assistance, as reasonably 
required for the health and welfare of the eligible person. Such care, 
treatment, and assistance may be provided in the form of hospitalization 
and other medical and remedial care (including services of necessary 
attendants), food and lodging, money, payments, transportation, or other 
goods and services. The agency will utilize the Public Health Service 
General Hospital nearest to the port of entry or debarkation or any 
other suitable public or private hospital, in providing hospitalization 
and medical care, including diagnostic service as needed, pending other 
appropriate arrangements for serving the eligible person.



Sec. 211.7  Transfer and release of eligible person.

    (a) Transfer and release to relative. If at the time of arrival from 
a foreign country or any time during temporary or continuing care and 
treatment the Administrator finds that the best interests of the 
eligible person will be served thereby, and a relative, having been 
fully informed of his condition, agrees in writing to assume 
responsibility for his care and treatment, the Administrator shall 
transfer and release him to such relative. In determining whether his 
best interest will be served by such transfer and release, due weight 
shall be given to the relationship of the individuals involved, the 
financial ability of the relative to provide for such person, and the 
accessibility to necessary medical facilities.
    (b) Transfer and release to appropriate State authorities, or agency 
of the United States. If appropriate arrangements cannot be accomplished 
under paragraph (a) of this section, and if no other agency of the 
United States is responsible for the care and treatment of the eligible 
person, the Administrator shall endeavor to arrange with the appropriate 
State mental health authorities of the eligible person's State of 
residence or legal domicile, if any, for the assumption of 
responsibility for the care and treatment of the eligible person by such 
authorities and shall, upon the making of such arrangements in writing, 
transfer and release him to such authorities. If any other agency of the 
United States is responsible for the care and treatment of the eligible 
person, the Administrator shall make arrangements for his transfer and 
release to that agency.



Sec. 211.8  Continuing hospitalization.

    (a) Authorization and arrangements. In the event that appropriate 
arrangements for an eligible person in need of continuing care and 
treatment in a hospital cannot be accomplished under Sec. 211.7, or 
until such arrangements can be made, care and treatment shall be 
provided by the Administrator in Saint Elizabeths Hospital in the 
District of Columbia, in an appropriate Public Health Service Hospital, 
or in such

[[Page 45]]

other suitable public or private hospital as the Administrator 
determines is in the best interests of such person.
    (b) Transfer to other hospital. At any time during continuing 
hospitalization, when the Administrator deems it to be in the interest 
of the eligible person or of the hospital affected, the Administrator 
shall authorize the transfer of such person from one hospital to another 
and, where necessary to that end, the Administrator shall authorize the 
initiation of judicial proceedings for the purpose of obtaining a 
commitment of such person to the Secretary.
    (c) Place of hospitalization. In determining the placement or 
transfer of an eligible person for purposes of hospitalization, due 
weight shall be given to such factors as the location of the eligible 
person's legal guardian or family, the character of his illness and the 
probable duration thereof, and the facilities of the hospital to provide 
care and treatment for the particular health needs of such person.



Sec. 211.9  Examination and reexamination.

    Following admission of an eligible person to a hospital for 
temporary or continuing care and treatment, he shall be examined by 
qualified members of the medical staff as soon as practicable, but not 
later than the fifth day after his admission. Each such person shall be 
reexamined at least once within each six month period beginning with the 
month following the month in which he was first examined.



Sec. 211.10  Termination of hospitalization.

    (a) Discharge or conditional release. If, following an examination, 
the head of the hospital finds that the eligible person hospitalized for 
mental illness (whether or not pursuant to a judicial commitment) is not 
in need of such hospitalization, he shall be discharged. In the case 
where hospitalization was pursuant to a judicial commitment, the head of 
the hospital may, in accordance with laws governing hospitalization for 
mental illness as may be in force and generally applicable in the State 
in which the hospital is located, conditionally release him if he finds 
that this is in his best interests.
    (b) Notification to committing court. In the case of any person 
hospitalized under Sec. 211.8 who has been judicially committed to the 
custody of the Secretary, the Secretary will notify the committing court 
in writing of the discharge or conditional release of such person under 
this section or of his transfer and release under Sec. 211.7.



Sec. 211.11  Request for release from hospitalization.

    If an eligible person who is hospitalized pursuant to the Act, or 
his legal guardian, spouse, or adult next of kin, requests his release, 
such request shall be granted by the Administrator if his best interests 
will be served thereby, or by the head of the hospital if he is found 
not to be in need of hospitalization by reason of mental illness. The 
right of the administrator or the head of the hospital, to refuse such 
request and to detain him for care and treatment shall be determined in 
accordance with laws governing the detention, for care and treatment, of 
persons alleged to be mentally ill as may be in force and applicable 
generally in the State in which such hospital is located, but in no 
event shall the patient be detained more than forty-eight hours 
(excluding any period of time falling on a Sunday or a legal holiday 
observed by the courts of the State in which such hospital is located) 
after the receipt of such request unless within such time (a) judicial 
proceedings for such hospitalization are commenced or (b) a judicial 
extension of such time is obtained, for a period of not more than five 
days, for the commencement of such proceedings.



Sec. 211.12  Federal payments.

    The arrangements made by the Administrator with an agency or 
hospital for carrying out the purposes of the Act shall provide for 
payments to such agency or hospital, either in advance or by way of 
reimbursement, of the costs of reception, temporary care, treatment, and 
assistance, continuing care and treatment, and transportation, pursuant 
to the Act, and payments for other expenditures necessarily and 
reasonably related to providing the same. Such arrangements

[[Page 46]]

shall include the methods and procedures for determining the amounts of 
the advances or reimbursements, and for remittance and adjustment 
thereof.



Sec. 211.13  Financial responsibility of the eligible person; collections, compromise, or waiver of payment.

    (a) For temporary care and treatment. If an eligible person 
receiving temporary care, treatment, and assistance, pursuant to the 
Act, has financial resources available to pay all or part of the costs 
of such care, the Administrator shall require him to pay for such costs, 
either in advance or by way of reimbursement, unless in his judgment it 
would be inequitable or impracticable to require such payment.
    (b) For continuing care and treatment. Any eligible person receiving 
continuing care and treatment in a hospital, or his estate, shall be 
liable to pay or contribute toward the payment of the costs or charges 
therefor, to the same extent as such person would, if a resident of the 
District of Columbia, be liable to pay, under the laws of the District 
of Columbia, for his care and maintenance in a hospital for the mentally 
ill in that jurisdiction.
    (c) Collections, compromise, or waiver of payment. The Administrator 
may, in his discretion, where in his judgment substantial justice will 
be best served thereby or the probable recovery will not warrant the 
expense of collection, compromise, or waive the whole or any portion of, 
any claim for continuing care and treatment, and assistance, and in the 
process of arriving at such decision, the Administrator may make or 
cause to be made such investigations as may be necessary to determine 
the ability of the patient to pay or contribute toward the cost of his 
continuing care and treatment in a hospital.



Sec. 211.14  Disclosure of information.

    (a) No disclosure of any information of a personal and private 
nature with respect to an individual obtained at any time by any person, 
organization, or institution in the course of discharging the duties of 
the Secretary under the Act shall be made except insofar:
    (1) As the individual or his legal guardian, if any (or, if he is a 
minor, his parent or legal guardian), shall consent;
    (2) As disclosure may be necessary to carry out any functions of the 
Secretary under the Act;
    (3) As disclosure may be directed by the order of a court of 
competent jurisdiction;
    (4) As disclosure may be necessary to carry out any functions of any 
agency of the United States which are related to the return of the 
individual from a foreign country, or his entry into the United States; 
or
    (5) As expressly authorized by the Administrator.
    (b) An agreement made with an agency or hospital for care, 
treatment, and assistance pursuant to the Act shall provide that no 
disclosure will be made of any information of a personal and private 
nature received by such agency or hospital in the course of discharging 
the duties under such agreement except as is provided therein, or is 
otherwise specifically authorized by the Administrator.
    (c) Nothing in this section shall preclude disclosure, upon proper 
inquiry, of information as to the presence of an eligible person in a 
hospital, or as to his general condition and progress.



Sec. 211.15  Nondiscrimination.

    (a) No eligible person shall, on the ground of race, color, or 
national origin, be excluded from participation, be denied any benefits, 
or otherwise be subjected to discrimination of any nature or form in the 
provision of any benefits, under the Act.
    (b) The prohibition in paragraph (a) of this section precludes 
discrimination either in the selection of individuals to receive the 
benefits, in the scope of benefits, or in the manner of providing them. 
It extends to all facilities and services provided by the Administrator 
or an agency to an individual, and to the arrangements and the 
procedures under this part relating thereto, in connection with 
reception, temporary care, treatment, and assistance, and continuing 
hospitalization under the Act.

[[Page 47]]



PART 212--ASSISTANCE FOR UNITED STATES CITIZENS RETURNED FROM FOREIGN COUNTRIES--Table of Contents




Sec.
212.1  General definitions.
212.2  General.
212.3  Eligible person.
212.4  Reception; initial determination, provisions of temporary 
          assistance.
212.5  Periodic review and redetermination; termination of temporary 
          assistance.
212.6  Duty to report.
212.7  Repayment to the United States.
212.8  Federal payments.
212.9  Disclosure of information.
212.10  Nondiscrimination.

    Authority: Sec. 302, 75 Stat. 142, sec. 1102, 49 Stat. 647; 42 
U.S.C. 1313, 1302.

    Source: 39 FR 26548, July 19, 1974, unless otherwise noted.



Sec. 212.1  General definitions.

    When used in this part:
    (a) Act means section 1113 of the Social Security Act, as amended;
    (b) The term Secretary means the Secretary of Health and Human 
Services;
    (c) The term Department means the Department of Health and Human 
Services;
    (d) The term Administration means the Administration for Children 
and Families, Department of Health and Human Services;
    (e) The term Assistant Secretary means the Assistant Secretary for 
Children and Families;
    (f) The term eligible person means an individual with respect to 
whom the conditions in Sec. 212.3 are met;
    (g) The term State includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, and Guam;
    (h) The term United States when used in a geographical sense means 
the States;
    (i) The term agency means State or local public agency or 
organization or national or local private agency or organization with 
which the Assistant Secretary has entered into agreement for the 
provision of temporary assistance pursuant to the Act;
    (j) The term temporary assistance means money payments, medical 
care, temporary billeting, transportation, and other goods and services 
necessary for the health, or welfare of individuals, including guidance, 
counseling, and other welfare services.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988; 
60 FR 19864, Apr. 21, 1995]



Sec. 212.2  General.

    The Assistant Secretary shall develop plans and make arrangements 
for provision of temporary assistance within the United States to any 
eligible person, after consultation with appropriate offices of the 
Department of State, the Department of Justice, and the Department of 
Defense. Temporary assistance shall be provided, to the extent feasible, 
in accordance with such plans, as modified from time to time by the 
Assistant Secretary. The Assistant Secretary shall enter into agreements 
with agencies whose services and facilities are to be utilized for the 
purpose of providing temporary assistance pursuant to the Act, 
specifying the conditions governing the provision of such assistance and 
the manner of payment of the cost of providing therefor.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec. 212.3  Eligible person.

    In order to establish that an individual is an eligible person, it 
must be found that:
    (a) He is a citizen of the United States or a dependent of a citizen 
of the United States;
    (b) A written statement has been transmitted to the Administration 
by an authorized official of the Department of State containing 
information which identifies him as having returned, or been brought, 
from a foreign country to the United States because of the destitution 
of the citizen of the United States, or the illness of such citizen or 
any of his dependents, or because of war, threat of war, invasion, or 
similar crisis. Such statement shall, if possible, incorporate or have 
attached thereto, all available pertinent information concerning the 
individual. In case of war, threat of war, invasion, or similar crisis, 
a determination by the Department of State that such a condition is the 
general cause for the

[[Page 48]]

return of citizens of the United States and their dependents from a 
particular foreign country, and evidence that an individual has 
returned, or, been brought, from such country to the United States shall 
be considered sufficient identification of the reason for his return to, 
or entry into the United States; and
    (c) He is without resources immediately accessible to meet his 
needs.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec. 212.4  Reception; initial determination, provisions of temporary assistance.

    (a) The Administration, or the agency upon notification by the 
Administration, will meet individuals identified as provided in 
Sec. 212.3(b), at the port of entry or debarkation.
    (b) The Administration or agency will make findings, setting forth 
the pertinent facts and conclusions, and an initial determination, 
according to standards established by the Administration, as to whether 
an individual is an eligible person.
    (c) The Administration or agency will provide temporary assistance 
within the United States to an eligible person, according to standards 
of need established by the Administration, upon arrival at the port of 
entry or debarkation, during transportation to his intermediate and 
ultimate destinations, and after arrival at such destinations.
    (d) Temporary assistance may be furnished only for 90 days from the 
day of arrival of the eligible person in the United States unless he is 
handicapped in attaining self-support or self-care for such reasons as 
age, disability, or lack of vocational preparation. In such cases 
temporary assistance may be extended upon prior authorization by the 
Administration for nine additional months.

[39 FR 26548, July 19, 1974, as amended at 40 FR 43218, Sept. 19, 1975; 
53 FR 36580, Sept. 21, 1988]



Sec. 212.5  Periodic review and redetermination; termination of temporary assistance.

    (a) The Administration or agency will review the situation of each 
recipient of temporary assistance at frequent intervals to consider 
whether or not circumstances have changed that would require a different 
plan for him.
    (b) Upon a finding by the Administration or agency that a recipient 
of temporary assistance has sufficient resources available to meet his 
needs, temporary assistance shall be terminated.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec. 212.6  Duty to report.

    The eligible person who receives temporary assistance, or the person 
who is caring for or otherwise acting on behalf of such eligible person, 
shall report promptly to the Administration or agency any event or 
circumstance which would cause such assistance to be changed in amount 
or terminated.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec. 212.7  Repayment to the United States.

    (a) An individual who has received temporary assistance shall be 
required to repay, in accordance with his ability, any or all of the 
cost of such assistance to the United States, except insofar as it is 
determined that:
    (1) The cost is not readily allocable to such individual;
    (2) The probable recovery would be uneconomical or otherwise 
impractical;
    (3) He does not have, and is not expected within a reasonable time 
to have, income and financial resources sufficient for more than 
ordinary needs; or
    (4) Recovery would be against equity and good conscience.
    (b) In determining an individual's resources, any claim which he has 
against any individual, trust or estate, partnership, corporation, or 
government shall be considered, and assignment to the United States of 
such claims shall be taken in appropriate cases.
    (c) A determination that an individual is not required to repay the 
cost of temporary assistance shall be final and binding, unless such 
determination was procured by fraud or misrepresentation

[[Page 49]]

of the individual or some other person, or the individual voluntarily 
offers to repay.
    (d) A determination that an individual is required to repay any or 
all of the cost of temporary assistance may be reconsidered at any time 
prior to repayment of the required amount. A further determination shall 
be made with respect to his liability to repay the balance of such 
amount on the basis of new evidence as to whether (1) he has, or is 
expected within a reasonable time to have, income and financial 
resources sufficient for more than ordinary needs, or (2) recovery would 
be against equity and good conscience.



Sec. 212.8  Federal payments.

    (a) The agreement made by the Assistant Secretary with an agency for 
carrying out the purposes of the Act shall provide for payment to such 
agency, either in advance or by way of reimbursement, of the cost of 
temporary assistance provided pursuant to the Act, and payment of the 
cost of other expenditures necessarily and reasonably related to 
providing the same. Such agreement shall include the cost of other 
expenditures necessarily and reasonably related to providing the same. 
Such agreement shall include the method for determining such costs, as 
well as the methods and procedures for determining the amounts of 
advances or reimbursement and for remittance and adjustment thereof.
    (b) To receive reimbursements, States, or other agencies, shall 
request and receive prior approval from the Assistant Secretary for 
administrative expenses incurred in developing or preparing to implement 
repatriation plans for groups of eligible persons. Such requests should 
include a description of the activities to be undertaken, an estimate of 
the expenses and a rationale for the expenditures. In reviewing 
requests, the Assistant Secretary will consider the necessity and 
reasonableness of the costs. Prior approval is not required for 
administrative expenditures incurred by a State in implementing approved 
repatriation plans as a result of Federal notification that an 
evacuation may be necessary.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec. 212.9  Disclosure of information.

    (a) No disclosures of any information of a personal and private 
nature with respect to an individual obtained at any time by any person, 
organization, or institution in the course of discharging the duties of 
the Secretary under the Act shall be made except insofar:
    (1) As the individual or his legal guardian, if any (or, if he is a 
minor, his parent or legal guardian), shall consent;
    (2) As disclosure may be necessary to carry out any functions of the 
Secretary under the Act;
    (3) As disclosure may be necessary to carry out any functions of any 
agency of the United States which are related to the return of the 
individual from a foreign country, or his entry into the United States; 
or
    (4) As expressly authorized by the Assistant Secretary.
    (b) An agreement made with an agency for the provision of temporary 
assistance pursuant to the Act shall provide that no disclosure will be 
made of any information of a personal and private nature received by 
such agency in the course of discharging the duties under such agreement 
except as is provided therein, or is otherwise specifically authorized 
by the Assistant Secretary.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec. 212.10  Nondiscrimination.

    (a) No eligible person shall, on the ground of race, color, or 
national origin be excluded from participation, be denied any benefits, 
or otherwise be subjected to discrimination of any nature or form in the 
provision of any benefits under the Act.
    (b) The prohibition in paragraph (a) of this section precludes 
discrimination either in the selection of individuals to receive the 
benefits, in the scope of benefits, or in the manner of providing them. 
It extends to all facilities and services provided by the Administration 
or an agency to an individual, and to the arrangements and the 
procedures under this part relating thereto, in connection with 
reception

[[Page 50]]

and temporary assistance under the Act.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



PART 213--PRACTICE AND PROCEDURE FOR HEARINGS TO STATES ON CONFORMITY OF PUBLIC ASSISTANCE PLANS TO FEDERAL REQUIREMENTS--Table of Contents




                           Subpart A--General

Sec.
213.1  Scope of rules.
213.2  Records to be public.
213.3  Use of gender and number.
213.4  Suspension of rules.
213.5  Filing and service of papers.

           Subpart B--Preliminary Matters--Notice and Parties

213.11  Notice of hearing or opportunity for hearing.
213.12  Time of hearing.
213.13  Place.
213.14  Issues at hearing.
213.15  Request to participate in hearing.

                      Subpart C--Hearing Procedures

213.21  Who presides.
213.22  Authority of presiding officer.
213.23  Rights of parties.
213.23a  Discovery.
213.24  Evidentiary purpose.
213.25  Evidence.
213.26  Exclusion from hearing for misconduct.
213.27  Unsponsored written material.
213.28  Official transcript.
213.29  Record for decision.

              Subpart D--Posthearing Procedures, Decisions

213.31  Posthearing briefs.
213.32  Decisions following hearing.
213.33  Effective date of Administrator's decision.

    Authority: Sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.

    Source: 36 FR 1454, Jan. 29, 1971, unless otherwise noted.



                           Subpart A--General



Sec. 213.1  Scope of rules.

    (a) The rules of procedure in this part govern the practice for 
hearings afforded by the Department to States pursuant to Sec. 201.4 or 
Sec. 201.6 (a) or (b) of this chapter, and the practice relating to 
decisions upon such hearings. These rules may also be applied to 
hearings afforded by the Department to States in other Federal-State 
programs for which Federal administrative responsibility has been 
delegated to the Service.
    (b) Nothing in this part is intended to preclude or limit 
negotiations between the Department and the State, whether before, 
during, or after the hearing to resolve the issues which are, or 
otherwise would be, considered at the hearing. Such negotiations and 
resolution of issues are not part of the hearing, and are not governed 
by the rules in this part, except as expressly provided herein.



Sec. 213.2  Records to be public.

    All pleadings, correspondence, exhibits, transcripts of testimony, 
exceptions, briefs, decisions, and other documents filed in the docket 
in any proceeding may be inspected and copied in the office of the FSA 
Hearing Clerk. Inquiries may be made at the Central Information Center, 
Department of Health and Human Services, 330 Independence Avenue SW., 
Washington, DC 20201.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]



Sec. 213.3  Use of gender and number.

    As used in this part, words importing the singular number may extend 
and be applied to several persons or things, and vice versa. Words 
importing the masculine gender may be applied to females or 
organizations.



Sec. 213.4  Suspension of rules.

    Upon notice to all parties, the Administrator or the presiding 
officer, with respect to matters pending before him and within his 
jurisdiction, may modify or waive any rule in this part upon 
determination that no party will be unduly prejudiced and the ends of 
justice will thereby be served.



Sec. 213.5  Filing and service of papers.

    (a) All papers in the proceedings shall be filed with the FSA 
Hearing Clerk, in an original and two copies. Originals

[[Page 51]]

only of exhibits and transcripts of testimony need be filed.
    (b) All papers in the proceedings shall be served on all parties by 
personal delivery or by mail. Service on the party's designated attorney 
will be deemed service upon the party.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]



           Subpart B--Preliminary Matters--Notice and Parties



Sec. 213.11  Notice of hearing or opportunity for hearing.

    Proceedings are commenced by mailing a notice of hearing or 
opportunity for hearing from the Administrator to the State. The notice 
shall state the time and place for the hearing, and the issues which 
will be considered, and shall be published in the Federal Register.



Sec. 213.12  Time of hearing.

    The hearing shall be scheduled not less than 30 days nor more than 
60 days after the date notice of the hearing is furnished to the State.



Sec. 213.13  Place.

    The hearing shall be held in the city in which the regional office 
of the Department is located or in such other place as is fixed by the 
Administrator in light of the circumstances of the case, with due regard 
for the convenience and necessity of the parties or their 
representatives.



Sec. 213.14  Issues at hearing.

    (a) The Administrator may, prior to a hearing under Sec. 201.6 (a) 
or (b) of this chapter, notify the State in writing of additional issues 
which will be considered at the hearing, and such notice shall be 
published in the Federal Register. If such notice is furnished to the 
State less than 20 days before the date of the hearing, the State or any 
other party, at its request, shall be granted a postponement of the 
hearing to a date 20 days after such notice was furnished, or such later 
date as may be agreed to by the Administrator.
    (b) If, as a result of negotiations between the Department and the 
State, the submittal of a plan amendment, a change in the State program, 
or other actions by the State, any issue is resolved in whole or in 
part, but new or modified issues are presented, as specified by the 
Administrator, the hearing shall proceed on such new or modified issues.
    (c)(1) If at any time, whether prior to, during, or after the 
hearing, the Administrator finds that the State has come into compliance 
with Federal requirements on any issue, in whole or in part, he shall 
remove such issue from the proceedings in whole or in part, as may be 
appropriate. If all issues are removed, he shall terminate the hearing.
    (2) Prior to the removal of any issue from the hearing, in whole or 
in part, the Administrator shall provide all parties other than the 
Department and the State (see Sec. 213.15(b)) with the statement of his 
intention, and the reasons therefor, and a copy of the proposed State 
plan provision on which the State and he have settled, and the parties 
shall have opportunity to submit in writing within 15 days, for the 
Administrator's consideration and for the record, their views as to, or 
any information bearing upon, the merits of the proposed plan provision 
and the merits of the Administrator's reasons for removing the issue 
from the hearing.
    (d) The issues considered at the hearing shall be limited to those 
issues of which the State is notified as provided in Sec. 213.11 and 
paragraph (a) of this section, and new or modified issues described in 
paragraph (b) of this section, and shall not include issues or parts of 
issues removed from the proceedings pursuant to paragraph (c) of this 
section.



Sec. 213.15  Request to participate in hearing.

    (a) The Department and the State are parties to the hearing without 
making a specific request to participate.
    (b)(1) Other individuals or groups may be recognized as parties, if 
the issues to be considered at the hearing have caused them injury and 
their interest is within the zone of interests to be protected by the 
governing Federal statute.

[[Page 52]]

    (2) Any individual or group wishing to participate as a party shall 
file a petition with the FSA Hearing Clerk within 15 days after notice 
of the hearing has been published in the Federal Register, and shall 
serve a copy on each party of record at that time, in accordance with 
Sec. 213.5(b). Such petition shall concisely state (i) petitioner's 
interest in the proceeding, (ii) who will appear for petitioner, (iii) 
the issues on which petitioner wishes to participate, and (iv) whether 
petitioner intends to present witnesses.
    (3) Any party may, within 5 days of receipt of such petition, file 
comments thereon.
    (4) The presiding officer shall promptly determine whether each 
petitioner has the requisite interest in the proceedings and shall 
permit or deny participation accordingly. Where petitions to participate 
as parties are made by individuals or groups with common interests, the 
presiding officer may request all such petitioners to designate a single 
representative, or he may recognize one or more of such petitioners to 
represent all such petitioners. The presiding officer shall give each 
petitioner written notice of the decision on his petition, and if the 
petition is denied, he shall briefly state the grounds for denial.
    (c)(1) Any interested person or organization wishing to participate 
as amicus curiae shall file a petition with the FSA Hearing Clerk before 
the commencement of the hearing. Such petition shall concisely state (i) 
the petitioner's interest in the hearing, (ii) who will represent the 
petitioner, and (iii) the issues on which petitioner intends to present 
argument. The presiding officer may grant the petition if he finds that 
the petitioner has a legitimate interest in the proceedings, that such 
participation will not unduly delay the outcome and may contribute 
materially to the proper disposition of the issues. An amicus curiae is 
not a party but may participate as provided in this paragraph.
    (2) An amicus curiae may present a brief oral statement at the 
hearing, at the point in the proceedings specified by the presiding 
officer. He may submit a written statement of position to the presiding 
officer prior to the beginning of a hearing, and shall serve a copy on 
each party. He may also submit a brief or written statement at such time 
as the parties submit briefs, and shall serve a copy on each party.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]



                      Subpart C--Hearing Procedures



Sec. 213.21  Who presides.

    (a) The presiding officer at a hearing shall be the Administrator or 
his designee.
    (b) The designation of the presiding officer shall be in writing. A 
copy of the designation shall be served on all parties.

[39 FR 40850, Nov. 21, 1974]



Sec. 213.22  Authority of presiding officer.

    (a) The presiding officer shall have the duty to conduct a fair 
hearing, to avoid delay, maintain order, and make a record of the 
proceedings. He shall have all powers necessary to accomplish these 
ends, including, but not limited to, the power to:
    (1) Change the date, time, and place of the hearing, upon due notice 
to the parties. This includes the power to continue the hearing in whole 
or in part. In hearings pursuant to section 1116(a)(2) of the Social 
Security Act (see Sec. 201.4 of this chapter), changes of time are 
subject to the requirements of the statute.
    (2) Hold conferences to settle or simplify the issues in a 
proceeding, or to consider other matters that may aid in the expeditious 
disposition of the proceeding.
    (3) Regulate participation of parties and amici curiae and require 
parties and amici curiae to state their position with respect to the 
various issues in the proceeding.
    (4) Administer oaths and affirmations.
    (5) Rule on motions and other procedural items on matters pending 
before him including issuance of protective orders or other relief to a 
party against whom discovery is sought.
    (6) Regulate the course of the hearing and conduct of counsel 
therein.
    (7) Examine witnesses.

[[Page 53]]

    (8) Receive, rule on, exclude or limit evidence or discovery.
    (9) Fix the time for filing motions, petitions, briefs, or other 
items in matters pending before him.
    (10) If the presiding officer is the Administrator, make a final 
decision.
    (11) If the presiding officer is a hearing examiner, certify the 
entire record including his recommended findings and proposed decision 
to the Administrator.
    (12) Take any action authorized by the rules in this part or in 
conformance with the provisions of 5 U.S.C. 551 through 559.
    (b) The presiding officer does not have authority to compel by 
subpoena the production of witnesses, papers, or other evidence.
    (c) If the presiding officer is a hearing examiner, his authority 
pertains to the issues of compliance by a State with Federal 
requirements which are to be considered at the hearing, and does not 
extend to the question of whether, in case of any noncompliance, Federal 
payments will not be made in respect to the entire State plan or will be 
limited to categories under or parts of the State plan affected by such 
noncompliance.

[40 FR 50272, Oct. 29, 1975]



Sec. 213.23  Rights of parties.

    All parties may:
    (a) Appear by counsel or other authorized representative, in all 
hearing proceedings.
    (b) Participate in any prehearing conference held by the presiding 
officer.
    (c) Agree to stipulations as to facts which will be made a part of 
the record.
    (d) Make opening statements at the hearing.
    (e) Present relevant evidence on the issues at the hearing.
    (f) Present witnesses who then must be available for cross-
examination by all other parties.
    (g) Present oral arguments at the hearing.
    (h) Submit written briefs, proposed findings of fact, and proposed 
conclusions of law, after the hearing.



Sec. 213.23a  Discovery.

    The Department and any party named in the notice issued pursuant to 
Sec. 213.11 shall have the right to conduct discovery (including 
depositions) against opposing parties. Rules 26-37 of the Federal Rules 
of Civil Procedures shall apply to such proceedings; there will be no 
fixed rule on priority of discovery. Upon written motion, the Presiding 
Officer shall promptly rule upon any objection to such discovery action 
initiated pursuant to this section. The Presiding Officer shall also 
have the power to grant a protective order or relief to any party 
against whom discovery is sought and to restrict or control discovery so 
as to prevent undue delay in the conduct of the hearing. Upon the 
failure of any party to make discovery, the Presiding Officer may, in 
his discretion, issue any order and impose any sanction (other than 
contempt orders) authorized by Rule 37 of the Federal Rules of Civil 
Procedure.

[40 FR 50272, Oct. 29, 1975]



Sec. 213.24  Evidentiary purpose.

    The hearing is directed to receiving factual evidence and expert 
opinion testimony related to the issues in the proceeding. Argument will 
not be received in evidence; rather it should be presented in 
statements, memoranda, or briefs, as determined by the presiding 
officer. Brief opening statements, which shall be limited to statement 
of the party's position and what he intends to prove, may be made at 
hearings.



Sec. 213.25  Evidence.

    (a) Testimony. Testimony shall be given orally under oath or 
affirmation by witnesses at the hearing. Witnesses shall be available at 
the hearing for cross-examination by all parties.
    (b) Stipulations and exhibits. Two or more parties may agree to 
stipulations of fact. Such stipulations, or any exhibit proposed by any 
party, shall be exchanged at the prehearing conference or otherwise 
prior to the hearing if the presiding officer so requires.
    (c) Rules of evidence. Technical rules of evidence shall not apply 
to hearings conducted pursuant to this part, but rules or principles 
designed to assure

[[Page 54]]

production of the most credible evidence available and to subject 
testimony to test by cross-examination shall be applied where reasonably 
necessary by the presiding officer. A witness may be cross-examined on 
any matter material to the proceeding without regard to the scope of his 
direct examination. The presiding officer may exclude irrelevant, 
immaterial, or unduly repetitious evidence. All documents and other 
evidence offered or taken for the record shall be open to examination by 
the parties and opportunity shall be given to refute facts and arguments 
advanced on either side of the issues.



Sec. 213.26  Exclusion from hearing for misconduct.

    Disrespectful, disorderly, or contumacious language or contemptuous 
conduct, refusal to comply with directions, or continued use of dilatory 
tactics by any person at the hearing before a presiding officer shall 
constitute grounds for immediate exclusion of such person from the 
hearing by the presiding officer.



Sec. 213.27  Unsponsored written material.

    Letters expressing views or urging action and other unsponsored 
written material regarding matters in issue in a hearing will be placed 
in the correspondence section of the docket of the proceeding. These 
data are not deemed part of the evidence or record in the hearing.



Sec. 213.28  Official transcript.

    The Department will designate the official reporter for all 
hearings. The official transcripts of testimony taken, together with any 
stipulations, exhibits, briefs, or memoranda of law filed therewith 
shall be filed with the Department. Transcripts of testimony in hearings 
may be obtained from the official reporter by the parties and the public 
at rates not to exceed the maximum rates fixed by the contract between 
the Department and the reporter. Upon notice to all parties, the 
presiding officer may authorize corrections to the transcript which 
involve matters of substance.



Sec. 213.29  Record for decision.

    The transcript of testimony, exhibits, and all papers and requests 
filed in the proceedings, except the correspondence section of the 
docket, including rulings and any recommended or initial decision shall 
constitute the exclusive record for decision.



              Subpart D--Posthearing Procedures, Decisions



Sec. 213.31  Posthearing briefs.

    The presiding officer shall fix the time for filing posthearings 
briefs, which may contain proposed findings of fact and conclusions of 
law, and, if permitted, reply briefs.



Sec. 213.32  Decisions following hearing.

    (a) If the Administrator is the presiding officer, he shall, when 
the time for submission of posthearing briefs has expired, issue his 
decision within 60 days.
    (b)(1) If a hearing examiner is the presiding officer, he shall, 
when the time for submission of posthearing briefs has expired, certify 
the entire record, including his recommended findings and proposed 
decision, to the Administrator. The Administrator shall serve a copy of 
the recommended findings and proposed decision upon all parties, and 
amici, if any.
    (2) Any party may, within 20 days, file with the Administrator 
exceptions to the recommended findings and proposed decision and a 
supporting brief or statement.
    (3) The Administrator shall thereupon review the recommended 
decision and, within 60 days of its issuance, issue his own decision.
    (c) If the Administrator concludes that a State plan does not comply 
with Federal requirements, he shall also, in the case of a hearing 
pursuant to Sec. 201.6(a) of this chapter, specify whether further 
payments will not be made to the State or whether, in the exercise of 
his discretion, payments will be limited to categories under or parts of 
the State plan not affected by such noncompliance. The Administrator may 
ask the parties for recommendations or briefs or may hold conferences of 
the parties on this question.

[[Page 55]]

    (d) The decision of the Administrator under this section shall be 
the final decision of the Secretary and shall constitute ``final agency 
action'' within the meaning of 5 U.S.C. 704 and a ``final 
determination'' within the meaning of section 1116(a)(3) of the Act and 
Sec. 201.7 of this chapter. The Administrator's decision shall be 
promptly served on all parties, and amici, if any.

[36 FR 1454, Jan. 29, 1971, as amended at 36 FR 21520, Nov. 10, 1971]



Sec. 213.33  Effective date of Administrator's decision.

    If, in the case of a hearing pursuant to Sec. 201.6(a) of this 
chapter, the Administrator concludes that a State plan does not comply 
with Federal requirements, his decision that further payments will not 
be made to the State, or payments will be limited to categories under or 
parts of the State plan not affected, shall specify the effective date 
for the withholding of Federal funds. The effective date shall not be 
earlier than the date of the Administrator's decision and shall not be 
later than the first day of the next calendar quarter. The provisions of 
this section may not be waived pursuant to Sec. 213.4.



PART 225--TRAINING AND USE OF SUBPROFESSIONALS AND VOLUNTEERS--Table of Contents




Sec.
225.1  Definitions.
225.2  State plan requirements.
225.3  Federal financial participation.

    Authority: Sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.



Sec. 225.1  Definitions.

    (a) The classification of subprofessional staff as community service 
aides refers to persons in a variety of positions in the planning, 
administration, and delivery of health, social, and rehabilitation 
services in which the duties of the position are composed of tasks that 
are an integral part of the agency's service responsibilities to people 
and that can be performed by persons with less than a college education, 
by high school graduates, or by persons with little or no formal 
education.
    (b) Full-time or part-time employment means that the person is 
employed by the agency and his position is incorporated into the regular 
staffing pattern of the agency. He is paid a regular wage or salary in 
relation to the value of services rendered and time spent on the job.
    (c) The term Volunteer describes a person who contributes his 
personal service to the community through the agency's human services 
program. He is not a replacement or substitute for paid staff but adds 
new dimensions to agency services, and symbolizes the community's 
concern for the agency's clientele.
    (d) Partially paid volunteers means volunteers who are compensated 
for expenses incurred in the giving of services. Such payment does not 
reflect the value of the services rendered, or the amount of time given 
to the agency.

[34 FR 1319, Jan. 28, 1969]



Sec. 225.2  State plan requirements.

    The State plan for financial assistance programs under titles I, X, 
XIV, or XVI (AABD) of the Social Security Act for Guam, Puerto Rico and 
the Virgin Islands or for child welfare services under title IV-B of the 
Act must:
    (a) Provide for the training and effective use of subprofessional 
staff as community service aides through part-time or full-time 
employment of persons of low income and, where applicable, of recipients 
and for that purpose will provide for:
    (1) Such methods of recruitment and selection as will offer 
opportunity for full-time or part-time employment of persons of low 
income and little or no formal education, including employment of young 
and middle aged adults, older persons, and the physically and mentally 
disabled, and in the case of a State plan for financial assistance under 
title I, X, XIV, or XVI (AABD), of recipients: And will provide that 
such subprofessional positions are subject to merit system requirements, 
except where special exemption is approved on the basis of a State 
alternative plan for recruitment and selection among the disadvantaged 
of persons who have the potential ability for training and job 
performance to help

[[Page 56]]

assure achievement of program objectives;
    (2) An administrative staffing plan to include the range of service 
personnel of which subprofessional staff are an integral part;
    (3) A career service plan permitting persons to enter employment at 
the subprofessional level and, according to their abilities, through 
work experience, pre-service and in-service training and educational 
leave with pay, progress to positions of increasing responsibility and 
reward;
    (4) An organized training program, supervision, and supportive 
services for subprofessional staff; and
    (5) Annual progressive expansion of the plan to assure utilization 
of increasing numbers of subprofessional staff as community service 
aides, until an appropriate number and proportion of subprofessional 
staff to professional staff are achieved to make maximum use of 
subprofessionals in program operation.
    (b) Provide for the use of nonpaid or partially paid volunteers in 
providing services and in assisting any advisory committees established 
by the State agency and for that purpose provide for:
    (1) A position in which rests responsibility for the development, 
organization, and administration of the volunteer program, and for 
coordination of the program with related functions;
    (2) Methods of recruitment and selection which will assure 
participation of volunteers of all income levels in planning capacities 
and service provision;
    (3) A program for organized training and supervision of such 
volunteers;
    (4) Meeting the costs incident to volunteer service and assuring 
that no individual shall be deprived of the opportunity to serve because 
of the expenses involved in such service; and
    (5) Annual progressive expansion of the numbers of volunteers 
utilized, until the volunteer program is adequate for the achievement of 
the agency's service goals.

[34 FR 1320, Jan. 28, 1969, as amended at 41 FR 12015, Mar. 23, 1976; 42 
FR 60566, Nov. 28, 1977; 45 FR 56686, Aug. 25, 1980; 51 FR 9204, Mar. 
18, 1986]



Sec. 225.3  Federal financial participation.

    Under the State plan for financial assistance programs under titles 
I, X, XIV, XVI (AABD) or for child welfare services under title IV-B of 
the Act, Federal financial participation in expenditures for the 
recruitment, selection, training, and employment and other use of 
subprofessional staff and volunteers is available at the rates and under 
related conditions established for training, services, and other 
administrative costs under the respective titles.

[51 FR 9204, Mar. 18, 1986]



PART 233--COVERAGE AND CONDITIONS OF ELIGIBILITY IN FINANCIAL ASSISTANCE PROGRAMS--Table of Contents




Sec.
233.10  General provisions regarding coverage and eligibility.
233.20  Need and amount of assistance.
233.21  Budgeting methods for OAA, AB, APTD, and AABD.
233.22  Determining eligibility under prospective budgeting.
233.23  When assistance shall be paid under retrospective budgeting.
233.24  Retrospective budgeting; determining eligibility and computing 
          the assistance payment in the initial one or two months.
233.25  Retrospective budgeting; computing the assistance payment after 
          the initial one or two months.
233.26  Retrospective budgeting; determining eligibility after the 
          initial one or two months.
233.27  Supplemental payments under retrospective budgeting.
233.28  Monthly reporting.
233.29  How monthly reports are treated and what notices are required.
233.31  Budgeting methods for AFDC.
233.32  Payment and budget months (AFDC).
233.33  Determining eligibility prospectively for all payment months 
          (AFDC).
233.34  Computing the assistance payment in the initial one or two 
          months (AFDC).
233.35  Computing the assistance payment under retrospective budgeting 
          after the initial one or two months (AFDC).
233.36  Monthly reporting (AFDC).
233.37  How monthly reports are treated and what notices are required 
          (AFDC).
233.38  Waiver of monthly reporting and retrospective budgeting 
          requirements; AFDC.
233.39  Age.

[[Page 57]]

233.40  Residence.
233.50  Citizenship and alienage.
233.51  Eligibility of sponsored aliens.
233.52  Overpayment to aliens.
233.53  Support and maintenance assistance (including home energy 
          assistance) in AFDC.
233.60  Institutional status.
233.70  Blindness.
233.80  Disability.
233.90  Factors specific to AFDC.
233.100  Dependent children of unemployed parents.
233.101  Dependent children of unemployed parents.
233.106  Denial of AFDC benefits to strikers.
233.107  Restriction in payment to households headed by a minor parent.
233.110  Foster care maintenance and adoption assistance.
233.145  Expiration of medical assistance programs under titles I, IV-A, 
          X, XIV and XVI of the Social Security Act.

    Authority: 42 U.S.C. 301, 602, 602 (note), 606, 607, 1202, 1302, 
1352, and 1382 (note).



Sec. 233.10  General provisions regarding coverage and eligibility.

    (a) State plan requirements. A State plan under title I, IV--A, X, 
XIV, or XVI, of the Social Security Act must:
    (1) Specify the groups of individuals, based on reasonable 
classifications, that will be included in the program, and all the 
conditions of eligibility that must be met by the individuals in the 
groups. The groups selected for inclusion in the plan and the 
eligibility conditions imposed must not exclude individuals or groups on 
an arbitrary or unreasonable basis, and must not result in inequitable 
treatment of individuals or groups in the light of the provisions and 
purposes of the public assistance titles of the Social Security Act. 
Under this requirement:
    (i) A State shall impose each condition of eligibility required by 
the Social Security Act; and
    (ii) A State may:
    (A) Provide more limited public assistance coverage than that 
provided by the Act only where the Social Security Act or its 
legislative history authorizes more limited coverage;
    (B) Impose conditions upon applicants for and recipients of public 
assistance which, if not satisfied, result in the denial or termination 
of public assistance, if such conditions assist the State in the 
efficient administration of its public assistance programs, or further 
an independent State welfare policy, and are not inconsistent with the 
provisions and purposes of the Social Security Act.
    (iii) There must be clarity as to what groups are included in the 
plan, and which are within, and which are outside, the scope of Federal 
financial participation.
    (iv) Eligibility conditions must be applied on a consistent and 
equitable basis throughout the State.
    (v) A plan under title XVI must have the same eligibility conditions 
and other requirements for the aged, blind, and disabled, except as 
otherwise specifically required or permitted by the Act.
    (vi) Eligibility conditions or agency procedures or methods must not 
preclude the opportunity for an individual to apply and obtain a 
determination of eligibility or ineligibility.
    (vii) Methods of determining eligibility must be consistent with the 
objective of assisting all eligible persons to qualify.
    (2) Provide that the State agency will establish methods for 
identifying the expenditures for assistance for any groups included in 
the plan for whom Federal financial participation in assistance may not 
be claimed.
    (3) In addition, a State plan under title IV-A, X, XIV, or XVI of 
the Act, must: Provided that no aid or assistance will be provided under 
the plan to an individual with respect to a period for which he is 
receiving aid or assistance under a State plan approved under any other 
of such titles or under title I of the Act.
    (b) Federal financial participation. (1) The provisions which govern 
Federal financial participation in assistance payments are set forth in 
the Social Security Act, throughout this chapter, and in other policy 
issuances of the Secretary. Where indicated, State plan provisions are 
prerequisite to Federal financial participation with respect to the 
applicable group and payments. State plan provisions on need, the amount 
of assistance, and eligibility determine the limits of Federal financial 
participation. Federal financial

[[Page 58]]

participation is excluded from assistance payments in which the State 
refuses to participate because of the failure of a local authority to 
apply such State plan provisions.
    (2) The following is a summary statement regarding the groups for 
whom Federal financial participation is available. (More detailed 
information is given elsewhere.)
    (i) OAA--for needy individuals under the plan who are 65 years of 
age or older.
    (ii) AFDC--for:
    (a) Needy children under the plan who are:
    (1) Under the age of 18, or age 18 if a full-time student in a 
secondary school, or in the equivalent level of vocational or technical 
training, and reasonably expected to complete the program before 
reaching age 19;
    (2) Deprived of parental support or care by reason of the death, 
continued absence from the home, or physical or mental incapacity of a 
parent, or unemployment of a principal earner, and
    (3) Living in the home of a parent or of certain relatives specified 
in the Act.
    (b) The parent(s) of a dependent child, a caretaker relative (other 
than a parent) of a dependent child, and, in certain situations, a 
parent's spouse.
    (iii) AB--for needy individual's under the plan who are blind.
    (iv) APTD--for needy individuals under the plan who are 18 years of 
age or older and permanently and totally disabled.
    (v) AABD--for needy individuals under the plan who are aged, blind, 
or 18 years of age or older and permanently and totally disabled.
    (3) Federal financial participation is available in assistance 
payments made for the entire month in accordance with the State plan if 
the individual was eligible for a portion of the month, provided that 
the individual was eligible on the date that the payment was made; 
except that where it has been determined that the State agency had 
previously denied assistance to which the individual was entitled, 
Federal financial participation will be provided in any corrective 
payment regardless of whether the individual is eligible on the date 
that the corrective payment is made.
    (4) Federal financial participation is available in assistance 
payments which are continued in accordance with the State plan, for a 
temporary period during which the effects of an eligibility condition 
are being overcome, e.g., blindness in AB, disability in APTD, physical 
or mental incapacity, continued absence of a parent, or unemployment of 
a principal earner in AFDC.
    (5) Where changed circumstances or a hearing decision makes the 
individual ineligible for any assistance, or eligible for a smaller 
amount of assistance than was actually paid, Federal financial 
participation is available in excess payments to such individuals, for 
not more than one month following the month in which the circumstances 
changed or the hearing decision was rendered. Federal financial 
participation is available where assistance is required to be continued 
unadjusted because a hearing has been requested.

[36 FR 3866, Feb. 27, 1971, as amended at 38 FR 8744, Apr. 6, 1973; 39 
FR 26912, July 24, 1974; 40 FR 32958, Aug. 5, 1975; 47 FR 5674, Feb. 5, 
1982; 47 FR 47828, Oct. 28, 1982; 51 FR 9204, Mar. 18, 1986; 57 FR 
30158, July 8, 1992]



Sec. 233.20  Need and amount of assistance.

    (a) Requirements for State Plans. A State Plan for OAA, AFDC, AB, 
APTD or AABD must, as specified below:
    (1) General. (i) Provide that the determination of need and amount 
of assistance for all applicants and recipients will be made on an 
objective and equitable basis and all types of income will be taken into 
consideration in the same way except where otherwise specifically 
authorized by Federal statute and
    (ii) Provide that the needs, income, and resources of individuals 
receiving SSI benefits under title XVI, individuals with respect to whom 
Federal foster care payments are made, individuals with respect to whom 
State or local foster care payments are made, individuals with respect 
to whom Federal adoption assistance payments are made, or individuals 
with respect to whom State or local adoption assistance payments are 
made, for the period for which such benefits or payments

[[Page 59]]

are received, shall not be included in determining the need and the 
amount of the assistance payment of an AFDC assistance unit; except that 
the needs, income, and resources of an individual with respect to whom 
Federal adoption assistance payments are made, or individuals with 
respect to whom State or local adoption assistance payments are made are 
included in determining the need and the amount of the assistance 
payment for an AFDC assistance unit of which the individual would 
otherwise be regarded as a member where the amount of the assistance 
payment that the unit would receive would not be reduced by including 
the needs, income, and resources of such individual. Under this 
requirement, ``individuals receiving SSI benefits under title XVI'' 
include individuals receiving mandatory or optional State supplementary 
payments under section 1616(a) of the Social Security Act or under 
section 212 of Public Law 93-66, and ``individuals with respect to whom 
Federal foster care payments are made'' means a child with respect to 
whom Federal foster care maintenance payments under section 472(b) and 
defined in section 475(4)(A) of title IV-E of the Social Security Act 
are made, and a child whose costs in a foster family home or child care 
institution are covered by the Federal foster care maintenance payments 
made with respect to his or her minor parent under sections 472(h) and 
475(4)(B) of title IV-E. ``Individuals with respect to whom Federal 
adoption assistance payments are made'' means a child who receives 
payments made under an approved title IV-E plan based on an adoption 
assistance agreement between the State and the adoptive parents of a 
child with special needs, pursuant to sections 473 and 475(3) of the 
Social Security Act.
    (iii) For AFDC, when an individual who is required to be included in 
the assistance unit pursuant to Sec. 206.10(a)(1)(vii) is also required 
to be included in another assistance unit, those assistance units must 
be consolidated, and treated as one assistance unit for purposes of 
determining eligibility and the amount of payment.
    (iv) For AFDC, when a State learns of an individual who is required 
to be included in the assistance unit after the date he or she is 
required to be included in the unit, the State must redetermine the 
assistance unit's eligibility and payment amount, including the need, 
income, and resources of the individual. This redetermination must be 
retroactive to the date that the individual was required to be in the 
assistance unit either through birth/adoption or by becoming a member of 
the household. Any resulting overpayment must be recovered or corrective 
payment made pursuant to Sec. 233.20(a)(13).
    (v) In determining need and the amount of payment for AFDC, all 
income and resources of an individual required to be in the assistance 
unit, but subject to sanction under Sec. 250.34 or because of an 
intentional program violation under the optional fraud control program 
implementing section 416 of the Social Security Act, are considered 
available to the assistance unit to the same extent that they would be 
if the person were not subject to a sanction. However, the needs of the 
sanctioned individual(s) are not considered. In accord with 
Sec. 250.34(c), if a parent in an AFDC-UP case is sanctioned pursuant to 
Sec. 233.100(a)(5), the needs of the second parent are not taken into 
account in determining the family's need for assistance and the amount 
of the assistance payment unless the second parent is participating in 
the JOBS program. An individual required to be in an assistance unit 
pursuant to Sec. 206.10(a)(1)(vii) but who fails to cooperate in meeting 
a condition of his or her eligibility for assistance is a sanctioned 
individual whose needs, income, and resources are treated in the manner 
described above.
    (2) Standards of assistance. (i) Specify a statewide standard, 
expressed in money amounts, to be used in determining (a) the need of 
applicants and recipients and (b) the amount of the assistance payment.
    (ii) In the AFDC plan, provide that by July 1, 1969, the State's 
standard of assistance for the AFDC program will have been adjusted to 
reflect fully changes in living costs since such standards were 
established, and any maximums that the State imposes on the amount of 
aid paid to families will have been proportionately adjusted. In

[[Page 60]]

such adjustment a consolidation of the standard (i.e., combining of 
items) may not result in a reduction in the content of the standard. In 
the event the State is not able to meet need in full under the adjusted 
standard, the State may make ratable reductions in accordance with 
paragraph (a)(3)(viii) of this section. Nevertheless, if a State 
maintains a system of dollar maximums these maximums must be 
proportionately adjusted in relation to the updated standards.
    (iii) Provide that the standard will be uniformly applied throughout 
the State except as provided under Sec. 239.54.
    (iv) Include the method used in determining need and the amount of 
the assistance payment. For AFDC, the method must provide for rounding 
down to the next lower whole dollar when the result of determining the 
standard of need or the payment amount is not a whole dollar. Proration 
under Sec. 206.10(a)(6)(i)(D) to determine the amount of payment for the 
month of application must occur before rounding to determine the payment 
amount for that month.
    (v) If the State IV-A agency includes special need items in its 
standard:
    (A) Describe those that will be recognized and the circumstances 
under which they will be included, and
    (B) Provide that they will be considered for all applicants and 
recipients requiring them; except that:
    (1) Under AFDC, work expenses and child care (or care of 
incapacitated adults living in the same home and receiving AFDC) 
resulting from employment or participation in either a CWEP or an 
employment search program cannot be special needs, and
    (2) In a State which has a JOBS program under part 250, child care, 
transportation, work-related expenses, other work-related supportive 
services, and the costs of education (including tuition, books, and 
fees) resulting from participation in JOBS (including participation 
pursuant to Secs. 250.46, 250.47, and 250.48) or any other education or 
training activity cannot be special needs.
    (vi) If the State chooses to establish the need of the individual on 
a basis that recognizes, as essential to his well-being, the presence in 
the home of other needy individuals, (A) specify the persons whose needs 
will be included in the individual's need, and (B) provide that the 
decision as to whether any individual will be recognized as essential to 
the recipient's well-being shall rest with the recipient.
    (vii) [Reserved]
    (viii) Provide that the money amount of any need item included in 
the standard will not be prorated or otherwise reduced solely because of 
the presence in the household of a non-legally responsible individual; 
and the agency will not assume any contribution from such individual for 
the support of the assistance unit except as provided in paragraphs 
(a)(3)(xiv) and (a)(5) of this section and Sec. 233.51 of this part.
    (ix) For AFDC, provide that a State shall consider utility payments 
made in lieu of any direct rental payment to a landlord or public 
housing agency to be shelter costs for applicants or recipients living 
in housing assisted under the U.S. Housing Act of 1937, as amended, and 
section 236 of the National Housing Act. The amount considered as a 
shelter payment shall not exceed the total amount the applicant or 
recipient is expected to contribute for the cost of housing as 
determined by HUD. Utility payments means only those payments made 
directly to a utility company or supplier which are for gas, 
electricity, water, heating fuel, sewerage systems, and trash and 
garbage collection. Utility payments are made ``in lieu of any direct 
rental payment to a landlord or public housing agency'' when, and only 
when, the AFDC family pays its entire required contribution at HUD's 
direction to one or more utility companies and does not make any direct 
payment to the landlord or the public housing agency. Housing covered by 
``the U.S. Housing Act of 1937, as amended, and section 236 of the 
National Housing Act'' means Department of Housing and Urban Development 
assisted housing which includes Indian and public housing, section 8 new 
and existing rental housing, and section 236 rental housing.
    (3) Income and resources. (i)(A) OAA, AB, APTD, AABD, Specify the 
amount and types of real and personal property, including liquid assets, 
that may be reserved, i.e., retained to meet the

[[Page 61]]

current and future needs while assistance is received on a continuing 
basis. In addition to the home, personal effects, automobile and income 
producing property allowed by the agency, the amount of real and 
personal property, including liquid assets, that can be reserved for 
each individual recipient shall not be in excess of two thousand 
dollars. Policies may allow reasonable proportions of income from 
businesses or farms to be used to increase capital assets, so that 
income may be increased; and (B) in AFDC--The amount of real and 
personal property that can be reserved for each assistance unit shall 
not be in excess of one thousand dollars equity value (or such lesser 
amount as the State specifies in its State plan) excluding only:
    (1) The home which is the usual residence of the assistance unit;
    (2) One automobile, up to $1,500 of equity value or such lower limit 
as the State may specify in the State plan; (any excess equity value 
must be applied towards the general resource limit specified in the 
State plan);
    (3) One burial plot (as defined in the State plan) for each member 
of the assistance unit;
    (4) Bona fide funeral agreements (as defined and within limits 
specified in the State plan) up to a total of $1,500 in equity value or 
such lower limit as the State may specify in the State plan for each 
member of the assistance unit (any excess equity value must be applied 
towards the general resource limit specified in the State plan). This 
provision addresses only formal agreements for funeral and burial 
expenses such as burial contracts, burial trusts or other funeral 
arrangements (generally with licensed funeral directors) and does not 
apply to other assets (e.g., passbook bank accounts, simple set-aside of 
savings, and cash surrender value of life insurance policies);
    (5) Real property for a period of six consecutive months (or, at the 
option of the State, nine consecutive months) which the family is making 
a good faith effort (as defined in the State plan) to sell, subject to 
the following provisions. The family must sign an agreement to dispose 
of the property and to repay the amount of aid received during such 
period that would not have been paid had the property been sold at the 
beginning of such period, but not to exceed the amount of the net 
proceeds of the sale. The family has five working days from the date it 
realizes cash from the sale of the excess real property to repay the 
overpayment; failure to make repayment within this period results in the 
cash being considered to be an available resource. If the family becomes 
ineligible for AFDC for any other reason during the conditional payment 
period while making a good faith effort to sell the property, or fails 
to sell the property by the end of the period despite such a good faith 
effort, then the amount of the overpayment attributable to the real 
property will not be determined and recovery will not be begun until the 
property is, in fact, sold. However, if the property was intentionally 
sold at less than fair market value so that a good faith effort to sell 
it was not made, or if it is otherwise determined that a good faith 
effort to sell the property is not being made, the overpayment amount 
shall be computed using the fair market value determined at the 
beginning of the period. For applicants, the conditional payment period 
begins with the first payment month for which all otherwise applicable 
eligibility conditions are met and payment is authorized. For recipients 
who acquire property while receiving assistance, the period begins with 
the payment month in which the recipient receives the property; and
    (6) At State option, basic maintenance items essential to day-to-day 
living such as clothes, furniture and other similarly essential items of 
limited value.
    (ii) Provide that in determining need and the amount of the 
assistance payment, after all policies governing the reserves and 
allowances and disregard or setting aside of income and resources 
referred to in this section have been uniformly applied:
    (A) In determining need, all remaining income and resources shall be 
considered in relation to the State's need standard;
    (B) In determining financial eligibility and the amount of the 
assistance payment all remaining income (except unemployment 
compensation received

[[Page 62]]

by an unemployed principal earner) and, except for AFDC, all resources 
may be considered in relation to either the State's need standard or the 
State's payment standard. Unemployment compensation received by an 
unemployed principal earner shall be considered only by subtracting it 
from the amount of the assistance payment after the payment has been 
determined under the State's payment method;
    (C) States may have policies which provide for allocating an 
individual's income for his or her own support if the individual is not 
applying for or receiving assistance; for the support of other 
individuals living in the same household but not receiving assistance; 
and for the support of other individuals living in another household. 
Such other individuals are those who are or could be claimed by the 
individual as dependents for determining Federal personal income tax 
liability, or those he or she is legally obligated to support. No income 
may be allocated to meet the needs of an individual who has been 
sanctioned under Secs. 224.51, 232.11(a)(2), 232.12(d), 238.22 or 240.22 
or who is required to be included in the assistance unit and has failed 
to cooperate. The amount allocated for the individual and the other 
individuals who are living in the home must not exceed the State's need 
standard amount for a family group of the same composition. The amount 
allocated for individuals not living in the home must not exceed the 
amount actually paid.
    (D) Income after application of disregards, except as provided in 
paragraph (a)(3)(xiii) of this section, and resources available for 
current use shall be considered. To the extent not inconsistent with any 
other provision of this chapter, income and resources are considered 
available both when actually available and when the applicant or 
recipient has a legal interest in a liquidated sum and has the legal 
ability to make such sum available for support and maintenance.
    (E) For AFDC, income tax refunds, but such payments shall be 
considered as resources; and
    (F) When the AFDC assistance unit's income, after applying 
applicable disregards, exceeds the State need standard for the family 
because of receipt of nonrecurring earned or unearned lump sum income 
(including for AFDC, title II and other retroactive monthly benefits, 
and payments in the nature of a windfall, e.g., inheritances or lottery 
winnings, personal injury and worker compensation awards, to the extent 
it is not earmarked and used for the purpose for which it is paid, i.e., 
monies for back medical bills resulting from accidents or injury, 
funeral and burial costs, replacement or repair of resources, etc.), the 
family will be ineligible for aid for the full number of months derived 
by dividing the sum of the lump sum income and other income by the 
monthly need standard for a family of that size. Any income remaining 
from this calculation is income in the first month following the period 
of ineligibility. The period of ineligibility shall begin with the month 
of receipt of the nonrecurring income or, at State option, as late as 
the corresponding payment month. For purposes of applying the lump sum 
provision, family includes all persons whose needs are taken into 
account in determining eligibility and the amount of the assistance 
payment, and includes solely for determining the income and resources of 
a family an individual who must be in a family pursuant to 
Sec. 206.10(a)(1)(vii) but who does not meet a condition of his or her 
eligibility due to a failure to cooperate or is required by law to have 
his or her needs excluded from an assistance unit's AFDC grant 
calculation due to the failure to perform some action. A State may 
shorten the remaining period of ineligibility when: the standard of need 
increases and the amount the family would have received also changes 
(e.g., situations involving additions to the family unit during the 
period of ineligibility of persons who are otherwise eligible for 
assistance); the lump sum income or a portion thereof becomes 
unavailable to the family for a reason beyond the control of the family; 
or the family incurs and pays for medical expenses. If the State chooses 
to shorten the period of ineligibility, the State plan shall:
    (1) Identify which of the above situations are included;

[[Page 63]]

    (2) In the case of situations involving an increase in the need 
standard and changes in the amount that should have been paid to the 
family, specify the types of circumstances which will be included;
    (3) In the case of situations involving the unavailability of the 
lump sum income, include a definition of unavailability, and specify 
what reasons will be considered beyond the control of the family; and
    (4) In the case of situations involving the payment of medical 
expenses, specify the types of medical expenses the State will allow to 
be offset against the lump sum income.


For purposes of this paragraph (a)(3): Automobile means a passenger car 
or other motor vehicle used to provide transportation of persons or 
goods. (In AFDC, in appropriate geographic areas, one alternate primary 
mode of transportation may be substituted for the automobile); Equity 
value means fair market value minus encumbrances (legal debts); Fair 
market value means the price an item of a particular make, model, size, 
material or condition will sell for on the open market in the geographic 
area involved (If a motor vehicle is especially equipped with apparatus 
for the handicapped, the apparatus shall not increase the value of the 
vehicle); Liquid assets are those properties in the form of cash or 
other financial instruments which are convertible to cash and include 
savings accounts, checking accounts, stocks, bonds, mutual fund shares, 
promissory notes, mortgages, cash value of insurance policies, and 
similar properties; Need standard means the money value assigned by the 
State to the basic and special needs it recognizes as essential for 
applicants and recipients; Payment standard means the amount from which 
non-exempt income is subtracted.

    (iii) States may prorate income received by individuals employed on 
a contractual basis over the period of the contract or may prorate 
intermittent income received quarterly, semiannually, or yearly over the 
period covered by the income. In OAA, AB, APTD and AABD, they may use 
the prorated amount to determine need under Sec. 233.23 and the amount 
of the assistance payment under Secs. 233.24 and 233.25. In AFDC, they 
may use the prorated amount to determine need under Sec. 233.33 and the 
amount of the assistance payment under Secs. 233.34 and 233.35.
    (iv) Provide that in determining the availability of income and 
resources, the following will not be included as income:
    (A) Except for AFDC, income equal to expenses reasonably 
attributable to the earning of income (including earnings from public 
service employment);
    (B) Grants, such as scholarships, obtained and used under conditions 
that preclude their use for current living costs;
    (C) Home produce of an applicant or recipient, utilized by him and 
his household for their own consumption;
    (D) For AFDC, any amounts paid by a State IV-A agency from State-
only funds to meet needs of children receiving AFDC, if the payments are 
made under a statutorily-established State program which has been 
continuously in effect since before January 1, 1979;
    (E) For AFDC, income tax refunds, but such payments shall be 
considered as resources; and
    (F) At State option, small nonrecurring gifts, such as those for 
Christmas, birthdays and graduations, not to exceed $30 per recipient in 
any quarter; and
    (G) For AFDC, the amount paid to the family by the IV-A agency under 
Sec. 232.20(d) or, in a State that treats direct support payments as 
income under Sec. 233.20(a)(3)(v)(B), the first $50 received by the 
assistance unit which represents a current monthly support obligation or 
a voluntary support payment. In no case shall the total amount 
disregarded exceed $50 per month per assistance unit.
    (v) Provide that agency policies will assure that:
    (A) In determining eligibility for an assistance payment, support 
payments assigned under Sec. 232.11 of this chapter will be treated in 
accordance with Sec. 232.20 and Sec. 232.21 of this chapter; and
    (B) In determining the amount of an assistance payment, assigned 
support payments retained in violation of Sec. 232.12(b)(4) of this 
chapter, will be counted as income to meet need unless the approved IV-A 
State plan provides

[[Page 64]]

that such support payments are subject to IV-D recovery under 
Secs. 302.31(a)(3) and 303.80 of this title or unless such payments are 
sufficient to render the family ineligible as provided at Sec. 232.20 of 
this chapter.
    (vi)(A) In family groups living together, income of the spouse is 
considered available for his spouse and income of a parent is considered 
available for children under 21, except as provided in paragraphs 
(a)(3)(xiv) and (a)(3)(xviii) of this section for AFDC. If an individual 
is a spouse or parent who is a recipient of SSI benefits under title 
XVI, an individual with respect to whom Federal foster care payments are 
made, an individual with respect to whom State or local foster care 
payments are made, an individual with respect to whom Federal adoption 
assistance payments are made, or an individual with respect to whom 
State or local adoption assistance payments are made, then, for the 
period for which such benefits or payments are received, his or her 
income and resources shall not be counted as income and resources 
available to the AFDC unit except that a child receiving adoption 
assistance payments will not be excluded if such exclusion would cause 
the AFDC benefits of the assistance unit of which the child would 
otherwise be considered a member to be reduced. For purposes of this 
exception, ``a recipient of SSI benefits under title XVI'' includes a 
spouse or parent receiving mandatory or optional State supplementary 
payments under section 1616(a) of the Social Security Act or under 
section 212 of Public Law 93-66 and an ``individual with respect to whom 
Federal foster care payments are made'' means a child with respect to 
whom Federal foster care maintenance payments are made under section 
472(b) and defined in section 475(4)(A) of the Act, and a child whose 
costs in a foster family home or child-care institution are covered by 
the foster care maintenance payments made with respect to his or her 
minor parent under sections 472(h) and 475(4)(B) of the Act. 
``Individuals with respect to whom Federal adoption assistance payments 
are made'' means a child who receives payments made under an approved 
title IV-E plan based on an adoption assistance agreement between the 
State and the adoptive parents of a child with special needs, pursuant 
to sections 473 and 475(3) of the Social Security Act.
    (B) Income of an alien parent, who is disqualified pursuant to 
Sec. 233.50(c) is considered available to the otherwise eligible child 
by applying the stepparent deeming formula at 45 CFR 233.20(a)(3)(xiv).
    (vii) If the State agency establishes policy under which assistance 
from other agencies and organizations will not be deducted in 
determining the amount of assistance to be paid, provide that no 
duplication shall exist between such other assistance and that provided 
by the public assistance agency. In such complementary program 
relationships, nonduplication shall be assured by provision that such 
aid will be considered in relation to: (a) The different purpose for 
which the other agency grants aid such as vocational rehabilitation; (b) 
the provision of goods and services that are not included in the 
statewide standard of the public assistance agency, e.g., a private 
agency might provide money for special training for a child or for 
medical care when the public assistance agency does not carry this 
responsibility; or housing and urban development payments might be 
provided to cover moving expenses that are not included in the 
assistance standard; or (c) the fact that public assistance funds are 
insufficient to meet the total amount of money determined to be needed 
in accordance with the statewide standard. In such instances, grants by 
other agencies in an amount sufficient to make it possible for the 
individual to have the amount of money determined to be needed, in 
accordance with the public assistance agency standard, will not 
constitute duplication.
    (viii) Provide that: (A) Payment will be based on the determination 
of the amount of assistance needed; (B) if full individual payments are 
precluded by maximums or insufficient funds, adjustments will be made by 
methods applied uniformly statewide; (C) in the case of AFDC no payment 
of aid shall be made to an assistance unit in any month in which the 
amount of aid prior to any adjustments is determined

[[Page 65]]

to be less than $10; and (D) an individual who is denied aid because of 
the limitation specified in (C) of this section, or because the payment 
amount is determined to be zero as a result of rounding the payment 
amount as required by Sec. 233.20(a)(2)(iv), shall be deemed a recipient 
of aid for all other purposes except participation in the Community Work 
Experience Program.
    (ix) Provide that the agency will establish and carry out policies 
with reference to applicants' and recipients' potential sources of 
income that can be developed to a state of availability.
    (x) Provide that the income and resources of individuals receiving 
SSI benefits under title XVI, individuals with respect to whom Federal 
foster care payments are made, individuals with respect to whom State or 
local foster care payments are made, individuals with respect to whom 
Federal adoption assistance payments are made, or individuals with 
respect to whom State or local adoption assistance payments are made, 
for the period for which such benefits or payments are received, shall 
not be counted as income and resources of an assistance unit applying 
for or receiving assistance under title IV-A; except that a child 
receiving adoption assistance payments will not be excluded if such 
exclusion would cause the AFDC benefits of the assistance unit of which 
the child would otherwise be considered a member to be reduced. Under 
this requirement, ``individuals receiving SSI benefits under title XVI'' 
include individuals receiving mandatory or optional State supplementary 
payments under section 1616(a) of the Social Security Act or under 
section 212 of Public Law 93-66 and, ``individuals with respect to whom 
Federal foster care payments are made'' means a child with respect to 
whom Federal foster care maintenance payments are made under section 
472(b) and defined in section 475(4)(A) of the Act, and a child whose 
costs in a foster family home or child-care institution are covered by 
foster care maintenance payments made with respect to his or her minor 
parent under sections 472(h) and 475(4)(B) of the Act. ``Individuals 
with respect to whom Federal adoption assistance payments are made'' 
means a child who receives payments made under an approved title IV-E 
plan based on an adoption assistance agreement between the State and the 
adoptive parents of a child with special needs, pursuant to sections 473 
and 475(3) of the Social Security Act.
    (xi) In the case of AFDC if the State chooses to count the value of 
the food stamp coupons as income, provide that the State plan shall:
    (A) Identify the amount for food included in its need and payment 
standards for an assistance unit of the same size and composition. 
(States which have a flat grant system must estimate the amount based on 
historical data or some other justifiable procedure.); and
    (B) Specify the amount of such food stamp coupons that it will count 
as income. Under this requirement, the amount of food stamp coupons 
which a State may count as income may not exceed the amount for food 
established in its payment standard for an assistance unit of the same 
size and composition.
    (xii) In the case of AFDC if the State chooses to count the value of 
the governmental rent or housing subsidies as income, provide that the 
State plan shall:
    (A) Identify the amount for shelter included in its need and payment 
standards for an assistance unit of the same size and composition. 
(States which have a flat grant system must estimate this amount based 
on historical data or some other justifiable procedure.); and
    (B) Specify the amount of such housing assistance that it will count 
as income. Under this requirement, the amount of such rent or housing 
subsidies which a State may count as income may not exceed the amount 
for shelter established in its payment standard for assistance unit of 
the same size and composition.
    (xiii) Under the AFDC plan, provide that no assistance unit is 
eligible for aid in any month in which the unit's income (other than the 
assistance payment) exceeds 185 percent of the State's need standard 
(including special needs) for a family of the same composition 
(including special needs), without application of the disregards in 
paragraph (a)(11)(i) (except to the

[[Page 66]]

extent provided for under paragraph (a)(3)(xix)), paragraph (a)(11)(ii) 
and paragraph (a)(11)(viii) of this section.
    (xiv) For AFDC, in States that do not have laws of general 
applicability holding the stepparent legally responsible to the same 
extent as the natural or adoptive parent, the State agency shall count 
as income to the assistance unit the income of the stepparent (i.e., one 
who is married, under State law, to the child's parent) of an AFDC child 
who is living in the household with the child after applying the 
following disregards (exception: if the stepparent is included in the 
assistance unit, the disregard under paragraph (a)(11) (i) and (ii) of 
this section apply instead:
    (A) The first $90 of the gross earned income of the stepparent;
    (B) An additional amount for the support of the stepparent and any 
other individuals who are living in the home, but whose needs are not 
taken into account in making the AFDC eligibility determinations except 
for sanctioned individuals or individuals who are required to be 
included in the assistance unit but have failed to cooperate and are or 
could be claimed by the stepparent as dependents for purposes of 
determining his or her Federal personal income tax liability. This 
disregarded amount shall equal the State's need standard amount for a 
family group of the same composition as the stepparent and those other 
individuals described in the preceding sentence;
    (C) Amounts actually paid by the stepparent to individuals not 
living in the home but who are or could be claimed by him or her as 
dependents for purposes of determining his or her Federal personal 
income tax liability; and
    (D) Payments by such stepparent of alimony or child support with 
respect to individuals not living in the household.
    (xv) For AFDC, provide for the consideration of the income and 
resources of an alien's sponsor who is an individual as provided in 
Sec. 233.51.
    (xvi) For AFDC, provide that in considering the availability of 
income and resources, support and maintenance assistance (including home 
energy assistance) will be taken into account in accordance with 
Sec. 233.53.
    (xvii) In the case of AFDC, if the State chooses to disregard 
monthly income of any dependent child when the income is derived from 
participation in a program under the JTPA, provide that the State plan 
shall:
    (A) Identify from which programs under the JTPA, income will be 
disregarded;
    (B) In the case of earned income, specify what amount will be 
disregarded, and the length of time the disregard will be applicable (up 
to six months per calendar year); and
    (C) In the case of unearned income, specify what amount will be 
disregarded, and the length of time per calendar year the disregard will 
be applicable if any such limit is chosen.
    (xviii) For AFDC, in the case of a dependent child whose parent is a 
minor under the age of 18 (without regard to school attendance), the 
State shall count as income to the assistance unit the income, after 
appropriate disregards, of such minor's own parent(s) living in the same 
household as the minor and dependent child. The disregards to be applied 
are the same as are applied to the income of a stepparent pursuant to 
paragraph (a)(3)(xiv) of this section. However, in applying the 
disregards, each employed parent will receive the benefit of the work 
expense disregard in paragraph (a)(3)(xiv)(A) of this section.
    (xix) In the case of AFDC, if the State chooses to disregard monthly 
earned income of dependent children who are full-time students in the 
determination of whether the family's income exceeds the limit under 
Sec. 233.20(a)(3)(xiii) of this section, provide that the State plan 
shall specify what amounts will be disregarded and the length of time 
the disregard will be applicable (up to six months per calendar year) 
except that earned income derived from participation in a program under 
the JTPA may only be disregarded under this paragraph, paragraph 
(a)(3)(xvii) or a combination of both paragraphs for a total of 6 months 
per calendar year.
    (xx) In the case of AFDC, if the State chooses to disregard in the 
determination of eligibility the monthly earned

[[Page 67]]

income of dependent children applying for AFDC who are full-time 
students, provide that the State plan shall:
    (A) Specify the amount that will be disregarded, and
    (B) Provide that the disregard shall only apply to the extent that 
the earned income is also disregarded pursuant to paragraph (a)(3)(xix) 
of this section.
    (xxi) Provide that the principal of a bona fide loan will not be 
counted as income or resources in the determination of eligibility and 
the amount of assistance. Interest earned on a loan is counted as 
unearned income in the month received and as resources thereafter and 
purchases made with a loan are counted as resources. For purposes of 
this paragraph, a loan is considered bona fide when it meets objective 
and reasonable criteria included in the State plan.
    (4) Disregard of income in OAA, AFDC, AB, APTD, OR AABD. (i) For all 
programs except AFDC. If the State chooses to disregard income from all 
sources before applying other provisions for disregarding or setting 
aside income, specify the amount that is first to be disregarded, but 
not more than $7.50 per month, of any income of an individual, child or 
relative claiming assistance. All income must be included such as social 
security or other benefits, earnings, contributions from relatives, or 
other income the individual may have.
    (ii) Provide that in determining eligibility for public assistance 
and the amount of the assistance payment, the following will be 
disregarded as income and resources:
    (a) In OAA, AB, APTD, and AABD, the value of the coupon allotment 
under the Food Stamp Act of 1964 in excess of the amount paid for the 
coupons;
    (b) The value of the U.S. Department of Agriculture donated foods 
(surplus commodities);
    (c) Any payment received under title II of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970;
    (d) Grants or loans to any undergraduate student for educational 
purposes made or insured under any programs administered by the 
Secretary of Education except the programs under the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et 
seq.). Student financial assistance provided under the Carl D. Perkins 
Vocational and Applied Technology Education Act will be disregarded in 
accordance with paragraph (a)(4)(ii)(t) of this section.
    (e) Any funds distributed per capita to or held in trust for members 
of any Indian tribe under Public Law 92-254 or Pub. L. 94-540;
    (f) Any benefits received under title VII, Nutrition Program for the 
Elderly, of the Older Americans Act of 1965, as amended;
    (g) Payments for supporting services or reimbursement of out-of-
pocket expenses made to individual volunteers serving as foster 
grandparents, senior health aides, or senior companions, and to persons 
serving in the Service Corps of Retired Executives (SCORE) and Active 
Corps of Executives (ACE) and any other programs under titles II and 
III, pursuant to section 418 of Pub. L. 93-113;
    (h) Payments to applicants or recipients participating in the 
Volunteers in Service to America (VISTA) Program, except that this 
disregard will not be applied when the Director of ACTION determines 
that the value of all such payments, adjusted to reflect the number of 
hours such volunteers are serving, is equivalent to or greater than the 
minimum wage then in effect under the Fair Labor Standards Act of 1938, 
or the minimum wage under the laws of the States where the volunteers 
are serving, whichever is greater. (Section 404(g) of Pub. L. 93-113, as 
amended by section 9 of Pub. L. 96-143);
    (i) The value of supplemental food assistance received under the 
Child Nutrition Act of 1966 as amended, and the special food service 
program for children under the National School Lunch Act, as amended 
(Pub. L. 92-433 and Pub. L. 93-150);
    (j) [Reserved]
    (k) Pursuant to section 15 of Public Law 100-241, any of the 
following distributions made to a household, an individual Native, or a 
descendant of a Native by a Native Corporation established pursuant to 
the Alaska Native

[[Page 68]]

Claims Settlement Act (ANCSA) (Pub. L. 92-203, as amended):
    (1) Cash distributions (including cash dividends on stock from a 
Native Corporation) received by an individual are never counted as 
income or resources to the extent that such cash does not, in the 
aggregate, exceed $2,000 in a year. Cash which, in the aggregate, is in 
excess of $2,000 in a year is not subject to the income and resources 
disregards in this paragraph (a)(4)(ii)(k)(1);
    (2) Stock (including stock issued or distributed by a Native 
Corporation as a dividend or distribution on stock);
    (3) A partnership interest;
    (4) Land or an interest in land (including land or an interest in 
land received from a Native Corporation as a dividend or distribution on 
stock); and
    (5) An interest in a settlement trust.
    (l) Benefits paid to eligible households under the Low Income Home 
Energy Assistance Act of 1981 pursuant to section 2605(f) of Pub. L. 97-
35;
    (m) Effective October 17, 1975, pursuant to section 6 of Pub. L. 94-
114 (89 Stat. 577, 25 U.S.C. 459e) receipts distributed to members of 
certain Indian tribes which are referred to in section 5 of Pub. L. 94-
114 (89 Stat. 577, 25 U.S.C. 459d).
    (n) Pursuant to section 7 of Public Law 93-134, as amended by 
section 4 of Public Law 97-458, Indian judgment funds that are held in 
trust by the Secretary of the Interior (including interest and 
investment income accrued while such funds are so held in trust), or 
distributed per capita to a household or member of an Indian tribe 
pursuant to a plan prepared by the Secretary of the Interior and not 
disapproved by a joint resolution of the Congress, and initial purchases 
made with such funds. This disregard does not apply to proceeds from the 
sale of initial purchases, subsequent purchases made with funds derived 
from the sale or conversion of the initial purchases, or to funds or 
initial purchases which are inherited or transferred.
    (o) Pursuant to section 2 of Public Law 98-64, all funds held in 
trust by the Secretary of the Interior for an Indian tribe (including 
interest and investment income accrued while such funds are so held in 
trust) and distributed per capita to a household or member of an Indian 
tribe, and initial purchases made with such funds. This disregard does 
not apply to proceeds from the sale of initial purchases, subsequent 
purchases made with funds derived from the sale or conversion of initial 
purchases, or to funds or initial purchases which are inherited or 
transferred.
    (p) Any student financial assistance provided under programs in 
title IV of the Higher Education Act of 1965, as amended, and under 
Bureau of Indian Affairs education assistance programs.
    (q) For AFDC, any payments made as restitution to an individual 
under title I of Public Law 100-383 (the Civil Liberties Act of 1988) or 
under title II of Public Law 100-383 (the Aleutian and Pribilof Islands 
Restitution Act).
    (r) Any Federal major disaster and emergency assistance provided 
under the Disaster Relief Act of 1974, as amended by Public Law 100-707 
(the Disaster Relief and Emergency Assistance Amendments of 1988) and 
comparable disaster assistance provided by States, local governments and 
disaster assistance organizations.
    (s) Any payments made pursuant to the settlement in the In Re Agent 
Orange Product liability litigation, M.D.L. No. 381 (E.D.N.Y.).
    (t) Student financial assistance made available for the attendance 
costs defined in this paragraph under programs in the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et 
seq.). Attendance costs are: tuition and fees normally assessed a 
student carrying the same academic workload as determined by the 
institution, and including costs for rental or purchase of any 
equipment, materials, or supplies required of all students in the same 
course of study; and an allowance for books, supplies, transportation, 
dependent care and miscellaneous personal expenses for a student 
attending the institution on at least a half-time basis, as determined 
by the institution.
    (u) For AFDC, any payments made pursuant to section 6(h)(2) of 
Public Law 101-426, the Radiation Exposure Compensation Act.
    (iii) Provide that income and resources which are disregarded or set

[[Page 69]]

aside under this part will not be taken into consideration in 
determining the need of any other individual for assistance.
    (iv) For AFDC, any amounts determined to have been paid by a State 
from State-only funds to supplement or otherwise increase the amount of 
aid paid to an assistance unit as computed under Sec. 233.35 for a month 
in recognition of current or anticipated needs of the assistance unit 
for that same month shall not be counted as income--to the extent that 
the total of the State supplemental payment, the AFDC payment and actual 
income (i.e., the amount of income received during the payment month 
after subtracting from gross income the $75 work expense disregard (to 
recognize mandatory payroll deductions, transportation costs, and other 
work expenses), child care and other applicable disregards) received in 
that month are not in excess of what the State would have paid for that 
month to an assistance unit of the same size and composition with no 
income--in computing the assistance payment under Sec. 233.35 for the 
corresponding payment month.
    (5) Proration of shelter, utilities, and similar needs in AFDC. (i) 
Provide that the State agency may prorate allowances in the need and 
payment standards for shelter, utilities, and similar needs when the 
AFDC assistance unit lives together with other individuals as a 
household; except that, the State shall not prorate with respect to any 
person receiving SSI to whom the statutory one-third reduction (section 
1612(a)(2)(A)(i) of the Act) is applied, or prorate when a bona fide 
landlord-tenant relationship exists. If the State chooses to prorate 
under this paragraph, it must prorate both the need standard and payment 
standard.
    (ii) If the State agency elects to prorate allowances for shelter, 
utilities, and similar needs the State plan must:
    (A) Indicate which allowances will be prorated, and describe the 
procedure which will be used to prorate the allowances;
    (B) Provide that the allowances will be prorated on a reasonable 
basis; and
    (C) Specify the circumstances under which proration will occur, 
including a description of which individuals are considered to be living 
with an AFDC assistance unit as a household.
    (6) Disregard of earned income; definition. Provide that for 
purposes of disregarding earned income the agency policies will include:
    (i) A definition of earned income in accordance with the provisions 
of paragraphs (a)(6) (iii) through (ix) of this section; and
    (ii) Provision for disregarding earned income for the period during 
which it is earned, rather than when it is paid, in cases of lump-sum 
payment for services rendered over a period of more than 1 month.
    (iii) The term earned income encompasses income in cash or in kind 
earned by an individual through the receipt of wages, salary, 
commissions, or profit from activities in which he is engaged as a self-
employed individual or as an employee. For AFDC, earned income means 
gross earned income prior to any deductions for taxes or for any other 
purposes, except as provided in paragraph (a)(6)(v). Such earned income 
may be derived from his own employment, such as a business enterprise, 
or farming; or derived from wages or salary received as an employee. It 
includes earnings over a period of time for which settlement is made at 
one given time, as in the instance of sale of farm crops, livestock, or 
poultry. For OAA, AB, APTD and AABD only, in considering income from 
farm operation, the option available for reporting under OASDI, namely 
the cash receipts and disbursements method, i.e., a record of actual 
gross, of expenses, and of net, is an individual determination and is 
acceptable also for these assistance programs.
    (iv) With reference to commissions, wages, or salary, the term 
earned income means the total amount, irrespective of personal expenses, 
such as income-tax deductions, lunches, and transportation to and from 
work, and irrespective of expenses of employment which are not personal, 
such as the cost of tools, materials, special uniforms, or 
transportation to call on customers.
    (v)(A) For OAA, AB, APTD, and AABD, with respect to self-employment, 
the term earned income means

[[Page 70]]

the total profit from business enterprise, farming, etc., resulting from 
a comparison of the gross income received with the business expenses, 
i.e., total cost of the production of the income. Personal expenses, 
such as income-tax payments, lunches, and transportation to and from 
work, are not classified as business expenses.
    (B) For AFDC, with respect to self-employment the term earned income 
means the total profit from business enterprise, farming, etc., 
resulting from a comparison of the gross receipts with the business 
expenses, i.e., expenses directly related to producing the goods or 
services and without which the goods or services could not be produced. 
However, items such as depreciation, personal business and entertainment 
expenses, personal transportation, purchase of capital equipment and 
payments on the principal of loans for capital assets or durable goods 
are not business expenses.
    (vi) The definition shall exclude the following from earned income: 
Returns from capital investment with respect to which the individual is 
not himself actively engaged, as in a business (for example, under most 
circumstances, dividends and interest would be excluded from earned 
income); benefits (not in the nature of wages, salary, or profit) 
accruing as compensation, or reward for service, or as compensation for 
lack of employment (for example, pensions and benefits, such as United 
Mine Workers' benefits or veterans' benefits).
    (vii) With regard to the degree of activity, earned income is income 
produced as a result of the performance of services by a recipient; in 
other words, income which the individual earns by his own efforts, 
including managerial responsibilities, would be properly classified as 
earned income, such as management of capital investment in real estate. 
Conversely, for example, in the instance of capital investment wherein 
the individual carries no specific responsibility, such as where rental 
properties are in the hands of rental agencies and the check is 
forwarded to the recipient, the income would not be classified as earned 
income.
    (viii) Reserves accumulated from earnings are given no different 
treatment than reserves accumulated from any other sources.
    (7) Disregard of earned income; method. (i) Provide that for other 
than AFDC, the following method will be used for disregarding earned 
income: The applicable amounts of earned income to be disregarded will 
be deducted from the gross amount of earned income, and all work 
expenses, personal and non-personal, will then be deducted. Only the net 
amount remaining will be applied in determining need and the amount of 
the assistance payment.
    (ii) In applying the $30 and one-third disregard under paragraph 
(a)(11)(i)(D) of this section to an applicant for AFDC, there will be a 
preliminary step to determine whether the assistance unit is eligible 
without applying the disregard to the individual's earned income, by 
comparing the applicant's gross earned income (less the disregards in 
paragraphs (a)(11)(i) (A), (B) and (C)) and all of the assistance unit's 
other income to the State need standard. This preliminary step does not 
apply if the individual has received AFDC in one of the four months 
prior to the month of application.
    (8) Disregard of earned income applicable only to OAA, APTD, or 
AABD. If the State chooses to disregard earned income, specify the 
amount to be disregarded of the first $80 per month of income that is 
earned by an aged or disabled individual claiming OAA, APTD, or AABD, 
who is not blind, but not more than $20 per month plus one-half of the 
next $60 of such earned income.
    (9) Disregard of income and resources applicable only to APTD or 
AABD. If the State chooses to disregard income (which may be additional 
to the income disregarded under paragraph (a)(8) of this section) or 
resources for a disabled individual to achieve the fulfillment of a plan 
of self-support, provide that the amounts of additional income and 
resources will not exceed those found necessary for the period during 
which the individual is actually undergoing vocational rehabilitation, 
and specify the period, not in excess of 36 months, for which such 
amounts are to be disregarded.
    (10) Disregard of income and resources applicable only to AB or 
AABD. Provide

[[Page 71]]

that, in determining the need of individuals who are blind, (i) the 
first $85 per month of earned income of the individual plus one-half of 
earned income in excess of $85 per month will be disregarded; and (ii) 
if the individual has a plan for achieving self-support, such additional 
income and resources as are necessary to fulfill such plan will be 
disregarded for a period not in excess of 12 months. Such additional 
income and resources may be disregarded for an additional period not in 
excess of 24 months (for a total of 36 months), as specified in the 
State plan.
    (11) Disregard of income and resources applicable only to AFDC. (i) 
For purposes of eligibility determination, the State must disregard from 
the monthly earned income, i.e., earned income as defined in 
Sec. 233.20(a)(6)(iii), of each individual whose needs are included in 
the eligibility determination:
    (A) Disregard all of the monthly earned income of each child 
receiving AFDC if the child is a full-time student or is a part-time 
student who is not a full-time employee. A student is one who is 
attending a school, college, or university or a course of vocational or 
technical training designed to fit him or her for gainful employment and 
includes a participant in the Job Corps program under the Job Training 
Partnership Act (JTPA).
    (B) The first $90.
    (C) Where appropriate, an amount equal to $30 plus one-third of the 
earned income not already disregarded under paragraphs (a)(11)(i), 
(a)(11)(v) and (a)(11)(vi) of this section of an individual who received 
assistance in one of the four prior months.
    (D) An amount equal to the actual cost for the care of each 
dependent child or incapacitated adult living in the same home and 
receiving AFDC, but not to exceed $175 for each dependent child who is 
at least age two or each incapacitated adult, and not to exceed $200 for 
each dependent child who is under age two. For individuals not engaged 
in full-time employment or not employed throughout the month, the $175 
and $200 disregard limits may be applied, or the State agency may 
establish disregard limits less than $175 and $200.
    (E) Where appropriate, $30 of the earned income not already 
disregarded under paragraphs (a)(11) (i), (v), and (vi) of this section, 
in the case of an individual who reapplies for assistance within the 
eight-month period that he/she is eligible for the $30 disregard.
    (ii) For purposes of benefit calculation for individuals found 
eligible under paragraph (a)(11)(i) of this section, the following 
disregards must be made by the State:
    (A) Disregard all of the monthly earned income of each child 
receiving AFDC if the child is a full-time student or is a part-time 
student who is not a full-time employee. A student is one who is 
attending a school, college, or university or a course of vocational or 
technical training designed to fit him or her for gainful employment and 
includes a participant in the Job Corps program under the Job Training 
Partnership Act (JTPA).
    (B) Disregard from any other individual's earned income the amounts 
specified in paragraphs (a)(11)(i)(B) and (a)(11)(i)(D) of this section, 
and $30 plus one-third of the individual's earned income not already 
disregarded under paragraphs (a)(11)(ii) and (a)(11)(v) of this section. 
However, the State may not provide the one-third portion of the 
disregard to an individual after the fourth consecutive month (any month 
for which the unit loses the $30 plus one-third disregard because of a 
provision in paragraph (a)(11)(iii) of this section, shall be considered 
as one of these months) it has been applied to the individual's earned 
income and may not apply the $30 disregard after the eighth month 
following the fourth consecutive month (regardless of whether the $30 
disregard was actually applied in those months) unless twelve 
consecutive months have passed during which the individual is not a 
recipient of AFDC. If income from a recurring source resulted in 
suspension or termination due to an extra paycheck, the month of 
ineligibility does not interrupt the accumulation of consecutive months 
of the $30 plus one-third disregard, nor does it count as one of the 
consecutive months.
    (iii) The applicable earned income disregards in paragraphs (i) (B) 
and (C) and (ii)(B) of this paragraph do not

[[Page 72]]

apply to the earned income of the individual for the month in which one 
of the following conditions apply to him:
    (A) An individual terminated his employment or reduced his earned 
income without good cause (as specified in the State plan) within the 
period of 30 days preceding such month;
    (B) An individual refused without good cause (as specified in the 
State plan) within the period of 30 days preceding such month to accept 
employment in which he is able to engage which is offered through the 
public employment offices of the State, or is otherwise offered by an 
employer if the offer of such employer is determined by the State or 
local agency administering the State plan, after notification by him, to 
be a bona fide offer of employment;
    (C) An individual failed without good cause (as specified in the 
State plan) to make a timely report (as defined in Sec. 233.37(c)) of 
that income; or
    (D) The individual voluntarily requests assistance to be terminated 
for the primary purpose of avoiding receiving the $30 and one-third 
disregard for four consecutive months.
    (iv)  [Reserved]
    (v) The treatment of earned income and expenses under JOBS is as 
follows:
    (A) For earned income from regular employment or on-the-job 
training, as described at Sec. 250.61, the disregards in paragraphs 
(a)(11)(i) and (a)(11)(ii)(B) shall apply.
    (B) For earned income from a job under the work supplementation 
component, as described at Sec. 250.62, the disregards in paragraphs 
(a)(11)(i) and (a)(11)(ii)(B) shall apply unless the State IV-A agency 
in its State JOBS plan, has elected to provide otherwise under 
Sec. 250.62(j) and Sec. 250.62(k).
    (C) For all activities under JOBS and self-initiated education and 
training in non-JOBS areas, advance payment or reimbursement to the 
individual for child care, transportation, work-related expenses, or 
work-related supportive services is disregarded.
    (D) Payment or reimbursement of child care pursuant to part 255 for 
employed individuals who are not JOBS participants and one-time work-
related expenses for individuals who are not JOBS participants pursuant 
to part 255 are disregarded.
    (vi) At State option, disregard all or part of the monthly income of 
any dependent child applying for or receiving AFDC when the income is 
derived from a program carried out under the Job Training Partnership 
Act of 1982, except that in respect to earned income such disregard may 
not exceed six months per calendar year.
    (vii) At State option, disregard all or part of the monthly earned 
income of any dependent child applying for AFDC, if the child is a full-
time student, and that income has been disregarded for purposes of 
paragraph (a)(3)(xiii) of this section.
    (viii) Disregard as income the amount of any earned income tax 
credit payments received by an applicant or recipient. Disregard as 
resources, in the month of receipt and the following month, the amount 
of any earned income tax credit payments received by an applicant or 
recipient. ``Earned income tax credit payments'' include: Any advance 
earned income tax credit payment made to a family by an employer and any 
earned income tax credit payment made as a refund of Federal income 
taxes.
    (12) Recoupment of overpayments and correction of underpayments for 
programs other than AFDC. Specify uniform Statewide policies for:
    (i) Recoupment of overpayments of assistance, including certain 
overpayments resulting from assistance paid pending hearing decisions.
    (A) The State may not recoup any overpayment previously made to a 
recipient:
    (1) Unless the recipient has income or resources exclusive of the 
current assistance payment currently available in the amount by which 
the agency proposes to reduce payments: except that,
    (2) Where such overpayments were occassioned or caused by the 
recipient's willful withholding of information concerning his income, 
resources or other circumstances which may affect the amount of payment, 
the State may recoup prior overpayments from current assistance grants 
irrespective of current income or resources.

[[Page 73]]

    (B) Withholding of information which is subject to the provisions of 
paragraph (a)(12)(i)(A)(2) of this section includes the following:
    (1) Willful misstatements (either oral or written) made by a 
recipient in response to oral or written questions from the State agency 
concerning the recipient's income, resources or other circumstances 
which may affect the amount of payment. Such misstatements may include 
understatements of amounts of income or resources and omission of an 
entire category of income or resources;
    (2) A willful failure by the recipient to report changes in income, 
resources or other circumstances which may affect the amount of payment, 
if the State agency has clearly notified the recipient of an obligation 
to report such changes. The recipient shall be given such notification 
periodically at times (not less frequently than semi-annually) and by 
methods which the State agency determines will effectively bring such 
reporting requirements to the recipient's attention:
    (3) A willfull failure by the recipient (i) to report receipt of a 
payment which the recipient knew represented an erroneous overpayment, 
or (ii) to notify the State agency of receipt of a check which exceeded 
the prior check by at least the amount which the State agency had 
previously notified the recipient (pursuant to the provisions of 
paragraph (a)(12)(i)(A)(4) of this section) might represent an 
overpayment and constitute a sum to which the recipient would not be 
entitled. In making a determination pursuant to this paragraph 
(a)(12)(i)(B)(3), all relevant circumstances including the amount by 
which the erroneous payment exceeded the previous payment shall be 
considered.
    (C) Each periodic notification under paragraph (a)(12)(i)(B)(2) of 
this section shall:
    (1) Include a reminder that it is the recipient's continuing 
obligation to furnish to the State agency accurate and timely 
information concerning changes in income, resources, or other 
circumstances which may affect the amount of payment, within a 
reasonable specified period after such change. The recipient may also be 
notified that a failure to so notify the State agency within the 
designated time period may constitute a willful withholding of such 
information and permit the State agency to recover any overpayment 
occasioned or caused by the willful withholding;
    (2) Specifically and comprehensibly in simple phraseology indicate 
the type of information to be disclosed by the recipient. Examples shall 
be furnished of the most frequent types of newly acquired income or 
resources (e.g., inheritance, wages from a part-time job);
    (3) Require that, if there is any doubt whether a particular change 
in circumstances constitutes such reportable information, the recipient 
contact the State agency or a designated representative thereof within a 
reasonable specified period of time after such change in circumstances;
    (4) If the State plan provides for recoupment in the circumstances 
described in paragraph (a)(12)(i)(B)(3)(ii) of this section, notify the 
recipient that if the check received exceeds the prior check by a 
specified amount (which amount may not be less than that which a 
reasonable man should have known was erroneous), this increased check 
may constitute a sum to which the recipient is not entitled. In such 
instances, the notification may require that the recipient notify the 
State agency or a designated representative thereof prior to the 
negotiation of such check, so that corrective action may be taken; the 
State agency shall respond to such notification within 24 hours. The 
recipient may also be notified that a failure to so notify the State 
agency within the designated time period may constitute a willful 
withholding of such information and permit the State agency to recover 
such overpayment.
    (D) The State agency shall require periodic formal acknowledgement 
by recipients (on a form utilized for this purpose) that the reporting 
obligations of this paragraph had been brought to the recipient's 
attention and that they were understood.
    (E) Any recoupment of overpayments made under circumstances other 
than those specified in paragraph (a)(12)(i)(B) of this section shall be 
limited to overpayments made during the

[[Page 74]]

12 months preceding the month in which the overpayment was discovered.
    (F) Any recoupment of overpayments permitted by paragraph 
(a)(12)(i)(A)(2) of this section may be made from available income and 
resources (including disregarded, set-aside or reserved items) or from 
current assistance payment or from both. If recoupments are made from 
current assistance payments, the State shall, on a case-by-case basis, 
limit the proportion of such payments that may be deducted in each case, 
so as not to cause undue hardship to recipients.
    (G) The plan may provide for recoupment in all situations specified 
herein, or only in certain of the circumstances specified herein, and 
for waiver of the overpayment where the cost of collection would exceed 
the amount of the overpayment.
    (H) Election by the State not to recoup overpayments shall not waive 
the provisions of Secs. 205.40, and 205.41, or any other quality control 
requirement.
    (ii) Prompt correction of underpayments to current recipients, 
resulting from administrative error where the State plan provides for 
recoupment of overpayments. Under this requirement:
    (a) Retroactive corrective payment shall be made only for the 12 
months preceding the month in which the underpayment is discovered;
    (b) For purposes of determining continued eligibility and amount of 
assistance, such retroactive corrective payments shall not be considered 
as income or as a resource in the month paid nor in the next following 
month; and
    (c) No retroactive payment need be made where the administrative 
cost would exceed the amount of the payment.
    (13) Recovery of overpayments and correction of underpayments for 
AFDC.(i) Specify uniform Statewide policies for recovery of overpayments 
of assistance, including overpayments resulting from assistance paid 
pending hearing decisions. Overpayment means a financial assistance 
payment received by or for an assistance unit for the payment month 
which exceeds the amount for which that unit was eligible. (The agency 
may deny assistance for the corresponding payment month rather than 
recover if the assistance unit was ineligible for the budget month, the 
State becomes aware of the ineligibility when the monthly report is 
submitted, the recipient accurately reported the budget month's income 
and other circumstances, and the assistance unit will be eligible for 
the following payment month.)
    (A) The State must take all reasonable steps necessary to promptly 
correct any overpayment, except that, as set forth in the plan, a State 
may waive any overpayment which occurred because receipt of an earned 
income tax credit payment by a family during the period January 1, 1990, 
to December 31, 1990, caused ineligibility under the 185 percent gross 
income limitation in paragraph (a)(3)(xiii) of this section.
    (1) Any recovery of an overpayment to a current assistance unit, 
including a current assistance unit or recipient whose overpayment 
occurred during a prior period of eligibility, must be recovered through 
repayment (in part or in full) by the individual responsible for the 
overpayment or recovering the overpayment by reducing the amount of any 
aid payable to the assistance unit of which he or she is a member, or 
both.
    (2) If recovery is made from the grant, such recovery shall result 
in the assistance unit retaining, for any payment month, from the 
combined aid, income and liquid resources, (without application of 
section 402(a)(8) of the Act) not less than 90 percent of the amount 
payable under the State plan to a family of the same composition with no 
other income. Where a State chooses to recover at a rate less than the 
maximum, it must recover promptly.

    (B) The State shall recover an overpayment from (1) the assistance 
unit which was overpaid, or (2) any assistance unit of which a member of 
the overpaid assistance unit has subsequently become a member, or (3) 
any individual members of the overpaid assistance unit whether or not 
currently a recipient. If the State recovers from individuals who are no 
longer recipients, or from recipients who refuse to repay the 
overpayment from their income and resources, recovery shall be made by 
appropriate action under

[[Page 75]]

State law against the income or resources of those individuals.
    (C) If through recovery, the amount payable to the assistance unit 
is reduced to zero, members of the assistance unit are still considered 
recipients of AFDC.
    (D) In cases which have both an underpayment and an overpayment, the 
State may offset one against the other in correcting the payment.
    (E) Prompt recovery of an overpayment: A State must take one of the 
following three actions by the end of the quarter following the quarter 
in which the overpayment is first identified:
    (1) Recover the overpayment, (2) initiate action to locate and/or 
recover the overpayment from a former recipient, or (3) execute a 
monthly recovery agreement from a current recipient's grant or income/
resources.
    (ii) Specify uniform Statewide policies for prompt correction of any 
underpayments to current recipients and those who would be a current 
recipient if the error causing the underpayment had not occurred. 
Underpayment means a financial assistance payment received by or for an 
assistance unit for the payment month which is less than the amount for 
which the assistance unit was eligible, or failure by the State to issue 
a financial assistance payment for the payment month to an eligible 
assistance unit if such payment should have been issued. Under this 
requirement, for purposes of determining continued eligibility and 
amount of assistance, such retroactive corrective payments shall not be 
considered as income, or as a resource in the month paid nor in the next 
following month.
    (iii) Paragraph (a)(13) of this section is effective for incorrect 
payments which are identified subsequent to September 30, 1981.
    (iv) In locating former recipients who have outstanding overpayments 
the State should use appropriate data sources such as State unemployment 
insurance files, State Department of Revenue information from tax 
returns, State automobile registration, Bendex, and other files relating 
to current or former recipients.
    (v) The State must maintain information on the individual and total 
number and amount of overpayments identified and their disposition for 
current and former recipients.
    (vi) The State may elect not to attempt recovery of an overpayment 
from an individual no longer receiving aid where the overpayment amount 
is less than $35. Where the overpayment amount owed by an individual no 
longer receiving aid is $35 or more, the State can determine when it is 
no longer cost-effective to continue overpayment recovery efforts, 
provided it has made reasonable efforts to recover the overpayment from 
the individual. Reasonable efforts must include notification of the 
amount of and reason for the overpayment and that repayment is required. 
States must also maintain information regarding uncollected overpayments 
as provided under paragraph (a)(13)(v) of this section, to enable the 
State to recover those overpayments if the individual subsequently 
becomes a recipient. In cases involving fraud, States must make every 
effort to recover the overpayment, regardless of the amount.
    (14) For Medicaid eligibility only, beginning October 1, 1998, 
pursuant to section 402(a)(37) of the Act, an assistance unit will be 
deemed to be receiving AFDC, but only for the purposes of this 
paragraph, for a period of nine months after the last month the family 
actually received aid if the loss of AFDC eligibility was solely because 
a member of the unit was no longer eligible due to the 4 and 12 month 
time limitations to have the $30 and one-third or the $30 disregard in 
paragraph (a)(11)(ii)(B) applied to his or her earned income. At State 
option, an additional period of Medicaid coverage for up to six months 
may be provided when the assistance unit would be eligible during such 
additional period to receive AFDC if the $30 and one-third or the $30 
disregards were applied to the assistance unit's earned income.
    (15) For Medicaid eligibility only, pursuant to section 406(h) of 
the Act:
    (i) Each dependent child and each relative with whom such a child is 
living (including the eligible spouse of such relative pursuant to 
section 237.50(b) of this chapter) who becomes ineligible for AFDC 
wholly or partly because of the initiation of or an increase in the

[[Page 76]]

amount of a child or spousal support collection under title IV-D will be 
deemed to be receiving AFDC, but only for purposes of this paragraph 
(a)(15), for a period of four consecutive calendar months beginning with 
the first month of AFDC ineligibility. To be eligible for extended 
Medicaid coverage pursuant to this paragraph (a)(15), each dependent 
child and relative must meet the following conditions:
    (A) The individual must have become ineligible for AFDC on or after 
August 16, 1984; and
    (B) The individual must have received AFDC in at least three of the 
six months immediately preceding the month in which the individual 
becomes ineligible for AFDC; and
    (C) The individual must have become ineligible for AFDC wholly or 
partly as a result of the initiation of or an increase in the amount of 
a child or spousal support collection under title IV-D.
    (ii)(A) Except as provided in paragraph (a)(15)(ii)(B) of this 
section, individuals who are eligible for extended Medicaid lose this 
coverage if they move to another State during the 4-month period. 
However, if they move back to and reestablish residence in the State in 
which they have extended coverage, they are eligible for any of the 
months remaining in the 4-month period in which they are residents of 
the State.
    (B) If a State has chosen in its State plan to provide Medicaid to 
non-residents, the State may continue to provide the 4-month extended 
benefits to individuals who have moved to another State.
    (iii) For purposes of paragraph (i) of this section:
    (A) The new collection or increased collection of child or spousal 
support results in the termination of AFDC eligibility when it actively 
causes or contributes to the termination. This occurs when:
    (1) The change in support collection in and of itself is sufficient 
to cause ineligibility. This rule applies even if the support collection 
must be added to other, stable income. It also applies even if other 
independent factors, alone or in combination with each other, might 
simultaneously cause ineligibility; or
    (2) The change in support contributes to ineligibility but does not 
by itself cause ineligibility. Ineligibility must result when the change 
in support is combined with other changes in income or changes in other 
circumstances and the other changes in income or circumstances cannot 
alone or in combination result in termination without the change in 
support.
    (B) In cases of increases in the amounts of both the support 
collections and earned income, eligibility under this section does not 
preclude eligibility under paragraph (a)(14) of this section or section 
1925 of the Social Security Act (which was added by section 303(a) of 
the Family Support Act of 1988 (42 U.S.C. 139r-6)). Extended periods 
result from both an increase in the amount of the support collection and 
from an increase in earned income must run concurrently.
    (b) Federal financial participation; General. (1) Federal 
participation will be available in financial assistance payments made on 
the basis that (after application of policies governing the allowable 
reserve, disregard or setting aside of income and resources), all income 
of the needy individual, together with the assistance payment, do not 
exceed the State's defined standard of assistance, and available 
resources of the needy individuals do not exceed the limits under the 
State plan.
    (2) Federal participation is available within the maximums specified 
in the Federal law, when the payments do not exceed the amount 
determined to be needed under the statewide standard, and are made in 
accordance with the State method for determining the amount of the 
payments, as specified in Sec. 233.31 for AFDC and in Secs. 233.24 and 
233.25 for OAA, AB, APTD, and AABD.
    (3) Federal participation is available in financial assistance 
payments made on the basis of the need of the individual. This basis may 
include consideration of needy persons living in the same home with the 
recipient when such other persons are within the State's policy as 
essential to his well-being. Persons living in the home who are 
``essential to the well-being of the recipient,'' as specified in the 
State

[[Page 77]]

plan, will govern as the basis for Federal participation (see Guides and 
Recommendations). When the State includes persons living outside the 
home or persons not in need, Federal participation is not available for 
that portion of financial assistance payments attributable to such 
persons, and the State's claims must, therefore, identify the amounts of 
any such nonmatchable payments.
    (4) For all assistance programs except AFDC, Federal participation 
is available for supplemental payments in the retrospective budgeting 
system.
    (c) Federal financial participation in vendor payments for home 
repairs. With respect to expenditures made after December 31, 1967, 
expenditures to a maximum of $500 are subject to Federal financial 
participation at 50 percent for repairing the home owned by an 
individual who is receiving aid or assistance (other than Medical 
Assistance for the Aged) under a State plan for OAA, AFDC, AB, APTD, or 
AABD if:
    (1) Prior to making the expenditures the agency determined that: (i) 
The home is so defective that continued occupancy is unwarranted; (ii) 
unless repairs are made the recipient would need to move to rental 
quarters; and (iii) the rental cost of quarters for the recipient 
(including the spouse living with him in such home and any other 
individual whose needs were considered in determining the recipient's 
need) would exceed (over a period of 2 years) the repair costs needed to 
make such home habitable together with other costs attributable to 
continued occupancy of such home.
    (2) No expenditures for repair of such home were made previously 
pursuant to a determination as described in paragraph (c)(1) of this 
section. This does not preclude more than one payment made at the time 
repairs are made pursuant to the determination, e.g., separate payments 
to the roofer, the electrician, and the plumber.
    (3) Expenditures for home repairs are authorized in writing by a 
responsible agency person, records show the eligible person in whose 
behalf the home repair expenditure was made, and there is sufficient 
evidence that the home repair was performed.

[34 FR 1394, Jan. 29, 1969]

    Editorial Note: For Federal Register citations to Sec. 233.20, see 
the List of CFR Sections Affected in the Finding Aids section of this 
volume.

    Effective Date Note: Paragraph (a)(13)(v) was added to Sec. 233.20 
at 47 FR 5678, Feb. 5, 1982. The effectiveness of this paragraph is 
pending OMB approval. The agency will publish a document in the Federal 
Register when approval is obtained.



Sec. 233.21  Budgeting methods for OAA, AB, APTD, and AABD.

    (a) Requirements for State plans. A State plan for OAA, AB, APTD, 
and AABD shall specify if assistance payments shall be computed using a 
prospective budgeting system or a retrospective budgeting system. A 
State electing retrospective budgeting shall specify which options it 
selects and the State plan shall state that it shall meet the 
requirements in Secs. 233.21 through 233.29. Budgeting methods for AFDC 
are described in Secs. 233.31 through 233.37.
    (b) Definitions. The following definitions apply to Secs. 233.21 
through 233.29:
    (1) Prospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on its best estimate of 
income and circumstances which will exist in that month. This estimate 
shall be based on the agency's reasonable expectation and knowledge of 
current, past or future circumstances.
    (2) Retrospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on actual income or 
circumstances which existed in a previous month, the ``budget month''.
    (3) Budget month means the fiscal or calendar month from which the 
agency shall use income or circumstances of the family to compute the 
amount of assistance.
    (4) Payment month means the fiscal or calendar month for which an 
agency shall pay assistance. Payment is based upon income or 
circumstances in the budget month. In prospective budgeting, the budget 
month and the payment month are the same. In retrospective budgeting, 
the payment month follows the budget month and the payment month shall 
begin within 32 days after the end of the budget month.

[[Page 78]]

    (5) Make an assistance payment. In the context of retrospective 
budgeting, to make an assistance payment means that the check shall be 
deposited in the U.S. mail, hand delivered to the recipient, or 
deposited with an intermediary organization, such as a bank.
    (6) Supplemental payment. In the context of retrospective budgeting, 
a supplemental payment is a payment which maintains a family during the 
time it takes for the monthly assistance payment to reflect a change in 
circumstances or income.

[44 FR 26082, May 4, 1979, as amended at 47 FR 5678, Feb. 5, 1982]



Sec. 233.22  Determining eligibility under prospective budgeting.

    In States which compute the amount of the assistance payment 
prospectively, the State plan shall provide that the State shall also 
determine all factors of eligibility prospectively. Thus, the State 
agency shall establish eligibility based on its best estimate of income 
and circumstances which will exist in the month for which the assistance 
payment is made.

[44 FR 26082, May 4, 1979]



Sec. 233.23  When assistance shall be paid under retrospective budgeting.

    (a) A State which uses retrospective budgeting shall specify in its 
plan that it will make assistance payments within the following time 
limits to recipients who file a completed report on time, and to those 
who are not required to file a report. A State shall choose one of two 
time periods for making assistance payments. The State plan shall 
provide that payment must be made:
    (1) Within 25 days from the close of the budget month; or
    (2) Between 25 and 45 days from the close of the budget month.
    (b)(1) Where a State makes payments between 25 and 45 days from the 
close of the budget month, the State plan shall provide that the State 
will make supplemental payments as provided in Sec. 233.27.
    (2) If a State makes payments within 25 days from the close of the 
budget month, and also makes supplemental payments as provided in 
Sec. 233.27, the State plan shall so specify.
    (c) In States which issue two checks for each payment month, these 
time periods apply to the first check.

[44 FR 26083, May 4, 1979]



Sec. 233.24  Retrospective budgeting; determining eligibility and computing the assistance payment in the initial one or two months.

    (a) States which make assistance payments within 25 days of the 
close of the budget month shall determine eligibility and compute the 
amount of the payment for all recipients prospectively for the initial 
month of assistance. These States may choose to determine eligibility 
and compute the payment prospectively for the second month, also.
    (b) States which make assistance payments between 25 and 45 days 
from the close of the budget month shall determine eligibility and 
compute the amount of the payment prospectively for the initial two 
months of assistance.
    (c) When a person who previously received assistance reapplies 
during the same month in which a termination became effective, 
eligibility shall be determined according to paragraph (a) or (b) of 
this section. However, the amount of the assistance payment for the 
month of the reapplication shall be computed retrospectively.

[44 FR 26083, May 4, 1979]



Sec. 233.25  Retrospective budgeting; computing the assistance payment after the initial one or two months.

    The State plan shall provide:
    (a) After the initial one or two payment months of assistance under 
Sec. 233.24, the amount of each subsequent month's payment shall be 
computed retrospectively, i.e., shall be based on earned and unearned 
income received in the corresponding budget month.
    (b) In these subsequent months, other factors of need which affect 
the amount of the assistance payment may also be based on circumstances 
in the corresponding budget month, or they may be based on circumstances 
in the payment month.
    (c) For the first month in which retrospective budgeting is used, a 
State

[[Page 79]]

shall not consider income received by the recipient before the date of 
application. When a person reapplies during the same month in which a 
termination became effective, the State may consider income received 
before the date of application.

[44 FR 26083, May 4, 1979]



Sec. 233.26  Retrospective budgeting; determining eligibility after the initial one or two months.

    (a) Under retrospective budgeting, there are three options for 
determining eligibility. The State plan shall specify that eligibility, 
following the initial one or two months under Sec. 233.24, shall be 
determined by one of the following methods:
    (1) A State may consider all factors, including income 
retrospectively, i.e., only from the budget month. For example, if a 
change in circumstances occurs which affects eligibility, e.g., 
deprivation ceases, the change may be reported at the end of the budget 
month and assistance shall be terminated for the corresponding payment 
month. Thus, even if the agency could have terminated assistance earlier 
than the corresponding payment month, it shall not do so under 
retrospective determination of eligibility.
    (2) A State may consider all factors, including income, 
prospectively. For example, if deprivation ceases, and the family 
becomes ineligible, the agency shall immediately take steps to terminate 
assistance.
    (3) A State may use a combination of the options in paragraphs (a) 
and (b) of this section by considering factors related to earned and 
unearned income retrospectively and all other factors prospectively. For 
example, if a change in income makes the family ineligible, the agency 
shall wait until the corresponding payment month to terminate 
assistance. On the other hand, if a change of circumstances other than 
income makes the family ineligible, the agency shall immediately take 
steps to terminate assistance.

[44 FR 26083, May 4, 1979; 44 FR 29065, May 18, 1979, as amended at 47 
FR 47828, Oct. 28, 1982]



Sec. 233.27  Supplemental payments under retrospective budgeting.

    (a) General requirements. A State plan which provides for payments 
between 25 and 45 days from the close of a budget month, shall provide 
for supplemental payments to eligible recipients who request them. A 
State plan which provides for payments within 25 days may provide for 
supplemental payments:
    (1) The supplemental payment shall be paid for the month in which it 
was requested.
    (2) The recipient family is eligible for a supplemental payment if 
its income for the month is less than 80 percent of the amount the State 
would pay for a similar family with no income. However, this percentage 
of the amount the State would pay for a similar family with no income 
may be set between 80 and 100 percent, as specified in the State plan. 
The supplemental payment equals the difference between the family's 
income in the payment month and that percentage.
    (3) Supplemental payments shall be issued within 5 working days of 
request.
    (b) How income is treated. For purposes of supplemental payments, 
income includes that month's assistance payment and any income received 
or expected to be received by the recipient, but does not include work-
related expenses.
    (1) The amount used for the assistance payment shall be the monthly 
assistance payment without regard to any recoupments made for prior 
overpayments or adjustments for prior underpayments.
    (2) The agency may include as income cash in hand or available in 
bank accounts. It may also include as income any cash disregarded in 
determining need or the amount of the assistance payment, but not cash 
payments that are disregarded by Sec. 233.20(a)(4)(ii), paragraphs (c) 
on relocation assistance, (d) on educational grants or loans and (g) on 
payments for certain services.

[44 FR 26083, May 4, 1979, as amended at 51 FR 9205, Mar. 18, 1986]

[[Page 80]]



Sec. 233.28  Monthly reporting.

    (a) State plans specifying retrospective budgeting shall require 
that recipients with earned income, other than income from self-
employment, report that income to the agency monthly. The State may 
require recipients with unearned income, no income, or income from self-
employment to report monthly. The agency shall provide a form for this 
purpose, which:
    (1) Is written in clear simple language;
    (2) Specifies the date by which the agency must receive the form and 
the consequences of a late or incomplete form, including whether the 
agency will delay or withhold payment if the form is not returned by the 
specified date;
    (3) Identifies an individual or agency unit the recipient should 
contact to receive prompt answers to questions about information 
requested on the form, and provides a telephone number for this purpose;
    (4) Includes a statement, to be signed by the recipient, that he or 
she understands that the information he or she provides may result in 
changes in assistance, including reduction or termination;
    (5) Advises the recipient if supplemental payments are available and 
the proper procedures for initiating a request; and
    (6) Advises the recipient of his or her right to a fair hearing on 
any decrease or termination of assistance or denial of a supplemental 
payment.
    (b) The agency shall specify the date by which it must receive the 
monthly report. This date shall be at least 5 days from the end of the 
budget month and shall also allow the recipient at least 5 days to 
complete the report.
    (c) The agency may consider a monthly report incomplete only if it 
is unsigned or omits information necessary to determine eligibility or 
compute the payment amount.
    (d) The agency shall provide a stamped, self-addressed envelope for 
returning the monthly report.
    (e) The agency shall make special provisions for persons who are 
illiterate or have other handicaps so that they cannot complete a 
monthly report form.

[44 FR 26083, May 4, 1979]



Sec. 233.29  How monthly reports are treated and what notices are required.

    (a) What happens if a completed monthly report is received on time. 
When the agency receives a completed monthly report by the date 
specified in Sec. 233.28 it shall process the payment. The agency shall 
notify the recipient of any changes from the prior payment and the basis 
for its determinations. This notice must meet the requirements of 
Sec. 205.10(a)(4)(i)(B) of this chapter on adequate notice if the 
payment is being reduced or assistance is being terminated. This notice 
must be received by the recipient no later than his or her resulting 
payment or in lieu of the payment.
    (b) What happens if the completed monthly report is received before 
the extension deadline. (1) If the completed monthly report is not 
received by the date specified in Sec. 233.28, the agency shall send a 
notice to the recipient. This notice shall inform him or her that the 
monthly report is overdue or is not complete and that he or she has at 
least 10 additional days to file. It must inform the recipient that 
termination may result if that is the agency's policy, if the report is 
not filed within the extension period. This notice must reach the 
recipient at least 10 days before the expected payment. However, in 
States in which the date specified in Sec. 233.28 is within 10 days of 
the expected payment date, the notice must reach the recipient on or 
before the expected payment date.
    (2) When the report is received within the extension period, the 
agency may delay payment to the recipient, as follows:
    (i) In a State that pays within 25 days of the budget month the 
payment may be delayed 10 days;
    (ii) In a State that pays within 25 to 45 days of the budget month, 
the payment may not be delayed beyond the 45th day.
    (c) What happens if a monthly report is not received by the end of 
the extension period. An agency may terminate assistance if it has not 
received a report

[[Page 81]]

or has received an incomplete report, and the 10 day extension period 
has expired. If the State decides to terminate assistance, it must send 
the recipient a notice which meets the requirements of 
Sec. 205.10(a)(4)(i)(B) on adequate notice.
    (d) How a recipient may delay an adverse action based on a monthly 
report. If a recipient's assistance is reduced or terminated based on 
information in the monthly report, and he or she requests a fair hearing 
within 10 days, the assistance payment shall be reinstated immediately 
at the previous month's level pending the hearing decision. The payment 
shall be made effective from the date assistance was reduced or 
terminated.

[44 FR 26084, May 4, 1979]



Sec. 233.31  Budgeting methods for AFDC.

    (a) Requirements for State plans. A State plan for AFDC shall 
specify that all factors of eligibility shall be determined 
prospectively and the amount of the assistance for any month for all 
assistance units required to file a monthly report for the month 
designated as the budget month under the State's retrospective budgeting 
procedures shall be determined using retrospective budgeting as provided 
in Secs. 233.31-233.37 except as provided in Sec. 233.34. The State plan 
shall specify whether the State uses prospective or retrospective 
budgeting to determine the amount of the assistance payments for 
recipients not required to report monthly. Budgeting methods for OAA, 
AB, APTD, and AABD are described in Secs. 233.21-233.29.
    (b) Definitions. The following definitions apply to Secs. 233.31 
through 233.37:
    (1) Prospective budgeting means that the agency shall determine 
eligibility (and compute the amount of assistance for the first one or 
two months) based on its best estimate of income and circumstances which 
will exist in that month. This estimate shall be based on the agency's 
reasonable expectation and knowledge of current, past or future 
circumstances.
    (2) Retrospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on actual income or 
circumstances which existed in a previous month, the ``budget month.''
    (3) Budget month means the fiscal or calendar month from which the 
agency shall use income or circumstances of the family to compute the 
amount of assistance.
    (4) Payment month means the fiscal or calendar month for which an 
agency shall pay assistance. Payment is based upon income or 
circumstances in the budget month. In prospective budgeting, the budget 
month and the payment month are the same. In retrospective budgeting, 
the payment month follows the budget month.
    (5) Recent work history means the individual received earned income 
in any one of the two months prior to the budget month.

[47 FR 5678, Feb. 5, 1982, as amended at 49 FR 35602, Sept. 10, 1984; 57 
FR 30160, July 8, 1992]



Sec. 233.32  Payment and budget months (AFDC).

    A State shall specify in its plan for AFDC the time period covered 
by the payment (payment month) and the time period used to determine 
that payment (budget month) and whether it adopts (a) a one-month or 
two-month retrospective system; and (b) a one-month or two-month 
prospective system for the initial payment months. If a State elects to 
have a two-month retrospective system it must also elect a two-month 
prospective system.

[47 FR 5678, Feb. 5, 1982]



Sec. 233.33  Determining eligibility prospectively for all payment months (AFDC).

    (a) The State plan for AFDC shall provide that the State shall 
determine all factors of eligibility prospectively for all payment 
months. Thus, the State agency shall establish eligibility based on its 
best estimate of income and circumstances which will exist in the month 
for which the assistance payment is made.
    (b) When a IV-A agency receives an official report of a child 
support collection it shall consider that information as provided in 
Sec. 232.20(a) of this chapter. (Sec. 232.20(a) explains the treatment 
of child support collections.)

[47 FR 5678, Feb. 5, 1982]

[[Page 82]]



Sec. 233.34  Computing the assistance payment in the initial one or two months (AFDC).

    A State shall compute the amount of the AFDC payment for the initial 
month of eligibility:
    (a) Prospectively (except as in paragraphs (b) and (c) of this 
section); or
    (b) Retrospectively if the applicant received assistance (or would 
have except for the prohibition on payments of less than $10) for the 
immediately preceding payment month (except where the State pays the 
second month after application prospectively); or
    (c) Retrospectively if:
    (1) Assistance had been suspended as defined in paragraph (d) of 
this section; and
    (2) The initial month follows the month of suspension; and
    (3) The family's circumstances for the initial month had not changed 
significantly from those reported in the corresponding budget month, 
e.g., loss of job.
    (d) A State may suspend, rather than terminate, assistance when:
    (1) The agency has knowledge of, or reason to believe that 
ineligibility would be only for one payment month; and
    (2) Ineligibility for that one payment month was caused by income or 
other circumstances in the corresponding budget month.
    (e) If the initial month is computed prospectively as in paragraph 
(a) of this section, the second month shall be prospective if the State 
elects a 2-month retrospective budgeting system.

[47 FR 5679, Feb. 5, 1982]



Sec. 233.35  Computing the assistance payment under retrospective budgeting after the initial one or two months (AFDC).

    The State plan for AFDC shall provide:
    (a) After the initial one or two payment months of assistance under 
Sec. 233.34, the amount of each subsequent month's payment shall be 
computed retrospectively, i.e., shall be based on income and other 
relevant circumstances in the corresponding budget month except as 
provided in Sec. 233.20(a)(3)(iii). In any month for which an individual 
will be determined eligible prospectively and will be added to an 
existing AFDC assistance unit, the State must meet the individual's 
needs to the same extent it would if the individual were an applicant 
for AFDC.
    (b) Except as provided in Sec. 233.34(b), for the first and second 
payment month for which retrospective budgeting is used, the State shall 
not count income from the budget month already considered for any 
payment month determined prospectively which is not of a continuous 
nature.

[47 FR 5679, Feb. 5, 1982]



Sec. 233.36  Monthly reporting (AFDC).

    (a) Except as provided in paragraph (b) of this section, a State 
plan for AFDC shall require the caretaker relative, or another person 
designated by the State, to submit, on behalf of each assistance unit 
whose members have earned income or recent work history, each assistance 
unit which has income deemed to it from individuals living with the unit 
who have earned income or a recent work history and, at State option, 
other assistance units, a completed report form to the agency monthly 
on:
    (1) Budget month income, family composition, and other circumstances 
relevant to the amount of the assistance payment; and
    (2) Any changes in income, resources, or other relevant 
circumstances affecting continued eligibility which the assistance unit 
expects to occur in the current month or in future months.
    (3) The income of a parent or a legal guardian of a minor parent, a 
stepparent, or an alien sponsor, as well as the resources of an alien 
sponsor, where appropriate.
    (b) A State may exempt categories of recipients otherwise required 
to report monthly from reporting each month with prior approval by the 
Secretary if the State can demonstrate that not requiring these cases to 
file monthly reports is cost effective. The Secretary will grant waivers 
under this provision for a period up to one year, at the end of which 
time the State may request an extension of the waiver. A decision by the 
Secretary not to approve a request for an exemption is not appealable. 
The plan shall include criteria for

[[Page 83]]

assuring (1) that exempted cases are unlikely to incur changes in 
circumstances from month to month which would impact their eligibility 
or amount of assistance and (2) that the administrative cost of 
requiring those categories to report monthly will be greater than the 
program savings which would accrue.
    (c) States shall also direct recipients to report information as 
defined in paragraph (a)(2) of this section to the agency as they become 
aware of expected changes rather than waiting to inform the State on the 
monthly report.

[47 FR 5679, Feb. 5, 1982 as amended at 49 FR 35602, Sept. 10, 1984; 57 
FR 30160, July 8, 1992]



Sec. 233.37  How monthly reports are treated and what notices are required (AFDC).

    (a) What happens if a completed monthly report is received on time. 
When the agency receives a completed monthly report as specified in 
Sec. 233.36, and if all eligibility conditions are met, it shall process 
the payment. The agency shall notify the recipient of any changes from 
the prior payment and the basis for its determinations. This notice must 
meet the requirements of Sec. 205.10(a)(4)(i)(B) of this chapter on 
adequate notice if the payment is being reduced or assistance is 
terminated as a result of information provided in the monthly report. 
The notice must be mailed to arrive no later than the resulting payment 
or in lieu of the payment. A recipient has 10 days from the date of the 
notice to request a hearing in order to receive reinstatement.
    (b) What happens if a completed monthly report is not received by 
the agency. An agency may terminate assistance if it has received no 
report or has received only an incomplete report as defined by the 
State. In this case, the agency must send the recipient a notice meeting 
the requirements of Sec. 205.10(a)(4)(i)(B) to arrive not later than the 
date it would have made payment if the agency had received a completed 
monthly report on time. If the recipient notifies the agency and files a 
completed report within 10 days of the date of this notice, the agency 
must accept the replacement form and make a payment based on the 
information on the form if the information indicates that the person is 
still eligible (without the applicable earned income disregards if the 
State agency determines no good cause exists for failing to file a 
timely report of earnings). If the recipient is found ineligible or 
eligible for an amount less than the prior month's payment, the State 
must promptly notify the recipient of his or her right to a fair hearing 
and his or her right to have assistance reinstated. A recipient has 10 
days from the date of the notice to request a hearing in order to 
receive reinstatement.
    (c) What happens if a completed monthly report is received but is 
not timely. States must specify in their plans a definition of 
timeliness related to the filing of a monthly report and the number of 
days an individual has to report changes in earnings which impact 
eligibility. States must inform recipients what constitutes timeliness 
and that no disregard of earnings as described in Sec. 233.20(a)(11) (i) 
and (ii)(B) ($30 and one-third, child care, and work expenses) will be 
applied to any earnings which are not reported in a timely manner 
without good cause. The State must provide recipients an opportunity to 
show good cause for not filing a timely report of earnings. If the State 
finds good cause, then applicable earned income disregards will be 
applied in determining payment. If the State does not find good cause, 
then applicable earned income disregards will not be applied. If the 
recipient is found ineligible or eligible for an amount less than the 
prior month's payment, the State must promptly notify the recipient of 
his or her right to a fair hearing and his or her right to have 
assistance reinstated. A recipient has 10 days from the date of the 
notice to request a hearing in order to receive reinstatement.

[47 FR 5679, Feb. 5, 1982]



Sec. 233.38  Waiver of monthly reporting and retrospective budgeting requirements; AFDC.

    (a) States may request waivers of the requirements at Secs. 233.31-
233.37 to promote compatibility with monthly reporting and budgeting 
requirements of the Food Stamp Act of 1977 as amended.

[[Page 84]]

    (b) The Secretary will not approve requests for waivers unless the 
information documenting the need for the waiver shows that the waiver 
would simplify administration of both programs and would not result in a 
net cost to the Federal government. Approvals for waivers will be for 
periods up to one year, after which time the State may request an 
extension of the waiver.
    (c) Any decision by the Secretary not to approve a request for a 
waiver is not appealable.

[49 FR 35602, Sept. 10, 1984]



Sec. 233.39  Age.

    (a) Condition for plan approval. A State plan under title I or XVI 
of the Social Security Act may not impose any age requirement of more 
than 65 years.
    (b) Federal financial participation. (1) Federal financial 
participation is available in financial assistance provided to otherwise 
eligible persons who were, for any portion of the month for which 
assistance is paid:
    (i) In OAA or AABD with respect to the aged, 65 years of age or 
over;
    (ii) In AFDC, under 18 years of age; or age 18 if a full-time 
student in a secondary school, or in the equivalent level of vocational 
or technical training, and reasonably expected to complete the program 
before reaching age 19.
    (iii) In AB or AABD with respect to the blind, any age;
    (iv) In APTD or AABD with respect to the disabled, 18 years of age 
or older.
    (2) Federal determination of whether an individual meets the age 
requirements of the Social Security Act will be made according to the 
common-law method (under which a specific age is attained the day before 
the anniversary of birth), unless the State plan specifies that the 
popular usage method (under which an age is attained on the anniversary 
of birth), is used.
    (3) The State agency may adopt an arbitrary date such as July 1 as 
the point from which age will be computed in all instances where the 
month of an individual's birth is not available, but the year can be 
established.

[36 FR 3866, Feb. 27, 1971. Redesignated and amended at 47 FR 5678, Feb. 
5, 1982]



Sec. 233.40  Residence.

    (a) Condition for plan approval. A State plan under title I, IV-A, 
X, XIV, or XVI of the Social Security Act may not impose any residence 
requirement which excludes any individual who is a resident of the State 
except as provided in paragraph (b) of this section. For purposes of 
this section:
    (1) A resident of a State is one: (i) Who is living in the State 
voluntarily with the intention of making his or her home there and not 
for a temporary purpose. A child is a resident of the State in which he 
or she is living other than on a temporary basis. Residence may not 
depend upon the reason for which the individual entered the State, 
except insofar as it may bear upon whether the individual is there 
voluntarily or for a temporary purpose; or
    (ii) Who, is living in the State, is not receiving assistance from 
another State, and entered the State with a job commitment or seeking 
employment in the State (whether or not currently employed). Under this 
definition, the child is a resident of the State in which the caretaker 
is a resident.
    (2) Residence is retained until abandoned. Temporary absence from 
the State, with subsequent returns to the State, or intent to return 
when the purposes of the absence have been accomplished, does not 
interrupt continuity of residence.
    (b) Exception. A State plan under title I, X, XIV, or XVI need not 
include an individual who has been absent from the State for a period in 
excess of 90 consecutive days (regardless of whether the individual has 
maintained his or her residence in the State during this period) until 
he or she has been present in the State for a period of 30 consecutive 
days (or a shorter period specified by the State) in the case of such 
individual who has maintained residence in the State during such period 
of absence or for a period of 90 consecutive days (or a shorter period 
as specified by the State) in the case of any other such individual. An 
individual thus excluded

[[Page 85]]

under any such plan may not, as a consequence of that exclusion, be 
excluded from assistance under the State's title XIX plan if otherwise 
eligible under the title XIX plan (see 42 CFR 436.403).

[45 FR 26962, Apr. 22, 1980]



Sec. 233.50  Citizenship and alienage.

    A State plan under title I (OAA); title IV-A (AFDC); title X (AB); 
title XIV (APTD); and title XVI (AABD-disabled) of the Social Security 
Act shall provide that an otherwise eligible individual, dependent 
child, or a caretaker relative or any other person whose needs are 
considered in determining the need of the child or relative claiming 
aid, must be either:
    (a) A citizen, or
    (b) An alien lawfully admitted for permanent residence or otherwise 
permanently residing in the United States under color of law, including 
certain aliens lawfully present in the United States as a result of the 
application of the following provisions of the Immigration and 
Nationality Act:
    (1) Section 207(c), in effect after March 31, 1980--Aliens Admitted 
as Refugees.
    (2) Section 203(a)(7), in effect prior to April 1, 1980--Individuals 
who were Granted Status as Conditional Entrant Refugees.
    (3) Section 208--Aliens Granted Political Asylum by the Attorney 
General.
    (4) Section 212(d)(5)--Aliens Granted Temporary Parole Status by the 
Attorney General, or
    (c) An alien granted lawful temporary resident status pursuant to 
section 201, 302, or 303 of the Immigration Reform and Control Act of 
1986 (Pub. L. 99-603) who must be either:
    (1) A Cuban and Haitian entrant as defined in paragraph (1) or 
(2)(A) of section 501(e) of Pub. L. 96-422, as in effect on April 1, 
1983, or
    (2) An adult assistance applicant for OAA, AB, APTD, or AABD, or
    (3) An applicant for AFDC who is not a Cuban and Haitian applicant 
under paragraph (c)(1) of this section who was adjusted to lawful 
temporary resident status more than five years prior to application.

All other aliens granted lawful temporary or permanent resident status, 
pursuant to sections 201, 302, or 303 of the Immigration Reform and 
Control Act of 1986, are disqualified for five years from the date 
lawful temporary resident status is granted.

[47 FR 5680, Feb. 5, 1982; 47 FR 43383, Oct. 1, 1982, as amended at 52 
FR 48689, Dec. 24, 1987 (interim); 53 FR 30433, Aug. 12, 1988 (final); 
54 FR 10544, Mar. 14, 1989]



Sec. 233.51  Eligibility of sponsored aliens.

    Definition: Sponsor is any person who, or any public or private 
agency or organization that, executed an affidavit(s) of support or 
similar agreement on behalf of an alien (who is not the child of the 
sponsor or the sponsor's spouse) as a condition of the alien's entry 
into the United States. Paragraphs (a) through (d) of this section apply 
only to aliens who are sponsored by individuals and who filed 
applications for the first time after September 30, 1981. Paragraphs (e) 
and (f) apply only to aliens sponsored by public or private agencies or 
organizations with respect to periods after October 1, 1984. A State 
plan under title IV-A of the Act shall provide that:
    (a) For a period of three years following entry for permanent 
residence into the United States, a sponsored alien who is not exempt 
under paragraph (g) of this section, shall provide the State agency with 
any information and documentation necessary to determine the income and 
resources of the sponsor and the sponsor's spouse (if applicable and if 
living with the sponsor) that can be deemed available to the alien, and 
obtain any cooperation necessary from the sponsor.
    (b) The income and resources of a sponsor and the sponsor's spouse 
shall be deemed to be the unearned income and resources of an alien for 
three years following the alien's entry into the United States:
    (1) Monthly income deemed available to the alien from the sponsor 
and the sponsor's spouse not receiving AFDC or SSI shall be:
    (i) The total monthly unearned and earned income of the sponsor and 
sponsor's spouse reduced by 20 percent (not to exceed $175) of the total 
of any amounts received by them in the month as wages or salary or as 
net earnings from self-employment.

[[Page 86]]

    (ii) The amount described in paragraph (b)(1)(i) of this section 
reduced by:
    (A) The cash needs standard under the plan in the alien's State of 
residence for a family of the same size and composition as the sponsor 
and those other people living in the same household as the sponsor who 
are or could be claimed by the sponsor as dependents to determine his or 
her Federal personal income tax liability but whose needs are not taken 
into account in making a determination under Sec. 233.20 of this 
chapter;
    (B) Any amounts actually paid by the sponsor or sponsor's spouse to 
people not living in the household who are or could be claimed by them 
as dependents to determine their Federal personal income tax liability; 
and
    (C) Actual payments of alimony or child support, with respect to 
individuals not living in the household.
    (2) Monthly resources deemed available to the alien from the sponsor 
and sponsor's spouse shall be the total amount of their resources 
determined as if they were applying for AFDC in the alien's State of 
residence, less $1500.
    (c) In any case where a person is the sponsor of two or more aliens, 
the income and resources of the sponsor and sponsor's spouse, to the 
extent they would be deemed the income and resources of any one of the 
aliens under the provisions of this section, shall be divided equally 
among the sponsored aliens.
    (d) Income and resources which are deemed to a sponsored alien shall 
not be considered in determining the need of other unsponsored members 
of the alien's family except to the extent the income or resources are 
actually available.
    (e) For a period of three years following entry for permanent 
residence into the United States, any alien who is not exempt under 
paragraph (g) of this section and has been sponsored by a public or 
private agency or organization, shall be ineligible for assistance 
unless the State agency determines (in accordance with paragraph (f)) 
that the sponsor no longer exists or has become unable to meet the 
alien's needs.
    (f) The State plan shall set forth the criteria the State agency 
will use in determining whether an agency or organization no longer 
exists or is unable to meet the alien's needs and the documentation the 
agency will require of the alien in making such determination. The 
sponsored alien shall provide the State agency with any information and 
documentation necessary for such determination and obtain any 
cooperation necessary from the sponsor.
    (g) The provisions of this section shall not apply to any alien who 
is:
    (1) Admitted as a conditional entrant refugee to the United States 
as a result of the application, of the provisions of section 203(a)(7) 
(in effect prior to April 1, 1980) of the Immigration and Nationality 
Act;
    (2) Admitted as a refugee to the United States as a result of the 
application of the provisions of section 207(c) (in effect after March 
31, 1980) of the Immigration and Nationality Act;
    (3) Paroled into the United States as a refugee under section 
212(d)(5) of the Immigration and Nationality Act;
    (4) Granted political asylum by the Attorney General under section 
208 of the Immigration and Nationality Act;
    (5) A Cuban or Haitian entrant, as defined in section 501(e) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422); or
    (6) The dependent child of the sponsor or sponsor's spouse.
    (h) The Secretary shall make information necessary to make a 
determination under this section and supplied under agreement with the 
Secretary of State and the Attorney General, available upon request to a 
concerned State Agency.

[47 FR 5680, Feb. 5, 1982; 47 FR 43383, Oct. 1, 1982; 47 FR 47828, Oct. 
28, 1982; 49 FR 35602, Sept. 10, 1984; 57 FR 30160, July 8, 1992]



Sec. 233.52  Overpayment to aliens.

    A State Plan under title IV-A of the Social Security Act, shall 
provide that:
    (a) Any sponsor of an alien and the alien shall be jointly and 
severally liable for any overpayment of aid under the State plan made to 
the alien during the three years after the alien's entry into the United 
States due to the sponsor's failure to provide correct information under 
the provisions of Sec. 233.51,

[[Page 87]]

except as provided in paragraph (b) of this section.
    (b) When a sponsor is found to have good cause or to be without 
fault (as defined in the State plan) for not providing information to 
the agency, the sponsor will not be held liable for the overpayment and 
recovery will not be made from this sponsor.
    (c) An overpayment for which the alien or the sponsor and the alien 
are liable (as described in paragraphs (a) and (b) of this section) 
shall be repaid to the State or recovered in accordance with 
Sec. 233.20(a)(13). If the agency is unable to recover the overpayment 
through this method, funds to reimburse the agency for the overpayment 
shall be withheld from future payments to which the alien or the alien 
and the individual sponsor are entitled under:
    (1) Any State administered or supervised program established by the 
Social Security Act, or
    (2) Any federally administered cash benefit program established by 
the Social Security Act.

[47 FR 5680, Feb. 5, 1982 as amended at 49 FR 35602, Sept. 10, 1984]



Sec. 233.53  Support and maintenance assistance (including home energy assistance) in AFDC.

    (a) General. At State option, certain support and maintenance 
assistance (including home energy assistance) may be excluded from 
income and resources.
    (b) Definitions. The following definitions are limited to the 
support and maintenance assistance provisions of this section.
    Appropriate State agency means the agency designated by the chief 
executive officer of the State to handle the State's responsibilities 
with respect to support and maintenance assistance under paragraph (c) 
of this section.
    Based on need means that the assistance is given to or on behalf of 
an applicant or recipient for the purpose of support and maintenance 
(including home energy) and meets the criteria established by the State 
for determining the need for such assistance.
    In kind assistance means assistance furnished in any form except 
direct cash payments to an applicant or recipient or direct payments to 
an applicant or recipient through other financial instruments which are 
convertible to cash.
    Private, nonprofit organization means a religious, charitable, 
educational, or other organization such as described in section 501(c) 
of the Internal Revenue Code of 1954. (Actual tax exempt certification 
by IRS is not necessary).
    Rate-of-return entity means an entity whose revenues are primarily 
received from the entity's charges to the public for goods or services, 
and such charges are based on rates regulated by a State or Federal 
governmental body.
    Support and maintenance assistance means any assistance designed to 
meet the expenses of day to day living. Support and maintenance 
assistance includes home energy assistance. Home energy assistance means 
any assistance related to meeting the cost of heating or cooling a home. 
Home energy assistance includes such items as payments for utility 
service or bulk fuels; assistance in kind such as portable heaters, 
fans, blankets, storm doors, or other items which help reduce the costs 
of heating and cooling such as conservation or weatherization materials 
and services; etc.
    (c) Requirements for State Plans. If a State elects to exclude from 
income and resources support and maintenance assistance, the State plan 
for AFDC must as specified below:
    (1) Provide that an appropriate State agency will certify that 
support and maintenance assistance is based on need (as defined in 
paragraph (b) of this section), and that such certification will be 
accepted for purposes of determining eligibility for and the amount of 
payments under the AFDC program.
    (2) Provide that in joint AFDC/SSI households, support and 
maintenance assistance furnished to the household which is not excluded 
under this paragraph will be prorated on a reasonable basis to determine 
the amount provided to the AFDC assistance unit. The State plan must 
describe the method that will be used to prorate the assistance in these 
circumstances.

[[Page 88]]

    (3) Provide that the types and amount of support and maintenance 
assistance that are excluded when received by an AFDC applicant or 
recipient will also be excluded in determining the income and resources 
of a parent, stepparent, spouse or alien sponsor whose income is 
considered available to an AFDC applicant or recipient.
    (4) Provide that the State may exclude, from income and resources, 
support and maintenance assistance (as defined in paragraph (b) of this 
section) which the appropriate State agency certifies is based on need, 
if the assistance is furnished by:
    (i) A supplier of home heating gas or oil, regardless of whether the 
assistance is in cash or in kind; or
    (ii) A municipal utility providing home energy, regardless of 
whether the assistance is in cash or in kind; or
    (iii) A rate-of-return entity which provides home energy, regardless 
of whether the assistance is in cash or in kind; or
    (iv) A private nonprofit organization, but only if such assistance 
is in kind.
    (5) Provide that, if the State elects to exclude from income and 
resources any support and maintenance assistance, the State plan must:
    (i) Describe the criteria that will be used to determine the need 
for the assistance;
    (ii) Identify the types and amounts of assistance which will be 
excluded; and
    (iii) Provide that any limitations will be made on a reasonable 
basis.

[51 FR 39533, Oct. 29, 1986, as amended at 56 FR 64204, Dec. 9, 1991]



Sec. 233.60  Institutional status.

    (a) Federal financial participation. (1) Federal financial 
participation under title I, X, XIV, or XVI of the Social Security Act 
is not available in payments to or in behalf of any individual who is an 
inmate of a public institution except as a patient in a medical 
institution.
    (2)(i) Federal financial participation under title X or XIV of the 
Social Security Act is not available in payments to or in behalf of any 
individual who is a patient in an institution for tuberculosis or mental 
diseases.
    (ii) Federal financial participation under title XVI of the Social 
Security Act is not available in payments to or in behalf of any 
individual who has not attained 65 years of age and who is a patient in 
an institution for tuberculosis or mental diseases.
    (3) For purposes of this paragraph:
    (i) Federal financial participation is available in payments for the 
month in which an individual (if otherwise eligible) became an inmate of 
a public institution, or a patient in an institution for tuberculosis or 
mental diseases;
    (ii) Whether an institution is one for tuberculosis or mental 
diseases will be determined by whether its overall character is that of 
a facility established and maintained primarily for the care and 
treatment of individuals with tuberculosis or mental diseases (whether 
or not it is licensed);
    (iii) An institution for the mentally retarded is not an institution 
for mental diseases;
    (iv) An individual on conditional release or convalescent leave from 
an institution for mental diseases is not considered to be a patient in 
such institution.
    (b) Definitions. For purposes of Federal financial participation 
under paragraph (a) of this section:
    (1) Institution means an establishment which furnishes (in single or 
multiple facilities) food and shelter to four or more persons unrelated 
to the proprietor, and in addition, provides some treatment or services 
which meet some need beyond the basic provision of food and shelter.
    (2) In an institution refers to an individual who is admitted to 
participate in the living arrangements and to receive treatment or 
services provided there which are appropriate to his requirements.
    (3) Public institution means an institution that is the 
responsibility of a governmental unit or over which a governmental unit 
exercises administrative control.
    (4) Inmate of a public institution means a person who is living in a 
public institution. An individual is not considered an inmate when:
    (i) He is in a public educational or vocational training 
institution, for purposes of securing education or vocational training, 
or

[[Page 89]]

    (ii) He is in a public institution for a temporary emergent period 
pending other arrangements appropriate to his needs.
    (5) Medical institution means an institution which:
    (i) Is organized to provide medical care, including nursing and 
convalescent care;
    (ii) Has the necessary professional personnel, equipment, and 
facilities to manage the medical, nursing, and other health needs of 
patients on a continuing basis in accordance with accepted standards;
    (iii) Is authorized under State law to provide medical care;
    (iv) Is staffed by professional personnel who have clear and 
definite responsibility to the institution in the provision of 
professional medical and nursing services including adequate and 
continual medical care and supervision by a physician; sufficient 
registered nurse or licensed practical nurse supervision and services 
and nurse aid services to meet nursing care needs; and appropriate 
guidance by a physician(s) on the professional aspects of operating the 
facility.
    (6) Institution for tuberculosis means an institution which is 
primarily engaged in providing diagnosis, treatment, or care of persons 
with tuberculosis, including medical attention, nursing care, and 
related services.
    (7) Institution for mental diseases means an institution which is 
primarily engaged in providing diagnosis, treatment or care of persons 
with mental diseases, including medical attention, nursing care, and 
related services.
    (8) Patient means an individual who is in need of and receiving 
professional services directed by a licensed practitioner of the healing 
arts toward maintenance, improvement, or protection of health, or 
alleviation of illness, disability, or pain.

[36 FR 3867, Feb. 27, 1971]



Sec. 233.70  Blindness.

    (a) State plan requirements. A State plan under title X or XVI of 
the Social Security Act must:
    (1) Contain a definition of blindness in terms of ophthalmic 
measurement. The following definition is recommended: An individual is 
considered blind if he has central visual acuity of 20/200 or less in 
the better eye with correcting glasses or a field defect in which the 
peripheral field has contracted to such an extent that the widest 
diameter of visual field subtends an angular distance of no greater than 
20 deg..
    (2) Provide, in any instance in which a determination is to be made 
whether an individual is blind or continues to be blind as defined under 
the State plan, that there will be an initial examination or re-
examination performed by either a physician skilled in the diseases of 
the eye or by an optometrist, whichever the individual so selects.
    (i) No examination is necessary when both eyes are missing.
    (ii) Where an initial eye examination or re-examination is 
necessary, the physician or optometrist conducting such examination will 
submit to the State agency a report thereof, on such forms and in such 
manner, as may be prescribed for such purpose. A determination whether 
the individual meets the State's definition of blindness under the State 
plan will be based upon a review of such eye examination report as 
provided for in paragraph (a)(3) of this section, and other information 
or additional examination reports as the State deems necessary.
    (3) Provide that each initial eye examination report and any 
subsequent re-examination report will be reviewed by a State reviewing 
physician skilled in the diseases of the eye (e.g., an ophthalmologist 
or an eye, ear, nose and throat specialist). Such physician is 
responsible for making the agency's decision that the applicant or 
recipient does or does not meet the State's definition of blindness, and 
for determining if and when reexaminations are necessary in periodic 
reviews of eligibility, as required in Sec. 206.10(a)(9)(iii) of this 
chapter.
    (b) Federal financial participation--(1) Assistance payments. 
Federal financial participation is available in assistance provided to 
or in behalf of any otherwise eligible person who is blind under the 
State's title X or XVI plan. Blindness may be considered as continuing 
until a determination by the reviewing physician establishes the fact 
that the

[[Page 90]]

recipient's vision has improved beyond the State's definition of 
blindness set forth under its State title of X or XVI plan.
    (2) Administrative expenses. Federal financial participation is 
available in any expenditures incident to the eye examination necessary 
to determine whether an individual is blind.

[36 FR 3867, Feb. 27, 1971, as amended at 40 FR 25819, June 19, 1975]



Sec. 233.80  Disability.

    (a) State plan requirements. A State plan under title XIV or XVI of 
the Social Security Act must:
    (1) Contain a definition of permanently and totally disabled, 
showing that:
    (i) ``Permanently'' is related to the duration of the impairment or 
combination of impairments; and
    (ii) ``Totally'' is related to the degree of disability.

The following definition is recommended:
    ``Permanently and totally disabled'' means that the individual has 
some permanent physical or mental impairment, disease, or loss, or 
combination thereof, this substantially precludes him from engaging in 
useful occupations within his competence, such as holding a job.

Under this definition:
    ``Permanently'' refers to a condition which is not likely to improve 
or which will continue throughout the lifetime of the individual; it may 
be a condition which is not likely to respond to any known therapeutic 
procedures, or a condition which is likely to remain static or to become 
worse unless certain therapeutic measures are carried out, where 
treatment is unavailable, inadvisable, or is refused by the individual 
on a reasonable basis; ``permanently'' does not rule out the possibility 
of vocational rehabilitation or even possible recovery in light of 
future medical advances or changed prognosis; in this sense the term 
refers to a condition which continues indefinitely, as distinct from one 
which is temporary or transient;
    ``Totally'' involves considerations in addition to those verified 
through the medical findings, such as age, training, skills, and work 
experience, and the probable functioning of the individual in his 
particular situation in light of his impairment; an individual's 
disability would usually be tested in relation to ability to engage in 
remunerative employment; the ability to keep house or to care for others 
would be the appropriate test for (and only for) individuals, such as 
housewives, who were engaged in this occupation prior to the disability 
and do not have a history of gainful employment; eligibility may 
continue, even after a period of rehabilitation and readjustment, if the 
individual's work capacity is still very considerably limited (in 
comparison with that of a normal person) in terms of such factors as the 
speed with which he can work, the amount he can produce in a given 
period of time, and the number of hours he is able to work.

    (2) Provide for the review of each medical report and social history 
by technically competent persons--not less than a physician and a social 
worker qualified by professional training and pertinent experience--
acting cooperatively, who are responsible for the agency's decision that 
the applicant does or does not meet the State's definition of permanent 
and total disability. Under this requirement:
    (i) The medical report must include a substantiated diagnosis, based 
either on existing medical evidence or upon current medical examination;
    (ii) The social history must contain sufficient information to make 
it possible to relate the medical findings to the activities of the 
``useful occupation'' and to determine whether the individual is totally 
disabled, and
    (iii) The review physician is responsible for setting dates for 
reexamination; the review team is responsible for reviewing 
reexamination reports in conjunction with the social data to determine 
whether disabled recipients whose health condition may improve continue 
to meet the State's definition of permanent and total disability.
    (3) Provide for cooperative arrangements with related programs, such 
as vocational rehabilitation services.
    (b) Federal financial participation--(1) Assistance payments. 
Federal financial participation is available in payments to or in behalf 
of any otherwise eligible individual who is permanently and totally 
disabled. Permanent and total disability may be considered as continuing 
until the review team establishes the fact that the recipient's 
disability is no longer within the State's definition of permanent and 
total disability.
    (2) Administrative expenses. Federal financial participation is 
available in

[[Page 91]]

any expenditures incident to the medical examinations necessary to 
determine whether an individual is permanently and totally disabled.

[36 FR 3867, Feb. 27, 1971]



Sec. 233.90  Factors specific to AFDC.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act shall provide that:
    (1) The determination whether a child has been deprived of parental 
support or care by reason of the death, continued absence from the home, 
or physical or mental incapacity of a parent, or (if the State plan 
includes such cases) the unemployment of his or her parent who is the 
principal earner will be made only in relation to the child's natural or 
adoptive parent, or in relation to the child's stepparent who is 
married, under State law, to the child's natural or adoptive parent and 
is legally obligated to support the child under State law of general 
applicability which requires stepparents to support stepchildren to the 
same extent that natural or adoptive parents are required to support 
their children. Under this requirement, the inclusion in the family, or 
the presence in the home, of a ``substitute parent'' or ``man-in-the-
house'' or any individual other than one described in this paragraph is 
not an acceptable basis for a finding of ineligibility or for assuming 
the availability of income by the State; and
    (2) Where it has reason to believe that a child receiving aid is in 
an unsuitable environment because of known or suspected instances of 
physical or mental injury, sexual abuse or exploitation, or negligent 
treatment or maltreatment of such child, under circumstances which 
indicate the child's health or welfare is threatened, the State or local 
agency will:
    (i) Bring such condition to the attention of a court, law-
enforcement agency, or other appropriate agency in the State, providing 
whatever data it has with respect to the situation;
    (ii) In reporting such conditions, use the same criteria as are used 
in the State for all other parents and children; and
    (iii) Cooperate with the court or other agency in planning and 
implementing action in the best interest of the child.
    (b) Conditions for plan approval. (1) A child may not be denied AFDC 
either initially or subsequently ``because of the conditions of the home 
in which the child resides'', or because the home is considered 
``unsuitable'', unless ``provision is otherwise made pursuant to a State 
statute for adequate care and assistance with respect to such child''. 
(Section 404(b) of the Social Security Act.)
    (2) An otherwise eligible child who is under the age of 18 years may 
not be denied AFDC, regardless of whether she attends school (unless she 
is required to participate in the JOBS program pursuant to Sec. 250.30 
and she is assigned to educational activities) or makes satisfactory 
grades.
    (3) A state may elect to include in its AFDC program children age 18 
who are full-time students in a secondary school, or in the equivalent 
level of vocational or technical training, and who may reasonably be 
expected to complete the program before reaching age 19.
    (4)(i) A child may not be denied AFDC either initially or 
subsequently because a parent or other caretaker relative fails to 
cooperate with the child support agency in performing any of the 
activities needed to:
    (A) Establish the paternity of a child born out of wedlock; or
    (B) Obtain support from a person having a legal duty to support the 
child.
    (ii) Any parent or caretaker relative who fails to so cooperate 
shall be treated in accordance with Sec. 232.12 of this chapter.
    (5) [Reserved]
    (6) An otherwise eligible child may not be denied AFDC if a parent 
is mentally or physically incapacitated as defined in paragraph 
(c)(1)(iv) of this section.
    (c) Federal financial participation. (1) Federal financial 
participation under title IV-A of the Social Security Act in payments 
with respect to a ``dependent child,'' as defined in section 406(a) of 
the Act, is available within the following interpretations:
    (i) Needy child deprived by reason of. The phrase ``needy child * * 
* deprived

[[Page 92]]

* * * by reason of'' requires that both need and deprivation of parental 
support or care exist in the individual case. The phrase encompasses the 
situation of any child who is in need and otherwise eligible, and whose 
parent--father or mother--either has died, has a physical or mental 
incapacity, or is continually absent from the home. This interpretation 
is equally applicable whether the parent was the chief bread winner or 
devoted himself or herself primarily to the care of the child, and 
whether or not the parents were married to each other. The determination 
whether a child has been deprived of parental support or care is made in 
relation to the child's natural parent or, as appropriate, the adoptive 
parent or stepparent described in paragraph (a) of this section.
    (ii) Death of a parent. If either parent of a child is deceased, the 
child is deprived of parental support or care, and may, if he is in need 
and otherwise eligible, be included within the scope of the program.
    (iii) Continued absence of the parent from the home. Continued 
absence of the parent from the home constitutes the reason for 
deprivation of parental support or care when the parent is out of the 
home, the nature of the absence is such as either to interrupt or to 
terminate the parent's functioning as a provider of maintenance, 
physical care, or guidance for the child, and the known or indefinite 
duration of the absence precludes counting on the parent's performance 
of the function of planning for the present support or care of the 
child. If these conditions exist, the parent may be absent for any 
reason, and may have left only recently or some time previously; except 
that a parent whose absence is occasioned solely by reason of the 
performance of active duty in the uniformed services of the United 
States (as defined in section 101(3) of Title 37, United States code) is 
not considered absent from the home. A parent who is a convicted 
offender but is permitted to live at home while serving a court-imposed 
sentence by performing unpaid public work or unpaid community service 
during the workday is considered absent from the home.
    (iv) ``Physical or mental incapacity''. ``Physical or mental 
incapacity'' of a parent shall be deemed to exist when one parent has a 
physical or mental defect, illness, or impairment. The incapacity shall 
be supported by competent medical testimony and must be of such a 
debilitating nature as to reduce substantially or eliminate the parent's 
ability to support or care for the otherwise eligible child and be 
expected to last for a period of at least 30 days. In making the 
determination of ability to support, the agency shall take into account 
the limited employment opportunities of handicapped individuals.

A finding of eligibility for OASDI or SSI benefits, based on disability 
or blindness is acceptable proof of incapacity for AFDC purposes.
    (v) ``Living with [a specified relative] in a place of residence 
maintained * * * as his * * * own home''. (A) A child may be considered 
to meet the requirement of living with one of the relatives specified in 
the Act if his home is with a parent or a person in one of the following 
groups:
    (1) Any blood relative, including those of half-blood, and including 
first cousins, nephews, or nieces, and persons of preceding generations 
as denoted by prefixes of grand, great, or great-great.
    (2) Stepfather, stepmother, stepbrother, and stepsister.
    (3) Person who legally adopt a child or his parent as well as the 
natural and other legally adopted children of such persons, and other 
relatives of the adoptive parents in accordance with State law.
    (4) Spouses of any persons named in the above groups even after the 
marriage is terminated by death or divorce.
    (B) A home is the family setting maintained or in process of being 
established, as evidenced by assumption and continuation of 
responsibility for day to day care of the child by the relative with 
whom the child is living. A home exists so long as the relative 
exercises responsibility for the care and control of the child, even 
though either the child or the relative is temporarily absent from the 
customary family setting. Within this interpretation, the

[[Page 93]]

child is considered to be ``living with'' his relative even though:
    (1) He is under the jurisdiction of the court (e.g., receiving 
probation services or protective supervision); or
    (2) Legal custody is held by an agency that does not have physical 
possession of the child.
    (2) Federal financial participation is available in:
    (i) Initial payments made on behalf of a child who goes to live with 
a relative specified in section 406(a)(1) of the Social Security Act 
within 30 days of the receipt of the first payment, provided payments 
are not made for concurrent period for the same child in the home of 
another relative or as foster care under title IV-E;
    (ii) Payments made for the entire month in the course of which a 
child leaves the home of a specified relative, provided payments are not 
made for a concurrent period for the same child in the home of another 
relative or as foster care under title IV-E; and
    (iii) Payments made to persons acting for relatives specified in 
section 406(a)(1) of the Act in emergency situations that deprive the 
child of the care of the relative through whom he has been receiving 
aid, for a temporary period necessary to make and carry out plans for 
the child's continuing care and support.
    (iv) At State option, (A) payments with respect to a pregnant woman 
with no other children receiving assistance, and additionally, at State 
option, (B) payments for the purpose of meeting special needs occasioned 
by or resulting from pregnancy both for the pregnant woman with no other 
children as well as for the pregnant woman receiving AFDC. However, for 
both paragraphs (c)(2)(iv) (A) and (B) of this section it must be 
medically verified that the child is expected to be born in the month 
such payments are made or within the three-month period following such 
month of payment, and who, if such child had been born and was living 
with her in the month of payment, would be eligible for aid to families 
with dependent children. Federal financial participation is not 
available to meet the needs of the unborn child. (Refer to Medicaid 
regulations at 42 CFR 435.115 for Medicaid coverage of pregnant women.)
    (3) Federal financial participation (at the 50 percent rate) is 
available in any expenses incurred in establishing eligibility for AFDC, 
including expenses incident to obtaining necessary information to 
determine the existence of incapacity of a parent or pregnancy of a 
mother.

[36 FR 3868, Feb. 27, 1971 as amended at 39 FR 34038, Sept. 23, 1974; 40 
FR 27156, June 26, 1975; 44 FR 12424, Mar. 7, 1979; 47 FR 5681, Feb. 5, 
1982; 47 FR 41114, Sept. 17, 1982; 48 FR 28409, June 21, 1983; 51 FR 
9206, Mar. 18, 1986; 52 FR 28824, Aug. 4, 1987; 54 FR 42243, Oct. 13, 
1989; 58 FR 49218, Sept. 22, 1993; 59 FR 26142, May 19, 1994]



Sec. 233.100  Dependent children of unemployed parents.

    (a) Requirements for State Plans. If a State wishes to provide AFDC 
for children of unemployed parents, the State plan under title IV-A of 
the Social Security Act must:
    (1) Include a definition of an unemployed parent who is the 
principal earner which shall apply only to families determined to be 
needy in accordance with the provisions in Sec. 233.20. Such definition 
must include any such parent who:
    (i) Is employed less than 100 hours a month; or
    (ii) Exceeds that standard for a particular month, if the work is 
intermittent and the excess is of a temporary nature as evidenced by the 
fact that he or she was under the 100-hour standard for the prior 2 
months and is expected to be under the standard during the next month; 
except that at the option of the State, such definition need not include 
a principal earner who is unemployed because of participation in a labor 
dispute (other than a strike) or by reason of conduct or circumstances 
which result or would result in disqualification for unemployment 
compensation under the State's unemployment compensation law.
    (2) Include a definition of a dependent child which shall include 
any child of an unemployed parent (as defined by the State pursuant to 
paragraph (a)(1) of this section) who would be, except for the fact that 
his parent is not dead, absent from the home, or incapacitated, a 
dependent child under the

[[Page 94]]

State's plan approved under section 402 of the Act.
    (3) Provide for payment of aid with respect to any dependent child 
(as defined by the State pursuant to paragraphs (a)(2) of this section) 
when the conditions set forth in paragraphs (a)(3) (i), (ii), (iii), and 
(vii) of this section are met:
    (i) His or her parent who is the principal earner has been 
unemployed for at least 30 days prior to the receipt of such aid.
    (ii) Such parent has not without good cause, within such 30-day 
period prior to the receipt of such aid, refused a bona fide offer of 
employment or training for employment. Before it is determined that such 
parent has refused a bona fide offer of employment or training for 
employment without good cause, the agency must make a determination that 
such an offer was actually made. (In the case of offers of employment 
made through the public employment or manpower agencies, the 
determination as to whether the offer was bona fide, or whether there 
was good cause to refuse it, will be made by that office or agency.) The 
parent must be given an opportunity to explain why such offer was not 
accepted. Questions with respect to the following factors must be 
resolved:
    (a) That there was a definite offer of employment at wages meeting 
any applicable minimum wage requirements and which are customary for 
such work in the community;
    (b) Any questions as to the parent's inability to engage in such 
employment for physical reasons or because he has no way to get to or 
from the particular job; and
    (c) Any questions of working conditions, such as risks to health, 
safety, or lack of worker's compensation protection.
    (iii) Such parent (a) has six or more quarters of work (as defined 
in paragraph (a)(3)(iv) of this section), within any 13-calendar-quarter 
period ending within 1 year prior to the application for such aid, or 
(b) within such 1-year period, received unemployment compensation under 
an unemployment compensation law of a State or of the United States, or 
was qualified under the terms of paragraph (a)(3)(v) of this section) 
for such compensation under the State's unemployment compensation law.
    (iv) A ``quarter of work'' with respect to any individual means a 
period (of 3 consecutive calendar months ending on March 31, June 30, 
September 30, or December 31) in which he or she received earned income 
of not less than $50 (or which is a ``quarter of coverage'' as defined 
in section 213(a)(2) of the Act), or in which he or she participated in 
a community work experience program under section 409 of the Act or the 
work incentive program established under title IV-C of the Act.
    (v) An individual shall be deemed ``qualified'' for unemployment 
compensation under the State's unemployment compensation law if he would 
have been eligible to receive such benefits upon filing application, or 
he performed work not covered by such law which, if it had been covered, 
would (together with any covered work he performed) have made him 
eligible to receive such benefits upon filing application.
    (vi)(A) The ``parent who is the principal earner'' means, in the 
case of any child, whichever parent, in a home in which both parents of 
such child are living, earned the greater amount of income in the 24-
month period the last month of which immediately precedes the month in 
which an application is filed for aid under this part on the basis of 
the unemployment of a parent. If the State cannot secure primary 
evidence of earnings for this period, the State shall designate the 
principal earner, using the best evidence available. The earnings of 
each parent are considered in determining the principal earner 
regardless of when their relationship began. The principal earner so 
defined remains the principal earner for each consecutive month for 
which the family receives such aid on the basis of such application. 
This requirement applies to both new applicants and current AFDC 
unemployed parent families who were eligible and receiving aid prior to 
October 1, 1981.
    (B) If both parents earned an identical amount of income (or earned 
no income) in such 24-month period, the State shall designate which 
parent shall be the principal earner.

[[Page 95]]

    (vii) The parent who is the principal earner (unless exempt under 
Sec. 240.14) has met the requirements for participation in an employment 
search program under part 240 of this chapter.
    (4) Provide for entering into cooperative arrangements with the 
State agency responsible for administering or supervising the 
administration of vocational education to assure maximum utilization of 
available public vocational education services and facilities in the 
State to encourage the retraining of individuals capable of being 
retrained.
    (5) Provide for the denial of such aid to any such dependent child 
or the relative specified in section 406(a)(1) of the Act with whom such 
child is living,
    (i) If and for so long as such child's parent, unless exempt under 
Sec. 224.20, is not currently registered for the work incentive program 
or if exempt under Sec. 224.20(b)(6), is not currently registered with a 
public employment office in the State, except that in a State with an 
approved JOBS plan under Sec. 250.20, such child's parent, unless exempt 
under Sec. 250.30(b), must be currently participating (or available for 
participation) in a program under part 250, or, if he is exempt under 
Sec. 250.30(b)(5), must be registered with a public employment office in 
the State, and
    (ii) With respect to any week for which such child's parent 
qualifies for unemployment compensation under an unemployment 
compensation law of the State or of the United States but refuses to 
apply for or accept such unemployment compensation, and
    (iii) If the parent who is the principal earner (unless exempt under 
Sec. 240.14) fails to meet the requirements for participation in a 
program of employment search established under part 240 of this chapter.
    (6) Provide that within 30 days after the receipt of such aid, 
unemployed principal earners will be certified for participation in the 
Work Incentive program under part 224 or, if the State IV-A agency has 
an approved JOBS plan pursuant to Sec. 250.20, will participate or apply 
for participation in a program under part 250 unless the program is not 
available in the area where the parent is living.
    (b) [Reserved]
    (c) Federal financial participation. (1) Federal financial 
participation is available in payments authorized in accordance with the 
State plan approved under section 402 of the Act as aid to families with 
dependent children with respect to a child.
    (i) Who meets the requirements of section 406(a)(2) of the Act;
    (ii) Who is living with any of the relatives specified in section 
406(a)(1) of the Act in a place of residence maintained by one or more 
of such relatives as his (or their) own home;
    (iii) Who has been deprived of parental support or care by reason of 
the fact that his or her parent who is the principal earner is employed 
less than 100 hours a month; or exceeds that standard for a particular 
month if his or her work is intermittent and the excess is of a 
temporary nature as evidenced by the fact that he or she was under the 
100-hour standard for 2 prior months and is expected to be under the 
standard during the next month.
    (iv) Whose parent who is the principal earner (a) has six or more 
quarters of work (as defined in paragraph (a)(3)(iv) of this section) 
within any 13-calendar-quarter period ending within 1 year prior to the 
application for such aid, (b) within such 1-year period, received 
unemployment compensation under an unemployment compensation law of a 
State or of the United States, or was qualified (under the terms of 
paragraph (a)(3)(v) of this section) for such compensation under the 
State's unemployment compensation law; and
    (v) Whose parent who is the principal earner (a) is currently 
registered with the WIN program unless exempt or is registered with the 
public employment office in the State if exempt from WIN registration 
under Sec. 224.20(b)(6) or because there is no WIN program in which he 
can effectively participate; and (b) has not refused to apply for or 
accept unemployment compensation with respect to any week for which such 
child's parent qualifies for unemployment compensation under an 
unemployment compensation law of a State or of the United States.
    (2) The State may not include in its claim for Federal financial 
participation payments made as aid under the plan with respect to a 
child who meets

[[Page 96]]

the conditions set forth in paragraph (c)(1) of this section, where such 
payments were made.
    (i) For any part of the 30-day period specified in paragraph 
(a)(3)(i) of this section;
    (ii) For such 30-day period if during that period the parent refused 
without good cause a bona fide offer of employment or training for 
employment;
    (iii) For any period beginning with the 31st day after receipt of 
aid, if and for as long as no action is taken during the period to 
certify the parent for participation in the Work Incentive program under 
part 224, or if the State IV-A agency has an approved JOBS plan pursuant 
to Sec. 250.20, no action is taken during the period to undertake 
appropriate steps directed toward the participation of such parent in a 
program under part 250; and
    (iv) For any part of the sanction period imposed under Sec. 240.22 
(for failure to meet the requirements for participation in the 
employment search program).
    (d) For all States (other than Puerto Rico, American Samoa, Guam, 
and the Virgin Islands) the provisions of this section are suspended 
through September 30, 1998. For Puerto Rico, American Samoa, Guam, and 
the Virgin Islands, the provisions of this section are suspended from 
October 1, 1992, through September 30, 1998.

[34 FR 1146, Jan. 24, 1969, as amended at 36 FR 13604, July 22, 1971; 38 
FR 18549, July 12, 1973; 38 FR 26608, Sept. 24, 1973; 46 FR 46769, Sept. 
21, 1981; 47 FR 5681, Feb. 5, 1982; 47 FR 41114, Sept. 17, 1982; 47 FR 
43383, Oct. 1, 1982; 48 FR 28409, June 21, 1983; 51 FR 9206, Mar. 18, 
1986; 54 FR 42244, Oct. 13, 1989; 57 FR 30426, July 9, 1992]



Sec. 233.101  Dependent children of unemployed parents.

    (a) Requirements for State Plans. Effective October 1, 1990 (for 
Puerto Rico, American Samoa, Guam, and the Virgin Islands, October 1, 
1992), a State plan must provide for payment of AFDC for children of 
unemployed parents. A State plan under title IV-A for payment of such 
aid must:
    (1) Include a definition of an unemployed parent who is the 
principal earner which shall apply only to families determined to be 
needy in accordance with the provisions in Sec. 233.20 of this part. 
Such definition must have a reasonable standard for measuring 
unemployment and, at a minimum, include any such parent who:
    (i) Is employed less than 100 hours a month; or
    (ii) Exceeds that standard for a particular month, if the work is 
intermittent and the excess is of a temporary nature as evidenced by the 
fact that he or she was under the 100-hour standard for the prior 2 
months and is expected to be under the standard during the next month; 
except that at the option of the State, such definition need not include 
a principal earner who is unemployed because of participation in a labor 
dispute (other than a strike) or by reason of conduct or circumstances 
which result or would result in disqualification for unemployment 
compensation under the State's unemployment compensation law.
    (2) Include a definition of a dependent child which shall include 
any child of an unemployed parent (as defined by the State pursuant to 
paragraph (a)(1) of this section) who would be, except for the fact that 
his parent is not dead, absent from the home, or incapacitated, a 
dependent child under the State's plan approved under section 402 of the 
Act.
    (3) Provide for payment of aid with respect to any dependent child 
(as defined by the State pursuant to paragraph (a)(2) of this section) 
when the conditions set forth in paragraphs (a)(3)(i), (a)(3)(ii), and 
(a)(3)(iii) of this section are met.
    (i) His or her parent who is the principal earner has been 
unemployed for at least 30 days prior to the receipt of such aid;
    (ii) Such parent has not without good cause, within such 30-day 
period prior to the receipt of such aid, refused a bona fide offer of 
employment or training for employment. Before it is determined that such 
parent has refused a bona fide offer of employment or training for 
employment without good cause, the agency must make a determination that 
such offer was actually made. (In the case of offers of employment made 
through the public employment or manpower agencies, the determination as 
to whether the offer was bona fide, or whether there was good

[[Page 97]]

cause to refuse it, shall be made by the title IV-A agency. The IV-A 
agency may accept the recommendations of such agencies.) The parent must 
be given an opportunity to explain why such offer was not accepted. 
Questions with respect to the following factors must be resolved:
    (A) That there was a definite offer of employment at wages meeting 
any applicable minimum wage requirements and which are customary for 
such work in the community;
    (B) Any questions as to the parent's inability to engage in such 
employment for physical reasons or because he has no way to get to or 
from the particular job; and
    (C) Any questions of working conditions, such as risks to health, 
safety, or lack of worker's compensation protection.
    (iii) Such parent:
    (A) Has six or more quarters of work (as defined in paragraph 
(a)(3)(iv) of this section), within any 13-calendar-quarter period 
ending within one year prior to the application for such aid, or
    (B) Within such 1-year period, received unemployment compensation 
under an unemployment compensation law of a State or of the United 
States, or was qualified under the terms of paragraph (a)(3)(v) of this 
section for such compensation under the State's unemployment 
compensation law.
    (iv) A ``quarter of work'' with respect to any individual means a 
period (of 3 consecutive calendar months ending on March 31, June 30, 
September 30, or December 31):
    (A) In which an individual received earned income of not less than 
$50 (or which is a ``quarter of coverage'' as defined in section 
213(a)(2) of the Social Security Act) or participated in a program under 
part 250 of this chapter; or
    (B) At State option (as specified in the plan), in one or more 
subdivisions of the State, in which he or she attended, full-time, an 
elementary school, a secondary school, or a vocational or technical 
training course that is designed to prepare the individual for gainful 
employment, or in which the individual participated in an educational or 
training program established under the Job Training Partnership Act, 
provided that an individual may qualify for no more than four quarters 
of work under this paragraph for purposes of the requirement set forth 
in paragraph (a)(3)(iii)(A) of this section; and
    (C) A calendar quarter ending before October 1990 in which an 
individual participated in CWEP under section 409 of the Social Security 
Act or the WIN program established under title IV-C of the Social 
Security Act (as in effect for a State immediately before the effective 
date of that State's JOBS program).
    (v) An individual shall be deemed ``qualified'' for unemployment 
compensation under the State's unemployment compensation law if he or 
she would have been eligible to receive such benefits upon filing an 
application, or he performed work not covered by such law, which, if it 
had been covered, would (together with any covered work he performed) 
have made him eligible to receive such benefits upon filing an 
application.
    (vi)(A) The ``parent who is the principal earner'' means, in the 
case of any child, whichever parent, in a home in which both parents of 
such child are living, earned the greater amount of income in the 24-
month period the last month of which immediately precedes the month in 
which an application is filed for aid under this part on the basis of 
the unemployment of a parent. If the State cannot secure primary 
evidence of earnings for this period, the State shall designate the 
principal earner, using the best evidence available. The earnings of 
each parent are considered in determining the principal earner 
regardless of when their relationship began. The principal earner so 
defined remains the principal earner for each consecutive month for 
which the family receives such aid on the basis of such application. 
This requirement applies to both new applicants and current AFDC 
unemployed parent families who were eligible and receiving aid prior to 
October 1, 1981.
    (B) If both parents earned an identical amount of income (or earned 
no income) in such 24-month period, the State shall designate which 
parent shall be the principal earner.

[[Page 98]]

    (4) Provide for entering into cooperative arrangements with the 
State agency responsible for administering or supervising the 
administration of vocational education to assure maximum utilization of 
available public vocational education services and facilities in the 
State to encourage the retraining of individuals capable of being 
retrained.
    (5) Provide that the needs of the child's parent(s) shall not be 
taken into account in determining the needs and amount of assistance of 
the child's family:
    (i) If and for so long as such child's parent(s), unless exempt 
under Sec. 250.30(b) of this chapter, is not currently participating (or 
available for participation) in a program under part 250 of this chapter 
or, if they are exempt under Sec. 250.30(b)(5) of this chapter (or 
because a JOBS program has not been established in the subdivision where 
they reside or they reside in a JOBS subdivision but there is no 
appropriate JOBS activity in which they can participate), are not 
registered with a public employment office in the State, and
    (ii) With respect to any week for which such child's parent 
qualifies for unemployment compensation under an unemployment 
compensation law of the State or of the United States but refuses to 
apply for or accept such unemployment compensation.
    (6) Provide that medical assistance will be furnished under the 
State's approved plan under title XIX during any month in which an 
otherwise eligible individual is denied assistance solely by reason of 
the time limitation provided under paragraph (b)(3) of this section.
    (b) State Plan Options. A State plan under title IV-A may:
    (1) Require the principal earner or both parents to participate in 
an activity in the JOBS program under part 250 of this chapter, subject 
to the limitations and conditions of part 250 of this chapter, provided 
that the participation of each parent in all required activities under 
the JOBS program does not exceed 40 hours per week, per parent.
    (2) Provide cash assistance after the performance of assigned 
program activities by parents required to participate in an activity in 
the JOBS program under part 250 of this chapter (as provided in 
paragraph (b)(1) of this section) so long as the State:
    (i) Makes assistance payments at regular intervals at least monthly,
    (ii) Prescribes a set of criteria which defines goals or standards 
for each assigned activity in the JOBS program which must be completed 
by the participant prior to payment, and
    (iii) Prior to, or concurrent with, assignment to an activity, 
notifies the participant of the prescribed goals or standards and that 
payment for a period will be withheld unless performance of each 
assigned activity for that period is completed.
    (3) Provide for a State to operate a payment after performance 
system under which a family is issued an assistance payment after the 
applicable family member has successfully completed her obligation to 
participate in JOBS for a specific period. If the applicable family 
member fails without good cause to satisfy the obligation, the State 
may:
    (i) Impose a sanction in accordance with the JOBS program rules at 
Secs. 250.34, 250.35 and 250.36 of this chapter;
    (ii) Reduce the family's assistance payment to which the specific 
period applies by the amount of the payment attributable to the family 
member for that period or do not make the payment to the family; or
    (iii) Reduce the family's assistance payment to which the specific 
period applies (or the amount of the payment attributable to the family 
member for that period) in proportion to the number of required hours 
that were not completed.

For States that elect to implement paragraphs (b)(3) (ii) or (iii) of 
this section, the fair hearing requirements set forth at 
Sec. 205.10(a)(4)(ii)(K) of this chapter apply.

    (4) Limit the number of months that a family may receive AFDC-UP 
under this section when the following conditions are met:
    (i) The State did not have on September 26, 1988, an approved AFDC-
UP program under section 407 of the Social Security Act.

[[Page 99]]

    (ii) The family received such aid (on the basis of the unemployment 
of the parent who is the principal earner) in at least 6 of the 
preceding 12 months.
    (iii) The State has in effect a program (described in the plan) for 
providing education, training, and employment services to assist parents 
in preparing for and obtaining employment throughout the year. Such a 
program may include education, training and employment activities under 
the JOBS program which are provided in part 250 of this chapter or under 
a State-designed program which provides:
    (A) Education and instruction for individuals who have not graduated 
from a secondary school or obtained an equivalent degree,
    (B) Training whereby an individual acquires market-oriented skills 
necessary for self-support, and
    (C) Employment services which seek to place individuals in jobs.
    (iv) The State must guarantee child care necessary for an individual 
to participate in an approved, State-designed, non-JOBS program. The 
regulations at part 255 of this chapter apply to such care.
    (v) The State has the option of providing necessary supportive 
services associated with an individual's participation in a State-
designed, non-JOBS program. Federal financial participation is available 
under sections 403 (k) and (l) of the Social Security Act. The 
regulations at part 255 of this chapter apply to such supportive 
services.
    (vi) The State must inform an AFDC-UP family at the time of 
application that AFDC-UP cash assistance will terminate due to a time 
limitation, that any family with a child who is (or becomes) deprived 
due to the death, continued absence, or incapacity of a parent may 
receive cash assistance under the AFDC program during the time 
limitation for AFDC-UP, and that a program of training, education, and 
employment services is available to prepare the family to become self-
supporting.
    (vii) Prior to termination due to a time limitation, the State must 
notify an AFDC-UP recipient family of the earliest month that it may 
receive AFDC-UP cash assistance again. This notification may be included 
in the notice of proposed action which is required pursuant to 
Sec. 205.10(a)(4) of this chapter. To receive assistance again, the 
family must make a new application.
    (viii) In establishing eligibility upon re-application following 
months of nonpayment due to the time limitation, an otherwise eligible 
family that does not receive aid in a month solely by reason of the 
option to limit assistance under this paragraph shall be deemed, for 
purposes of determining the period under paragraph (a)(3)(iii)(A) of 
this section, to be receiving AFDC-UP cash assistance in that month. 
This provision also applies if, at the time of the family's original 
application for assistance, eligibility was established based on the 
provisions of paragraph (a)(3)(iii)(B) of this section, but eligibility 
could have been established based on the provisions of paragraph 
(a)(3)(iii)(A) of this section.
    (c) Federal Financial Participation. (1) Federal financial 
participation is available for payments authorized in accordance with 
the State plan approved under section 402 of the Act as aid to families 
with dependent children with respect to a child:
    (i) Who meets the requirements of section 406(a)(2) of the Act;
    (ii) Who is living with any of the relatives specified in section 
406(a)(1) of the Act in a place of residence maintained by one or more 
of such relatives as his (or their) own home;
    (iii) Who has been deprived of parental support or care by reason of 
the fact that his or her parent who is the principal earner is employed 
less than 100 hours a month; or exceeds that standard for a particular 
month if his or her work is intermittent and the excess is of a 
temporary nature as evidenced by the fact that he or she was under the 
100-hour standard for 2 prior months and is expected to be under the 
standard during the next month;
    (iv) Whose parent who is the principal earner:
    (A) Has six or more quarters of work (as defined in paragraph 
(a)(3)(iv) of this section) within any 13-calendar-quarter period ending 
within 1 year prior to the application for such aid,
    (B) Within such 1-year period, received unemployment compensation

[[Page 100]]

under an unemployment compensation law of a State or of the United 
States, or was qualified (under the terms of paragraph (a)(3)(v) of this 
section) for such compensation under the State's unemployment 
compensation law; and
    (v) Whose parent who is the principal earner:
    (A) Is currently participating in or available to participate in an 
activity in the JOBS program under part 250 of this chapter, unless 
exempt, or is registered with the public employment office in the State 
if exempt from the JOBS program under Sec. 250.30(b)(5) of this chapter; 
and
    (B) Has not refused to apply for or accept unemployment compensation 
with respect to any week for which such child's parent qualifies for 
unemployment compensation under an unemployment compensation law of the 
State or of the United States.
    (2) The State may not include in its claim for Federal financial 
participation payments made as aid under the plan with respect to a 
child who meets the conditions set forth in paragraph (c)(1) of this 
section, where such payments were made:
    (i) For any part of the 30-day period specified in paragraph 
(a)(3)(i) of this section;
    (ii) For such 30-day period if during that period the parent refused 
without good cause a bona fide offer of employment or training for 
employment;
    (iii) For any period beginning with the 31st day after the receipt 
of aid, if and for as long as no action is taken during the period to 
undertake appropriate steps directed toward the participation of the 
parent who is the principal earner in a program under part 250 of this 
chapter;
    (iv) To the extent that such payments are made to meet the need of 
an individual who is subject to a sanction imposed, under part 250 of 
this chapter (for failure to meet the requirements for participation in 
the JOBS program).
    (3) Federal financial participation is available for child care and 
supportive services expenditures associated with participation in an 
approved State-designed program (as provided in paragraph (b)(3)(iii) of 
this section) under titles IV-A and IV-F of the Act respectively. 
However, Federal financial participation is not available for any other 
costs, program or administrative, associated with State-designed 
programs.
    (d) For all States (other than Puerto Rico, American Samoa, Guam, 
and the Virgin Islands) the provisions of this section are in effect 
through September 30, 1998. For Puerto Rico, American Samoa, Guam, and 
the Virgin Islands, the provisions of this section are in effect from 
October 1, 1992, through September 30, 1998.

[57 FR 30426, July 9, 1992, as amended at 63 FR 42274, Aug. 7, 1998]



Sec. 233.106  Denial of AFDC benefits to strikers.

    (a) Condition for plan approval. A State plan under title IV-A of 
the Social Security Act must:
    (1) Provide that participation in a strike shall not constitute good 
cause to leave, or to refuse to seek or accept, employment.
    (2)(i) Provide for the denial of AFDC benefits to any family for any 
month in which any caretaker relative with whom the child is living is, 
on the last day of such month, participating in a strike; and
    (ii) Provide that no individual's needs shall be included in 
determining the amount of aid payable for any month to a family under 
the plan if, on the last day of such month, such individual is 
participating in a strike.
    (b) Definitions. (1) The State must define ``strike'' by using the 
National Labor Relations Board definition (29 U.S.C. 142(2)) or another 
definition of the term that is currently in State law.
    (2) The State must define the term ``participating in a strike.''
    (3) For purposes of paragraph (a)(2)(i) of this section, ``caretaker 
relative'' means any natural or adoptive parent.

[47 FR 5682, Feb. 5, 1982]



Sec. 233.107  Restriction in payment to households headed by a minor parent.

    (a) State plan requirements. A State in its title IV-A State plan 
may provide that a minor parent and the dependent child in his or her 
care must reside in the household of a parent, legal guardian, or other 
adult relative, or in an

[[Page 101]]

adult-supervised supportive living arrangement in order to receive, AFDC 
unless:
    (1) The minor parent has no living parent or legal guardian whose 
whereabouts is known;
    (2) No living parent or legal guardian of the minor parent allows 
the minor parent to live in his or her home;
    (3) The minor parent lived apart from his or her own parent or legal 
guardian for a period of at least one year before either the birth of 
the dependent child or the parent's having made application for AFDC;
    (4) The physical or emotional health or safety of the minor parent 
or dependent child would be jeopardized if they resided in the same 
residence with the minor parent's parent or legal guardian;
    (5) There is otherwise good cause for the minor parent and dependent 
child to receive assistance while living apart from the minor parent's 
parent, legal guardian, or other adult relative, or an adult-supervised 
supportive living arrangement.
    (b) Allegations. If a minor parent makes allegations supporting the 
conclusion that paragraph (a)(4) of this section applies, the State 
agency shall determine whether it is justified.
    (c) Good Cause. The circumstances justifying a determination of good 
cause must be set forth in the State plan.
    (d) Protective Payments. When a minor parent and his or her 
dependent child are required to live with the minor parent's parent, 
legal guardian, or other adult relative, or in an adult-supervised 
supportive living arrangement, then AFDC is paid (where possible) in the 
form of a protective payment.
    (e) Definitions: For purposes of this section:
    (1) A minor parent is an individual who (i) is under the age of 18, 
(ii) has never been married, and (iii) is either the natural parent of a 
dependent child living in the same household or eligible for assistance 
paid under the State plan to a pregnant woman as provided in 
Sec. 233.90(c)(2)(iv) of this part.
    (2) A household of a parent, legal guardian, or other adult 
relatives means the place of residence of (i) a natural or adoptive 
parent or a stepparent, or (ii) a legal guardian as defined by the 
State, or (iii) another individual who is age 18 or over and related to 
the minor parent as specified in Sec. 233.90(c)(1)(v) of this part 
provided that the residence is maintained as a home for the minor parent 
and child as provided in Sec. 233.90(c)(1)(v)(B) of this part.
    (3) An adult-supervised supportive living arrangement means a 
private family setting or other living arrangement (not including a 
public institution), which, as determined by the State, is maintained as 
a family setting, as evidenced by the assumption of responsibility for 
the care and control of the minor parent and dependent child or the 
provision of supportive services, such as counseling, guidance, or 
supervision. For example, foster homes and maternity homes are ``adult-
supervised supportive living arrangements.''
    (f) Notice Requirements. Minor applicants shall be informed about 
the eligibility requirements and their rights and obligations consistent 
with the provisions at Sec. 206.10(a)(2)(i). For example, a State may 
wish to: (1) Advise the minor of the possible exemptions and 
specifically ask whether one or more of these exemptions is applicable; 
and (2) assist the minor in attaining the necessary verifications if one 
or more of these exemptions is alleged.

[57 FR 30428, July 9, 1992]



Sec. 233.110  Foster care maintenance and adoption assistance.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act must provide that the State has in effect a plan 
approved under part E, title IV of the Social Security Act, and operates 
a foster care maintenance and adoption assistance program in conformity 
with such a plan.
    (b) [Reserved]

[51 FR 9206, Mar. 18, 1986]



Sec. 233.145  Expiration of medical assistance programs under titles I, IV-A, X, XIV and XVI of the Social Security Act.

    (a) Under the provisions of section 121(b) of Pub. L. 89-97, enacted 
July 30, 1965, no payment may be made to any State under title I, IV-A, 
X, XIV or XVI of the Social Security Act for aid or assistance in the 
form of medical or

[[Page 102]]

any other type of remedial care for any period after December 31, 1969. 
However, these provisions do not affect the availability of Federal 
financial participation in the cost of medical or remedial care 
furnished under title IV-A of the Act (pursuant to sections 403(a)(5) 
and 406(e) ) of the Act, as emergency assistance to needy families with 
children (see Sec. 233.120 of this part), subject to the provisions of 
paragraph (c) 1 of this section. Federal financial 
participation in vendor payments for medical care and services is not 
otherwise available except under title XIX of the Act.
---------------------------------------------------------------------------

    1  See notice published Aug. 29, 1973 (38 FR 23337).
---------------------------------------------------------------------------

    (b) Under the provisions of section 4(c) of Pub. L. 92-223, enacted 
December 28, 1971, and the provisions of section 292 of Pub. L. 92-603, 
enacted October 30, 1972:
    (1) In the case of any State which on January 1, 1972, had in effect 
a State plan approved under title XIX of the Social Security Act, 
section 1121 of the Act authorizing payments under title I, X, XIV, or 
XVI of the Act for assistance in the form of institutional services in 
intermediate care facilities is rescinded; and
    (2) In the case of any State which on January 1, 1972, did not have 
in effect a State plan approved under title XIX of the Act, Federal 
financial participation is available in assistance in the form of 
institutional services in intermediate care facilities pursuant to 
section 1121 of the Act and under the provisions of Sec. 234.130 of this 
chapter until the first day of the first month after January 1, 1972, 
that the State has in effect a State plan approved under title XIX.
    (c)(1) Under the provisions of section 249D of Pub. L. 92-603, 
enacted October 30, 1972, Federal matching is not available for any 
portion of any payment by any State under titles I, IV-A, X, XIV, or XVI 
of the Social Security Act for or on account of any medical or any other 
type of remedial care provided by an institution to any individual as an 
inpatient thereof, in the case of any State which has a plan approved 
under title XIX of such Act, if such care is (or could be provided, 
under a State plan approved under title XIX of such Act, by an 
institution certified under such title XIX. The effective date of this 
proposed provision will be the date of publication of the final 
regulation in the Federal Register.
    (2) For purposes of this paragraph,
    (i) An institution (see Sec. 233.60(b)(1) of this chapter) is 
considered to provide medical or remedial care if it provides any care 
or service beyond room and board because of the physical or mental 
condition (or both) of its inpatients;
    (ii) An inpatient is an individual who is living in an institution 
which provides medical or remedial care and who is receiving care or 
service beyond room and board because of his physical or mental 
condition (or both).
    (iii) Federal financial participation is not available for any 
portion of the payment for care of an inpatient. It is immaterial 
whether such payment is made as a vendor payment or as a money payment 
or other cash assistance payment. It is also immaterial whether the 
payment is divided into components, such as separate amounts or payments 
for room and board, and for care or services beyond room and board, or 
whether the payment is considered to meet ``basic'' needs or ``special'' 
needs. If, however, a money payment (or protective payment) is made to 
an individual who is living in an institution, and such payment does not 
exceed a reasonable rate for room, board and laundry for individuals not 
living in their own homes, and no additional payment is made for such 
individual's care in the institution, Federal financial participation is 
available in the money payment (or protective payment) since the 
individual may spend the funds at his discretion and obtain room and 
board at the place of his choice.
    (iv) Federal financial participation is available in cash assistance 
payments to meet the needs of an inpatient for specific medical 
services, such as dental care or prescription drugs, which generally are 
not delivered in an institutional setting and in fact are not provided 
by the institution to the inpatient, provided that such services are

[[Page 103]]

not available to the individual under the State's approved title XIX 
plan.

[38 FR 26379, Sept. 20, 1973, as amended at 38 FR 32912, Nov. 29, 1973]



PART 234--FINANCIAL ASSISTANCE TO INDIVIDUALS--Table of Contents




Sec.
234.11  Assistance in the form of money payments.
234.60  Protective, vendor, and two-party payments for dependent 
          children.
234.70  Protective payments for the aged, blind, or disabled.
234.75  Rent payments to public housing agencies.
234.120  Federal financial participation.
234.130  Assistance in the form of institutional services in 
          intermediate care facilities.

    Authority: 42 U.S.C. 602, 603, 606, and 1302.



Sec. 234.11  Assistance in the form of money payments.

    (a) Federal financial participation is available in money payments 
made under a State plan under title I, IV-A, X, XIV, or XVI of the 
Social Security Act to eligible families and individuals. Money payments 
are payments in cash, checks, or warrants immediately redeemable at par, 
made to the grantee or his legal representative with no restrictions 
imposed by the agency on the use of funds by the individual.
    (b) [Reserved]

[36 FR 22238, Nov. 23, 1971, as amended at 51 FR 9206, Mar. 18, 1986]



Sec. 234.60  Protective, vendor and two-party payments for dependent children.

    (a) State plan requirements. (1) If a State plan for AFDC under 
title IV-A of the Social Security Act provides for protective, vendor 
and two-party payments for cases other than failure to participate in 
the Job Opportunities and Basic Skills Training (JOBS) Program under 
Sec. 250.34(d), or failure by the caretaker relative to meet the 
eligibility requirements of Sec. 232.11, 232.12, or 232.13 of this 
chapter. It must meet the requirements in paragraphs (a) (2) through 
(11) of this section. In addition, the plan may provide for protective, 
vendor, and two-party payments at the request of recipients as provided 
in paragraph (a)(14) of this section.
    (2)(i) Methods will be in effect to identify children whose 
relatives have demonstrated such an inability to manage funds that 
payments to the relative have not been or are not currently used in the 
best interest of the child. This means that the relative has misused 
funds to such an extent that allowing him or her to manage the AFDC 
grant is a threat to the health or safety of the child.
    (ii) States will establish criteria to determine if mismanagement 
exists. Under this provision, States may elect to use as one criterion a 
presumption of mismanagement based on a recipient's nonpayment of rent.
    (iii) Under State agency procedures, the recipient shall be notified 
whenever a creditor requests a protective, vendor, or two-party payment 
for mismangement on the basis of non-payment of bills.
    (iv) The recipient shall be notified by the agency of a decision not 
to use a protective, vendor, or two-party payment if such payment has 
been requested by a creditor.
    (v) A statement of the specific reasons that demonstrate the need 
for making protective, vendor, and two-party payments must be placed in 
the file of the child involved.
    (3) Criteria will be established to identify the circumstances under 
which protective, vendor, or two-party payments will be made in whole or 
in part to:
    (i) Another individual who is interested in or concerned with the 
welfare of the child or relative; or
    (ii) A person or persons furnishing food, living accommodations or 
other goods, services, or items to or for the child, relative, or 
essential person.
    (4) Procedures will be established for making protective, vendor, or 
two-party payments. Under this provision, part of the payment may be 
made to the family and part may be made to a protective payee or to a 
vendor, or part may be made in the form of two-party payments, i.e., 
checks which are drawn jointly to the order of the recipient and the 
person furnishing goods, services,

[[Page 104]]

or items and negotiable only upon endorsement by both the recipient and 
the other person.
    (5)--(6) [Reserved]
    (7) Standards will be established for selection:
    (i) Of protective payees, who are interested in or concerned with 
the recepient's welfare, to act for the recipient in receiving and 
managing assistance, with the selection of a protective payee being made 
by the recipient, or with his participation and consent, to the extent 
possible. If it is in the best interest of the recipient for a staff 
member of a private agency, of the public welfare department, or of any 
other appropriate organization to serve as a protective payee, such 
selection will be made preferably from the staff of an agency or that 
part of the agency providing protective services for families; and the 
public welfare department will employ such additional staff as may be 
necessary to provide protective payees. The selection will not include: 
The executive head of the agency administering public assistance; the 
person determining financial eligibility for the family; special 
investigative or resource staff; or staff handling fiscal processes 
related to the recipient; or landlords, grocers, or other vendors of 
goods, services, or items dealing directly with the recipient.
    (ii) Of such persons providing goods, services, or items with the 
selection of such persons being made by the recipient, or with his 
participation and consent, to the extent possible.
    (8) The agency will undertake and continue special efforts to 
develop greater ability on the part of the relative to manage funds in 
such manner as to protect the welfare of the family.
    (9) Review will be made as frequently as indicated by the 
individual's circumstances, and at least once every 12 months, of:
    (i) The need for protective, vendor, and two-party payments; and
    (ii) The way in which a protective payee's responsibilities are 
carried out.
    (10) Provision will be made for termination of protective payments, 
or payments to a person furnishing goods or services, as follows:
    (i) When relatives are considered able to manage funds in the best 
interest of the child, there will be a return to money payment status.
    (ii) When it appears that need for protective, vendor, or two-party 
payments will continue or is likely to continue beyond 2 years because 
all efforts have not resulted in sufficiently improved use of assistance 
in behalf of the child, judicial appointment of a guardian or other 
legal representative will be sought and such payments will terminate 
when the appointment has been made.
    (11)(i) Opportunity for a fair hearing pursuant to Sec. 205.10 will 
be given to any individual claiming assistance in relation to the 
determination:
    (A) That a protective, vendor, and two-party payment should be made 
or continued.
    (B) As to the payee selected.
    (ii) In cases where the agency has elected the option to presume 
mismanagement based on a recipient's nonpayment of rent pursuant to 
paragraph (a)(2)(ii), the agency may also elect the option to provide 
the opportunity for a fair hearing pursuant to Sec. 205.10 either before 
or after the manner or form of payment has been changed for these cases.
    (12) In cases where an individual is sanctioned for failure to 
participate in WIN, employment search, CWEP, or JOBS, the State plan 
must provide that when protective or vendor payments are made pursuant 
to Sec. 224.52(a)(1), Sec. 238.22, Sec. 240.22(a)(1), Sec. 240.22(b)(1) 
and Sec. 250.34(d) of this chapter, only paragraphs (a)(7), (a)(9)(ii), 
and (a)(11)(i) and (ii) of this section will be applicable. Under these 
circumstances, when protective payments are made, the entire payment 
will be made to the protective payee; and when vendor payments are made, 
at least the greater part of the payment will be through this method. 
However, if after making all reasonable efforts, the State agency is 
unable to locate an appropriate individual to whom protective payments 
can be made, the State may continue to make payments on behalf of the 
remaining members of the assistance unit to the sanctioned caretaker 
relative. Provision will be made for termination of protective payments, 
or payments to a person furnishing goods or services, with return

[[Page 105]]

to money payment status when adults who refused training, employment, or 
participation in employment search without good cause either accept 
training, employment, or employment search or agree to do so. In the 
case of continuing refusal of the relative to participate, payments will 
be continued for the children in the home in accordance with this 
paragraph.
    (13) For cases in which a caretaker relative fails to meet the 
eligibility requirements of Secs. 232.11, 232.12, or 232.13 of this 
chapter by failing to assign rights to support or cooperate in 
determining paternity, securing support, or identifying and providing 
information to assist the State in pursuing third party liability for 
medical services, the State plan must provide that only the requirements 
of paragraphs (a)(7) and (9)(ii) of this section will be applicable. For 
such cases, the entire amount of the assistance payment will be in the 
form of protective or vendor payments. These protective or vendor 
payments will be terminated, with return to money payment status, only 
upon compliance by the caretaker relative with the eligibility 
requirements of Secs. 232.11, 232.12, and 232.13 of this chapter. 
However, if after making reasonable efforts, the State agency is unable 
to locate an appropriate individual to whom protective payments can be 
made, the State may continue to make payments to the sanctioned 
caretaker relative on behalf of the remaining members of the assistance 
unit.
    (14) If the plan provides for protective, vendor, or two-party 
payments:
    (i) The State may use any combination of protective, vendor, or two-
party payments (at the request of the recipient),
    (ii) The request must be in writing from the recipient to whom 
payment would otherwise be made in an unrestricted manner and must be 
recorded or retained in the case file, and
    (iii) The restriction will be discontinued promptly upon the written 
request of the recipient who initiated it.
    (b) Federal financial participation. Federal financial participation 
is available in payments which otherwise qualify as money payments with 
respect to an eligible dependent child, but which are made as 
protective, vendor or two-party payments under this section. Payrolls 
must identify protective, vendor, or two-party payments either by use of 
a separate payroll for these cases or by using a special identifying 
code or symbol on the regular payroll. The payment must be supported by 
an authorization of award through amendment of an existing authorization 
document for each case or by preparation of a separate authorization 
document. In either instance, the authorization document must be a 
formal agency record signed by a responsible agency official, showing 
the name of each eligible child and relative, the amount of payment 
authorized and the name of the protective, vendor or two-party payee.

[37 FR 9025, May 4, 1972, as amended at 37 FR 12202, June 20, 1972; 45 
FR 20480, Mar. 28, 1980; 47 FR 5682, Feb. 5, 1982; 49 FR 35603, Sept. 
10, 1984; 51 FR 9206, Mar. 18, 1986; 54 FR 42244, Oct. 13, 1989; 56 FR 
8932, Mar. 4, 1991; 57 FR 30160, July 8, 1992]



Sec. 234.70  Protective payments for the aged, blind, or disabled.

    (a) State plan requirements. If a State plan for OAA, AB, APTD, or 
AABD under the Social Security Act includes provisions for protective 
payments, the State plan must provide that:
    (1) Methods will be in effect to determine that needy individuals 
have, by reason of physical or mental condition, such inability to 
manage funds that making payment to them would be contrary to their 
welfare; such methods to include medical or psychological evaluations, 
or other reports of physical or mental conditions including observation 
of gross conditions such as extensive paralysis, serious mental 
retardation, continued disorientation, or severe memory loss.
    (2) There will be responsibility to assure referral to social 
services for appropriate action to protect recipients where problems and 
needs for services and care of the recipients are manifestly beyond the 
ability of the protective payee to handle. (See paragraph (a)(5) of this 
section.)
    (3) Standards will be established for selection of protective payees 
who are

[[Page 106]]

interested in or concerned with the individual's welfare, to act for the 
individual in receiving and managing assistance, with the selection of a 
protective payee being made by the individual, or with his participation 
and consent, to the extent possible. If it is in the best interest of 
the individual for a staff member of a private agency, of the public 
welfare department, or of any other appropriate organization to serve as 
a protective payee, such selection will be made preferably from the 
staff of an agency or that part of the agency providing protective 
services for families or for the disabled or aged group of which the 
recipient is a member; and such staff of the public welfare department 
will be utilized only to the extent that the department has adequate 
staff for this purpose. The selection will not include: The executive 
head of the agency administering public assistance; the person 
determining financial eligibility for the individual; special 
investigative or resource staff, or staff handling fiscal processes 
related to the recipient; or landlords, grocers, or other vendors of 
goods or services dealing directly with the recipient--such as the 
proprietor, administrator or fiscal agent of a nursing home, or social 
care, medical or nonmedical institution, except for the superintendent 
of a public institution for mental diseases or a public institution for 
the mentally retarded, or the designee of such superintendent, when no 
other suitable protective payee can be found and there are appropriate 
staff available to assist the superintendent in carrying out the 
protective payment function.
    (4) Protective payments will be made only in cases in which the 
assistance payment, with other available income, meets all the needs of 
the individual, using the State's standards for assistance for the 
pertinent program, not standards for protective payment cases only.
    (5) The agency will undertake and continue special efforts to 
protect the welfare of such individuals and to improve, to the extent 
possible, their capacity for self-care and to manage funds.
    (6) Reconsideration of the need for protective payments and the way 
in which a protective payee's responsibilities are carried out will be 
as frequent as indicated by the individual's circumstances and at least 
every 6 months.
    (7) Provision will be made for appropriate termination of protective 
payments as follows:
    (i) When individuals are considered able to manage funds in their 
best interest, there will be a return to money payment status.
    (ii) When a judicial appointment of a guardian or other legal 
representative appears to serve the best interest of the individual, 
such appointment will be sought and the protective payment will 
terminate when the appointment has been made.
    (8) Opportunity for a fair hearing will be given to any individual 
claiming assistance in relation to the determination that a protective 
payment should be made or continued, and in relation to the payee 
selected.
    (b) Federal financial participation. Federal financial participation 
is available for payments, which otherwise qualify as money payments 
with respect to a needy individual, but which are made to a protective 
payee under paragraph (a)(3) of this section. The payment must be 
supported by an authorization of award through amendment of an existing 
authorization document for such case or by preparation of a separate 
authorization document. In either instance, the authorization document 
must be a formal agency record signed by a responsible agency official 
showing the name of each eligible individual, the amount of payment 
authorized and the name of the protective payee. Payrolls must identify 
protective payment cases either by use of a separate payroll for these 
cases or by using a special identifying code or symbol on the regular 
payroll.

[34 FR 1323, Jan. 28, 1969]



Sec. 234.75  Rent payments to public housing agencies.

    At the option of a State, if its plan approved under title I, X, 
XIV, or XVI of the Social Security Act so provides, Federal financial 
participation under such title is available in rent payments made 
directly to a public housing agency on behalf of a recipient or a group 
or

[[Page 107]]

groups of recipients of OAA, AB, APTD, or AABD. Such Federal financial 
participation is available in rent payments only to the extent that they 
do not exceed the amount included for rent under the State's standard of 
assistance or the amount of rent due under applicable law, whichever is 
less.

[38 FR 26380, Sept. 20, 1973]



Sec. 234.120  Federal financial participation.

    Federal financial participation is available in assistance payments 
made under a State plan under title I, IV-A, X, XIV, or XVI of the 
Social Security Act to any family or individual for periods beginning 
with the month in which they meet all eligibility conditions under the 
plan and in which an application has been received by the agency. Such 
assistance payments include:
    (a) Money payments (titles I, IV-A, X, XIV, and XVI, see Sec. 234.11 
of this chapter);
    (b) Protective and vendor payments for dependent children (title IV-
A, see Sec. 234.60 of this chapter);
    (c) Protective payments for the aged, blind, or disabled (titles I, 
X, XIV, and XVI, see Sec. 234.70 of this chapter);
    (d) AFDC foster care payments (title IV-A, see Sec. 233.110 of this 
chapter);
    (e) Vendor payments for institutional services in intermediate care 
facilities (titles I, X, XIV, and XVI), but only in a State that did 
not, as of January 1, 1972, have an approved plan under title XIX of the 
act, and only until such State has such a plan in effect (see 
Sec. 234.130 of this chapter);
    (f) Emergency assistance to needy families with children (title IV-
A, see Sec. 233.120 of this chapter);
    (g) Vendor payments for home repairs (titles I, IV-A, X, XIV, and 
XVI, see Sec. 233.20(c) of this chapter); and
    (h) Rent payments to public housing agencies (titles I, X, XIV, and 
XVI, see Sec. 234.75 of this chapter).

[38 FR 26380, Sept. 20, 1973]



Sec. 234.130  Assistance in the form of institutional services in intermediate care facilities.

    (a) Applicability and State plan requirements. A State which, on 
January 1, 1972, did not have in effect a State plan approved under 
title XIX of the Social Security Act may provide assistance under title 
I, X, XIV, or XVI of the Act in the form of institutional services in 
intermediate care facilities as authorized under title XI of the Act, 
until the first day of the first month (occurring after January 1, 1972) 
that such State does have in effect a State plan approved under title 
XIX of the Act. In any State which may provide such assistance as 
authorized under title XI of the Act, a State plan under title I, X, 
XIV, or XVI of the Act which includes such assistance must:
    (1) Provide that such benefits will be provided only to individuals 
who:
    (i) Are entitled (or would, if not receiving institutional services 
in intermediate care facilities, be entitled) to receive assistance, 
under the State plan, in the form of money payments; and
    (ii) Because of their physical or mental condition (or both) require 
living accommodations and care which, as a practical matter, can be made 
available to them only through institutional facilities; and
    (iii) Do not have such an illness, disease, injury, or other 
condition as to require the degree of care and treatment which a 
hospital or skilled nursing home (as that term is employed in title XIX) 
is designed to provide.
    (2) Provide that, in determining financial eligibility for benefits 
in the form of institutional services in intermediate care facilities, 
available income will be applied, first for personal and incidental 
needs including clothing, and that any remaining income will be applied 
to the costs of care in the intermediate care facility.
    (3) Provide methods of administration that include:
    (i) Placing of responsibility, within the State agency, with one or 
more staff members with sufficient staff time exclusive of other duties 
to direct and guide the agency's activities with respect to services in 
intermediate care facilities, including arrangements for consultation 
and working relationships with the State standard-setting authority and 
State agencies responsible for mental health and for mental retardation;

[[Page 108]]

    (ii) In relation to authorization of benefits, provisions for 
evaluation by a physician of the individual's physical and mental 
condition and the kinds and amounts of care he requires; evaluation by 
the agency worker of the resources available in the home, family and 
community; and participation by the recipient in determining where he is 
to receive care, except that in the case of services being provided in a 
Christian Science Sanatorium, certification by a qualified Christian 
Science practitioner that the individual meets the requirements 
specified in paragraphs (a)(1) (ii) and (iii) of this section may be 
substituted for the evaluation by a physician;
    (iii) Provisions for redetermination at least semiannually that the 
individual is properly a recipient of intermediate care.
    (4) Provide for regular, periodic review and reevaluation no less 
often than annually (by or on behalf of the State agency administering 
the plan and in addition to the activities described in paragraph (a)(3) 
of this section) of recipients in intermediate care facilities to 
determine whether their current physical and mental conditions are such 
as to indicate continued placement in the intermediate care facility, 
whether the services actually rendered are adequate and responsive to 
the conditions and needs identified, and whether a change to other 
living arrangements, or other institutional facilities (including 
skilled nursing homes) is indicated. Such reviews must be followed by 
appropriate action on the part of the State agency administering the 
plan. They must be conducted by or under the supervision of a physician 
with participation by a registered professional nurse and other 
appropriate medical and social service personnel not employed by or 
having a financial interest in the facility, except that, in the case of 
recipients who have elected care in a Christian Science sanatorium, 
review by a physician or other medical personnel is not required.
    (5) Provide that all services with respect to social and related 
problems which the agency makes available to applicants and recipients 
of assistance under the plan will be equally available to all applicants 
for and recipients of benefits in the form of institutional services in 
intermediate care facilities.
    (6) Specify the types of facilities, however described, that will 
qualify under the State plan for participation as intermediate care 
facilities, and provide for availability to the Department of Health and 
Human Services, upon request of (i) copies of the State's requirements 
for licensing of such facilities, (ii) any requirements imposed by the 
State in addition to licensing and to definition of intermediate care 
facilities, and (iii) a description of the manner in which such 
requirements are applied and enforced including copies of agreements or 
contracts, if any, with the licensing authority for this purpose.
    (7) Provide for and describe methods of determining amounts of 
vendor payments to intermediate care facilities which systematically 
relate amounts of the payment to the kinds, levels, and quantities of 
services provided to the recipients by the institutions and to the cost 
of providing such services.
    (b) Other requirements. Except when inconsistent with purposes of 
section 1121 of the Act or contrary to any provision therein, any 
modification, pursuant thereto, of an approved State plan shall be 
subject to the same conditions, limitations, rights, and obligations as 
obtained with respect to such approved State plan. Included specifically 
among such conditions and limitations are the provisions of titles I, X, 
XIV, and XVI relating to payments to or care in behalf of any individual 
who is an inmate of a public institution (except as a patient in a 
medical institution).
    (c) Federal financial participation. (1) Federal financial 
participation is available under section 1121 of the Act in vendor 
payments for institutional services provided to individuals who are 
eligible under the respective State plan and who are residents in 
intermediate care facilities. The rate of participation is the same as 
for money payments under the respective title or, if the State so 
elects, at the rate of the Federal medical assistance percentage as 
defined in section 1905(b) of the Act. Such Federal financial 
participation ends on the date specified in paragraph

[[Page 109]]

(c)(2) of this section, or 12 months after the date when the State first 
has in effect a State plan approved under title XIX of the Act, 
whichever is later.
    (2) For the period from January 1, 1972, to the date on which a 
determination is made under the provisions of 42 CFR 449.33 as to a 
facility's eligibility to receive payments for intermediate care 
facility services under the medical assistance program, title XIX of the 
Act, but not later than 12 months following the effective date of these 
regulations, Federal financial participation in payments for such 
services under title XIX is governed by the provisions of this section, 
applied to State plans under title XIX.
    (d) Definition of terms. For purposes of section 1121 of the Social 
Security Act, the following definitions apply:
    (1) Institutional services. The term, institutional services, means 
those items and services provided by or under the auspices of the 
institution which contribute to the health, comfort, and well-being of 
the residents thereof; except that the term, institutional services, 
does not include allowances for clothing and incidental expenses for 
which money payments to recipients are made under the plan, nor does it 
include medical care, in a form identifiable as such and separable from 
the routine services of the facility, for which vendor payments may be 
made under a State plan approved under title XIX.
    (2) Distinct part of an institution. A distinct part of an 
institution is defined as a part which meets the definition of an 
intermediate care facility and the following conditions:
    (i) Identifiable unit. The distinct part of the institution is an 
entire unit such as an entire ward or contiguous wards, wing, floor, or 
building. It consists of all beds and related facilities in the unit and 
houses all residents, except as hereafter provided, for whom payment is 
being made for intermediate care. It is clearly identified and is 
approved, in writing, by the agency applying the definition of 
intermediate care facility herein.
    (ii) Staff. Appropriate personnel are assigned and work regularly in 
the unit. Immediate supervision of staff is provided in the unit at all 
time by qualified personnel.
    (iii) Shared facilities and services. The distinct part may share 
such central services and facilities as management services, building 
maintenance and laundry, with other units.
    (iv) Transfers between distinct parts. In a facility having distinct 
parts devoted to skilled nursing home care and intermediate care, which 
facility has been determined by the appropriate State agency to be 
organized and staffed to provide services according to individual needs 
throughout the institution, nothing herein shall be construed to require 
transfer of an individual within the institution when in the opinion of 
the individual's physician such transfer might be harmful to the 
physical or mental health of the individual.
    (3) Intermediate care facility. An intermediate care facility is an 
institution or a distinct part thereof which:
    (i) Is licensed, under State law to provide the residents thereof, 
on a regular basis, the range or level of care and services as defined 
in paragraph (d)(4) of this section, which is suitable to the needs of 
individuals who:
    (a) Because of their physical or mental limitations or both, require 
living accommodations and care which, as a practical matter, can be made 
available to them only through institutional facilities, and
    (b) Do not have such an illness, disease, injury, or other condition 
as to require the degree of care and treatment which a hospital or 
skilled nursing home (as that term is employed in title XIX) is designed 
to provide:
    (ii) Does not provide the degree of care required to be provided by 
a skilled nursing home furnishing services under a State plan approved 
under title XIX:
    (iii) Meets such standards of safety and sanitation as are 
applicable to nursing homes under State law; and
    (iv) Regularly provides a level of care and service beyond board and 
room.

The term intermediate care facility also includes a Christian Science 
sanatorium operated, or listed and certified, by the First Church of 
Christ, Scientist, Boston, Mass.
    (4) Range or level of care and services. The range or level of care 
and services

[[Page 110]]

suitable to the needs of individuals described in paragraph (d)(3)(i) of 
this section is to be defined by the State agency. The following items 
are recommended as a minimum.
    (i) Admission, transfer, and discharge of residents. The admission, 
transfer, and discharge of residents of the facility are conducted in 
accordance with written policies of the institution that include at 
least the following provisions.
    (a) Only those persons are accepted into the facility whose needs 
can be met within the accommodations and services the facility provides;
    (b) As changes occur in their physical or mental condition, 
necessitating service or care not regularly provided by the facility, 
residents are transferred promptly to hospitals, skilled nursing homes, 
or other appropriate facilities;
    (c) The resident, his next of kin, and the responsible agency if 
any, are consulted in advance of the discharge of any resident, and 
casework services or other means are utilized to assure that adequate 
arrangements exist for meeting his needs through other resources.
    (ii) Personal care and protective services. The types and amounts of 
protection and personal service needed by each resident of the facility 
are a matter of record and are known to all staff members having 
personal contact with the resident. At least the following services are 
provided.
    (a) There is, at all times, a responsible staff member actively on 
duty in the facility, and immediately accessible to all residents, to 
whom residents can report injuries, symptoms of illness, or emergencies, 
and who is immediately responsible for assuring that appropriate action 
is taken promptly.
    (b) Assistance is provided, as needed by individual residents, with 
routine activities of daily living including such services as help in 
bathing, dressing, grooming, and management of personal affairs such as 
shopping.
    (c) Continuous supervision is provided for residents whose mental 
condition is such that their personal safety requires such supervision.
    (iii) Social services. Services to assist residents in dealing with 
social and related problems are available to all residents through one 
or more caseworkers on the staff of the facility; and/or, in the case of 
recipients of assistance, through caseworkers on the staff of the 
assistance agency; or through other arrangements.
    (iv) Activities. Activities are regularly available for all 
residents, including social and recreational activities involving active 
participation by the residents, entertainment of appropriate frequency 
and character, and opportunities for participation in community 
activities as possible and appropriate.
    (v) Food service. At least three meals a day, constituting a 
nutritionally adequate diet, are served in one or more dining areas 
separate from sleeping quarters, and tray service is provided for 
residents temporarily unable to leave their rooms.
    (vi) Special diets. If the facility accepts or retains individuals 
in need of medically prescribed special diets, the menus for such diets 
are planned by a professionally qualified dietitian, or are reviewed and 
approved by the attending physician, and the facility provides 
supervision of the preparation and serving of the meals and their 
acceptance by the resident.
    (vii) Health services. Whether provided by the facility or from 
other sources, at least the following services are available to all 
residents:
    (a) Immediate supervision of the facility's health services by a 
registered professional nurse or a licensed practical nurse employed 
full-time in the facility and on duty during the day shift except that, 
where the State recognizes and describes two or more distinct levels of 
institutions as intermediate care facilities such personnel are not 
required in any level that serves only individuals who have been 
determined by their physicians not to be in need of such supervision and 
whose need for such supervision is reviewed as indicated, and at least 
quarterly;
    (b) Continuing supervision by a physician who sees the resident as 
needed and in no case, less often than quarterly;
    (c) Under direction by the resident's physician and (where 
applicable in accordance with (d)(4)(vii)(a) of this section), general 
supervision by the nurse

[[Page 111]]

in charge of the facility's health services, guidance, and assistance 
for each resident in carrying out his personal health program to assure 
that preventive measures, treatments, and medications prescribed by the 
physician are properly carried out and recorded;
    (d) Arrangements for services of a physician in the event of an 
emergency when the resident's own physician cannot be reached;
    (e) In the presence of minor illness and for temporary periods, 
bedside care under direction of the resident's physician including 
nursing service provided by, or supervised by, a registered professional 
nurse or a licensed practical nurse;
    (f) An individual health record for each resident including;
    (1) The name, address, and telephone number of his physician;
    (2) A record of the physician's findings and recommendations in the 
preadmission evaluation of the individual's condition and in subsequent 
reevaluations and all orders and recommendations of the physician for 
care of the resident;
    (3) All symptoms and other indications of illness or injury brought 
to the attention of the staff by the resident, or from other sources, 
including the date, time, and action taken regarding each.
    (viii) Living accommodations. Space and furnishings provide each 
resident clean, comfortable, and reasonably private living 
accommodations with no more than four residents occupying a room, with 
individual storage facilities for clothing and personal articles, and 
with lounge, recreation and dining areas provided apart from sleeping 
quarters.
    (ix) Administration and management. The direction and management of 
the facility are such as to assure that the services required by the 
residents are so organized and administered that they are, in fact, 
available to the residents on a regular basis and that this is 
accomplished efficiently and with consideration for the objective of 
providing necessary care within a homelike atmosphere. Staff are 
employed by the facility sufficient in number and competence, as 
determined by the appropriate State agency, to meet the requirements of 
the residents.

[35 FR 8990, June 10, 1970, as amended at 39 FR 2220, Jan. 17, 1974; 39 
FR 8918, Mar. 7, 1974]



PART 235--ADMINISTRATION OF FINANCIAL ASSISTANCE PROGRAMS--Table of Contents




Sec.
235.40  [Reserved]
235.50  State plan requirements for methods of personnel administration.
235.60  Federal financial participation (FFP) for State and local 
          training.
235.61  Definition of terms.
235.62  State plan requirements for training programs.
235.63  Conditions for FFP.
235.64  FFP rates, and activities and costs matchable as training 
          expenditures.
235.65  Activities and costs not matchable as training expenditures.
235.66  Sources of State funds.
235.70  Prompt notice to child support or Medicaid agency.
235.110  Fraud.

    Authority: 42 U.S.C. 603, 616, and 1302.



Sec. 235.40  [Reserved]



Sec. 235.50  State plan requirements for methods of personnel administration.

    (a) A State plan for financial assistance programs under title I, 
IV-A, X, XIV, or XVI (AABD) of the Social Security Act must provide that 
methods of personnel administration will be established and maintained 
in public agencies administering or supervising the administration of 
the program in conformity with the Standards for a Merit System of 
Personnel Administration, 5 CFR part 900, subpart F, which incorporates 
the Intergovernmental Personnel Act Merit Principles (Pub. L. 91-648, 
section 2, 84 Stat. 1909), prescribed by the Office of Personnel 
Management pursuant to section 208 of the Intergovernmental Personnel 
Act of 1970 as amended.

[45 FR 25398, Apr. 15, 1980]



Sec. 235.60  Federal financial participation (FFP) for State and local training.

    Sections 235.61 through 235.66 contain (a) State plan requirements 
for training programs and (b) conditions for

[[Page 112]]

Federal financial participation (FFP) for training costs under the State 
plans. These sections apply to the State plans for the financial 
assistance programs in all jurisdictions under title I, IV-A, X, XIV, or 
XVI (AABD) of the Social Security Act.

[45 FR 29833, May 6, 1980]



Sec. 235.61  Definition of terms.

    For purposes of Secs. 235.60-235.66:
    Act means the Social Security Act, as amended.
    A grant to an educational institution means payments to an 
educational institution for services rendered under a time limited 
agreement between the State agency and the eligible educational 
institution which provides for the training of State or local agency 
employees or persons preparing for employment with the State or local 
agency.
    A training program is the method through which the State agency 
carries out a plan of educational and training activities to improve the 
operation of its programs.
    (a) Initial in-service training means a period of intensive, task-
oriented training to prepare new employees to assume job 
responsibilities.
    (b) Continuing training means an on-going program of training 
planned to enable employees to: (1) Reinforce their basic knowledge and 
develop the required skills for the performance of specific functions, 
and (2) acquire additional knowledge and skill to meet changes such as 
enactment of new legislation, development of new policies, or shifts in 
program emphasis.
    (c) Full-time training means training that requires employees to be 
relieved of all responsibility for performance of current work to 
participate in a training program.
    (d) Part-time training means training that allows employees to 
continue full time in their jobs or requires only partial reduction of 
work activities to participate in a training program outside of the 
State or local agency.
    (e) Long-term training means training for eight consecutive work 
weeks or longer.
    (f) Short-term training means training for less than eight 
consecutive work weeks.
    FFP or Federal financial participation means the Federal 
government's share of expenditures made by a State or local agency under 
a training program.
    Fringe benefits means the employer's share of premiums for 
industrial compensation, employee's retirement, unemployment 
compensation, health insurance, and similar expenses.
    Persons preparing for employment means individuals who are not yet 
employed by the State or local agency, but who have received financial 
assistance from the State agency for training, and have made a legally 
binding commitment with the State or local agency for future employment 
under the conditions of these regulations.
    Stipend means the basic living allowance paid to a student.

[45 FR 29833, May 6, 1980]



Sec. 235.62  State plan requirements for training programs.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the Act 
must provide for a training program for agency personnel. The training 
program must:
    (a) Include initial in-service training for newly appointed staff, 
and continuing agency training opportunities to improve the operation of 
the program. The training program may also include short-term and long-
term training at educational institutions through grants to institutions 
or by direct financial assistance to students enrolled in institutions 
who are agency employees or persons preparing for employment with the 
State or local agency;
    (b) Be related to job duties performed or to be performed by the 
persons trained, and be consistent with the program objectives of the 
agency; and
    (c) Be described in an annual training plan prepared prior to the 
beginning of the fiscal year. Copies of the training plan shall be made 
available upon request to the Regional Office of Family Assistance for 
review by the Federal staff.

[45 FR 29833, May 6, 1980, as amended at 46 FR 29264, June 1, 1981]

[[Page 113]]



Sec. 235.63  Conditions for FFP.

    (a) Who may be trained. FFP is available only for training provided 
personnel employed in all classes of positions, volunteers, and persons 
preparing for employment by the State or local agency administering the 
program.
    (b) When FFP is available. FFP is available for personnel employed 
and persons preparing for employment by the State or local agency 
provided the following conditions are met, and with the following 
limitations:
    (1) Employees in full-time, long-term training make a commitment to 
work in the agency for a period of time equal to the period for which 
financial assistance is granted. A State agency may exempt an employee 
from fulfilling this commitment only if failure to continue in 
employment is due to death, disability, employment in a financial 
assistance program in a public assistance agency in another State, or 
other emergent circumstances determined by the single State agency head 
to be valid for exemption;
    (2) An employee retains his or her rights and benefits in the agency 
while on full-time, long-term training leave;
    (3) Persons preparing for employment are selected by the State 
agency and accepted by the school;
    (4) Persons preparing for employment are pursuing educational 
programs approved by the State agency;
    (5) Persons preparing for employment are committed to work for State 
or local agency for a period of time at least equal to the period for 
which financial assistance is granted if employment is offered within 2 
months after training is completed;
    (6) The State or local agency offers the individual preparing for 
employment a job upon completion of training unless precluded by merit 
system requirements, legislative budget cuts, position freezes, or other 
circumstances beyond the agency's control; and if unable to offer 
employment, releases the individual from his or her commitment;
    (7) The State agency keeps a record of the employment of persons 
trained. If the persons are not employed by the State or local agency, 
the record specifies the reason for non-employment;
    (8) The State agency evaluates the training programs; and
    (9) Any recoupment of funds by the State from trainees failing to 
fulfill their commitment under this section shall be treated as a refund 
and deducted from total training costs for the purpose of determining 
net costs for FFP.
    (c) Grants to educational institutions. FFP is available in payments 
for services rendered under grants to educational institutions provided 
all of the following conditions are met:
    (1) Grants are made for the purpose of developing, expanding, or 
improving training for personnel employed by the State or local agency 
or preparing for employment by the State or local agency administering 
the program. Grants are made for an educational program (curriculum 
development, classroom instruction, field instruction, or any 
combination of these) that is directly related to the agency's program. 
Grants are made for not more than 3 years, but may be renewed, subject 
to the conditions of this section;
    (2) Grants are made to educational institutions and programs that 
are accredited by the appropriate institutional accrediting body 
recognized by the U.S. Commissioner of Education. When a specialized 
program within the institution for which there is a specialized 
accrediting body is used, that program must be accredited by or have 
pre-accreditation status from that body. (Part 149 of this title 
explains the requirements and procedures for obtaining recognition as an 
accrediting agency or association. Lists of currently recognized 
accrediting bodies are published in the Federal Register periodically. 
See also Nationally Recognized Accrediting Agencies and Associations 
published by the Office of Education);
    (3) The State agency has written policies establishing conditions 
and procedures for such grants;
    (4) Each grant describes objectives in terms of how the educational 
program is related to the financial assistance programs and how it is 
designed to meet the State or local agency's manpower needs; and
    (5) An evaluation of the educational program funded by each grant is 
made

[[Page 114]]

no later than the close of the second year of the grant. The evaluation 
shall be conducted by representatives from the educational institution 
and the State agency to determine whether conditions and objectives 
described in the grant are being met. If the educational program does 
not meet these conditions and objectives, payment shall be terminated no 
later than the close of the second year of the grant.

[45 FR 29834, May 6, 1980]



Sec. 235.64  FFP rates, and activities and costs matchable as training expenditures.

    Under title I, IV-A, X, XIV, or XVI(AABD) of the Act, FFP is 
available at the rate of 50 percent for the following costs:
    (a) Salaries, fringe benefits, travel and per diem for:
    (1) Staff development personnel (including support staff) assigned 
full time to training functions and;
    (2) Staff development personnel assigned part time to training 
functions to the extent time is spent performing such functions.
    (b) For agency training sessions, FFP is available for:
    (1) Salaries, fringe benefits, travel and per diem for employees in 
initial in-service training of at least one week;
    (2) Travel and per diem for employees in agency training sessions 
away from the employee's work site, or in institutes, seminars or 
workshops related to the job and sponsored by professional 
organizations;
    (3) Salaries, fringe benefits, travel and per diem for experts 
outside the agency engaged to develop or conduct special programs; and
    (4) Costs of space, postage, teaching supplies, purchase or 
development of teaching material and equipment, and costs of maintaining 
and operating the agency library as an essential resource to the 
agency's training program.
    (c) For training and education outside of the agency, FFP is 
available for:
    (1) Salaries, fringe benefits, dependency allowance, travel, 
tuition, books, and educational supplies for employees in full-time, 
long-term training programs (with no assigned agency duties);
    (2) Salaries, fringe benefits, travel, tuition, books, and 
educational supplies for employees in full-time, short-term training 
programs of four or more consecutive work weeks;
    (3) Travel, per diem, tuition, books and educational supplies for 
employees in short-term training programs of less than four consecutive 
work weeks, or part-time training programs; and
    (4) Stipends, travel, tuition, books and educational supplies for 
persons preparing for employment with the State or local agency.
    (d) FFP is available for payments to educational institutions, as 
described in Sec. 235.63(c) for salaries, fringe benefits, and travel of 
instructors, clerical assistance, teaching materials and equipment.

[45 FR 29834, May 6, 1980, as amended at 47 FR 5683, Feb. 5, 1982; 59 FR 
12861, Mar. 18, 1994]



Sec. 235.65  Activities and costs not matchable as training expenditures.

    FFP is not available for the following expenditures as training 
costs; however, the expenditures described in this section may be 
matched as administrative costs, if conditions for such matching are 
met:
    (a) Salaries of supervisors (day-to-day supervision of staff is not 
a training activity); and
    (b) Employment of students on a temporary basis, such as in the 
summertime.

[45 FR 29835, May 6, 1980]



Sec. 235.66  Sources of State funds.

    (a) Public funds. Public funds may be considered as the State's 
share in claiming Federal reimbursement where the funds:
    (1) Are appropriated directly to the State or local agency, or 
transferred from another public agency (including Indian tribes) to the 
State or local agency and under its administrative control, or certified 
by the contributing public agency as representing expenditures eligible 
for FFP under Secs. 235.60-235.66;
    (2) Are not used to match other Federal funds; and

[[Page 115]]

    (3) Are not federal funds, or are Federal funds authorized by 
Federal law to be used to match other Federal funds.
    (b) Private funds. Funds donated from private sources may be 
considered as the State's share in claiming Federal reimbursement only 
where the funds are:
    (1) Transferred to the State or local agency and under its 
administrative control;
    (2) Donated without any restriction which would require their use 
for the training of a particular individual or at particular facilities 
or institutions; and
    (3) Do not revert to the donor's facility or use.

[45 FR 29835, May 6, 1980]



Sec. 235.70  Prompt notice to child support or Medicaid agency.

    (a) A State plan under title IV-A of the Social Security Act must 
provide for prompt notice to the State or local child support agency 
designated pursuant to section 454(3) of the Social Security Act and to 
the State title XIX agency, as appropriate, whenever:
    (1) Aid is furnished to a child who has been deserted or abandoned 
by a parent, to the parent(s) with whom the child lives, or to a 
pregnant woman under Sec. 233.90(c)(2)(iv), or
    (2) Any of the persons in paragraph (a)(1) of this section is deemed 
to be a recipient of aid under Sec. 233.20(a)(3)(viii)(D).
    (b) In this section:
    (1) Aid means Aid to Families with Dependent Children, or AFDC 
Foster Care.
    (2) Prompt notice means written notice including a copy of the AFDC 
case record, or all relevant information as prescribed by the child 
support agency. Prompt notice must also include all relevant information 
as prescribed by the State medicaid agency for the pursuit of liable 
third parties. The prompt notice shall be provided within two working 
days of the furnishing of aid or the determination that an individual is 
a recipient under Sec. 233.20(a)(3)(viii)(D). The title IV-A, IV-D and 
XIX agencies may agree to provide notice immediately upon the filing of 
an application for assistance.
    (3) Furnish means the date on which cash is given to the family, a 
check or warrant is mailed to the family, a deposit is made in a bank 
for the family, or other similar circumstances in which an assistance 
payment is made to the family, or the date on which individuals are 
determined to be recipients under Sec. 233.20(a)(3)(viii)(D).
    (4) A child who has been deserted or abandoned by a parent means any 
child whose eligibility for AFDC is based on continued absence of a 
parent from the home, and includes a child born out of wedlock without 
regard to whether the paternity of such child has been established.

[47 FR 5683, Feb. 5, 1982, as amended at 56 FR 8933, Mar. 4, 1991]



Sec. 235.110  Fraud.

    State plan requirements: A State plan under title I, IV-A, X, XIV, 
or XVI of the Social Security Act must provide:
    (a) That the State agency will establish and maintain:
    (1) Methods and criteria for identifying situations in which a 
question of fraud in the program may exist, and
    (2) Procedures developed in cooperation with the State's legal 
authorities for referring to law enforcement officials situations in 
which there is valid reason to suspect that fraud has been practiced.

The definition of fraud for purposes of this section will be determined 
in accordance with State law.
    (b) For methods of investigation of situations which there is a 
question of fraud, that do not infringe on the legal rights of persons 
involved and are consistent with the principles recognized as affording 
due process of law.
    (c) For the designation of official position(s) responsible for 
referral of situations involving suspected fraud to the proper 
authorities.

[36 FR 3869, Feb. 27, 1971]

[[Page 116]]



PART 237--FISCAL ADMINISTRATION OF FINANCIAL ASSISTANCE PROGRAMS--Table of Contents




    Authority: Section 1102 of the Social Security Act (42 U.S.C. 1302); 
49 Stat. 647, as amended.



Sec. 237.50  Recipient count, Federal financial participation.

    Pursuant to the formulas in sections 3, 403, 1003, 1118, 1121, 1403, 
and 1603 of the Social Security Act, it is necessary to identify 
expenditures that may be included in claims for Federal financial 
participation. The quarterly statement of expenditures and recoveries 
which is required for OAA, AFDC, AB, APTD, and AABD must include, as a 
part of the basis for computing the amount of Federal participation in 
such expenditures, the number of eligible recipients each month. 
However, where the State is making claims under section 1118 of the Act 
or under optional provisions for Federal sharing specified in such 
paragraphs no recipient count is involved. Vendor payments for medical 
care may not be considered if the State has a plan approved under title 
XIX of the Act. The procedures for determining recipient count are set 
forth in paragraphs (a), (b) and (c) of this section.
    (a) Adult assistance categories. For each adult assistance category, 
under title I, X, XIV, or XVI, of the Act, the recipient count for any 
month may include:

    (1) Eligible recipients who receive money payments or in whose 
behalf protective payments are made for that month:

Provided, That such payments are not excluded from Federal financial 
participation under the provisions of Sec. 233.145(c) of this chapter; 
plus
    (2) Other eligible recipients in whose behalf payments are made for 
institutional services in intermediate care facilities for that month, 
but only in a State which does not have in effect a plan approved under 
Title XIX of the Act. (See Sec. 233.145(b)(2) of this chapter.)

    (b) AFDC category. For the AFDC category under title IV, part A, of 
the Act:
    (1) The recipient count for any month includes:
    (i) Eligible recipients in families which receive a money payment, 
plus
    (ii) Eligible recipients in families not otherwise counted on whose 
behalf protective or nonmedical vendor assistance payments are made for 
such month in accordance with the vendor payment provisions at 
Sec. 234.60, provided that such payments are not excluded from Federal 
financial participation under the provisions of Sec. 233.145(c) of this 
chapter.
    (2) For the purpose of this provision, recipients means, if 
otherwise eligible:
    (i) Children;
    (ii) In a home with no parent who is the caretaker relative, an 
otherwise eligible relative of specified degree;
    (iii) Parent(s);
    (iv) The spouse of such parent, in the case of AFDC eligibility due 
to incapacity or unemployment;
    (3) As used in paragraph (b)(2)(iii) of this section, the term 
parent means the natural or adoptive parent, or the stepparent who is 
married to the child's natural or adoptive parent and is legally 
obligated to support the child under a State law of general 
applicability which requires stepparents to support stepchildren to the 
same extent that natural or adoptive parents are required to support 
their children; and the term ``spouse'' as used in paragraph (b)(2)(iv) 
of this section means an individual who is the husband or wife of the 
child's own parent, as defined above, by reason of a legal marriage as 
defined under State law.
    (4) Where there are two or more dependent children living in a place 
of residence with two other persons and each of such other persons is a 
relative who has responsibility for the care and control of one or more 
of the dependent children, there may be two AFDC families (assistance 
units), if neither family includes a parent or sibling included in the 
other family pursuant to Sec. 206.10 (a)(1)(vii).
    (c) Essential person. An essential person or other ineligible person 
who is living with the eligible person may not be counted as a 
recipient.

[38 FR 32914, Nov. 29, 1973, as amended at 57 FR 30161, July 8, 1992]

                        PARTS 282--299 [RESERVED]

[[Page 117]]



            CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT






                       (CHILD SUPPORT ENFORCEMENT






                  PROGRAM), ADMINISTRATION FOR CHILDREN






                   AND FAMILIES, DEPARTMENT OF HEALTH






                           AND HUMAN SERVICES




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

Part                                                                Page
300

[Reserved]

301             State plan approval and grant procedures....         119
302             State plan requirements.....................         124
303             Standards for program operations............         142
304             Federal financial participation.............         172
305             Audit and penalty...........................         181
306

[Reserved]

307             Computerized support enforcement systems....         186
308-399

[Reserved]

[[Page 119]]

                           PART 300 [RESERVED]



PART 301--STATE PLAN APPROVAL AND GRANT PROCEDURES--Table of Contents




Sec.
301.0  Scope and applicability of this part.
301.1  General definitions.
301.10  State plan.
301.11  State plan; format.
301.12  Submittal of State plan for Governor's review.
301.13  Approval of State plans and amendments.
301.14  Administrative review of certain administrative decisions.
301.15  Grants.
301.16  Withholding of advance funds for not reporting.

    Authority: 42 U.S.C. 651 through 658, 660, 664, 666, 667, 1301, and 
1302.

    Source: 40 FR 27157, June 26, 1975, unless otherwise noted.



Sec. 301.0  Scope and applicability of this part.

    This part deals with the administration of title IV-D of the Social 
Security Act by the Federal Government including actions on the State 
plan and amendments thereto and review of such actions; grants under the 
approved plan; review and audit of State and local expenditures; and 
reconsideration of disallowances of expenditures for Federal financial 
participation.



Sec. 301.1  General definitions.

    When used in this chapter, unless the context otherwise indicates:
    Act means the Social Security Act, and the title referred to is 
title IV-D of that Act.
    Applicable matching rate means the rate of Federal funding of State 
IV-D programs' administrative costs for the appropriate fiscal year. The 
applicable matching rate for FY 1990 and thereafter is 66 percent.
    Assigned support obligation means, unless otherwise specified, any 
support obligation which has been assigned to the State under 
Sec. 232.11 of this chapter or section 471(a)(17) of the Act, or any 
medical support obligation or payment for medical care from any third 
party which has been assigned to the State under 42 CFR 433.146.
    Assignment means, unless otherwise specified, any assignment of 
rights to support under Sec. 232.11 of this chapter or section 
471(a)(17) of the Act, or any assignment of rights to medical support 
and to payment for medical care from any third party under 42 CFR 
433.146.
    Birthing hospital means a hospital that has an obstetric care unit 
or provides obstetric services, or a birthing center associated with a 
hospital. A birthing center is a facility outside a hospital that 
provides maternity services.
    Central registry means a single unit or office within the State IV-D 
agency which receives, disseminates and has oversight responsibility for 
processing incoming interstate IV-D cases, including URESA petitions and 
requests for wage withholding in IV-D cases and, at the option of the 
State, intrastate IV-D cases.
    Department means the Department of Health and Human Services.
    Director means the Director, Office of Child Support Enforcement, 
who is the Secretary's designee to administer the Child Support 
Enforcement program under title IV-D.
    Federal PLS means the Parent Locator Service operated by the Office 
of Child Support Enforcement pursuant to section 452(a)(9) of the Act.
    IV-D Agency means the single and separate organizational unit in the 
State that has the responsibility for administering or supervising the 
administration of the State plan under title IV-D of the Act.
    Medicaid means medical assistance provided under a State plan 
approved under title XIX of the Act.
    Medicaid agency means the single State agency that has the 
responsibility for the administration of, or supervising the 
administration of, the State plan under title XIX of the Act.
    Non-AFDC Medicaid recipient means any individual who has been 
determined eligible for or is receiving Medicaid under title XIX of the 
Act but is not receiving, nor deemed to be receiving, AFDC under title 
IV-A of the Act.
    Office means the Office of Child Support Enforcement which is the 
separate organizational unit within the Department with the 
responsibility for the administration of the program under this title.

[[Page 120]]

    Overdue support means a delinquency pursuant to an obligation 
determined under a court order, or an order of an administrative process 
established under State law, for support and maintenance of a minor 
child, which is owed to or on behalf of the child, or for the absent 
parent's spouse (or former spouse) with whom the child is living, but 
only if a support obligation has been established with respect to the 
spouse and the support obligation established with respect to the child 
is being enforced under State's IV-D plan. At the option of the State, 
overdue support may include amounts which otherwise meet the definition 
in the previous sentence but which are owed to or on behalf of a child 
who is not a minor child. The option to include support owed to children 
who are not minors applies independently to the procedures required 
under Sec. 302.70 of this chapter.
    Past-due support means the amount of support determined under a 
court order or an order of an administrative process established under 
State law for support and maintenance of a child or of a child and the 
parent with whom the child is living, which has not been paid. For 
purposes of referral for Federal income tax refund offset of support due 
an individual who is receiving services under Sec. 302.33 of this 
chapter, past-due support means support owed to or on behalf of a 
qualified child, or a qualified child and the parent with whom the child 
is living if the same support order includes support for the child and 
the parent.
    Political subdivision means a legal entity of the State as defined 
by the State, including a legal entity of the political subdivision so 
defined, such as a Prosecuting or District Attorney or a Friend of the 
Court.
    Procedures means a written set of instructions which describe in 
detail the step by step actions to be taken by child support enforcement 
personnel in the performance of a specific function under the State's 
IV-D plan. The IV-D agency may issue general instructions on one or more 
functions, and delegate responsibility for the detailed procedures to 
the office, agency, or political subdivision actually performing the 
function.
    Qualified child means a child who is a minor or who, while a minor, 
was determined to be disabled under title II or XVI of the Act, and for 
whom a support order is in effect.
    Regional Office and Central Office refer to the Regional Offices and 
the Central Office of the Office of Child Support Enforcement, 
respectively.
    Secretary means the Secretary of Health and Human Services.
    Spousal support means a legally enforceable obligation assessed 
against an individual for the support of a spouse or former spouse who 
is living with a child or children for whom the individual also owes 
support.
    State means the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam and American 
Samoa.
    The State plan means the State plan for child and spousal support 
under section 454 of the Act.
    State PLS means the service established by the IV-D agency pursuant 
to section 454(8) of the Act to locate absent parents.

[47 FR 57280, Dec. 23, 1982, as amended at 50 FR 19647, May 9, 1985; 50 
FR 23958, June 7, 1985; 50 FR 31719, Aug. 6, 1985; 53 FR 5256, Feb. 22, 
1988; 54 FR 32308, Aug. 4, 1989; 56 FR 8002, Feb. 26, 1991; 57 FR 30429, 
July 9, 1992; 58 FR 41437, Aug. 4, 1993; 59 FR 66249, Dec. 23, 1994; 61 
FR 67240, Dec. 20, 1996]



Sec. 301.10  State plan.

    The State plan is a comprehensive statement submitted by the IV-D 
agency describing the nature and scope of its program and giving 
assurance that it will be administered in conformity with the specific 
requirements stipulated in title IV-D, the regulations in Subtitle A and 
this chapter of this title, and other applicable official issuances of 
the Department. The State plan contains all information necessary for 
the Office to determine whether the plan can be approved, as a basis for 
Federal financial participation in the State program.



Sec. 301.11  State plan; format.

    The State plan must be submitted to the Office in the format and 
containing the information prescribed by the Office, and within time 
limits set in implementing instructions issued by the

[[Page 121]]

Office. Such time limits will be adequate for proper preparation of 
plans and submittal in accordance with the requirements for State 
Governors' review (see Sec. 301.12 of this chapter).

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986]



Sec. 301.12  Submittal of State plan for Governor's review.

    The State plan must be submitted to the State Governor for his 
review and comments, and the State plan must provide that the Governor 
will be given opportunity to review State plan amendments and long-range 
program planning projections or other periodic reports thereon. This 
requirement does not apply to periodic statistical or budget and other 
fiscal reports. Under this requirement, the Office of the Governor will 
be afforded a specified period in which to review the material. Any 
comments made will be transmitted to the Office with the documents.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986]



Sec. 301.13  Approval of State plans and amendments.

    The State plan consists of written documents furnished by the State 
to cover its Child Support Enforcement program under title IV-D of the 
Act. After approval of the original plan by the Office, all relevant 
changes, required by new statutes, rules, regulations, interpretations, 
and court decisions, are required to be submitted currently so that the 
Office may determine whether the plan continues to meet Federal 
requirements and policies.
    (a) Submittal. State plans and revisions of the plans are submitted 
first to the State governor or his designee for review in accordance 
with Sec. 301.12, and then to the regional office. The States are 
encouraged to obtain consultation of the regional staff when a plan is 
in process of preparation or revision.
    (b) Review. The Office of Child Support Enforcement in the regional 
offices is responsible for review of State plans and amendments. It also 
initiates discussion with the IV-D agency on clarification of 
significant aspects of the plan which come to its attention in the 
course of this review. State plan material on which the regional staff 
has questions concerning the application of Federal policy is referred 
with recommendations as required to the Office of Child Support 
Enforcement in the central office for technical assistance. Comments and 
suggestions, including those of consultants in specified areas, may be 
prepared by the central office for use by the regional staff in 
negotiations with the IV-D agency.
    (c) Action. The Regional Office exercises delegated authority to 
take affirmative action on the State plan and amendments thereto on the 
basis of policy statements or precedents previously approved by the 
Director. The Director retains authority for determining that proposed 
plan material is not approvable, or that a previously approved plan no 
longer meets the requirements for approval, except that a final 
determination of disapproval may not be made without prior consultation 
and discussion by the Director with the Secretary. The Regional Office 
or the Director formally notifies the IV-D agency of the actions taken 
on the State plan or revisions thereto.
    (d) Basis for approval. Determinations as to whether the State plan 
(including plan amendments and administrative practice under the plan) 
originally meets or continues to meet the requirements for approval are 
based on relevant Federal statutes and regulations. Guidelines are 
furnished to assist in the interpretation of the regulations.
    (e) Prompt approval of the State plan. The determination as to 
whether the State plan submitted for approval conforms to the 
requirements for approval under the Act and regulations issued pursuant 
thereto shall be made promptly and not later than the 90th day following 
the date on which the plan submittal is received in the regional office, 
unless the Regional Office has secured from the IV-D agency

[[Page 122]]

a written agreement to extend that period.
    (f) Prompt approval of plan amendments. Any amendment of an approved 
State plan may, at the option of the State, be considered as a 
submission of a new State plan. If the State requests that such 
amendments be so considered, the determination as to its conformity with 
the requirements for approval shall be made promptly and not later than 
the 90th day following the date on which such a request is received in 
the Regional Office with respect to an amendment that has been received 
in such office, unless the Regional Commissioner has secured from the 
State agency a written agreement to extend that period.
    (g) Effective date. The effective date of a new plan may not be 
earlier than the first day of the calendar quarter in which an 
approvable plan is submitted.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986]



Sec. 301.14  Administrative review of certain administrative decisions.

    Any State dissatisfied with a determination of the Director pursuant 
to Sec. 301.13 (e) or (f) with respect to any plan or amendment may, 
within 60 days after the date of receipt of notification of such 
determination, file a petition with the Regional Office asking the 
Director for reconsideration of the issue of whether such plan or 
amendment conforms to the requirements for approval under the Act and 
pertinent Federal requirements. Within 30 days after receipt of such a 
petition, the Director shall notify the State of the time and place at 
which the hearing for the purpose of reconsidering such issue will be 
held. Such hearing shall be held not less than 30 days nor more than 60 
days after the date notice of such hearing is furnished to the State, 
unless the Director and the State agree in writing on another time. The 
hearing procedures contained in 45 CFR part 213 applicable to Sec. 201.4 
of this title shall apply to reconsiderations brought under this 
section. A determination affirming, modifying, or reversing the 
Director's original decision will be made within 60 days of the 
conclusion of the hearing. Action pursuant to an initial determination 
by the Director described in such Sec. 301.1 (e) or (f) that a plan or 
amendment is not approvable shall not be stayed pending the 
reconsideration, but in the event that the Director subsequently 
determines that his original decision was incorrect he shall certify 
restitution forthwith in a lump sum of any funds incorrectly withheld or 
otherwise denied.



Sec. 301.15  Grants.

    To States with approved plans, a grant is made each quarter for 
expenditures under the plan for the administration of the Child Support 
Enforcement program. The determination as to the amount of a grant to be 
made to a State is based upon documents submitted by the IV-D agency 
containing information required under the Act and such other pertinent 
facts as may be found necessary.
    (a) Form and manner of submittal--
    (1) Time and place. An estimate for a grant for each quarterly 
period must be forwarded to the Regional Office 45 days prior to the 
period of the estimate. It includes a certification of State funds and a 
justification statement in support of the estimate. A statement of 
quarterly expenditures and any necessary supporting schedules must be 
forwarded to the Department of Health and Human Services, Administration 
for Children and Families, Office of Program Support, Division of 
Formula, Entitlement and Block Grants, 370 L'Enfant Promenade, S.W., 
Washington, DC 20447, not later than 30 days after the end of the 
quarter.
    (2) Description of forms. ``State Agency Expenditure Projection--
Quarterly Projection by Program'' represents the IV-D agency's estimate 
of the total amount and the Federal share of expenditures for the 
administration of the title IV-D program for the quarter. From this 
estimate the State and Federal shares of the total expenditures are 
computed. The State's computed share of total estimated expenditures is 
the amount of State and local funds necessary for the quarter. The 
Federal share is the basis for the funds to be advanced for the quarter. 
The agency

[[Page 123]]

must also certify, on this form or otherwise, the amount of State funds 
(exclusive of any balance of advances received from the Federal 
Government) actually on hand and available for expenditure; this 
certification must be signed by the executive officer of the IV-D agency 
submitting the estimate or a person officially designated by him, or by 
a fiscal officer of the State if required by State law or regulation. (A 
form ``Certificate of Availability of State Funds for Assistance and 
Administration during Quarter'' is available for submitting this 
information, but its use is optional.) If the amount of State funds (or 
State and local funds if localities participate in the program), shown 
as available for expenditures is not sufficient to cover the State's 
proportionate share of the amount estimated to be expended, the 
certification must contain a statement showing the source from which the 
amount of the deficiency is expected to be derived and the time when 
this amount is expected to be made available.
    (3) The IV-D agency must also submit a quarterly statement of 
expenditures for the title IV-D program. This is an accounting statement 
of the disposition of the Federal funds granted for past periods and 
provides the basis for making the adjustments necessary when the State's 
estimate for any prior quarter was greater or less than the amount the 
State actually expended in that quarter. The statement of expenditures 
also shows the share of the Federal Government in any recoupment, from 
whatever source, of expenditures claimed in any prior period, and also 
in expenditures not properly subject to Federal financial participation 
which are acknowledged by the IV-D agency or have been revealed in the 
course of an audit.
    (b) Review. The State's estimate is analyzed by the regional office 
and is forwarded with recommendations as required to the central office. 
The central office reviews the State's estimate, other relevant 
information, and any adjustments to be made for prior periods, and 
computes the grant.
    (c) Grant award. The grant award computation form shows the amount 
of the estimate for the ensuing quarter, and the amounts by which the 
estimate is reduced or increased because of over- or under-estimate for 
the prior quarter and for other adjustments. This form is transmitted to 
the IV-D agency to draw the amount of the grant award as needed, to meet 
the Federal share of disbursements. The draw is through a commercial 
bank and the Federal Reserve system against a continuing letter of 
credit certified to the Secretary of the Treasury in favor of the State 
payee. A notice of the amount of the grant award is sent to the State 
Central Information Reception Agency in accord with section 201 of the 
Intergovernmental Cooperation Act of 1968.
    (d) Letter of credit payment system. The letter of credit system for 
payment of advances of Federal funds was established pursuant to 
Treasury Department regulations. (Circular No. 1075), published in the 
Federal Register on July 11, 1967 (32 FR 10201). The HHS ``Instructions 
to Recipient Organizations for Use of Letter of Credit'' was transmitted 
to all grantees by memorandum from the Assistant Secretary-Comptroller 
on January 15, 1968.
    (e) General administrative requirements. With the following 
exceptions, the provisions of part 74 of this title, establishing 
uniform administrative requirements and cost principles, shall apply to 
all grants made to States under this part:

                             45 CFR Part 74

45 CFR 74.23 Cost Sharing or Matching.
45 CFR 74.52 Financial Reporting.

(Approved by the Office of Management and Budget under control numbers 
0960-0239 and 0960-0235)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986; 
61 FR 67240, Dec. 20, 1996]



Sec. 301.16  Withholding of advance funds for not reporting.

    (a) No advance for any quarter will be made unless full and complete 
reports on expenditures and collections, as required by Secs. 301.15 and 
302.15 of this chapter, respectively, have been submitted to the Office 
by the IV-D agency for all quarters with the exception of the two 
quarters immediately preceding the quarter for which the advance is to 
be made.

[[Page 124]]

    (b) For purposes of this section, a report is full and complete if:
    (1) All line items of information are reported in accordance with 
OCSE instructions; and
    (2) The report contains all applicable information available to the 
State and appropriate for inclusion in the report for the quarter being 
reported and prior quarters.

(Collection reporting form approved by the Office of Management and 
Budget under control number 0960-0238 and expenditure reporting form 
approved under control number 0960-0235)

[47 FR 8570, Mar. 1, 1982]



PART 302--STATE PLAN REQUIREMENTS--Table of Contents




Sec.
302.0  Scope of this part.
302.1  Definitions.
302.10  Statewide operations.
302.11  State financial participation.
302.12  Single and separate organizational unit.
302.13  Plan amendments.
302.14  Fiscal policies and accountability.
302.15  Reports and maintenance of records.
302.17  Inclusion of State statutes.
302.19  Bonding of employees.
302.20  Separation of cash handling and accounting functions.
302.30  Publicizing the availability of support enforcement services.
302.31  Establishing paternity and securing support.
302.32  Collection and distribution of support payments by the IV-D 
          agency.
302.33  Individuals to individuals not receiving AFDC or title IV-E 
          foster care assistance.
302.34  Cooperative arrangements.
302.35  State parent locator service.
302.36  Cooperation with other States.
302.37  [Reserved]
302.38  Payments to the family.
302.39  Standards for program operation.
302.40  [Reserved]
302.50  Support obligations.
302.51  Distribution of support collections.
302.52  Distribution of support collected in Title IV-E foster care 
          maintenance cases.
302.54  Notice of collection of assigned support.
302.55  Incentive payments to States and political subdivisions.
302.56  Guidelines for setting child support awards.
302.57  Procedures for the payment of support through the IV-D agency or 
          other entity.
302.60  Collection of past-due support from Federal tax refunds.
302.65  Withholding of unemployment compensation.
302.70  Required State laws.
302.75  Procedures for the imposition of late payment fees on absent 
          parents who owe overdue support.
302.80  Medical support enforcement.
302.85  Mandatory computerized support enforcement systems.

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

    Source: 40 FR 27159, June 26, 1975, unless otherwise noted.



Sec. 302.0  Scope of this part.

    This part defines the State plan provisions required for an approved 
plan under title IV-D of the Act.



Sec. 302.1  Definitions.

    The definitions found in Sec. 301.1 of this chapter also are 
applicable to this part.



Sec. 302.10  Statewide operations.

    The State plan shall provide that:
    (a) It will be in operation on a statewide basis in accordance with 
equitable standards for administration that are mandatory throughout the 
State;
    (b) If administered by a political subdivision of the State, the 
plan will be mandatory on such political subdivision;
    (c) The IV-D agency will assure that the plan is continuously in 
operation in all appropriate offices or agencies through:
    (1) Methods for informing staff of State policies, standards, 
procedures and instructions; and
    (2) Regular planned examination and evaluation of operations in 
local offices by regularly assigned State staff, including regular 
visits by such staff; and through reports, controls, or other necessary 
methods.



Sec. 302.11  State financial participation.

    The State plan shall provide that the State will participate 
financially in the program.



Sec. 302.12  Single and separate organizational unit.

    (a) The State plan shall provide for the establishment or 
designation of a single and separate organizational unit

[[Page 125]]

to administer the IV-D plan. Such unit is referred to as the IV-D 
agency. Under this requirement:
    (1) The IV-D agency may be:
    (i) Located in the single State agency designated pursuant to 
Sec. 205.100 to administer title IV-A of the Act;
    (ii) Located in any other agency of the State; or,
    (iii) Established as a new agency of the State.
    (2) The IV-D agency shall be responsible and accountable for the 
operation of the IV-D program. Except as provided in Sec. 303.20 of this 
part, the agency need not perform all the functions of the IV-D program 
so long as it insures that all these functions are being carried out 
properly, efficiently, and effectively;
    (3) If the IV-D agency delegates any of the functions of the IV-D 
program to any other State or local agency or official, or any official 
with whom a cooperative agreement as described in Sec. 302.34 has been 
entered into or purchases services from any person or private agency 
pursuant to Sec. 304.22 of this part, the IV-D agency shall have 
responsibility for securing compliance with the requirements of the 
State plan by such agency or officials.
    (b) The State plan shall describe the structure of the IV-D agency 
and the distribution of responsibilities among the major divisions 
within the unit, and if it is located within another agency, show its 
place in such agency. If any of the IV-D program functions are to be 
performed outside of the IV-D agency then these functions shall be 
listed with the name of the organization responsible for performing 
them.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27159, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 302.13  Plan amendments.

    (a) The State plan shall provide that the plan will be amended 
whenever necessary to reflect new or revised Federal statutes or 
regulations, or material change in any phase of State law, organization, 
policy of IV-D agency operation.
    (b) Federal financial participation. Except where otherwise 
provided, Federal financial participation is available in the additional 
expenditures resulting from an amended provision of the State plan as of 
the first day of the calendar quarter in which an approvable amendment 
is submitted or the date on which the amended provision becomes 
effective in the State, whichever is later.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27159, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 302.14  Fiscal policies and accountability.

    The State plan shall provide that the IV-D agency, in discharging 
its fiscal accountability, will maintain an accounting system and 
supporting fiscal records adequate to assure that claims for Federal 
funds are in accord with applicable Federal requirements. The retention 
and custodial requirements for these records are prescribed in 45 CFR 
part 74.



Sec. 302.15  Reports and maintenance of records.

    The State plan shall provide that:
    (a) The IV-D agency will maintain records necessary for the proper 
and efficient operation of the plan, including records regarding:
    (1) Applications pursuant to Sec. 302.33 for support services 
available under the State plan;
    (2) Location of absent parents, actions to establish paternity and 
obtain and enforce support, and the costs incurred in such actions;
    (3) Amount and sources of support collections and the distribution 
of these collections;
    (4) Any fees charged or paid for support enforcement services;
    (5) Any other administrative costs;
    (6) Any other information required by the Office; and
    (7) Statistical, fiscal, and other records necessary for reporting 
and accountability required by the Secretary.

The retention and custodial requirements for these records are 
prescribed in 45 CFR part 74.
    (b) The IV-D agency will make such reports in such form and 
containing such information, as the Secretary may from time to time 
require, and

[[Page 126]]

comply with such provisions as he may from time to time find necessary 
to assure the correctness and verification of such reports.

(Approved by the Office of Management and Budget under control numbers 
0960-0154, 0960-0226 and 0960-0238)

[40 FR 27159, June 26, 1975, as amended at 47 FR 57281, Dec. 23, 1982; 
48 FR 51917, Nov. 15, 1983; 51 FR 37731, Oct. 24, 1986; 61 FR 67240, 
Dec. 20, 1996]



Sec. 302.17  Inclusion of State statutes.

    The State plan shall provide a copy of State statutes, or 
regulations promulgated pursuant to such statutes and having the force 
of law (including citations of such statutes and regulations), that 
provide procedures to determine the paternity of a child born out of 
wedlock, to establish the child support obligation of a responsible 
parent, and to enforce a support obligation, including spousal support 
if appropriate.

(Approved by the Office of Management and Budget under control numbers 
0960-0253 and 0960-0385)

[50 FR 19647, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 302.19  Bonding of employees.

    The State plan shall provide that the following requirements and 
criteria to bond employees are in effect:
    (a) IV-D responsibility. The IV-D agency will insure that every 
person, who has access to or control over funds collected under the 
child support enforcement program, is covered by a bond against loss 
resulting from employee dishonesty.
    (b) Scope. The requirement in paragraph (a) of this section applies 
to every person who, as a regular part of his or her employment, 
receives, disburses, handles or has access to support collections, which 
includes:
    (1) IV-D agency employees and employees of any other State or local 
agency to which IV-D functions have been delegated.
    (2) Employees of a court or law enforcement official performing 
under a cooperative agreement with the IV-D agency.
    (3) Employees of any private or governmental entity from which the 
IV-D agency purchases services.
    (c) Bond. The bond will be for an amount which the State IV-D agency 
deems adequate to indemnify the State IV-D program for loss resulting 
from employee dishonesty.
    (d) Self-bonding System. A State or political subdivision may comply 
with the requirement in paragraph (a) of this section:
    (1) By means of a self-bonding system established under State law 
or,
    (2) In the case of a political subdivision, by means of a self-
bonding system approved by the State IV-D agency.
    (e) IV-D liability. The requirements of this section do not reduce 
or limit the ultimate liability of the IV-D agency for losses of support 
collections from the State's IV-D program.

[44 FR 28803, May 17, 1979; 44 FR 45137, Aug. 1, 1979, as amended at 47 
FR 57281, Dec. 23, 1982]



Sec. 302.20  Separation of cash handling and accounting functions.

    The State plan shall provide that the following requirements and 
criteria to separate the cash handling and accounting functions are in 
effect.
    (a) IV-D responsibility. The IV-D agency will maintain methods of 
administration designed to assure that persons responsible for handling 
cash receipts of support do not participate in accounting or operating 
functions which would permit them to conceal in the accounting records 
the misuse of support receipts. Such methods of administration shall 
follow generally recognized accounting standards.
    (b) Scope. The requirement in paragraph (a) of this section applies 
to persons who participate in the collection, accounting or operating 
functions which include:
    (1) IV-D agency employees and employees of any other State or local 
agency to which IV-D functions have been delegated.
    (2) Employees of a court or law enforcement official performing 
under a cooperative agreement with the IV-D agency.
    (3) Employees of any private or governmental entity from which the 
IV-D agency purchases services.

[[Page 127]]

    (c) Exception. The Regional Office may grant a waiver to sparsely 
populated geographical areas, where the requirements in paragraph (a) of 
this section would necessitate the hiring of unreasonable numbers of 
additional staff. The IV-D agency must document such administrative 
infeasibility and provide an alternative system of controls that 
reasonably insures that support collections will not be misused.

[44 FR 28803, May 17, 1979, as amended at 47 FR 57281, Dec. 23, 1982]



Sec. 302.30  Publicizing the availability of support enforcement services.

    Effective October 1, 1985, the State plan shall provide that the 
State will publicize regularly and frequently the availability of 
support enforcement services under the plan through public service 
announcements. Publicity must include information on any application 
fees which may be imposed for such services and a telephone number or 
postal address where further information may be obtained.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19647, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 302.31  Establishing paternity and securing support.

    The State plan shall provide that:
    (a) The IV-D agency will undertake:
    (1) In the case of a child born out of wedlock with respect to whom 
an assignment as defined in Sec. 301.1 of this chapter is effective, to 
establish the paternity of such child; and
    (2) In the case of any individual with respect to whom an assignment 
as defined in Sec. 301.1 of this chapter is effective, to secure support 
for a child or children from any person who is legally liable for such 
support, using State laws and reciprocal arrangements adopted with other 
States when appropriate. Effective October 1, 1985, this includes 
securing support for a spouse or former spouse who is living with the 
child or children, but only if a support obligation has been established 
for that spouse and the child support obligation is being enforced under 
the title IV-D State plan.
    (3) When assigned support payments are received and retained by an 
AFDC recipient, to proceed as follows:
    (i) In States that implement the IV-A State plan requirements to 
count retained support payments as income under 45 CFR 233.20(a)(3)(v), 
the IV-D agency shall notify the IV-A agency whenever it discovers that 
directly received payments are being, or have been, retained; or
    (ii) In States that do not implement the IV-A State plan 
requirements to count retained support payments as income to meet need, 
the IV-D agency shall recover the retained support payments. This 
recovery by the IV-D agency shall be carried out in accordance with the 
standards for program operations provided in Sec. 303.80 of this 
chapter.
    (4) When assigned medical support payments are received and retained 
by a non-AFDC Medicaid recipient, the IV-D agency shall notify the 
Medicaid agency whenever it discovers that directly received medical 
support payments are being, or have been, retained.
    (b) Upon receiving notice from the IV-A, IV-E or Medicaid agency 
that there has been a claim of good cause for failure to cooperate, the 
IV-D agency will suspend all activities to establish paternity or secure 
support until notified of a final determination by the appropriate 
agency.
    (c) The IV-D agency will not undertake to establish paternity or 
secure support in any case for which it has received notice from the IV-
A, IV-E or Medicaid agency that there has been a finding of good cause 
unless there has been a determination by the IV-A, IV-E or Medicaid 
agency, as appropriate, that support enforcement may proceed without the 
participation of the caretaker or other relative. If there has been such 
a determination, the IV-D agency will undertake to establish paternity 
or secure support but may not involve the caretaker or other relative in 
such undertaking.

(Approved by the Office of Management and Budget under control numbers 
0960-0385 and 0970-0107)

[[Page 128]]


[50 FR 19647, May 9, 1985, as amended at 51 FR 25526, July 15, 1986; 51 
FR 37731, Oct. 24, 1986; 56 FR 8003, Feb. 26, 1991]



Sec. 302.32  Collection and distribution of support payments by the IV-D agency.

    The State plan shall provide that:
    (a) In any case in which support payments are collected for a 
recipient of aid under the State's title IV-A plan with respect to whom 
an assignment under Sec. 232.11 is effective, such payments shall be 
made to the IV-D agency and shall not be paid directly to the family.
    (b) The IV-D agency must inform the State's IV-A agency of the 
amount of the collection which represents payment on the required 
support obligation for the month as determined in Sec. 302.51(a) within 
10 working days of the end of the month in which the support is received 
by the IV-D agency responsible for final distribution. Upon being 
informed of this amount, the IV-A agency will determine if such amount 
is sufficient to make the family ineligible for an assistance payment 
pursuant to the State's IV-A plan (See Sec. 232.20 of Chapter II of this 
title.) If such amount is sufficient to make the family ineligible for 
an assistance payment, the IV-A agency will notify the IV-D agency and 
the IV-D agency will distribute the amount collected pursuant to 
Sec. 302.51 of this part. The IV-D agency will notify the family that it 
will continue to provide services pursuant to Sec. 302.33 of this part.
    (c) If the IV-A agency determines that the amount of the collection 
which represents payment on the required support obligation for the 
month does not make the family ineligible for an assistance payment, or 
if a hearing is requested pursuant to Sec. 205.10 of this title, the IV-
A agency will notify the IV-D agency of such fact and the IV-D agency 
will distribute such amount pursuant to Sec. 302.51 of this part.
    (d) To the extent any amount collected in a month includes payment 
on required support obligations for past months, that portion of such 
amount will be distributed by the IV-D agency pursuant to Sec. 302.51(b) 
(4) and (5) of this part.
    (e) Support collected in a month after any month in which the 
support collected makes the family ineligible for an assistance payment 
(pursuant to Sec. 232.20 of this title) but prior to or in the month in 
which the family receives its last assistance payment, shall be used to 
reimburse the State for any assistance paid in such months with any 
excess being paid to the family. This provision will not apply when a 
hearing is requested pursuant to Sec. 205.10 of this title. In these 
cases, when the hearing results in a determination that the family was 
ineligible for an assistance payment, the IV-D agency will determine the 
amount by which the entire support collection for a month that the 
family would have received pursuant to paragraph (b) of this section 
exceeds the amount the family actually received for a month as an 
assistance payment and pursuant to Sec. 302.51. Such excess shall be 
paid to the family. If the family is determined to be eligible, 
distribution will continue to be made pursuant to Sec. 302.51.
    (f) Timeframes for distribution of support payments. (1) In 
interstate IV-D cases, amounts collected by the responding State on 
behalf of the initiating State must be forwarded to the initiating State 
within 15 calendar days of the initial point of receipt in the 
responding State, in accordance with Sec. 303.7(c)(7)(iv).
    (2) Amounts collected by the IV-D agency on behalf of recipients of 
aid under the State's title IV-A or IV-E plan for whom an assignment 
under Sec. 232.11 of this title or section 471(a)(17) of the Act is 
effective shall be distributed as follows:
    (i) When the IV-D agency sends payments to the family under 
Sec. 302.51(b)(1) of this part, the IV-D agency must send payments to 
the family within 15 calendar days of the end of the month in which the 
support was initially received in the State.
    (ii) Except as specified under paragraph (f)(2)(iv) of this section:
    (A) When the IV-D agency sends collections to the family under 
Sec. 302.51(b) (3) and (5) of this part, the IV-D agency must send 
collections to the family within 15 calendar days of the end of the 
month in which the support was initially received in the State.

[[Page 129]]

    (B) When the IV-D agency sends collections to the family for the 
month after the month the family becomes ineligible for AFDC, the IV-D 
agency must send collections to the family within 15 calendar days of 
the date in which the support was initially received in the State.
    (iii) Except as specified under paragraph (f)(2)(iv) of this 
section, when the IV-D agency sends collections to the IV-E foster care 
agency under Sec. 302.52(b)-(2) and (4) of this part, the IV-D agency 
must send collections to the IV-E agency within 15 calendar days of the 
end of the month in which the support was initially received in the 
State.
    (iv) Collections as a result of Federal or State income tax refund 
offset paid to the family under Sec. 302.51(b)(5) of this part, or 
distributed in title IV-E foster care cases under Sec. 302.52(b)(4) of 
this part, must be sent to the AFDC family or IV-E agency, as 
appropriate, within 30 calendar days of the date of initial receipt by 
the IV-D agency, unless State law requires a post-offset appeal process 
and an appeal is filed timely, in which case the IV-D agency must send 
any payment to the AFDC family or IV-E agency within 15 calendar days of 
the date the appeal is resolved.
    (3) Amounts collected on behalf of individuals receiving services 
under Sec. 302.33 of this part shall be distributed as follows:
    (i) Amounts collected which represent payment on the current support 
obligation shall be sent to the family within 15 calendar days of the 
date of initial receipt in the State.
    (ii) Except as specified in paragraph (f)(3)(iii) of this section, 
if the amount collected is more than the amount required to be 
distributed in paragraph (f)(3)(i) of this section, the State may at its 
discretion either send such amounts to the family to satisfy past-due 
support within 15 calendar days of the date of initial receipt in the 
State or retain such amounts as have been assigned to satisfy assistance 
paid to the family which has not been reimbursed.
    (iii) Collections due the family under Sec. 302.51(b)(5) as a result 
of Federal or State income tax refund offset must be sent to the family 
within 30 calendar days of the date of receipt in the IV-D agency, 
except:
    (A) If State law requires a post-offset appeal process and an appeal 
is timely filed, in which case the IV-D agency must send any payment to 
the family within 15 calendar days of the date the appeal is resolved; 
or
    (B) As provided in Sec. 303.72(h)(5) of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[40 FR 27159, June 26, 1975, as amended at 47 FR 57281, Dec. 23, 1982; 
49 FR 22289, May 29, 1984; 50 FR 19648, May 9, 1985; 51 FR 37731, Oct. 
24, 1986; 54 FR 32309, Aug. 4, 1989; 56 FR 8003, Feb. 26, 1991; 57 FR 
54519, Nov. 19, 1992]



Sec. 302.33  Services to individuals not receiving AFDC or title IV-E foster care assistance.

    (a) Availability of Services. (1) The State plan must provide that 
the services established under the plan shall be made available to any 
individual who:
    (i) Files an application for the services with the IV-D agency. In 
an interstate case, only the initiating State may require an application 
under this section; or
    (ii) Is a non-AFDC Medicaid recipient; or
    (iii) Has been receiving IV-D services and is no longer eligible for 
assistance under the AFDC, IV-E foster care, and Medicaid program.
    (2) The State may not require an application, other request for 
services or an application fee from any individual who is eligible to 
receive services under paragraphs (a)(1) (ii) and (iii) of this section. 
If an individual receiving services under paragraph (a)(1)(iii) of this 
section refuses services in response to a notice under paragraph (a)(4) 
of this section, and subsequently requests services, that individual 
must file an application and pay an application fee.
    (3) The State may not charge fees or recover costs from any 
individual who is eligible to receive services under paragraph 
(a)(1)(ii) of this section.
    (4) Whenever a family is no longer eligible for assistance under the 
State's AFDC, IV-E foster care, and Medicaid programs, the IV-D agency 
must notify the family, within five working days of the notification of 
ineligibility, that

[[Page 130]]

IV-D services will be continued unless the IV-D agency is notified to 
the contrary by the family. The notice must inform the family of the 
consequences of continuing to receive IV-D services, including the 
available services and the State's fees, cost recovery and distribution 
policies.
    (5) The State must provide all appropriate IV-D services, in 
addition to IV-D services related to securing medical support, to all 
individuals who are eligible to receive services under paragraph 
(a)(1)(ii) of this section unless the individual notifies the State that 
only IV-D services related to securing medical support are wanted.
    (b) Definitions. For purposes of this section:
    Applicant's income means the disposable income available for the 
applicant's use under State law.
    (c) Application fee. (1) Beginning October 1, 1985, the State plan 
must provide that an application fee will be charged for each individual 
who applies for services under this section. Under this paragraph:
    (i) The State shall collect the application fee from the individual 
applying for IV-D services or pay the application fee out of State 
funds.
    (ii) The State may recover the application fee from the absent 
parent who owes a support obligation to a non-AFDC family on whose 
behalf the IV-D agency is providing services and repay it to the 
applicant or itself.
    (iii) State funds used to pay an application fee are not program 
expenditures under the State plan but are program income under 
Sec. 304.50 of this chapter.
    (iv) Any application fee charged must be uniformly applied on a 
statewide basis and must be:
    (A) A flat dollar amount not to exceed $25 (or such higher or lower 
amount as the Secretary may determine to be appropriate for any fiscal 
year to reflect increases or decreases in administrative costs); or
    (B) An amount based on a fee schedule not to exceed the flat dollar 
amount specified in paragraph (c)(2)(iv)(A) of this section. The fee 
schedule must be based on the applicant's income.
    (v) The State may allow the jurisdiction that collects support for 
the State under this part to retain any application fee collected under 
this section.
    (2) In an interstate case, the application fee is charged by the 
State where the individual applies for services under this section.
    (d) Recovery of costs. (1) The State may elect in its State plan to 
recover any costs incurred in excess of any fees collected to cover 
administrative costs under the IV-D State plan. A State which elects to 
recover costs shall collect on a case by case basis either excess actual 
or standardized costs:
    (i) From the individual who owes a support obligation to a non-AFDC 
family on whose behalf the IV-D agency is providing services under this 
section; or
    (ii) From the individual who is receiving IV-D services under 
paragraph (a)(1) (i) or (iii) of this section, either directly or from 
the support collected on behalf of the individual, but only if the State 
has in effect a procedure for informing all individuals authorized 
within the State to establish an obligation for support that the State 
will recover costs from the individual receiving IV-D services under 
paragraphs (a)(1) (i) and (iii) of this section.
    (2) A State that recovers standardized costs under paragraph (d)(1) 
of this section shall develop a written methodology to determine 
standardized costs which are as close to actual costs as is possible. 
This methodology must be made available to any individual upon request.
    (3) The IV-D agency shall not treat any amount collected from the 
individual as a recovery of costs under paragraph (d)(1)(i) of this 
section except amounts which exceed the current support owed by the 
individual under the obligation.
    (4) If a State elects to recover costs under paragraph (d)(1)(ii) of 
this section, the IV-D agency may attempt to seek reimbursement from the 
individual who owes a support obligation for any costs paid by the 
individual who is receiving IV-D services and pay all amounts reimbursed 
to the individual who is receiving IV-D services.
    (5) If a State elects to recover costs under this section, the IV-D 
agency

[[Page 131]]

must notify, consistent with the option selected, either the individual 
who is receiving IV-D services under paragraphs (a)(1) (i) or (iii) of 
this section, or the individual who owes a support obligation that such 
recovery will be made. In an interstate case, the IV-D agency where the 
case originated must notify the individual receiving IV-D services of 
the States that recover costs.
    (6) The IV-D agency must notify the IV-D agencies in all other 
States if it recovers costs from the individual receiving IV-D services.


(Approved by the Office of Management and Budget under control numbers 
0960-0253, 0960-0385, 0960-0402, and 0970-0107)

[49 FR 36772, Sept. 19, 1984, as amended at 50 FR 19648, May 9, 1985; 51 
FR 37731, Oct. 24, 1986; 56 FR 8003, Feb. 26, 1991; 61 FR 67240, Dec. 
20, 1996]



Sec. 302.34  Cooperative arrangements.

    The State plan shall provide that the State will enter into written 
agreements for cooperative arrangements under Sec. 303.107 with 
appropriate courts and law enforcement officials. Such arrangements may 
be entered into with a single official covering more than one court, 
official, or agency, if the single official has the legal authority to 
enter into arrangements on behalf of the courts, officials, or agencies. 
Such arrangements shall contain provisions for providing courts and law 
enforcement officials with pertinent information needed in locating 
absent parents, establishing paternity and securing support, including 
the immediate transfer of the information obtained under Sec. 235.70 of 
this title to the court or law enforcement official, to the extent that 
such information is relevant to the duties to be performed pursuant to 
the arrangement. They shall also provide for assistance to the IV-D 
agency in carrying out the program, and may relate to any other matters 
of common concern. Under matters of common concern, such arrangements 
may include provisions for the investigation and prosecution of fraud 
directly related to paternity and child and spousal support, and 
provisions to reimburse courts and law enforcement officials for their 
assistance.

[54 FR 30222, July 19, 1989, as amended at 61 FR 67240, Dec. 20, 1996]



Sec. 302.35  State parent locator service.

    The State plan shall provide as follows:
    (a) The IV-D agency shall establish a State PLS using:
    (1) All relevant sources of information and records available in the 
State, and in other States as appropriate; and
    (2) The Federal PLS of the Department of Health and Human Services.
    (b)(1) The IV-D agency shall establish a central State PLS office 
and may also designate additional IV-D offices within the State to 
submit requests to the Federal PLS.
    (2) To designate more than two additional IV-D offices within the 
State, the IV-D agency must obtain written approval from the Office.
    (c) The State PLS shall only accept requests to use the Federal PLS 
from:
    (1) Any State or local agency or official seeking to collect child 
and spousal support obligations under the State plan, or medical support 
obligations if an agreement is in effect under Sec. 306.2 of this 
chapter;
    (2) A court that has authority to issue an order against an absent 
parent for the support and maintenance of a child, or any agency of such 
court;
    (3) The resident parent, legal guardian, attorney, or agent of a 
child who is not receiving aid under title IV-A of the Act; and
    (4) Authorized persons as defined in Sec. 303.15 of this chapter if 
an agreement is in effect under Sec. 303.15 to use the Federal PLS in 
connection with parental kidnapping or child custody cases.

[46 FR 54556, Nov. 3, 1981, as amended at 47 FR 57281, Dec. 23, 1982; 50 
FR 19648, May 9, 1985]



Sec. 302.36  Provision of services in interstate IV-D cases.

    (a) The State plan shall provide that the State will extend the full 
range of services available under its IV-D plan to any other State in 
accordance with the requirements set forth in Sec. 303.7 of this 
chapter.

[[Page 132]]

    (b) The State plan shall provide that the State will establish a 
central registry for interstate IV-D cases in accordance with the 
requirements set forth in Sec. 303.7(a) of this chapter.

[53 FR 5256, Feb. 22, 1988, as amended at 61 FR 67240, Dec. 20, 1996]



Sec. 302.37  [Reserved]



Sec. 302.38  Payments to the family.

    The State plan shall provide that any payment required to be made 
under Secs. 302.32 and 302.51 of this part to a family will be made to 
the resident parent, legal guardian, or caretaker relative having 
custody of or responsibility for the child or children.



Sec. 302.39  Standards for program operation.

    The State plan shall provide that the IV-D agency will comply with 
the standards for program operation and the organizational and staffing 
requirements prescribed by part 303 of this chapter.

[41 FR 55348, Dec. 20, 1976]



Sec. 302.40  [Reserved]



Sec. 302.50  Support obligations.

    The State plan shall provide as follows:
    (a) An assignment of support rights, as defined in Sec. 301.1 of 
this chapter, constitutes an obligation owed to the State by the 
individual responsible for providing such support. Such obligation shall 
be established by:
    (1) Order of a court of competent jurisdiction or of an 
administrative hearing process; or
    (2) Except for obligations assigned under 42 CFR 433.146, other 
legal process as established by State laws, such as a legally 
enforceable and binding agreement.
    (b) The amount of the obligation described in paragraph (a) of this 
section shall be:
    (1) The amount specified in the order of a court of competent 
jurisdiction which covers the assigned support rights; or
    (2) If there is no court order, an amount determined in writing by 
the IV-D agency as part of the legal process referred to in paragraph 
(a)(2) of this section in accordance with the requirements of 
Sec. 302.56.
    (c) The obligation described in paragraph (a) of this section shall 
be deemed for collection purposes to be collectible under all applicable 
State and local processes.
    (d) Any amounts which represent support payments collected from an 
individual responsible for providing support under the State plan shall 
reduce, dollar for dollar, the amount of his obligation under this 
section.
    (e) No portion of any amounts collected which represent an assigned 
support obligation defined under Sec. 301.1 of this chapter may be used 
to satisfy a medical support obligation unless the court or 
administrative order designates a specific dollar amount for medical 
purposes.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[40 FR 27159, June 26, 1975, as amended at 50 FR 19648, May 9, 1985; 51 
FR 37731, Oct. 24, 1986; 56 FR 8003, Feb. 26, 1991; 56 FR 22353, May 15, 
1991]



Sec. 302.51  Distribution of support collections.

    The State plan shall provide as follows:
    (a)(1) For purposes of distribution in a IV-D case, amounts 
collected, except as provided under paragraphs (a)(3) of this section, 
shall be treated first as payment on the required support obligation for 
the month in which the support was collected and if any amounts are 
collected which are in excess of such amount, these excess amounts shall 
be treated as amounts which represents payment on the required support 
obligation for previous months.
    (2) In AFDC and title IV-E foster care cases in which conversion to 
a monthly amount is necessary because support is ordered to be paid 
other than monthly, the IV-D agency may round off the converted amount 
to whole dollar amounts for the purpose of distribution under this 
section and Sec. 302.52 of this part.
    (3) Amounts collected through Federal and State income tax refund 
offset must be distributed as arrearages in accordance with 
Secs. 303.72(h) and 303.102(g) of this chapter, respectively.

[[Page 133]]

    (4) With respect to payments made through wage or other income 
withholding and received by the IV-D agency on or after January 1, 1989, 
the date of collection for distribution purposes in all IV-D cases must 
be the date the wages or other income are withheld to meet the support 
obligation. If the employer fails to report the date of withholding, the 
IV-D agency must reconstruct that date by contacting the employer or 
comparing actual amounts collected with the pay schedule specified in 
the court or administrative order.
    (5) Except with respect to those collections addressed under 
paragraph (a) (3) and (4) of this section:
    (i) Effective June 9, 1988, the date of collection for distribution 
purposes in all IV-D cases shall be the date on which the payment is 
received by the IV-D agency or the legal entity of any State or 
political subdivision actually making the collection, whichever is 
earliest; and
    (ii) Effective January 1, 1989, a State may use on a statewide basis 
either the definition of the date of collection in paragraph (a)(5)(i) 
of this section or the date the payment is mailed, as evidenced by a 
legible U.S. Postal Service postmark or a legibly dated receipt from a 
commercial carrier, as the date of collection in all IV-D cases.
    (b) The amounts collected as support by the IV-D agency pursuant to 
the State plan for children and the parents of such children who are 
current recipients of aid under the State's title IV-A plan and for whom 
an assignment under Sec. 232.11 of this title is effective shall be 
distributed as follows:
    (1) Of such amounts as are collected periodically which represent 
monthly support payments, the first $50 of any payments for a month 
received in that month, and the first $50 of payments for each prior 
month received in that month which were made by the absent parent in the 
month when due, shall be paid to the family. This payment may not be 
used in determining the amount paid, if any, to the family in paragraph 
(b)(3) of this section. If the amount collected includes payment on the 
required support obligation for a previous month or months, the family 
shall only receive the first $50 of the amount which represents the 
required support obligation for the month in which the support was 
collected. If amounts are collected for one family which represent 
support payments from two or more absent parents, only the first $50 of 
the amount collected which represents the total required support 
obligation for the month in which the support was collected shall be 
paid to the family under this paragraph. No payment shall be made to a 
family under this paragraph for a month in which there is no child 
support collection.
    (2) Any amount that is collected in a month which represents payment 
on the required support obligation for that month and is in excess of 
the amount paid to the family under paragraph (b)(1) of this section 
shall be retained by the State to reimburse, in whole or in part, the 
assistance payment for the month in which the support was collected or 
the next month. Of the amount retained by the State as reimbursement for 
that month's assistance payment, the IV-D agency shall determine the 
Federal Government's share of the amount so retained so the IV-A agency 
may reimburse the Federal Government to the extent of its participation 
in the financing of the assistance payment. From the Federal 
government's share, the State IV-D agency or political subdivision of 
the State pursuant to the title IV-D State plan shall deduct and pay the 
incentive payment, if any, prescribed in Sec. 304.12.
    (3) If the amount collected is in excess of the amount required to 
be distributed under paragraphs (b) (1) and (2) of this section, the 
family shall be paid such excess up to the difference between the 
assistance payment for the month in which the amount of the collection 
was used to redetermine eligibility for an assistance payment under the 
State's title IV-A plan (see Sec. 302.32) and the court ordered amount 
for that month. If such court ordered amount is less than such 
assistance payment, no amount shall be paid to the family under this 
paragraph. In cases in which there is no court order, the family shall 
not be paid any amount under this paragraph.

[[Page 134]]

    (4) If the amount collected is in excess of the amounts required to 
be distributed under paragraphs (b) (1) through (3) of this section, any 
such excess shall be retained by the State as reimbursement for past 
assistance payments made to the family for which the State has not been 
reimbursed. The State may apply the amount retained to any sequence of 
months for which it has not yet been reimbursed. Of the amount retained 
by the State as reimbursement of past assistance payments, the IV-D 
agency shall determine the Federal Government's share of the amounts so 
retained so the IV-A agency may reimburse the Federal Government to the 
extent of its participation in the financing of the assistance payments. 
From the Federal government's share, the State IV-D agency or political 
subdivision of the State pursuant to the title IV-D State plan shall 
deduct and pay the incentive payment, if any, prescribed in Sec. 304.12. 
If past assistance payments are greater than the total support 
obligation owed, the maximum amount the State may retain as 
reimbursement for such assistance payments is the amount of such 
obligation, unless amounts are collected which represent the required 
support obligation for periods prior to the first month in which the 
family received assistance under the State's title IV-A plan, in which 
case such amounts may be retained by the State to reimburse the 
difference between such support obligation and such assistance payments.
    (5) If the amount collected is in excess of the amounts required to 
be distributed under paragraphs (b)(1) through (4) of this section, such 
excess shall be paid to the family.
    (c) If an amount collected as support represents payment on the 
required support obligation for future months, the amount shall be 
applied to such future months. However, no such amounts shall be applied 
to future months unless amounts have been collected which fully satisfy 
the support obligation assigned under section 402(a)(26) of the Act for 
the current month and all past months.
    (d) Any amount paid under paragraph (b) (1), (3) or (5) of this 
section shall be identified as not being an assistance payment.
    (e)(1) The amounts collected by the IV-D agency which represent 
specific dollar amounts designated in the support order for medical 
purposes that have been assigned to the State under 42 CFR 433.146 shall 
be forwarded to the Medicaid agency for distribution under 42 CFR 
433.154.
    (2) When a family ceases receiving assistance under the State's 
title XIX plan, the assignment of medical support rights under section 
1912 of the Act terminates, except for the amount of any unpaid medical 
support obligation that has accrued under such assignment. The IV-D 
agency shall attempt to collect any unpaid specific dollar amounts 
designated in the support order for medical purposes. Under this 
requirement, any medical support collection made by the IV-D agency 
under this paragraph shall be forwarded to the Medicaid agency for 
distribution under 42 CFR 433.154.
    (f) When a family ceases receiving assistance under the State's 
title IV-A plan, the assignment of support rights under Sec. 232.11 of 
this title terminates, except with respect to the amount of any unpaid 
support obligation that has accrued under such assignment. From this 
accrued amount, the IV-D agency shall attempt to collect such unpaid 
obligation. Under this requirement:
    (1) Such collections shall be used to reimburse any amounts of past 
assistance which have not been reimbursed under paragraph (b)(4) of this 
section;
    (2) Of the amount collected, the IV-D agency shall determine the 
Federal Government's share of the collection so the IV-A agency may 
reimburse the Federal Government to the extent of its participation in 
the financing of the assistance payments. From the Federal Government's 
share the State IV-D agency or political subdivision of the State 
pursuant to the title IV-D State plan shall deduct and pay the incentive 
payment, if any, prescribed in Sec. 304.12;
    (3) Only amounts collected pursuant to this paragraph which exceed 
the amount of unreimbursed past assistance shall be paid to the family;
    (4) For those cases in which collections are authorized under

[[Page 135]]

Sec. 302.33(a)(1)(iii), priority shall be given to collection of current 
support.

(Approved by the Office of Management and Budget under control numbers 
0960-0385 and 0970-0107)

[40 FR 27159, June 26, 1975, as amended at 47 FR 37889, Aug. 27, 1982; 
47 FR 57281, Dec. 23, 1982; 49 FR 35605, Sept. 10, 1984; 50 FR 19648, 
May 9, 1985; 50 FR 31719, Aug. 6, 1985; 51 FR 37731, Oct. 24, 1986; 53 
FR 21644, June 9, 1988; 54 FR 32309, Aug. 4, 1989; 54 FR 32309, Aug. 4, 
1989; 56 FR 8004, Feb. 26, 1991; 56 FR 22353, May 15, 1991]



Sec. 302.52  Distribution of support collected in Title IV-E foster care maintenance cases.

    Effective October 1, 1984, the State plan shall provide as follows:
    (a) For purposes of distribution under this section, amounts 
collected in foster care maintenance cases shall be treated in 
accordance with the provisions of Sec. 302.51(a) of this part.
    (b) The amounts collected as support by the IV-D agency under the 
State plan on behalf of children for whom the State is making foster 
care maintenance payments under the title IV-E State plan and for whom 
an assignment under section 471(a)(17) of the Act is effective shall be 
distributed as follows:
    (1) Any amount that is collected in a month which represents payment 
on the required support obligation for that month shall be retained by 
the State to reimburse itself for foster care maintenance payments. Of 
that amount retained by the State as reimbursement for that month's 
foster care maintenance payment, the State IV-D agency shall determine 
the Federal government's share so that the State may reimburse the 
Federal government to the extent of its participation in financing of 
the foster care maintenance payment.
    (2) If the amount collected is in excess of the monthly amount of 
the foster care maintenance payment but not more than the monthly 
support obligation, the State must pay the excess to the State agency 
responsible for supervising the child's placement and care under section 
472(a)(2) of the Act. The State agency must use the money in the manner 
it determines will serve the best interests of the child including:
    (i) Setting aside amounts for the child's future needs; or
    (ii) Making all or part of the amount available to the person 
responsible for meeting the child's daily needs to be used for the 
child's benefit.
    (3) If the amount collected exceeds the amount required to be 
distributed under paragraphs (b) (1) and (2) of this section, but not 
the total unreimbursed foster care maintenance payments provided under 
title IV-E or unreimbursed assistance payments provided under title IV-
A, the State shall retain the excess to reimburse itself for these 
payments. If past assistance or foster care maintenance payments are 
greater than the total support obligation owed, the maximum amount the 
State may retain as reimbursement for such payments is the amount of 
such obligation. If amounts are collected which represent the required 
support obligation for periods prior to the first month in which the 
family received assistance under the State's title IV-A plan or foster 
care maintenance payments under the State's title IV-E plan, such 
amounts may be retained by the State to reimburse the difference between 
such support obligation and such payments. Of the amounts retained by 
the State, the State IV-D agency shall determine the Federal 
government's share of the amount so that the State may reimburse the 
Federal government to the extent of its participation in financing the 
assistance payments and foster care maintenance payments.
    (4) Any balance shall be paid to the State agency responsible for 
supervising the child's placement and care and shall be used to serve 
the best interests of the child as specified in paragraph (b)(2) of this 
section.
    (5) If an amount collected as support represents payment on the 
required support obligation for future months, the amount shall be 
applied to those future months. However, no amounts shall be applied to 
future months unless amounts have been collected which fully satisfy the 
support obligation assigned under Sec. 232.11 of this title and section 
471(a)(17) of the Act for the current month and all past months.
    (c) When a State ceases making foster care maintenance payments 
under

[[Page 136]]

the State's title IV-E State plan, the assignment of support rights 
under section 471(a)(17) of the Act terminates except for the amount of 
any unpaid support that has accrued under the assignment. The IV-D 
agency shall attempt to collect such unpaid support. Under this 
requirement, any collection made by the State under this paragraph must 
be distributed in accordance with paragraph (b)(3) of this section.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19648, May 9, 1985, as amended at 50 FR 31719, Aug. 6, 1985; 51 
FR 37731, Oct. 24, 1986]



Sec. 302.54  Notice of collection of assigned support.

    (a) Effective January 1, 1993, the State plan shall provide that the 
State has in effect procedures for issuing notices of collections as 
follows:
    (1) The IV-D agency must provide a monthly notice of the amount of 
support payments collected for each month to individuals who have 
assigned rights to support under Sec. 232.11 of this title, unless no 
collection is made in the month, the assignment is no longer in effect 
and there are no longer any assigned arrearages, or the conditions in 
paragraph (c) of this section are met.
    (2) The monthly notice must list separately payments collected from 
each absent parent when more than one absent parent owes support to the 
family and must indicate the amount of current support collected, the 
amount of arrearages collected and the amount of support collected which 
was paid to the family.
    (b)(1) The Office may grant a waiver to permit a State to provide 
quarterly, rather than monthly, notices, if the State:
    (i) Until September 30, 1997, does not have an automated system that 
performs child support enforcement activities consistent with 
Sec. 302.85 or has an automated system that is unable to generate 
monthly notices; or
    (ii) Uses a toll-free automated voice response system which provides 
the information required under paragraph (b)(2) of this section.
    (2) A quarterly notice must be provided in accordance with 
conditions set forth in paragraph (b)(1) of this section and such notice 
must contain the information set forth in paragraph (b)(2) of this 
section.

[57 FR 30681, July 10, 1992, as amended at 61 FR 67241, Dec. 20, 1996]



Sec. 302.55  Incentive payments to States and political subdivisions.

    Effective October 1, 1985, in order for the State to be eligible to 
receive any incentive payments under Sec. 304.12 of this chapter, the 
State plan shall provide that, if one or more political subdivisions of 
the State participate in the costs of carrying out the activities under 
the State plan during any period, each such subdivision shall be 
entitled to receive an appropriate share of any incentive payments made 
to the State for such period, as determined by the State in accordance 
with Sec. 303.52 of this chapter, taking into account the efficiency and 
effectiveness of the political subdivision in carrying out the 
activities under the State plan.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985; 50 FR 23958, June 7, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 54 FR 32309, Aug. 4, 1989]



Sec. 302.56  Guidelines for setting child support awards.

    (a) Effective October 13, 1989, as a condition of approval of its 
State plan, the State shall establish one set of guidelines by law or by 
judicial or administrative action for setting and modifying child 
support award amounts within the State.
    (b) The State shall have procedures for making the guidelines 
available to all persons in the State whose duty it is to set child 
support award amounts.
    (c) The guidelines established under paragraph (a) of this section 
must at a minimum:
    (1) Take into consideration all earnings and income of the absent 
parent;
    (2) Be based on specific descriptive and numeric criteria and result 
in a computation of the support obligation; and

[[Page 137]]

    (3) Provide for the child(ren)'s health care needs, through health 
insurance coverage or other means.
    (d) The State must include a copy of the guidelines in its State 
plan.
    (e) The State must review, and revise, if appropriate, the 
guidelines established under paragraph (a) of this section at least once 
every four years to ensure that their application results in the 
determination of appropriate child support award amounts.
    (f) Effective October 13, 1989, the State must provide that there 
shall be a rebuttable presumption, in any judicial or administrative 
proceeding for the award of child support, that the amount of the award 
which would result from the application of the guidelines established 
under paragraph (a) of this section is the correct amount of child 
support to be awarded.
    (g) A written finding or specific finding on the record of a 
judicial or administrative proceeding for the award of child support 
that the application of the guidelines established under paragraph (a) 
of this section would be unjust or inappropriate in a particular case 
shall be sufficient to rebut the presumption in that case, as determined 
under criteria established by the State. Such criteria must take into 
consideration the best interests of the child. Findings that rebut the 
guidelines shall state the amount of support that would have been 
required under the guidelines and include a justification of why the 
order varies from the guidelines.
    (h) As part of the review of a State's guidelines required under 
paragraph (e) of this section, a State must consider economic data on 
the cost of raising children and analyze case data, gathered through 
sampling or other methods, on the application of, and deviations from, 
the guidelines. The analysis of the data must be used in the State's 
review of the guidelines to ensure that deviations from the guidelines 
are limited.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985; 50 FR 23958, June 7, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 56 FR 22354, May 15, 1991]



Sec. 302.57  Procedures for the payment of support through the IV-D agency or other entity.

    (a) Effective October 1, 1985, the State may have in effect and use 
procedures for the payment of support through the State IV-D agency or 
the entity designated by the State to administer the State's withholding 
system upon the request of either the absent parent or custodial parent, 
regardless of whether or not arrearages exist or withholding procedures 
have been instituted.
    (b) If the State opts to establish procedures described in paragraph 
(a) of this section, the State must:
    (1) Monitor all amounts paid and the dates of payments and record 
them on an individual payment record;
    (2) Ensure prompt payment to the custodial parent; and
    (3) Require the requesting parent to pay a fee for the cost of 
providing the service not to exceed $25 annually and not to exceed State 
costs.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 302.60  Collection of past-due support from Federal tax refunds.

    The State plan shall provide that:
    (a) The IV-D agency has in effect procedures necessary to obtain 
payment of past-due support from Federal tax refunds as set forth in 
section 464 of the Act, Sec. 303.72 of this chapter, and regulations of 
the Internal Revenue Service at 26 CFR 304.6402-1; and
    (b) The IV-D agency shall take the steps necessary to implement and 
use these procedures.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[47 FR 7428, Feb. 19, 1982]



Sec. 302.65  Withholding of unemployment compensation.

    The State plan shall provide that the requirements of this section 
are met.
    (a) Definitions. When used in this section:
    Legal process means a writ, order, summons or other similar process 
in

[[Page 138]]

the nature of a garnishment, which is issued by a court of competent 
jurisdiction or by an authorized official pursuant to an order of such 
court or pursuant to State or local law.
    State employment security agency or SESA means the State agency 
charged with the administration of the State unemployment compensation 
laws in accordance with title III of the Act.
    Unemployment compensation means any compensation payable under State 
unemployment compensation law (including amounts payable in accordance 
with agreements under any Federal unemployment compensation law). It 
includes extended benefits, unemployment compensation for Federal 
employees, unemployment compensation for ex-servicemen, trade 
readjustment allowances, disaster unemployment assistance, and payments 
under the Redwood National Park Expansion Act.
    (b) Agreement. The State IV-D agency shall enter into a written 
agreement with the SESA in its State for the purpose of withholding 
unemployment compensation from individuals with unmet support 
obligations being enforced by the IV-D agency. The IV-D agency shall 
agree only to a withholding program that it expects to be cost-effective 
and to reimbursement for the SESA's actual, incremental costs of 
providing services to the IV-D agency.
    (c) Functions to be performed by the IV-D agency. The IV-D agency 
shall:
    (1) Determine periodically from information provided by the SESA 
under section 508 of the Unemployment Compensation Amendments of 1976 
whether individuals applying for or receiving unemployment compensation 
owe support obligations that are being enforced by the IV-D agency.
    (2) Enforce unmet support obligations by arranging for the 
withholding of unemployment compensation based on a voluntary agreement 
with the individual who owes the support, or in appropriate cases which 
meet the case selection criteria established under paragraph (c)(3), 
through legal process pursuant to State or local law. If a voluntary 
agreement is obtained, the IV-D agency must give the SESA a copy of the 
voluntary agreement.
    (3) Establish and use written criteria for selecting cases to pursue 
via the withholding of unemployment compensation for support purposes. 
These criteria must be designed to insure maximum case selection and 
minimal discretion in the selection process.
    (4) Provide a receipt at least annually to an individual who 
requests a receipt for the support paid via the withholding of 
unemployment compensation, if receipts are not provided through other 
means.
    (5) Maintain direct contact with the SESA in its State:
    (i) By processing cases through the SESA in its own State or through 
IV-D agencies in other States; and
    (ii) By receiving all amounts withheld by the SESA in its own State 
and forwarding any amounts withheld on behalf of IV-D agencies in other 
States to those agencies.
    (6) Reimburse the administrative costs incurred by the SESA that are 
actual, incremental costs attributable to the process of withholding 
unemployment compensation for support purposes insofar as these costs 
have been agreed upon by the SESA and the IV-D agency.
    (7) Review and document, at least annually, program operations, 
including case selection critieria established under paragraph (c)(3), 
and costs of the withholding process versus the amounts collected and, 
as necessary, modify procedures and renegotiate the services provided by 
the SESA to improve program and cost effectiveness.

[49 FR 8927, Mar. 9, 1984]



Sec. 302.70  Required State laws.

    (a) Required Laws. The State plan shall provide that, in accordance 
with sections 454(20) and 466 of the Act, the State has in effect laws 
providing for and has implemented the following procedures to improve 
program effectiveness:
    (1) Procedures for carrying out a program of withholding under which 
new or existing support orders are subject to the State law governing 
withholding so that a portion of the absent parent's wages may be 
withheld, in accordance with the requirements set forth in Sec. 303.100 
of this chapter;
    (2) Expedited processes to establish paternity and to establish and 
enforce child support orders having the same

[[Page 139]]

force and effect as those established through full judicial process, in 
accordance with the requirements set forth in Sec. 303.101 of this 
chapter;
    (3) Procedures for obtaining overdue support from State income tax 
refunds on behalf of individuals receiving IV-D services, in accordance 
with the requirements set forth in Sec. 303.102 of this chapter;
    (4) Procedures for the imposition of liens against the real and 
personal property of absent parents who owe overdue support, in 
accordance with the requirements set forth in Sec. 303.103 of this 
chapter;
    (5)(i) Procedures for the establishment of paternity for any child 
at least to the child's 18th birthday, including any child for whom 
paternity has not yet been established and any child for whom a 
paternity action was previously dismissed under a statute of limitations 
of less than 18 years; and
    (ii) Effective November 1, 1989, procedures under which the State is 
required (except in cases where the individual involved has been found 
under Secs. 232.40 through 232.49 of this title or 42 CFR 433.147 to 
have good cause for refusing to cooperate or if, in accordance with 
Sec. 303.5(b) of this chapter the IV-D agency has determined that it 
would not be in the best interest of the child to establish paternity in 
a case involving incest or forcible rape, or in any case in which legal 
proceedings for adoption are pending) to require the child and all other 
parties in a contested paternity case to submit to genetic tests upon 
the request of any such party, in accordance with Sec. 303.5 (d) and (e) 
of this chapter.
    (iii) Procedures for a simple civil process for voluntarily 
acknowledging paternity under which the State must provide that the 
rights and responsibilities of acknowledging paternity are explained, 
and ensure that due process safeguards are afforded. Such procedures 
must include:
    (A) A hospital-based program in accordance with Sec. 303.5(g) for 
the voluntary acknowledgment of paternity during the period immediately 
before or after the birth of a child to an unmarried mother, and a 
requirement that all public and private birthing hospitals participate 
in the hospital-based program defined in Sec. 303.5(g)(2); and
    (B) A process for voluntarily acknowledging paternity outside of 
hospitals.
    (iv) Procedures under which the voluntary acknowledgment of 
paternity creates a rebuttable or, at the option of the State, 
conclusive presumption of paternity, and under which such voluntary 
acknowledgment is admissible as evidence of paternity;
    (v) Procedures which provide that any objection to genetic testing 
results must be made in writing within a specified number of days before 
any hearing at which such results may be introduced into evidence; and 
if no objection is made, a written report of the test results is 
admissible as evidence of paternity without the need for foundation 
testimony or other proof of authenticity or accuracy;
    (vi) Procedures which create a rebuttable or, at the option of the 
State, conclusive presumption of paternity upon genetic testing results 
indicating a threshold probability of the alleged father being the 
father of the child;
    (vii) Procedures under which a voluntary acknowledgment must be 
recognized as a basis for seeking a support order without requiring any 
further proceedings to establish paternity; and
    (viii) Procedures requiring a default order to be entered in a 
paternity case upon a showing that process was served on the defendant 
in accordance with State law, that the defendant failed to respond to 
service in accordance with State procedures, and any additional showing 
required by State law.
    (6) Procedures which require that an absent parent give security, 
post a bond, or give some other guarantee to secure payment of support, 
in accordance with the procedures set forth in Sec. 303.104 of this 
chapter;
    (7) Procedures for making information regarding the amount of 
overdue support owed by an absent parent available to consumer reporting 
agencies, in accordance with Sec. 303.105 of this chapter;
    (8) Procedures under which all child support orders which are issued 
or modified in the State will include provision for withholding from 
wages, in order to assure that withholding as a

[[Page 140]]

means of collecting child support is available if arrearages occur 
without the necessity of filing an application for services under 
Sec. 302.33 of this part, in accordance with Sec. 303.100(i) of this 
chapter;
    (9) Procedures which require that any payment or installment of 
support under any child support order, whether ordered through the State 
judicial system or through the expedited processes required by paragraph 
(a)(2) of this section, is (on and after the date it is due):
    (i) A judgment by operation of law, with the full force, effect, and 
attributes of a judgment of the State, including the ability to be 
enforced;
    (ii) Entitled as a judgment to full faith and credit in such State 
and in any other State; and
    (iii) Not subject to retroactive modification by such State or by 
any other State, except as provided in Sec. 303.106(b).
    (10) Procedures for the review and adjustment of child support 
orders:
    (i) Effective on October 13, 1990 until October 12, 1993, in 
accordance with the requirements of Sec. 303.8 (a) and (b) of this 
chapter; and
    (ii) Effective October 13, 1993, or an earlier date the State may 
select, in accordance with the requirements of Sec. 303.8 (a) and (c) 
through (f) of this chapter.
    (11) Procedures under which the State must give full faith and 
credit to a determination of paternity made by any other State, whether 
established through voluntary acknowledgment or through administrative 
or judicial processes.
    (b) A State need not apply a procedure required under paragraphs (a) 
(3), (4), (6) and (7) of this section in an individual case if the State 
determines that it is not appropriate using guidelines generally 
available to the public which take into account the payment record of 
the absent parent, the availability of other remedies, and other 
relevant considerations. The guidelines may not determine a majority of 
cases in which no other remedy is being used to be inappropriate.
    (c) State laws enacted under this section must give States 
sufficient authority to comply with the requirements of Secs. 303.100 
through 303.105 of this chapter.
    (d)(1) Exemption. A State may apply for an exemption from any of the 
requirements of paragraph (a) of this section by the submittal of a 
request for exemption to the appropriate Regional Office.
    (2) Basis for granting exemption. The Secretary will grant a State, 
or political subdivision in the case of paragraph (a)(2) of this 
section, an exemption from any of the requirements of paragraph (a) of 
this section for a period not to exceed three years if the State 
demonstrates that compliance would not increase the effectiveness and 
efficiency of its Child Support Enforcement program. Demonstration of 
the program's efficiency and effectiveness must be shown by actual, or, 
if actual is not available, estimated data pertaining to caseloads, 
processing times, administrative costs, and average support collections 
or such other actual or estimated data as the Office may request. The 
State must demonstrate to the satisfaction of the Secretary that the 
program's effectiveness would not improve by using these procedures. 
Disapproval of a request for exemption is not subject to appeal.
    (3) Review of exemption. The exemption is subject to continuing 
review by the Secretary and may be terminated upon a change in 
circumstances or reduced effectiveness in the State or political 
subdivision, if the State cannot demonstrate that the changed 
circumstances continue to warrant an exemption in accordance with this 
section.
    (4) Request for extension. The State must request an extension of 
the exemption by submitting current data in accordance with paragraph 
(d)(2) of this section 90 days prior to the end of the exemption period 
granted under paragraph (d)(2) of this section.
    (5) When an exemption is revoked or an extension is denied. If the 
Secretary revokes an exemption or does not grant an extension of an 
exemption, the State must enact the appropriate laws and procedures to 
implement the mandatory practice by the beginning of the fourth month 
after the end of the first regular, special, budget or other session of 
the State's legislature which ends after the date the exemption is 
revoked or the extension is denied. If no

[[Page 141]]

State law is necessary, the State must establish and be using the 
procedure by the beginning of the fourth month after the date the 
exemption is revoked.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 54 
FR 15764, Apr. 19, 1989; 56 FR 8004, Feb. 26, 1991; 56 FR 22354, May 15, 
1991; 57 FR 30681, July 10, 1992; 57 FR 61581, Dec. 28, 1992; 59 FR 
66249, Dec. 23, 1994]



Sec. 302.75  Procedures for the imposition of late payment fees on absent parents who owe overdue support.

    (a) Effective September 1, 1984, the State plan may provide for 
imposition of late payment fees on absent parents who owe overdue 
support.
    (b) If a State opts to impose late payment fees--
    (1) The late payment fee must be uniformly applied in an amount not 
less than 3 percent nor more than 6 percent of overdue support.
    (2) The fee shall accrue as arrearages accumulate and shall not be 
reduced upon partial payment of arrears. The fee may be collected only 
after the full amount of overdue support is paid and any requirements 
under State law for notice to the absent parent have been met.
    (3) The collection of the fee must not directly or indirectly reduce 
the amount of current or overdue support paid to the individual to whom 
it is owed.
    (4) The late payment fee must be imposed in cases where there has 
been an assignment under Sec. 232.11 of this title or section 471(a)(17) 
of the Act or the IV-D agency is providing services under Sec. 302.33 of 
this chapter.
    (5) The State may allow fees collected to be retained by the 
jurisdiction making the collection.
    (6) The State must reduce its expenditures claimed under the Child 
Support Enforcement program by any fees collected under this section in 
accordance with Sec. 305.50 of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19650, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 56 
FR 8004, Feb. 26, 1991]



Sec. 302.80  Medical support enforcement.

    (a) The State plan may provide that the IV-D agency will secure and 
enforce medical support obligations under a cooperative agreement 
between the IV-D agency and the State Medicaid agency. Cooperative 
agreements must comply with the requirements contained in Secs. 303.30 
and 303.31 of this chapter.
    (b) The State plan must provide that the IV-D agency shall secure 
medical support information and establish and enforce medical support 
obligations in accordance with the requirements contained in 
Secs. 303.30 and 303.31 of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0420)

[50 FR 41894, Oct. 16, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 
54 FR 32309, Aug. 4, 1989; 61 FR 67241, Dec. 20, 1996]



Sec. 302.85  Mandatory computerized support enforcement system.

    (a) General. The State plan shall provide that the State will have 
in effect a computerized support enforcement system:
    (1) By October 1, 1997, which meets all the requirements of Title 
IV-D of the Act which were enacted on or before the date of enactment of 
the Family Support Act of 1988, Pub. L. 100-485, in accordance with 
Secs. 307.5 and 307.10 of this chapter and the OCSE guideline entitled 
``Automated Systems for Child Support Enforcement: A Guide for States.'' 
This guide is available from the Child Support Information Systems 
Division, Office of State Systems, ACF, 370 L'Enfant Promenade, SW., 
Washington, DC 20447; and
    (2) By October 1, 2000, which meets all the requirements of title 
IV-D of the Act enacted on or before the date of enactment of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
Pub. L. 104-193, in accordance with Secs. 307.5 and 307.11 of this 
chapter and the OCSE guideline referenced in paragraph (a)(1) of this 
section.

[[Page 142]]

    (b) Waiver--(1) Request for waiver. The State may apply for a waiver 
of any condition for initial approval of an APD in Sec. 307.15(b) of 
this chapter, or any system functional requirement in Sec. 307.10 of 
this chapter, by the submission of a request for waiver under Sec. 307.5 
of this chapter.
    (2) Basis for granting waiver. The Secretary will grant a State a 
waiver if a State demonstrates that it has an alternative approach to 
APD requirements or an alternative system configuration, as defined in 
Sec. 307.1 of this chapter, that enables the State, in accordance with 
part 305 of this chapter, to be in substantial compliance with all other 
requirements of this chapter; and either:
    (i) The waiver request meets the criteria set forth in section 
1115(c)(1), (2) and (3) of the Act; or
    (ii) The State provides written assurances that steps will be taken 
to otherwise improve the State's Child Support Enforcement program.

[57 FR 47002, Oct. 14, 1992, as amended at 61 FR 67241, Dec. 20, 1996; 
63 FR 44814, Aug. 21, 1998]



PART 303--STANDARDS FOR PROGRAM OPERATIONS--Table of Contents




Sec.
303.0  Scope and applicability of this part.
303.1  Definitions.
303.2  Establishment of cases and maintenance of case records.
303.3  Location of absent parents.
303.4  Establishment of support obligation.
303.5  Establishment of paternity.
303.6  Enforcement of support obligations.
303.7  Provision of services in interstate IV-D cases.
303.8  Review and adjustment of child support orders.
303.10  [Reserved]
303.11  Case closure criteria.
303.15  Agreements to use the Federal Parent Locator Service (PLS) in 
          parental kidnapping and child custody cases.
303.20  Minimum organizational and staffing requirements.
303.21  Safeguarding information.
303.30  Securing medical support information.
303.31  Securing and enforcing medical support obligations.
303.52  Pass-through of incentives to political subdivisions.
303.69  Requests by agents or attorneys of the United States for 
          information from the Federal Parent Locator Service (PLS).
303.70  Requests by the State Parent Locator Service (SPLS) for 
          information from the Federal Parent Locator Service (PLS).
303.71  Requests for full collection services by the Secretary of the 
          Treasury.
303.72  Requests for collection of past-due support by Federal tax 
          refund offset.
303.73  Applications to use the courts of the United States to enforce 
          court orders.
303.80  Recovery of direct payments.
303.100  Procedures for wage or income withholding.
303.101  Expedited processes.
303.102  Collection of overdue support by State income tax refund 
          offset.
303.103  Procedures for the imposition of liens against real and 
          personal property.
303.104  Procedures for posting security, bond or guarantee to secure 
          payment of overdue support.
303.105  Procedures for making information available to consumer 
          reporting agencies.
303.106  Procedures to prohibit retroactive modification of child 
          support arrearages.
303.107  Requirements for cooperative arrangements.
303.108  Quarterly wage and unemployment compensation claims reporting 
          to the National Directory of New Hires.

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

    Source: 40 FR 27164, June 26, 1975, unless otherwise noted.



Sec. 303.0  Scope and applicability of this part.

    This part prescribes:
    (a) The minimum organizational and staffing requirements the State 
IV-D agency must meet in carrying out the IV-D program, and
    (b) The standards for program operation which the IV-D agency must 
meet.

[41 FR 55348, Dec. 20, 1976, as amended at 54 FR 32309, Aug 4, 1989]



Sec. 303.1  Definitions.

    The definitions found in Sec. 301.1 of this chapter also are 
applicable to this part.



Sec. 303.2  Establishment of cases and maintenance of case records.

    (a) The IV-D agency must:
    (1) Make applications for child support services readily accessible 
to the public;

[[Page 143]]

    (2) When an individual requests an application or IV-D services, 
provide an application to the individual on the day the individual makes 
a request in person or send an application to the individual within no 
more than 5 working days of a written or telephone request. Information 
describing available services, the individual's rights and 
responsibilities, and the State's fees, cost recovery and distribution 
policies must accompany all applications for services and must be 
provided to AFDC, Medicaid and title IV-E foster care applicants or 
recipients within no more than 5 working days of referral to the IV-D 
agency; and
    (3) Accept an application as filed on the day it and the application 
fee are received. An application is a written document provided by the 
State which indicates that the individual is applying for child support 
enforcement services under the State's title IV-D program and is signed 
by the individual applying for IV-D services.
    (b) For all cases referred to the IV-D agency or applying for 
services under Sec. 302.33 of this chapter, the IV-D agency must, within 
no more than 20 calendar days of receipt of referral of a case or filing 
of an application for services under Sec. 302.33, open a case by 
establishing a case record and, based on an assessment of the case to 
determine necessary action:
    (1) Solicit necessary and relevant information from the custodial 
parent and other relevant sources and initiate verification of 
information, if appropriate; and
    (2) If there is inadequate location information to proceed with the 
case, request additional information or refer the case for further 
location attempts, as specified in Sec. 303.3.
    (c) The case record must be supplemented with all information and 
documents pertaining to the case, as well as all relevant facts, dates, 
actions taken, contacts made and results in a case.

[54 FR 32309, Aug. 4, 1989]



Sec. 303.3  Location of absent parents.

    (a) Definition. Location means information concerning the physical 
whereabouts of the absent parent, or the absent parent's employer(s), 
other sources of income or assets, as appropriate, which is sufficient 
and necessary to take the next appropriate action in a case.
    (b) For all cases referred to the IV-D agency or applying for 
services under Sec. 302.33 of this chapter, the IV-D agency must attempt 
to locate all absent parents or sources of income and/or assets when 
location is necessary to take necessary action. Under this standard, the 
IV-D agency must:
    (1) Use appropriate location sources such as the Federal PLS; 
interstate location networks; local officials and employees 
administering public assistance, general assistance, medical assistance, 
food stamps and social services (whether such individuals are employed 
by the State or a political subdivision); relatives and friends of the 
absent parent; current or past employers; the local telephone company; 
the U.S. Postal Service; financial references; unions; fraternal 
organizations; and police, parole, and probation records if appropriate; 
and State agencies and departments, as authorized by State law, 
including those departments which maintain records of public assistance, 
wages and employment, unemployment insurance, income taxation, driver's 
licenses, vehicle registration, and criminal records;
    (2) Establish working relationships with all appropriate agencies in 
order to utilize locate resources effectively;
    (3) Within no more than 75 calendar days of determining that 
location is necessary, access all appropriate location sources, 
including transmitting appropriate cases to the Federal PLS, and ensure 
that location information is sufficient to take the next appropriate 
action in a case;
    (4) Refer appropriate cases to the IV-D agency of any other State, 
in accordance with the requirements of Sec. 303.7 of this part. The IV-D 
agency of such other State shall follow the procedures in paragraphs 
(b)(1) through (b)(3) of this section for such cases, as necessary, 
except that the responding State is not required to access the Federal 
PLS under paragraph (b)(3) of this section;
    (5) Repeat location attempts in cases in which previous attempts to 
locate absent parents or sources of income and/or assets have failed, 
but adequate

[[Page 144]]

identifying and other information exists to meet requirements for 
submittal for location, either quarterly or immediately upon receipt of 
new information which may aid in location, whichever occurs sooner. 
Quarterly attempts may be limited to automated sources but must include 
accessing State employment security files. Repeated attempts because of 
new information which may aid in location must meet the requirements of 
paragraph (b)(3) of this section; and
    (c) The State must establish guidelines defining diligent efforts to 
serve process. These guidelines must include periodically repeating 
service of process attempts in cases in which previous attempts to serve 
process have failed, but adequate identifying and other information 
exists to attempt service of process.

[54 FR 32310, Aug. 4, 1989, as amended at 55 FR 25840, June 25, 1990; 57 
FR 28110, June 24, 1992; 57 FR 31235, July 14, 1992]



Sec. 303.4  Establishment of support obligations.

    For all cases referred to the IV-D agency or applying under 
Sec. 302.33 of this chapter, the IV-D Agency must:
    (a) When necessary, establish paternity pursuant to the standards of 
Sec. 303.5;
    (b) Utilize appropriate State statutes and legal processes in 
establishing the support obligation pursuant to Sec. 302.50 of this 
chapter.
    (c) Periodically review and adjust child support orders, as 
appropriate, in accordance with Sec. 303.8.
    (d) Within 90 calendar days of locating the alleged father or 
noncustodial parent, regardless of whether paternity has been 
established, establish an order for support or complete service of 
process necessary to commence proceedings to establish a support order 
and, if necessary, paternity (or document unsuccessful attempts to serve 
process, in accordance with the State's guidelines defining diligent 
efforts under Sec. 303.3(c)).
    (e) If the court or administrative authority dismisses a petition 
for a support order without prejudice, the IV-D agency must, at the time 
of dismissal, examine the reasons for dismissal and determine when it 
would be appropriate to seek an order in the future, and seek a support 
order at that time.
    (f) Seek a support order based on a voluntary acknowledgment in 
accordance with Sec. 302.70(a)(5)(vii).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 
FR 32310, Aug. 4, 1989; 57 FR 30681, July 10, 1992; 59 FR 66250, Dec. 
23, 1994]



Sec. 303.5  Establishment of paternity.

    (a) For all cases referred to the IV-D agency or applying for 
services under Sec. 302.33 of this chapter in which paternity has not 
been established, the IV-D agency must, as appropriate:
    (1) Provide an alleged father the opportunity to voluntarily 
acknowledge paternity in accordance with Sec. 302.70(a)(5)(iii); and
    (2) Attempt to establish paternity by legal process established 
under State law.
    (b) The IV-D agency need not attempt to establish paternity in any 
case involving incest or forcible rape, or in any case in which legal 
proceedings for adoption are pending, if, in the opinion of the IV-D 
agency, it would not be in the best interests of the child to establish 
paternity.
    (c) The IV-D agency must identify and use through competitive 
procurement laboratories which perform, at reasonable cost, legally and 
medically acceptable genetic tests which tend to identify the father or 
exclude the alleged father. The IV-D agency must make available a list 
of such laboratories to appropriate courts and law enforcement 
officials, and to the public upon request.
    (d)(1) Upon the request of any party in a contested paternity case, 
the IV-D agency, if the agency lacks the authority to order such tests, 
shall petition the court or administrative authority to require all 
parties to submit to genetic tests unless, in the case of an individual 
receiving aid under the State's title IV-A or XIX plan, there has been a 
determination of good cause for refusal to cooperate under Secs. 232.40 
through 232.49 of this title or 42 CFR 433.147, respectively, or if, in 
accordance with Sec. 303.5(b), the IV-D agency has determined that it 
would not be in

[[Page 145]]

the best interest of the child to establish paternity in a case 
involving incest or forcible rape, or in any case in which legal 
proceedings for adoption are pending.
    (2) A contested paternity case is any legal action in which the 
issue of paternity may be raised under State law and one party denies 
paternity.
    (e)(1) The IV-D agency may charge any individual who is not a 
recipient of aid under the State's title IV-A or XIX plan a reasonable 
fee for performing genetic tests.
    (2) Any fee charged must be reasonable so as not to discourage those 
in need of paternity establishment services from seeking them and may 
not exceed the actual costs of the genetic tests.
    (3) If paternity is established and genetic tests were performed, 
the IV-D agency must attempt to obtain a judgment for the costs of the 
genetic tests from the party who denied paternity or, at State option, 
from each party so long as the total amount requested does not exceed 
the actual costs of the genetic tests.
    (4) The IV-D agency must use any amount collected under paragraphs 
(e) (1) and (3) of this section that exceeds the costs of performing 
genetic tests to reimburse any fee paid under paragraph (e)(1) of this 
chapter.
    (f) The IV-D agency must seek entry of a default order by the court 
or administrative authority in a paternity case by showing that process 
has been served on the defendant in accordance with State law, that the 
defendant has failed to respond to service in accordance with State 
procedures, and any additional showing required by State law, in 
accordance with Sec. 302.70(a)(5)(viii).
    (g) Hospital-based program. (1) The State must establish, in 
cooperation with hospitals, a hospital-based program in every public and 
private birthing hospital. These programs must be operational in 
birthing hospitals statewide no later than January 1, 1995 (unless 
Federal law governing the effective date gives the State additional 
time).
    (2) During the period immediately before or after the birth of a 
child to an unmarried woman in the hospital, a hospital-based program 
must, at a minimum:
    (i) Provide to both the mother and alleged father, if he is present 
in the hospital:
    (A) Written materials about paternity establishment,
    (B) The forms necessary to voluntarily acknowledge paternity,
    (C) A written description of the rights and responsibilities of 
acknowledging paternity, and
    (D) The opportunity to speak with staff, either by telephone or in 
person, who are trained to clarify information and answer questions 
about paternity establishment;
    (ii) Provide the mother and alleged father, if he is present, the 
opportunity to voluntarily acknowledge paternity in the hospital;
    (iii) Afford due process safeguards; and
    (iv) Forward completed acknowledgments or copies to the entity 
designated under Sec. 303.5(g)(8).
    (3) A hospital-based program need not provide services specified in 
paragraph (g)(2) of this section in cases where the mother or alleged 
father is a minor or a legal action is already pending, if the provision 
of such services is precluded by State law.
    (4) The State must require that a voluntary acknowledgment obtained 
through a hospital-based program be signed by both parents, and that the 
parents' signatures be authenticated by a notary or witness(es).
    (5) The State must provide to all public and private birthing 
hospitals in the State:
    (i) Written materials about paternity establishment,
    (ii) Forms necessary to voluntarily acknowledge paternity, and
    (iii) Copies of a written description of the rights and 
responsibilities of acknowledging paternity.
    (6) The State must provide training, guidance, and written 
instructions regarding voluntary acknowledgment of paternity, as 
necessary to operate the hospital-based program.
    (7) The State must assess each birthing hospital's program on at 
least an annual basis.
    (8) The State must designate an entity to which hospital-based 
programs

[[Page 146]]

must forward completed voluntary acknowledgments or copies in accordance 
with Sec. 303.5(g)(2)(iv). Under State procedures, this entity must be 
responsible for promptly recording identifying information about the 
acknowledgments with a statewide database, and the IV-D agency must have 
timely access to whatever identifying information and documentation it 
needs to determine in accordance with Sec. 303.5(h) if an acknowledgment 
has been recorded and to seek a support order on the basis of a recorded 
acknowledgment in accordance with Sec. 303.4(f).
    (h) In IV-D cases needing paternity establishment, the IV-D agency 
must determine if identifying information about a voluntary 
acknowledgment has been recorded in the statewide database in accordance 
with Sec. 303.5(g)(8).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 
FR 32310, Aug. 4, 1989; 56 FR 22354, May 15, 1991; 59 FR 66250, Dec. 23, 
1994]



Sec. 303.6  Enforcement of support obligations.

    For all cases referred to the IV-D agency or applying for services 
under Sec. 302.33 in which the obligation to support and the amount of 
the obligation have been established, the IV-D agency must maintain and 
use an effective system for:
    (a) Monitoring compliance with the support obligation;
    (b) Identifying on the date the parent fails to make payments in an 
amount equal to the support payable for one month, or on an earlier date 
in accordance with State law, those cases in which there is a failure to 
comply with the support obligation; and
    (c) Enforcing the obligation by:
    (1) Initiating income withholding, in accordance with Sec. 303.100;
    (2) Taking any appropriate enforcement action (except income 
withholding and Federal and State income tax refund offset) unless 
service of process is necessary, within no more than 30 calendar days of 
identifying a delinquency or other support-related non-compliance with 
the order or the location of the absent parent, whichever occurs later. 
If service of process is necessary prior to taking an enforcement 
action, service must be completed (or unsuccessful attempts to serve 
process must be documented in accordance with the State's guidelines 
defining diligent efforts under Sec. 303.3(c)), and enforcement action 
taken if process is served, within no later than 60 calendar days of 
identifying a delinquency or other support-related non-compliance with 
the order, or the location of the absent parent, whichever occurs later;
    (3) Submitting once a year all cases which meet the certification 
requirements under Sec. 303.102 of this part and State guidelines 
developed under Sec. 302.70(b) of this title for State income tax refund 
offset, and which meet the certification requirements under Sec. 303.72 
of this part for Federal income tax refund offset; and
    (4) In cases in which enforcement attempts have been unsuccessful, 
at the time an attempt to enforce fails, examining the reason the 
enforcement attempt failed and determining when it would be appropriate 
to take an enforcement action in the future, and taking an enforcement 
action in accordance with the requirements of this section at that time.

[54 FR 32310, Aug. 4, 1989, as amended at 55 FR 25840, June 25, 1990]



Sec. 303.7  Provision of services in interstate IV-D cases.

    (a) Interstate central registry. (1) The State IV-D agency must 
establish an interstate central registry responsible for receiving, 
distributing and responding to inquiries on all incoming interstate IV-D 
cases, including URESA petitions and requests for wage withholding in 
IV-D cases, and at the option of the State, intrastate IV-D cases no 
later than August 22, 1988.
    (2) Within 10 working days of receipt of an interstate IV-D case 
from an initiating State, the central registry must:
    (i) Ensure that the documentation submitted with the case has been 
reviewed to determine completeness;
    (ii) Forward the case for necessary action either to the State PLS 
for location services or to the appropriate agency for processing;

[[Page 147]]

    (iii) Acknowledge receipt of the case and ensure that any missing 
documentation has been requested from the initiating State; and
    (iv) Inform the IV-D agency in the initiating State where the case 
was sent for action.
    (3) If the documentation received with a case is inadequate and 
cannot be remedied by the central registry without the assistance of the 
initiating State, the central registry must forward the case for any 
action which can be taken pending necessary action by the initiating 
State.
    (4) The central registry must respond to inquiries from other States 
within 5 working days of receipt of the request for a case status 
review.
    (b) Initiating State IV-D agency responsibilities. The IV-D agency 
must:
    (1) If the State has a long-arm statute which allows paternity 
establishment, use the authority to establish paternity whenever 
appropriate.
    (2) Except as provided in paragraph (b)(1) of this section, within 
20 calendar days of determining that the absent parent is in another 
State, and, if appropriate, receipt of any necessary information needed 
to process the case, refer any interstate IV-D case to the responding 
State's interstate central registry for action, including URESA 
petitions and requests for location, document verification, 
administrative reviews in Federal income tax refund offset cases, wage 
withholding, and State income tax refund offset in IV-D cases.
    (3) Provide the IV-D agency in the responding State sufficient, 
accurate information to act on the case by submitting with each case any 
necessary documentation and either the Interstate Child Support 
Enforcement Transmittal Form or the URESA Action Request Forms package 
as appropriate. The State may use computer-generated replicas in the 
same format and containing the same information in place of the forms.
    (4) Provide the IV-D agency or central registry in the responding 
State with any requested additional information or notify the responding 
State when the information will be provided within 30 calendar days of 
receipt of the request for information by submitting an updated form, or 
a computer-generated replica in the same format and containing the same 
information, and any necessary additional documentation.
    (5) Notify the IV-D agency in the responding State within 10 working 
days of receipt of new information on a case by submitting an updated 
form and any necessary additional documentation.
    (6) Send a request for review of a child support order to another 
State within 20 calendar days of determining that a request for review 
of the order should be sent to the other State and of receipt of 
information from the requestor necessary to conduct the review in 
accordance with Sec. 303.8(f)(1) of this part.
    (c) Responding State IV-D agency responsibilities. (1) The IV-D 
agency must establish and use procedures for managing its interstate IV-
D caseload which ensure provision of necessary services and include 
maintenance of case records in accordance with Sec. 303.2 of this part.
    (2) The IV-D agency must periodically review program performance on 
interstate IV-D cases to evaluate the effectiveness of the procedures 
established under this section.
    (3) The State must ensure that the organizational structure and 
staff of the IV-D agency are adequate to provide for the administration 
or supervision of the following support enforcement functions specified 
in Sec. 303.20(c) of this part for its interstate IV-D caseload: Intake; 
establishment of paternity and the legal obligation to support; 
location; financial assessment; establishment of the amount of child 
support; collection; monitoring; enforcement and investigation.
    (4) Within 75 calendar days of receipt of an Interstate Child 
Support Enforcement Transmittal Form, a URESA Action Request Form or 
other alternative State form and documentation from its interstate 
central registry, the IV-D agency must:
    (i) Provide location services in accordance with Sec. 303.3 of this 
part if the request is for location services or the form or 
documentation does not include adequate location information on the 
absent parent;

[[Page 148]]

    (ii) If unable to proceed with the case because of inadequate 
documentation, notify the IV-D agency in the initiating State of the 
necessary additions or corrections to the form or documentation.
    (iii) If the documentation received with a case is inadequate and 
cannot be remedied by the responding IV-D agency without the assistance 
of the initiating State, the IV-D agency must process the interstate IV-
D case to the extent possible pending necessary action by the initiating 
State.
    (5) Within 10 working days of locating the absent parent in a 
different jurisdiction within the State, the IV-D agency must forward 
the form and documentation to the appropriate jurisdiction and notify 
the initiating State and central registry of its action.
    (6) Within 10 working days of locating the absent parent in a 
different State, the IV-D agency must--
    (i) Return the form and documentation, including the new location, 
to the initiating State, or, if directed by the initiating State, 
forward the form and documentation to the central registry in the State 
where the absent parent has been located; and
    (ii) Notify the central registry where the case has been sent.
    (7) The IV-D agency must provide any necessary services as it would 
in intrastate IV-D cases by:
    (i) Establishing paternity in accordance with Sec. 303.5 of this 
part and attempting to obtain a judgment for costs should paternity be 
established;
    (ii) Establishing a child support obligation in accordance with 
Secs. 303.4 and 303.101 of this part and Sec. 303.31 of this chapter;
    (iii) Processing and enforcing orders referred by another State, 
whether pursuant to the Uniform Reciprocal Enforcement of Support Act or 
other legal processes, using appropriate remedies applied in its own 
cases in accordance with Secs. 303.6 and 303.100 through 303.105 of this 
part and Sec. 303.31 of this chapter; and
    (iv) Collecting and monitoring any support payments from the absent 
parent and forwarding payments to the location specified by the IV-D 
agency in the initiating State no later than 15 calendar days from the 
date of initial receipt in the responding State. The IV-D agency must 
include sufficient information to identify the case, indicate the date 
of collection as defined under Sec. 302.51(a) of this chapter or that 
the payments were made through State income tax refund offset, and 
include the responding State's identifying code as defined in the 
Federal Information Processing Standards Publication (FIPS) issued by 
the National Bureau of Standards or the Worldwide Geographic Location 
Codes issued by the General Services Administration.
    (v) Reviewing and adjusting child support orders upon request in 
accordance with Sec. 303.8(f)(2) of this part.
    (8) The IV-D agency must provide timely notice to the IV-D agency in 
the initiating State in advance of any formal hearings which may result 
in establishment or adjustment of an order.
    (9) The IV-D agency must notify the IV-D agency in the initiating 
State within 10 working days of receipt of new information on a case by 
submitting an updated form or a computer-generated replica in the same 
format and containing the same information.
    (10) The IV-D agency must notify the interstate central registry in 
the responding State when a case is closed.
    (d) Payment and recovery of costs in interstate IV-D cases. (1) 
Except as provided in paragraphs (2) and (4), the IV-D agency in the 
responding State must pay the costs it incurs in processing interstate 
IV-D cases.
    (2) The IV-D agency in the initiating State must pay for the costs 
of genetic testing in actions to establish paternity.
    (3) If paternity is established in the responding State, the IV-D 
agency in the responding State must attempt to obtain a judgment for the 
costs of genetic testing from the party who denied paternity, or, at 
State option, from each party so long as the total amount requested does 
not exceed the actual costs of the genetic tests, and, if costs of 
genetic testing are recovered, must reimburse the initiating State.
    (4) Each IV-D agency may recover its costs of providing services in 
interstate non-AFDC cases in accordance with Sec. 302.33(d) of this 
chapter.

[[Page 149]]

    (5) The IV-D agency in the responding State must identify any fees 
or costs deducted from support payments when forwarding payments to the 
IV-D agency in the initiating State in accordance with 
Sec. 303.7(c)(7)(iv) of this section.

(Approved by the Office of Management and Budget under control number 
0970-0085)

[53 FR 5257, Feb. 22, 1988, as amended at 53 FR 18987, May 26, 1988; 53 
FR 21645, June 9, 1988; 53 FR 27518, July 21, 1988; 54 FR 32311, Aug. 4, 
1989; 55 FR 25840, June 25, 1990; 56 FR 22355, May 15, 1991; 57 FR 
30681, July 10, 1992; 57 FR 61581, Dec. 28, 1992]



Sec. 303.8  Review and adjustment of child support orders.

    (a) Definitions. For purposes of this section:
    (1) Adjustment applies only to the child support provisions of the 
order, and means:
    (i) An upward or downward change in the amount of child support 
based upon an application of State guidelines for setting and adjusting 
child support awards; and/or
    (ii) Provision for the child's health care needs, through health 
insurance coverage or other means.
    (2) Parent includes any custodial parent or non-custodial parent (or 
for purposes of requesting a review, any other person or entity who may 
have standing to request an adjustment to the child support order).
    (3) Review means an objective evaluation, conducted through a 
proceeding before a court, quasi-judicial process, or administrative 
body or agency, of information necessary for application of the State's 
guidelines for support to determine:
    (i) The appropriate support award amount; and
    (ii) The need to provide for the child's health care needs in the 
order through health insurance coverage or other means.
    (b) Plan for review and adjustment. (1) Effective on October 13, 
1990, the State must have a written and publicly available plan 
indicating how and when child support orders in effect in the State will 
be periodically reviewed and adjusted.
    (2) During the period from October 13, 1990 through October 12, 
1993, the State must, for orders being enforced under this chapter:
    (i) Determine whether such orders should be reviewed, using the plan 
specified in paragraph (b)(1) of this section;
    (ii) Initiate a review, in accordance with the plan, at the request 
of either parent subject to the order or of a IV-D agency;
    (iii) Notify each parent subject to a child support order of any 
review of the order at least 30 calendar days before commencement of the 
review;
    (iv) Adjust the order when the review determines that there should 
be a change in the child support award amount, or that health insurance 
should be required, as indicated by the review in accordance with the 
State's guidelines for support described in Sec. 302.56 of this chapter.
    (v) Following any review, notify each parent subject to a child 
support order in effect in the State, of:
    (A) Any adjustment or a determination that there should be no change 
in the order; and
    (B) Each parent's right to initiate proceedings to challenge the 
adjustment or determination, either through pre-decision review, appeal, 
or administrative review, within at least 30 calendar days after the 
date of the notice.

    (c) Review of child support orders. Effective October 13, 1993 or an 
earlier date the State may select, the State must, when providing 
services under this chapter:
    (1) Have in effect and use a process for review and adjustment of 
child support orders in effect in the State, including a process for 
challenging a proposed adjustment or determination.
    (2) Notify each parent subject to a child support order in the State 
of the right to request a review of the order, and the appropriate place 
and manner in which the request should be made.
    (3) Periodically publicize the right to request a review as part of 
its support enforcement services as required under Sec. 302.30 of this 
chapter and include notice of this right as part of information on IV-D 
services under Sec. 303.2(a)(2) of this part.

[[Page 150]]

    (4) Review child support orders at 36-month intervals after 
establishment of the order or the most recent review, unless:
    (i) In a case in which there is an assignment as defined in 
Sec. 301.1 of this chapter, the State determines, in accordance with 
Sec. 303.8(c)(5) of this section, that a review would not be in the best 
interests of the child and neither parent has requested a review; or
    (ii) In a case in which there is no such assignment of support 
rights to the State, neither parent has requested a review; or
    (iii) In a case in which medical support rights are assigned under 
42 CFR 433.146, but child support rights are not assigned to the State 
under Sec. 232.11 of this title or Sec. 471(a)(17) of the Act, the order 
requires the provision of health insurance coverage, and neither parent 
has requested a review; or
    (5) Determine that a review of the child support order would not be 
in the best interests of a child if there has been a finding of good 
cause as set forth at Secs. 302.31(c) and 232.40 through 232.49 of this 
title or under 42 CFR 433.147(c), and the State or local IV-A, XIX, or 
IV-E agency has determined that support enforcement may not proceed 
without risk of harm to the child or caretaker relative.
    (6) Notify or serve process upon each parent subject to a child 
support order in effect in the State of:
    (i) Any review of such order at least 30 calendar days before 
commencement of the review, and
    (ii) Any information necessary to conduct the review that each 
parent must provide and the date by which such information must be 
provided.
    (7) Following any review, notify each parent subject to the child 
support order of:
    (i) A proposed adjustment or a determination that there should be no 
adjustment in the order; and
    (ii) Each parent's right to initiate proceedings to challenge the 
proposed adjustment or other determination, not less than 30 calendar 
days after the notice.
    (8) Adjust the order, or determine that there should be no 
adjustment, as appropriate, in accordance with the State's guidelines 
for setting child support awards and paragraph (d) of this section.
    (d) Basis for seeking adjustment. (1) Inconsistency between the 
existent child support award amount and the amount of child support 
which results from application of the State guidelines must be an 
adequate basis, under State law, for petitioning for an adjustment of an 
order in a IV-D case, unless:
    (i) The inconsistency does not meet a reasonable quantitative 
standard established by the State, in accordance with paragraph (d)(2) 
of this section or
    (ii) The inconsistency is due to the fact that the amount of the 
current child support award resulted from a rebuttal of the guideline 
amount and there has not been a change in the circumstances which 
resulted in the rebuttal of the guideline amount.
    (2) The State may establish a reasonable quantitative standard based 
upon either a fixed dollar amount or percentage, or both, as a basis for 
determining whether an inconsistency between the existent child support 
award amount and the amount of support which results from application of 
the guidelines is adequate grounds for petitioning for adjustment of the 
order.
    (3) The need to provide for the child's health care needs in the 
order, through health insurance or other means, must be an adequate 
basis under State law to petition for adjustment of an order to provide 
for the children's health care needs, regardless of whether an 
adjustment in the amount of child support is necessary. In no event 
shall the eligibility for or receipt of Medicaid be considered to meet 
the need to provide for the child's health care needs in the order.
    (e) Timeframes for review and adjustment. (1) In any case in which 
support rights are assigned to the State under Sec. 301.1 of this part, 
the State must determine, within 15 calendar days of October 13, 1993 or 
the date the child support order is 36 months old, whichever date occurs 
later, whether a review should be conducted, as required under paragraph 
(c)(4) of this section. Subsequent determinations about whether to 
conduct a review must be made in accordance with paragraph (c)(4) of 
this section, at 36-month intervals based upon the date the child 
support order

[[Page 151]]

was adjusted or the date an order was entered determining that the child 
support order should not be adjusted, or, in any case in which a 
petition or motion for adjustment was not filed following a review, the 
date upon which the post-review challenge period ended.
    (2) Within 15 calendar days of receipt of a request for a review, 
the State must determine whether a review should be conducted, as 
required under paragraph (c)(4) of this section.
    (3) Within 180 calendar days of determining that a review should be 
conducted or locating the non-requesting parent, whichever occurs later, 
a State must:
    (i) Send the notice or serve process required under paragraph (c)(6) 
of this section that a review will be conducted;
    (ii) Conduct a review of the order;
    (iii) Send the notice of the proposed adjustment or determination 
that there should be no adjustment as required under paragraph (c)(7) of 
this section; and
    (iv) Adjust the order or determine that the order should not be 
adjusted in accordance with paragraph (c)(8) of this section.
    (f) Interstate review and adjustment. Effective October 13, 1993, or 
such earlier date the State may select:
    (1) Initiating State responsibilities. The State in which a request 
for review is made, or in which there is an assignment of rights to 
support, as defined under Sec. 301.1 of this part, must:
    (i) In any case in which support rights are assigned to the State 
under Sec. 301.1, determine, within 15 calendar days of October 13, 
1993, or the date the child support order is 36 months old, whichever 
date occurs later, whether a review should be conducted, as required 
under paragraph (c)(4) of this section, and in which State a review and 
adjustment will be sought. Subsequent determinations about whether to 
conduct a review must be made in accordance with paragraph (c)(4) of 
this section, at 36-month intervals based upon the date the child 
support order was adjusted or the date an order was entered determining 
that the child support order should not be adjusted, or, in any case in 
which a petition or motion for adjustment was not filed following a 
review, the date upon which the post-review challenge period ended.
    (ii) Within 15 calendar days of receipt of a request for a review, 
determine whether a review should be conducted, as required under 
paragraph (c)(4) of this section, and in which State a review and 
adjustment will be sought.
    (iii) If the State determines under paragraph (f)(1)(i) or paragraph 
(f)(1)(ii) of this section that it should review a child support order 
in effect in the State, the State shall, within the 180-calendar-day 
timeframe for review and adjustment of child support orders set forth in 
paragraph (e)(2) of this section, send the notice that a review will be 
conducted to each parent, conduct a review, provide notice to the 
parties of the right to challenge the proposed adjustment or other 
determination, and adjust the order or determine that the order should 
not be adjusted, in accordance with paragraphs (c) (6) through (8) of 
this section.
    (iv) If the State determines under paragraph (f)(1)(i) or paragraph 
(f)(1)(ii) of this section to request a review of a child support order 
in another State, send a request for review to that State within 20 
calendar days of receipt of sufficient information to conduct the review 
and provide that State with sufficient information on the requestor to 
act on the request, in accordance with the requirements of 
Sec. 303.7(b)(6) of this part.
    (v) If the request for review is the first contact between the 
initiating and responding States in the case, send the request for 
review to the interstate central registry in the responding State. 
However, if the initiating State has previously referred the case to a 
responding State for action and determines under paragraph (f)(1)(i) or 
paragraph (f)(1)(ii) of this section that the child support order should 
be reviewed in that responding State, the request for review may be sent 
directly to the appropriate agency in the responding State for 
processing.
    (vi) Send, to the parent in the initiating State, a copy of any 
notice issued by a responding State in connection with the review and 
adjustment of an order, within 5 working days of receipt of such notice 
in the initiating State.

[[Page 152]]

    (2) Responding State responsibilities. (i) Within 15 calendar days 
of receipt of a request for a review of a child support order in the 
responding State, the appropriate processing agency in the responding 
State must determine whether a review should be conducted, in accordance 
with paragraph (c)(4) of this section and the responding State's 
procedures for review and adjustment of child support orders.
    (ii) Within 180 calendar days of determining that a review should be 
conducted or locating the non-requesting parent, whichever occurs later, 
the responding State must send the notice that a review will be 
conducted to each parent, conduct a review, adjust the order or 
determine that the order should not be adjusted, and provide the notice 
of the adjustment or determination and the right to challenge the 
adjustment or determination in accordance with paragraphs (c) (6) 
through (8) of this section.
    (iii) The State may meet the notice requirements of Sec. 303.7(c)(8) 
of this part by sending the notices of the review required under 
paragraphs (c)(6) and (c)(7) of this section to the parent in the 
initiating State through the IV-D agency in the initiating State.
    (3) Applicable laws and procedures. The applicable laws and 
procedures for review and adjustment of child support orders, including 
the State guidelines for setting child support awards, established in 
accordance with Sec. 302.56 of this chapter, are those of the State in 
which the review and adjustment, or determination that there be no 
adjustment, take place.

[57 FR 30681, July 10, 1992, as amended at 57 FR 61581, Dec. 28, 1992; 
58 FR 7040, Feb. 3, 1993]



Sec. 303.10  [Reserved]



Sec. 303.11  Case closure criteria.

    (a) The IV-D agency shall establish a system for case closure.
    (b) In order to be eligible for closure, the case must meet at least 
one of the following criteria:
    (1) In the case of a child who has reached the age of majority, 
there is no longer a current support order and arrearages are under $500 
or unenforceable under State law;
    (2) In the case of a child who has not reached the age of majority, 
there is no longer a current support order and arrearages are under $500 
or unenforceable under State law;
    (3) The absent parent or putative father is deceased and no further 
action, including a levy against the estate, can be taken;
    (4) Paternity cannot be established because:
    (i) The child is at least 18 years old and action to establish 
paternity is barred by a statute of limitations which meets the 
requirements of Sec. 302.70(a)(5) of this chapter;
    (ii) A genetic test or a court or administrative process has 
excluded the putative father and no other putative father can be 
identified; or
    (iii) In accordance with Sec. 303.5(b) of this part, the IV-D agency 
has determined that it would not be in the best interests of the child 
to establish paternity in a case involving incest or forcible rape, or 
in any case where legal proceedings for adoption are pending;
    (5) The absent parent's location is unknown, and the State has made 
regular attempts using multiple sources to locate the absent parent over 
a three-year period, all of which have been unsuccessful;
    (6) The absent parent cannot pay support for the duration of the 
child's minority because the parent has been institutionalized in a 
psychiatric facility, is incarcerated with no chance for parole, or has 
a medically-verified total and permanent disability with no evidence of 
support potential. The State must also determine that no income or 
assets are available to the absent parent which could be levied or 
attached for support;
    (7) The absent parent is a citizen of, and lives in, a foreign 
country, does not work for the Federal government or a company with 
headquarters or offices in the United States, and has no reachable 
domestic income or assets; and the State has been unable to establish 
reciprocity with the country;
    (8) The IV-D agency has provided location-only services as requested 
under Sec. 302.35(c)(3) of this chapter;
    (9) The non-AFDC custodial parent requests closure of a case and 
there is

[[Page 153]]

no assignment to the State of medical support under 42 CFR 433.146 or of 
arrearages which accrued under a support order;
    (10) There has been a finding of good cause as set forth at 
Sec. 302.31(c) and either Secs. 232.40 through 232.49 of this chapter or 
42 CFR 433.147 and the State or local IV-A, IV-E, or Medicaid agency has 
determined that support enforcement may not proceed without risk of harm 
to the child or caretaker relative;
    (11) In a non-AFDC case receiving services under Sec. 302.33(a)(1) 
(i) or (iii), the IV-D agency is unable to contact the custodial parent 
within a 30 calendar day period despite attempts by both phone and at 
least one certified letter; or
    (12) In a non-AFDC case receiving services under Sec. 302.33(a)(1) 
(i) or (iii), the IV-D agency documents the circumstances of the 
custodial parent's noncooperation and an action by the custodial parent 
is essential for the next step in providing IV-D services.
    (c) In cases meeting the criteria in paragraphs (b) (1) through (7) 
and (11) and (12) of this section, the State must notify the custodial 
parent in writing 60 calendar days prior to closure of the case of the 
State's intent to close the case. The case must be kept open if the 
custodial parent supplies information in response to the notice which 
could lead to the establishment of paternity or a support order or 
enforcement of an order or, in the instance of paragraph (b)(11) of this 
section, if contact is reestablished with the custodial parent. If the 
case is closed, the custodial parent may request at a later date that 
the case be reopened if there is a change in circumstances which could 
lead to the establishment of paternity or a support order or enforcement 
of an order.
    (d) The IV-D agency must retain all records for cases closed 
pursuant to this section for a minimum of three years, in accordance 
with 45 CFR part 74, subpart D.

[54 FR 32311, Aug. 4, 1989, as amended at 56 FR 8004, Feb. 26, 1991]



Sec. 303.15  Agreements to use the Federal Parent Locator Service (PLS) in parental kidnapping and child custody cases.

    (a) Definitions. The following definitions apply to this section:
    (1) Authorized person means the following:
    (i) Any agent or attorney of any State having an agreement under 
this section, who has the duty or authority under the laws of the State 
to enforce a child custody determination.
    (ii) Any court having jurisdiction to make or enforce a child 
custody determination, or any agent of the court;
    (iii) Any agent or attorney of the United States, or of a State 
having an agreement under this section, who has the duty or authority to 
investigate, enforce, or bring a prosecution with respect to the 
unlawful taking or restraint of a child.
    (2) Custody determination means a judgment, decree, or other order 
of a court providing for custody or visitation of a child, and includes 
permanent and temporary orders, and initial orders and modifications.
    (b) If the State enters into an agreement with the Office that meets 
the requirements of section 463 of the Act and this section of the 
regulations, the State IV-D agency may request information from the 
Federal PLS for the purpose of:
    (1) Enforcing any State or Federal law with respect to the unlawful 
taking or restraint of a child; or
    (2) Making or enforcing a child custody determination.
    (c) An agreement under section 463 of the Act must contain the 
following provisions:
    (1) The Director will provide the State IV-D agency with the most 
recent home address and place of employment of an absent parent or child 
if the information is requested for the purposes specified in paragraph 
(b) of this section.
    (2) The State shall make requests for information under the 
agreement only for the purposes specified in paragraph (b) of this 
section.
    (3) The State shall make requests to the Federal PLS through the 
State

[[Page 154]]

PLS established under Sec. 302.35 of this chapter.
    (4) The State shall submit requests in the standard format and 
exchange media normally available to or used by the State PLS.
    (5) The State shall identify requests in a manner prescribed by the 
Office in instructions so that requests can be distinguished from other 
types of requests submitted to the Federal PLS.
    (6) The State shall impose, collect and account for fees to offset 
the costs to the State and the Office incurred in processing requests.
    (7) The State shall periodically transmit the fees collected to 
cover the costs to the Federal PLS of processing requests. Fees shall be 
transmitted in the amount and in the manner prescribed by the Office in 
instructions.
    (8) The State shall adopt policies and procedures to ensure that 
information shall be used and disclosed solely for the purposes 
specified in paragraph (b) of this section. Under this requirement, the 
State shall:
    (i) Restrict access to the information to authorized persons whose 
duties or responsibilities require access in connection with child 
custody and parental kidnapping cases;
    (ii) Store the information during nonduty hours, or when not in use, 
in a locked container within a secure area that is safe from access by 
unauthorized persons;
    (iii) Process the information under the immediate supervision and 
control of authorized personnel, in a manner which will protect the 
confidentiality of the information, and in such a way that unauthorized 
persons cannot retrieve the information by computer, remote terminal, or 
other means;
    (iv) Brief all employees who will have access to the data on 
security procedures and instructions;
    (v) Send the information directly to the requestor and make no other 
use of the information;
    (vi) After the information is sent to the requestor, destroy any 
confidential records and information related to the request.
    (d)(1) An agreement under section 463 of the Act must be signed by 
the Governor of the State or the Governor's designee.
    (2) The agreement must also be signed by the Attorney General of the 
State who must certify that the signing State official has the authority 
under State law to commit the State to the agreement.

[46 FR 54557, Nov. 3, 1981]



Sec. 303.20  Minimum organizational and staffing requirements.

    (a) The organizational structure of the IV-D agency (see 
Sec. 302.12) provides for administration or supervision of all the 
functions for which it is responsible under the State plan, is 
appropriate to the size and scope of the program in the State, and 
contains clearly established lines for administrative and supervisory 
authority.
    (b) There is an organizational structure and sufficient staff to 
fulfill the following required State level functions:
    (1) The establishment and administration of the State plan.
    (2) Formal evaluation of the quality, efficiency, effectiveness, and 
scope of services provided under the plan.
    (3) Coordination of activities pursuant to, and assurance of 
compliance with, the requirements of the State's Reciprocal Enforcement 
of Support Act for cases pursuant to a State plan.
    (4) Requests to the DHHS Office of Child Support Enforcement for use 
of the Federal Parent Locator Service, the U.S. District Courts, and IRS 
collection procedures.
    (5) Preparation and submission of reports required by the Office.
    (6) Financial control of the operation of the plan.
    (7) Operation of the State Parent Locator Service as required under 
Sec. 302.35 of this chapter.
    (c) There is an organizational structure and sufficient resources at 
the State and local level to meet the performance and time standards 
contained in this part and to provide for the administration or 
supervision of the following support enforcement functions:
    (1) Intake. Activities associated with initial support case opening.
    (2) Establishing the legal obligation to support. Activities related 
to determining the absent parent's legal obligation

[[Page 155]]

to support his or her dependent children, including paternity 
determination when necessary.
    (3) Locate. Activities associated with locating an absent parent.
    (4) Financial assessment. Activities related to determining an 
absent parent's ability to provide support.
    (5) Establishment of the amount of support. Activities related to 
determining an absent parent's child support obligation, including 
methods and terms of payment.
    (6) Collection. Activities related to monitoring payment activities 
and processing cash flow.
    (7) Enforcement. Activities to enforce collection of support, 
including income withholding and other available enforcement techniques.
    (8) Investigation. Activities related to investigation necessary to 
accomplish the functions of this paragraph.
    (d) The functions referred to in paragraphs (b) (1), (2) and (6) of 
this section may not be delegated by the IV-D agency. The functions 
referred to in paragraph (b)(5) of this section may be delegated to the 
extent necessary to report on activities delegated by the IV-D agency.
    (e) No functions under the State plan may be delegated by the IV-D 
agency if such functions are to be performed by caseworkers who are also 
performing the assistance payments or social services functions under 
title IV-A or XX of the Act.

In the case of a sparsely populated geographic area, upon justification 
by the IV-D agency documenting a lack of administrative feasibility in 
not utilizing staff of the IV-A agency, the Office may approve alternate 
arrangements that include sufficient reporting and cost allocation 
methods that will assure compliance with Federal requirements and proper 
claims for Federal financial participation. Under this provision:
    (1) Caseworker means any person who has decision-making authority 
over individual cases on a day-to-day basis and includes, but is not 
limited to such designations as intake worker, eligibility technician, 
caseworker, and social worker.
    (2) The assistance payments function means activities related to 
determination of eligibility for, and amount of financial assistance 
under the approved State plan under title I, IV-A, X, XIV, or XVI, State 
Supplemental income payments under title XVI of the Act, and State or 
local General Assistance programs. It includes the complete process of 
determining initial and continuing eligibility for financial and medical 
assistance and commodities distribution or food stamps.
    (3) The social services function means those activities included in 
the approved State plan and carried out pursuant to parts 220, 222 and 
226 of this title or carried out pursuant to title XX of the Act. It 
includes determination of eligibility for, and delivery of services to, 
families and individuals under the approved State plan or under title XX 
of the Act.
    (f) There are the following types of staff in sufficient numbers to 
achieve the standards for an effective program prescribed in this part:
    (1) Attorneys or prosecutors to represent the agency in court or 
administrative proceedings with respect to the establishment and 
enforcement of orders of paternity and support, and
    (2) Other personnel such as legal, interviewer, investigative, 
accounting, clerical, and other supportive staff.
    (g) If it is determined as a result of an audit conducted under part 
305 of this chapter that a State is not in substantial compliance with 
the requirements of title IV-D of the Act, the Secretary will evaluate 
whether inadequate resources was a major contributing factor and, if 
necessary, may set resource standards for the State.

[40 FR 27164, June 26, 1975, as amended at 47 FR 57282, Dec. 23, 1982; 
54 FR 32312, Aug. 4, 1989]



Sec. 303.21  Safeguarding information.

    (a) Under State statute which imposes legal sanctions, the use or 
disclosure of information concerning applicants or recipients of support 
enforcement services is limited to purposes directly connected with:
    (1) The administration of the plan or program approved under parts 
A, B, D, E, or F of title IV or under titles I, X, XIV, XVI, XIX or XX 
or the supplemental security income program established under title XVI;

[[Page 156]]

    (2) Any investigations, prosecution or criminal or civil proceeding 
conducted in connection with the administration of any such plan or 
program;
    (3) The administration of any other Federal or Federally assisted 
program which provides assistance, in cash or in kind, or services, 
directly to individuals on the basis of need; and
    (4) Reporting to an appropriate agency or official, information on 
known or suspected instances of physical or mental injury, sexual abuse 
or exploitation, or negligent treatment or maltreatment of a child who 
is the subject of a child enforcement activity under circumstances which 
indicate that the child's health or welfare is threatened thereby.
    (b) These safeguards shall also prohibit disclosure to any committee 
or legislative body (Federal, State, or local) of any information that 
identifies by name or address any such applicant or recipient.

[47 FR 24719, June 8, 1982, as amended at 58 FR 41437, August 4, 1993]



Sec. 303.30  Securing medical support information.

    (a) If the IV-A or IV-E agency does not provide the information 
specified in this paragraph to the Medicaid agency and if the 
information is available or can be obtained in a IV-D case for which an 
assignment as defined under Sec. 301.1 of this chapter is in effect, the 
IV-D agency shall obtain the following information on the case:
    (1) AFDC case number, title IV-E foster care case number, Medicaid 
number or the individual's social security number;
    (2) Name of absent parent;
    (3) Social security number of absent parent;
    (4) Name and social security number of child(ren);
    (5) Home address of absent parent;
    (6) Name and address of absent parent's place of employment;
    (7) Whether the absent parent has a health insurance policy and, if 
so, the policy name(s) and number(s) and name(s) of person(s) covered.
    (b) When an individual is eligible for services under Sec. 302.33 of 
this chapter, the IV-D agency shall inform the individual that medical 
support enforcement services are available and shall secure the 
information specified in paragraph (a) of this section:
    (1) If the individual is a Medicaid applicant or recipient; or
    (2) With the consent of the individual, if the individual is not a 
Medicaid applicant or recipient.
    (c) The IV-D agency shall provide the information obtained under 
paragraphs (a) and (b)(1) of this section to the Medicaid agency in a 
timely manner by the most efficient and cost-effective means available, 
using manual or automated systems.

(Approved by the Office of Management and Budget under control numbers 
0960-0420 and 0970-0107)

[50 FR 41895, Oct. 15, 1985, as amended at 51 FR 37732, Oct. 24, 1986. 
Redesignated at 54 FR 32312, Aug. 4, 1989; 56 FR 8004, Feb. 26, 1991]



Sec. 303.31  Securing and enforcing medical support obligations.

    (a) For purposes of this section:
    (1) Health insurance is considered reasonable in cost if it is 
employment-related or other group health insurance, regardless of 
service delivery mechanism.
    (2) Health insurance includes fee for service, health maintenance 
organization, preferred provider organization, and other types of 
coverage under which medical services could be provided to the dependent 
child(ren) of an absent parent.
    (b) With respect to cases for which there is an assignment as 
defined in Sec. 301.1 of this chapter in effect, the IV-D agency shall:
    (1) Unless the custodial parent and child(ren) have satisfactory 
health insurance other than Medicaid, petition the court or 
administrative authority to include health insurance that is available 
to the absent parent at reasonable cost in new or modified court or 
administrative orders for support.
    (2) Petition the court or administrative authority to include 
medical support as required under paragraph (b)(1) of this section 
whether or not--
    (i) Health insurance at reasonable cost is actually available to the 
absent parent at the time the order is entered; or

[[Page 157]]

    (ii) Modification of current coverage to include the child(ren) in 
question is immediately possible.
    (3) Establish written criteria to identify cases not included under 
paragraphs (b)(1) and (b)(2) of this section where there is a high 
potential for obtaining medical support based on--
    (i) Evidence that health insurance may be available to the absent 
parent at a reasonable cost, and
    (ii) Facts, as defined by State law, regulation, procedure, or other 
directive, which are sufficient to warrant modification of the existing 
support order to include health insurance coverage for a dependent 
child(ren).
    (4) Petition the court or administrative authority to modify support 
orders for cases identified in paragraph (b)(3) of this section to 
include medical support in the form of health insurance coverage.
    (5) Provide the custodial parent with information pertaining to the 
health insurance policy which has been secured for the dependent 
child(ren) pursuant to an order obtained under this section.
    (6) Inform the Medicaid agency when a new or modified court or 
administrative order for child support includes medical support and 
provide the information referred to in Sec. 303.30(a) of this part to 
the Medicaid agency when the information is available.
    (7) If health insurance is available to the absent parent at 
reasonable cost and has not been obtained at the time the order is 
entered, take steps to enforce the health insurance coverage required by 
the support order and provide the Medicaid agency with the information 
referred to in Sec. 303.30(a) of this part.
    (8) Periodically communicate with the Medicaid agency to determine 
if there have been lapses in health insurance coverage for Medicaid 
applicants and recipients.
    (9) Request employers and other groups offering health insurance 
coverage that is being enforced by the IV-D agency to notify the IV-D 
agency of lapses in coverage.
    (c) The IV-D agency shall inform an individual who is eligible for 
services under Sec. 302.33 of this chapter that medical support 
enforcement services are available and shall provide the services 
specified in paragraph (b) of this section:
    (1) If an individual eligible for services under Sec. 302.33 is a 
Medicaid recipient; or
    (2) With the consent of the individual who is eligible for services 
under Sec. 302.33 and is not a Medicaid recipient, except that health 
insurance information shall not be transmitted to the Medicaid agency.

(Approved by the Office of Management and Budget under control numbers 
0960-0420 and 0970-0107)

[50 FR 41895, Oct. 15, 1985, as amended at 51 FR 37732, Oct. 24, 1986; 
53 FR 36021, Sept. 16, 1988. Redesignated at 54 FR 32312, Aug. 4, 1989, 
and amended at 56 FR 8004, Feb. 26, 1991; 61 FR 67241, Dec. 20, 1996]



Sec. 303.52  Pass-through of incentives to political subdivisions.

    The State must calculate and promptly pay incentives to political 
subdivisions as follows:
    (a) The State IV-D agency must develop a standard methodology for 
passing through an appropriate share of its incentive payment to those 
political subdivisions of the State that participate in the costs of the 
program, taking into account the efficiency and effectiveness of the 
activities carried out under the State plan by those political 
subdivisions. In order to reward efficiency and effectiveness, the 
methodology also may provide for payment of incentives to other 
political subdivisions of the State that administer the program.
    (b) To ensure that the standard methodology developed by the State 
reflects local participation, the State   IV-D agency must submit a 
draft methodology to participating political subdivisions for review and 
comment or use the rulemaking process available under State law to 
receive local input.

[54 FR 32312, Aug. 4, 1989]

[[Page 158]]



Sec. 303.69  Requests by agents or attorneys of the United States for information from the Federal Parent Locator Service (PLS).

    (a) Agents or attorneys of the United States may request information 
directly from the Federal PLS in connection with a parental kidnapping 
or child custody case. (See Sec. 303.15(a) of this part for a definition 
of persons authorized to request the information.)
    (b) All requests under this section shall be made in the manner and 
form prescribed by the Office.
    (c) All requests under this section shall contain the information 
specified in Sec. 303.70(c) of this part.
    (d) All requests under this section shall be accompanied by a 
statement, signed by the agent or attorney of the United States, 
attesting to the following:
    (1) The request is being made solely to locate an individual in 
connection with a parental kidnapping or child custody case.
    (2) Any information obtained through the Federal PLS shall be 
treated as confidential, shall be used solely for the purpose for which 
it was obtained and shall be safeguarded.
    (e) A fee may be charged to cover the costs of processing requests 
for information. A separate fee may be charged to cover costs of 
searching for a social security number before processing a request for 
location information.

(Approved by the Office of Management and Budget under control number 
0960-0258)

[48 FR 38645, Aug. 25, 1983, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 303.70  Requests by the State Parent Locator Service (SPLS) for information from the Federal Parent Locator Service (FPLS).

    (a) Only the central State PLS office, and any additional IV-D 
offices designated under Sec. 302.35(b), may submit requests for 
information to the Federal PLS.
    (b) All requests shall be made in the manner and form prescribed by 
the Office.
    (c) All requests shall contain the following information:
    (1) The absent parent's name;
    (2) The absent parent's social security number (SSN). If the SSN is 
unknown, the IV-D agency must make every reasonable effort to ascertain 
the individual's SSN before submitting the request to the Federal PLS;
    (3) Whether the individual is or has been a member of the armed 
services, if known;
    (4) Whether the individual is receiving, or has received, any 
Federal compensation or benefits, if known; and
    (5) Any other information prescribed by the Office.
    (d) All requests shall be accompanied by a statement, signed by the 
director of the IV-D agency or his or her designee, attesting to the 
following:
    (1) The request is being made solely to locate an individual for the 
purpose of establishing paternity or securing support or in connection 
with a parental kidnapping or child custody case.
    (2) Any information obtained through the Federal PLS shall be 
treated as confidential and shall be safeguarded under the requirements 
of Sec. 303.21 of this chapter and instructions issued by the Office.
    (e)(1) The IV-D agency shall pay the fees required under:
    (i) Section 453(e)(2) of the Act in IV-D cases in which there is no 
assignment of support rights to the State under Sec. 301.1 of this 
chapter and in non-IV-D locate-only cases in which the location of an 
absent parent is the only service requested; and
    (ii) Section 454(17) of the Act in parental kidnapping and child 
custody cases.
    (2)(i) The IV-D agency may charge an individual requesting 
information, or pay without charging the individual, the fee required 
under sections 453(e)(2) and 454(17) of the Act.
    (ii) The State may recover the fee required under section 453(e)(2) 
of the Act from the absent parent who owes a support obligation to a 
family on whose behalf the IV-D agency is providing services and repay 
it to the individual requesting information or itself.
    (iii) State funds used to pay the fee under section 453(e)(2) of the 
Act are not program expenditures under the State plan but are program 
income under Sec. 304.50 of this chapter.

[[Page 159]]

    (3) The fees required under sections 453(e)(2) and 454(17) of the 
Act shall be reasonable and as close to actual costs as possible so as 
not to discourage use of the FPLS by authorized individuals.
    (4)(i) For costs of processing requests for information under 
sections 453(e)(2) and 454(17) of the Act, the Federal government will 
charge the IV-D agency periodically. A fee will be charged for 
submitting a case to the FPLS for location information.
    (ii) If a State fails to pay the appropriate fees charged by the 
Office under this section, the services provided by the FPLS in cases 
subject to the fees may be suspended until payment is received.
    (iii) Fees shall be transmitted in the amount and manner prescribed 
by the Office in instructions.

(Approved by the Office of Management and Budget under control number 
0960-0165)

[46 FR 54557, Nov. 3, 1981, as amended at 47 FR 24719, June 8, 1982; 47 
FR 57282, Dec. 23, 1982; 51 FR 37731, Oct. 24, 1986; 57 FR 28110, June 
24, 1992]



Sec. 303.71  Requests for full collection services by the Secretary of the Treasury.

    (a) Definition. State collection mechanisms means a comprehensive 
set of written procedures developed and used to maximize effective 
collection action within the State.
    (b) Families eligible. Subject to the criteria and procedures in 
this section, the IV-D agency may request the Secretary to certify the 
amount of a child support obligation to the Secretary of the Treasury 
for collection under section 6305 of the Internal Revenue Code of 1954. 
Requests may be made on behalf of families who make assignments as 
defined in Sec. 301.1 of this chapter and on behalf of families 
receiving services under Sec. 302.33.
    (c) Cases eligible. For a case to be eligible for certification to 
the Secretary of the Treasury:
    (1) There shall be a court or administrative order for support;
    (2) The amount to be collected under the support order shall be at 
least $750 in arrears;
    (3) At least six months shall have elapsed since the last request 
for referral of the case to the Secretary of the Treasury;
    (4) The IV-D agency, the client, or the client's representative 
shall have made reasonable efforts to collect the support through the 
State's own collection mechanisms. The agency need not repeat actions 
taken by the client or client's representative that the agency 
determines to be comparable to the State's collection mechanisms.
    (5) Only the State that has taken an assignment as defined in 
Sec. 301.1 of this chapter or an application or referral under 
Sec. 302.33 of this chapter may request IRS collection services on 
behalf of a given case.
    (d) Procedures for submitting requests. (1) The IV-D agency shall 
submit requests for certification to the regional office in the manner 
and form prescribed by the Office.
    (2) The Director of the State IV-D agency (or designee) shall sign 
requests for collection by the Secretary of the Treasury.
    (e) Criteria for acceptable requests. The IV-D agency shall ensure 
that each request contains:
    (1) Sufficient information to identify the debtor, including:
    (i) The individual's name;
    (ii) The individual's social security number;
    (iii) The individual's address and place of employment, including 
the source of this information and the date it was last verified.
    (2) A copy of all court or administrative orders for support;
    (3)(i) The amount owed under the support orders;
    (ii) A statement of whether the amount is in lieu of, or in addition 
to, amounts previously referred to IRS for collection;
    (4)(i) A statement that the agency, the client, or the client's 
representative has made reasonable efforts to collect the amount owed 
using the State's own collection mechanisms or mechanisms that are 
comparable;
    (ii) A description of the actions taken, why they failed, and why 
further State action would be unproductive;
    (5) The dates of any previous requests for referral of the case to 
the Secretary of the Treasury;

[[Page 160]]

    (6) A statement that the agency agrees to reimburse the Secretary of 
the Treasury for the costs of collection; and
    (7)(i) A statement that the agency has reason to believe that the 
debtor has assets that the Secretary of the Treasury might levy to 
collect the support; and
    (ii) A statement of the nature and location of the assets, if known.
    (f) Review of requests by the Office. (1) The Regional 
Representative will review each request to determine whether it meets 
the requirements of this section.
    (2) If a request meets all requirements, the Regional Representative 
will promptly certify and transmit the request with a copy of all 
supporting documentation to the Secretary of the Treasury. At the same 
time, the Regional Representative will notify the IV-D agency in writing 
of the transmittal.
    (3)(i) If a request does not meet all requirements, the Regional 
Representative will attempt to correct the request in consulation with 
the IV-D agency.
    (ii) If the request cannot be corrected through consultation, the 
Regional Representative will return it to the agency with an explanation 
of why the request was not certified.
    (g) Notification of changes in case status. (1) The IV-D agency 
shall immediately notify the Regional Representative of the following 
changes in case status:
    (i) A change in the amount due;
    (ii) A change in the nature or location of assets;
    (iii) A change in the address of the debtor.
    (2) The Regional Representative will transmit the revised 
information to the Secretary of the Treasury.

(Approved by the Office of Management and Budget under control number 
0960-0281)

[47 FR 16030, Apr. 14, 1982; 48 FR 7179, Feb. 18, 1983, as amended at 51 
FR 37731, Oct. 24, 1986; 56 FR 8004, Feb. 26, 1991]



Sec. 303.72  Requests for collection of past-due support by Federal tax refund offset.

    (a) Past-due support qualifying for offset. Past-due support as 
defined in Sec. 301.1 of this chapter qualifies for offset if:
    (1) There has been an assignment of the support rights under 
Sec. 232.11 of this title or section 471(a)(17) of the Act to the State 
making the request for offset or the IV-D agency is providing services 
under Sec. 302.33 of this chapter.
    (2) For support which has been assigned to the State under 
Sec. 232.11 of this title or section 471(a)(17) of the Act:
    (i) The amount of the support is not less than $150; and
    (ii) The support has been delinquent for three months or longer.
    (3) For support owed in cases where the IV-D agency is providing IV-
D services under Sec. 302.33 of this chapter:
    (i) The support is owed to or on behalf of a qualified child, or a 
qualified child and the parent with whom the child is living if the same 
support order includes support for the child and the parent.
    (ii) The amount of support is not less than $500;
    (iii) At State option, the amount has accrued since the State IV-D 
agency began to enforce the support order; and
    (iv) The State has checked its records to determine if an AFDC or 
foster care maintenance assigned arrearage exists with respect to the 
non-AFDC individual or family.
    (4) The IV-D agency has in its records:
    (i) A copy of the order and any modifications upon which the amount 
referred is based which specify the date of issuance and amount of 
support;
    (ii) A copy of the payment record, or, if there is no payment 
record, an affidavit signed by the custodial parent attesting to the 
amount of support owed; and
    (iii) In non-AFDC cases, the custodial parent's current address.
    (5) Before submittal, the State IV-D agency has verified the 
accuracy of the name and social security number of the absent parent and 
the accuracy of the past-due support amount. If the State

[[Page 161]]

IV-D agency has verified this information previously, it need not 
reverify it.
    (6) A notification of liability for past-due support has been 
received by the Secretary of the Treasury as prescribed by paragraph 
(c)(2) of this section.
    (b) Notification to OCSE of liability for past-due support. (1) A 
State IV-D agency shall submit a notification (or notifications) of 
liability for past-due support on a magnetic tape to the Office by the 
submittal date specified by the Office in instructions.
    (2) The notification of liability for past-due support shall contain 
with respect to each delinquency:
    (i) The name of the taxpayer who owes the past-due support;
    (ii) The social security number of that taxpayer;
    (iii) The amount of past-due support owed;
    (iv) The State codes as contained in the Federal Information 
Processing Standards (FIPS) publication of the National Bureau of 
Standards and also promulgated by the General Services Administration in 
Worldwide Geographical Location Codes; and
    (v) Whether the past-due support is due an individual who applied 
for services under Sec. 302.33 of this chapter.
    (3) The notification of liability for past-due support may contain 
with respect to each delinquency the taxpayer's IV-D case number and 
FIPS code for the local IV-D agency where the case originated.
    (c) Review of requests by the Office. (1) The Deputy Director will 
review each request to determine whether it meets the requirements of 
this section.
    (2) If a request meets all requirements, the Deputy Director will 
transmit the request to the Secretary of the Treasury and will notify 
the State IV-D agency in writing of the transmittal.
    (3) If a request does not meet all requirements, the Deputy Director 
will attempt to correct the request in consultation with the State IV-D 
agency.
    (4) If a request cannot be corrected through consultation, the 
Deputy Director will return it to the State IV-D agency with a written 
explanation of why the request could not be transmitted to the Secretary 
of the Treasury.
    (d) Notification of changes in case status. (1) The State referring 
past-due support of offset must, in interstate situations, notify any 
other State involved in enforcing the support order when it submits an 
interstate case for offset and when it receives the offset amount from 
the IRS.
    (2) The State IV-D agency shall within time frames established by 
the Office in instructions, notify the Deputy Director in writing of any 
deletion of an amount referred for collection by Federal tax refund 
offset or any decrease in the amount if the decrease is significant 
according to guidelines developed by the State. The notification shall 
contain the information specified in paragraph (b) of this section.
    (e) Notices of offset--(1) Advance. The State IV-D agency, or the 
Office, if the State requests and the Office agrees, shall send a 
written advance notice to inform an absent parent that the amount of his 
or her past-due support will be referred to the IRS for collection by 
Federal tax refund offset. The notice must inform absent parents:
    (i) Of their right to contest the State's determination that past-
due support is owed or the amount of past-due support;
    (ii) Of their right to an administrative review by the submitting 
State or at the absent parent's request the State with the order upon 
which the referral for offset is based;
    (iii) Of the procedures and timeframe for contacting the IV-D agency 
in the submitting State to request administrative review; and
    (iv) That, in the case of a joint return, the IRS will notify the 
absent parent's spouse at the time of offset regarding the steps to take 
to protect the share of the refund which may be payable to that spouse. 
If the IV-D agency sends the notice, it must meet the conditions 
specified by the Office in instructions.
    (2) At offset. The IRS will notify the absent parent that the offset 
has been made. The IRS will also notify any individual who filed a joint 
return with the absent parent of the steps to take in order to secure a 
proper share of the refund.
    (f) Procedures for contesting in intrastate cases. (1) Upon receipt 
of a complaint from an absent parent in response to the advance notice 
required

[[Page 162]]

in paragraph (e)(1) of this section or concerning a tax refund which has 
already been offset, the IV-D agency must send a notice to the absent 
parent and, in non-AFDC cases the custodial parent, of the time and 
place of the administrative review of the complaint and conduct the 
review to determine the validity of the complaint.
    (2) If the complaint concerns a joint tax refund that has not yet 
been offset, the IV-D agency must inform the absent parent that the IRS 
will notify the absent parent's spouse at the time of offset regarding 
the steps to take to secure his or her proper share of the refund. If 
the complaint concerns a joint tax refund which has already been offset, 
the IV-D agency must refer the absent parent to the IRS.
    (3) If the administrative review results in a deletion of, or 
decrease in, the amount referred for offset, the IV-D agency must notify 
OCSE in writing within time frames established by the Office and include 
the information specified in paragraph (b) of this section.
    (4) If, as a result of the administrative review, an amount which 
has already been offset is found to have exceeded the amount of past-due 
support owed, the IV-D agency must take steps to refund the excess 
amount to the absent parent promptly.
    (g) Procedures for contesting in interstate cases. (1) If the absent 
parent requests an administrative review in the submitting State, the 
IV-D agency must meet the requirements in paragraph (f) of this section.
    (2) If the complaint cannot be resolved by the submitting State and 
the absent parent requests an administrative review in the State with 
the order upon which the referral for offset is based, the submitting 
State must notify the State with the order of the request for an 
administrative review and provide that State with all necessary 
information, including the information listed under paragraph (a)(4) of 
this section, within 10 days of the absent parent's request for an 
administrative review.
    (3) The State with the order must send a notice to the absent parent 
and, in non-AFDC cases the custodial parent, of the time and place of 
the administrative review, conduct the review and make a decision within 
45 days of receipt of the notice and information from the submitting 
State.
    (4) If the administrative review results in a deletion of, or 
decrease in, the amount referred for offset, the State with the order 
must notify the Office in writing within time frames established by the 
Office and include the information specified in paragraph (b) of this 
section.
    (5) Upon resolution of a complaint after an offset has been made, 
the State with the order must notify the submitting State of its 
decision promptly.
    (6) When an administrative review is conducted in the State with the 
order, the submitting State is bound by the decision made by the State 
with the order.
    (7) Based on the decision of the State with the order, the IV-D 
agency in the submitting State must take steps to refund any excess 
amount to the absent parent promptly.
    (8) In computing incentives under Sec. 304.12 of this part, if the 
case is referred to the State with the order for an administrative 
review, the collections made as a result of Federal tax refund offset 
will be treated as having been collected in full by both the submitting 
State and the State with the order.
    (h) Distribution of collections. (1) Collections received by the IV-
D agency as a result of refund offset to satisfy AFDC or non-AFDC past-
due support shall be distributed as past-due support as required under 
Sec. 302.51(b) (4) and (5) and (e) of this chapter.
    (2) Collections received by the IV-D agency in foster care 
maintenance cases shall be distributed as past-due support under 
Sec. 302.52(b) (3) and (4) of this chapter.
    (3) The IV-D agency must inform individuals receiving services under 
Sec. 302.33 of this chapter in advance that amounts offset will be 
applied first to satisfy any past-due support which has been assigned to 
the State under Sec. 232.11 of this title, 42 CFR 433.146, or section 
471(a)(17) of the Act and submitted for Federal tax refund offset.

[[Page 163]]

    (4) If the amount collected is in excess of the amounts required to 
be distributed under Sec. 302.51 (b) (4) and (5) and (e) or 
Sec. 302.52(b) (3) and (4) of this chapter, the IV-D agency must repay 
the excess to the absent parent whose refund was offset or to the 
parties filing a joint return within a reasonable period in accordance 
with State law.
    (5) In cases where the Secretary of the Treasury, through OCSE, 
notifies the State that an offset is being made to satisfy non-AFDC 
past-due support from a refund based on a joint return, the State may 
delay distribution until notified that the unobligated spouse's proper 
share of the refund has been paid or for a period not to exceed six 
months from notification of offset, whichever is earlier.
    (6) Collections from offset may be applied only against the past-due 
support which was specified in the advance notice described in paragraph 
(e)(1) of this section.
    (i) Payment of fee. (1) A refund offset fee, in such amount as the 
Secretary of the Treasury and the Secretary of Health and Human Services 
have agreed to be sufficient to reimburse the IRS for the full cost of 
the offset procedure, shall be deducted from the offset amount and 
credited to the IRS appropriations which bore all or part of the costs 
involved in making the collection. The full amount offset must be 
credited against the obligor's payment record. The fee which the 
Secretary of the Treasury may impose with respect to non-AFDC submittals 
shall not exceed $25 per submittal.
    (2) The State IV-D agency may charge an individual who is receiving 
services under Sec. 302.33(a)(1) (i) or (iii) of this chapter a fee not 
to exceed $25 for submitting past-due support for Federal tax refund 
offset. The State must inform the individual in advance of the amount of 
any fee charged.
    (3) Any State which requests the Office to send the advance written 
notice under paragraph (e)(1) of this section will be charged a fee, in 
an amount established by the Office in instructions, for printing and 
mailing of pre-offset notices. This fee shall be credited to the Health 
and Human Services appropriations which bore all or part of the costs 
involved in making the collection.
    (j) Each State involved in a referral of past-due support for offset 
must comply with instructions issued by the Office.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19651, May 9, 1985; 50 FR 31719, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 53 FR 47710, Nov. 25, 1988; 54 FR 32312, Aug. 
4, 1989; 56 FR 8005, Feb. 26, 1991; 58 FR 41437, Aug. 4, 1993]



Sec. 303.73  Applications to use the courts of the United States to enforce court orders.

    The IV-D agency may apply to the Secretary for permission to use a 
United States district court to enforce a support order of a court of 
competent jurisdiction against an absent parent who is present in 
another State if the IV7-D agency can furnish evidence in accordance 
with instructions issued by the office.

[61 FR 67241, Dec. 20, 1996]



Sec. 303.80  Recovery of direct payments.

    (a) Definition. Direct payment means an assigned support payment 
from an absent parent which is received directly by an AFDC recipient.
    (b) Direct payments that must be recovered by the IV-D agency. In 
States that place the responsibility for recovery of direct payments 
with the IV-D agency under the State plan option at 
Sec. 302.31(a)(3)(ii) of this chapter, the IV-D agency must recover all 
such payments. The only exception is a direct payment retained by the 
recipient during the period when the sanction for failure to cooperate 
is in effect, as provided at 45 CFR 232.12(d).
    (c) What the IV-D agency must do prior to establishing a repayment 
agreement with an AFDC recipient. Before establishing a repayment 
agreement with an AFDC recipient, the IV-D agency must:
    (1) Document that the recipient has, in fact, received and retained 
direct payments, and the amounts;
    (2) Provide written notice of intent to recover the payments to the 
recipient that includes the following:
    (i) An explanation of the recipient's responsibility to cooperate by 
turning

[[Page 164]]

over direct payments as a condition of eligibility for AFDC, and the 
sanction for failure to cooperate as provided at Sec. 232.12(d) of this 
title;
    (ii) A detailed list of the direct payments which have been retained 
by the recipient, as documented by the IV-D agency, including the dates 
and amounts of these payments as well as a description of any 
documentary evidence (such as photocopies of the checks) which the IV-D 
agency possesses;
    (iii) A proposal for a repayment plan between the recipient and the 
IV-D agency;
    (iv) An explanation that repaying retained direct payments to the 
IV-D agency according to a signed repayment plan which meets the 
conditions of paragraph (d) below is a condition of cooperation under 
Sec. 232.12(b)(4) of this title.
    (3) Provide the recipient with an opportunity for an informal 
meeting to clarify the recipient's responsibilities and to resolve any 
differences regarding repayment of the directly received support by the 
recipient.
    (d) Requirements of the repayment agreement. The repayment agreement 
between the IV-D agency and the recipient who has received and retained 
direct payments must be reasonably related to:
    (1) The recipient's income and resources including the AFDC grant; 
and
    (2) The total amount of retained support.
    (e) Referrals to the IV-A agency for a determination of failure to 
cooperate. The IV-D agency must refer a case to the IV-A agency with 
evidence of failure to cooperate if:
    (1) The recipient refuses to sign a repayment agreement; or
    (2) The recipient enters into a repayment agreement but subsequently 
fails to make a payment under the terms of the agreement.
    (f) Subsequent notification to the IV-A agency as required. If the 
IV-D agency has referred a case to the IV-A agency with evidence of 
failure to cooperate for either of the reasons in paragraph (e) of this 
section the IV-D agency must notify the IV-A agency when either of the 
following changes in circumstances occurs:
    (1) The recipient who refused to enter into a repayment agreement 
consents to do so and signs the agreement; or
    (2) The recipient who defaulted on an agreement begins making 
regularly scheduled payments according to the agreement. Under this 
paragraph, a regularly scheduled payment is a payment made in the 
current month for the amount specified in the initial repayment 
agreement between the IV-D agency and the recipient. The resumption of 
regularly scheduled payments cannot be interpreted to mean payment of 
amounts which were not paid during the period of default, nor amounts 
which could be categorized as balloon payments or which would be due as 
a result of an acceleration clause. To recover amounts due from any 
period of default, the IV-D agency must extend the duration of the 
repayment agreement.

[47 FR 43956, Oct. 5, 1982, as amended at 50 FR 34696, Aug. 27, 1985]



Sec. 303.100  Procedures for wage or income withholding.

    (a) General withholding requirements. (1) The State must ensure that 
in the case of each absent parent against whom a support order is or has 
been issued or modified in the State, and is being enforced under the 
State plan, so much of his or her wages must be withheld, in accordance 
with this section, as is necessary to comply with the order.
    (2) In addition to the amount to be withheld to pay the current 
month's obligation, the amount to be withheld must include an amount to 
be applied toward liquidation of overdue support.
    (3) The total amount to be withheld under paragraphs (a)(1), (a)(2) 
and, if applicable, (f)(1)(iii) of this section may not exceed the 
maximum amount permitted under section 303(b) of the Consumer Credit 
Protection Act (15 U.S.C. 1673(b)).
    (4) In the case of a support order being enforced under the State 
plan, the withholding must occur without the need for any amendment to 
the support order involved or any other action by the court or entity 
that issued it other than that required or permitted under this section.

[[Page 165]]

    (5) If there is more than one notice for withholding against a 
single absent parent, the State must allocate amounts available for 
withholding giving priority to current support up to the limits imposed 
under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 
1673(b)). The State must establish procedures for allocation of support 
among families, but in no case shall the allocation result in a 
withholding for one of the support obligations not being implemented.
    (6) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State.
    (7) The State must have procedures for promptly terminating 
withholding:
    (i) In all cases, when there is no longer a current order for 
support and all arrearages have been satisfied; or,
    (ii) At State option, when the absent parent requests termination 
and withholding has not been terminated previously and subsequently 
initiated, and the absent parent meets the conditions for an alternative 
arrangement set forth under paragraph (b)(3) of this section.
    (8) The State must have procedures for promptly refunding to absent 
parents amounts which have been improperly withheld.
    (9) The State may extend its withholding to include withholding from 
forms of income other than wages.
    (10) Support orders issued or modified in IV-D cases must include a 
provision requiring the absent parent to keep the IV-D agency informed 
of the name and address of his or her current employer, whether the 
absent parent has access to health insurance coverage at reasonable cost 
and, if so, the health insurance policy information.
    (b) Immediate withholding on IV-D cases. (1) In the case of a 
support order being enforced under this part that is issued or modified 
on or after November 1, 1990, the wages of an absent parent shall be 
subject to withholding, regardless of whether support payments by such 
parent are in arrears, on the effective date of the order, except that 
such wages shall not be subject to withholding under this paragraph in 
any case where:
    (i) Either the absent or custodial parent demonstrates, and the 
court or administrative authority finds, that there is good cause not to 
require immediate withholding; or (ii) A written agreement is reached 
between the absent and custodial parent, and, at State option, the State 
in IV-D cases in which there is an assignment of support rights to the 
State, which provides for an alternative arrangement.
    (2) For the purposes of this paragraph, any finding that there is 
good cause not to require immediate withholding must be based on at 
least:
    (i) A written determination that, and explanation by the court or 
administrative authority of why, implementing immediate wage withholding 
would not be in the best interests of the child; and
    (ii) Proof of timely payment of previously ordered support in cases 
involving the modification of support orders.
    (3) For purposes of this paragraph, ``written agreement'' means a 
written alternative arrangement signed by both the custodial and absent 
parent, and, at State option, by the State in IV-D cases in which there 
is an assignment of support rights to the State, and reviewed and 
entered in the record by the court or administrative authority.
    (c) Initiated withholding in IV-D cases. In the case of wages not 
subject to immediate withholding under paragraph (b) of this section, 
including cases subject to a finding of good cause or to a written 
agreement:
    (1) The wages or the absent parent shall become subject to the 
withholding on the date on which the payments which the absent parent 
has failed to make under a support order are at least equal to the 
support payable for one month or, if earlier, and without regard to 
whether there is an arrearage, the earliest of:
    (i) The date on which the absent parent requests that withholding 
begin;
    (ii) The date on which the custodial parent requests that 
withholding begin, if the State determines, in accordance with such 
procedures and standards as it may establish, that the request should be 
approved; or
    (iii) Such earlier date as State law or procedure may provide.

[[Page 166]]

    (2) The State must send the advance notice required under paragraph 
(d) of this section to the absent parent within 15 calendar days of the 
appropriate date under paragraph (c)(1) of this section if the absent 
parent's address is known on that date, or, if the absent parent's 
address is not known on that date, within 15 calendar days of locating 
the absent parent.
    (3) The only basis for contesting a withholding under this paragraph 
is a mistake of fact, which for purposes of this paragraph means an 
error in the amount of current or overdue support or in the identity of 
the alleged absent parent.
    (d) Advance notice to the absent parent in cases of initiated 
withholding. (1) On the date specified in paragraph (c)(2) of this 
section, the State must send advance notice to the absent parent 
regarding the initiated withholding. The notice must inform the absent 
parent:
    (i) Of the amount of overdue support that is owed, if any, and the 
amount of wages that will be withheld;
    (ii) That the provision for withholding applies to any current or 
subsequent employer or period of employment;
    (iii) Of the procedures available for contesting the withholding and 
that the only basis for contesting the withholding is a mistake of fact;
    (iv) Of the period within which the absent parent must contact the 
State in order to contest the withholding and that failure to contact 
the State within the specified time limit will result in the State 
notifying the employer to begin withholding; and
    (v) Of the actions the State will take if the individual contests 
the withholding, including the procedures established under paragraph 
(e) of this section.
    (2)(i) The requirement for advance notice to the absent parent under 
paragraph (d)(1) of this section and for State procedures when the 
absent parent contests the withholding in response to the advance notice 
under paragraph (e) of this section do not apply in the case of any 
State which had a withholding system in effect on August 16, 1984 if the 
system provided on that date, and continues to provide, any other 
procedures as may be necessary to meet the procedural due process 
requirements of State law.
    (ii) Any State in which paragraph (d)(2)(i) of this section applies 
must meet all other requirements of this section and must send notice to 
the employer under paragraph (f) of this section within 15 calendar days 
of the appropriate date specified in paragraph (c)(1) of this section if 
the employer's address is known on that date, or, if the employer's 
address is not known on that date, within 15 calendar days of locating 
the employer's address.
    (e) State procedures when the absent parent contests initiated 
withholding in response to the advance notice. The State must establish 
procedures for use when an absent parent contests the withholding. 
Within 45 calendar days of sending advance notice to the absent parent 
under paragraph (d) of this section, the State must:
    (1) Provide the absent parent an opportunity to present his or her 
case to the State;
    (2) Determine if the withholding shall occur based on an evaluation 
of the facts, including the absent parent's statement of his or her 
case;
    (3) Notify the absent parent whether or not the withholding is to 
occur and, if it is to occur, include in the notice the time frames 
within which the withholding will begin and the information given to the 
employer in the notice required under paragraph (f) of this section; and
    (4) If withholding is to occur, send the notice required under 
paragraph (f) of this section.
    (f) Notice to the employer for immediate and initiated withholding. 
(1) To initiate withholding, the State must send the absent parent's 
employer a notice which includes the following:
    (i) The amount to be withheld from the absent parent's wages, and a 
statement that the amount actually withheld for support and other 
purposes, including the fee specified under paragraph (f)(1)(iii) of 
this section, may not be in excess of the maximum amounts permitted 
under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 
1673(b));
    (ii) That the employer must send the amount to the State (or to such 
other individual or entity as the State may

[[Page 167]]

direct) within 10 working days of the date the absent parent is paid, 
and must report to the State (or to such other individual or entity as 
the State may direct) the date on which the amount was withheld from the 
absent parent's wages;
    (iii) That, in addition to the amount withheld for support, the 
employer may deduct a fee established by the State for administrative 
costs incurred for each withholding, if the State permits a fee to be 
deducted;
    (iv) That the withholding is binding upon the employer until further 
notice by the State;
    (v) That the employer is subject to a fine to be determined under 
State law for discharging an absent parent from employment, refusing to 
employ, or taking disciplinary action against any absent parent because 
of the withholding;
    (vi) That, if the employer fails to withhold wages in accordance 
with the provisions of the notice, the employer is liable for the 
accumulated amount the employer should have withheld from the absent 
parent's wages;
    (vii) That the withholding under this section shall have priority 
over any other legal process under State law against the same wages;
    (viii) That the employer may combine withheld amounts from absent 
parents' wages in a single payment to each appropriate agency requesting 
withholding and separately identify the portion of the single payment 
which is attributable to each individual absent parent;
    (ix) That the employer must implement withholding no later than the 
first pay period that occurs after 14 working days following the date 
the notice was mailed; and
    (x) That the employer must notify the State promptly when the absent 
parent terminates employment and provide the absent parent's last known 
address and the name and address of the absent parent's new employer, if 
known.
    (2) In the case of an immediate wage withholding under paragraph (b) 
of this section, the State must issue the notice to the employer 
specified in paragraph (f)(1) of this section within 15 calendar days of 
the date the support order is entered if the employer's address is known 
on that date, or, if the address is unknown on that date, within 15 
calendar days of locating the employer's address.
    (3) In the case of initiated withholding, if the absent parent fails 
to contact the State to contest withholding within the period specified 
in the advance notice in accordance with the requirements of paragraph 
(d)(1)(iv) of this section, the State must send the notice to the 
employer required under paragraph (f)(1) of this section within 15 
calendar days of the end of the contact period if the employer's address 
is known on that date, or, if the address is unknown on that date, 
within 15 calendar days of locating the employer's address.
    (4) If the absent parent changes employment within the State when a 
withholding is in effect, the State must notify the absent parent's new 
employer, in accordance with the requirements of paragraph (f)(1) of 
this section, that the withholding is binding on the new employer.
    (g) Administration of withholding. (1) The State must designate a 
public agency to administer withholding in accordance with procedures 
specified by the State for keeping adequate records to document, track, 
and monitor support payments.
    (2)(i) The State may designate public or private entities to 
administer withholding on a State or local basis under the supervision 
of the State withholding agency if the entity or entities are publicly 
accountable and follow the procedures specified by the State; and (ii) 
the State may designate only one entity to administer withholding in 
each jurisdiction.
    (3) Effective October 1, 1997, the State must be capable of 
receiving withheld amounts and accounting information which are 
electronically transmitted by the employer to the State.
    (4) Amounts withheld must be distributed in accordance with section 
457 of the Act and Secs. 302.32, 302.51 and 302.52 of this chapter.
    (5) The State must reduce its IV-D expenditures by any interest 
earned by the State's designee on withheld amounts.

[[Page 168]]

    (h) Interstate withholding. (1) The State law must provide for 
procedures to extend the State's withholding system so that the system 
will include withholding from income or wages derived within the State 
in cases where the applicable support orders were issued in other 
States. A State may require registration of orders from other States for 
purposes of enforcement through withholding only if registration is for 
the sole purpose of obtaining jurisdiction for enforcement of the order; 
does not confer jurisdiction on the court or agency for any other 
purpose (such as modification of the underlying or original support 
order or resolution of custody or visitation disputes); and does not 
delay implementation of withholding beyond the timeframes established in 
paragraph (h)(5) of this section.
    (2) The State law must require employers to comply with a 
withholding notice issued by the State.
    (3) Within 20 calendar days of a determination that withholding is 
required in a particular case, and, if appropriate, receipt of any 
information necessary to carry out withholding, the initiating State 
must notify the IV-D agency of the State in which the absent parent is 
employed to implement interstate withholding. The notice must contain 
all information necessary to carry out the withholding, including the 
amount requested to be withheld, a copy of the support order and a 
statement of arrearages, if appropriate. If necessary, the State where 
the support order is entered must provide the information necessary to 
carry out the withholding within 30 calendar days of receipt of a 
request for information by the initiating State.
    (4) The State in which the absent parent is employed must implement 
withholding in accordance with paragraph (h)(5) of this section upon 
receipt of the notice required in paragraph (h)(3) of this section.
    (5) The State in which the absent parent is employed must:
    (i) Within 15 calendar days of location of the absent parent and his 
or her employer, send notice to the absent parent, if appropriate, in 
accordance with the requirements of paragraph (d) of this section;
    (ii) Provide the absent parent with an opportunity to contest the 
withholding, if appropriate, in accordance with paragraph (e) of this 
section;
    (iii) Send notice to the employer in accordance with the 
requirements of paragraph (f) of this section; and
    (iv) Notify the State in which the custodial parent is receiving 
services when the absent parent is no longer employed in the State and 
provide the name and address of the absent parent and new employer, if 
known.
    (6) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State in which the absent 
parent is employed.
    (7) Except with respect to when withholding must be implemented 
which is controlled by the State where the support order was entered, 
the law and procedures of the State in which the absent parent is 
employed shall apply.
    (i) Provision for withholding in all child support orders. Child 
support orders issued or modified in the State between October 1, 1985, 
and January 1, 1994, or modified on or after January 1, 1994, must have 
a provision for withholding of wages, in order to ensure that 
withholding as a means of support is available if arrearages occur 
without the necessity of filing an application for IV-D services. This 
requirement does not alter the requirement governing all IV-D cases in 
paragraph (a)(4) of this section that enforcement under the State plan 
must proceed without the need for a withholding provision in the order.

[57 FR 30682, July 10, 1992, as amended at 61 FR 67241, Dec. 20, 1996]



Sec. 303.101  Expedited processes.

    (a) Definition. Expedited processes means administrative or 
expedited judicial processes or both which increase effectiveness and 
meet processing times specified in paragraph (b)(2) of this section.
    (b) Basic requirement. (1) The State must have in effect and use, in 
interstate and intrastate cases, expedited processes as specified under 
this section to establish paternity and to establish and enforce support 
orders.
    (2) Under expedited processes:
    (i) In IV-D cases needing support order establishment, regardless of

[[Page 169]]

whether paternity has been established, action to establish support 
orders must be completed from the date of service of process to the time 
of disposition within the following timeframes: (A) 75 percent in 6 
months; and (B) 90 percent in 12 months.
    (ii) In IV-D cases where a support order has been established, 
actions to enforce the support order must be taken within the timeframes 
specified in Secs. 303.6(c)(2) and 303.100;
    (iii) For purposes of the timeframe at Sec. 303.101(b)(2)(i), in 
cases where the IV-D agency uses long-arm jurisdiction and disposition 
occurs within 12 months of service of process on the alleged father or 
noncustodial parent, the case may be counted as a success within the 6 
month tier of the timeframe, regardless of when disposition occurs in 
the 12 month period following service of process.
    (iv) Disposition, as used in paragraphs (b)(2)(i) and (iii) of this 
section, means the date on which a support order is officially 
established and/or recorded or the action is dismissed.
    (c) Safeguards. Under expedited processes:
    (1) Paternities and orders established by means other than full 
judicial process must have the same force and effect under State law as 
paternities and orders established by full judicial process within the 
State;
    (2) The due process rights of the parties involved must be 
protected;
    (3) The parties must be provided a copy of the voluntary 
acknowledgment of paternity, paternity determination, and/or support 
order;
    (4) There must be written procedures for ensuring the qualification 
of presiding officers;
    (5) Recommendations of presiding officers may be ratified by a 
judge; and
    (6) Action taken may be reviewed under the State's generally 
applicable judicial procedures.
    (d) Functions. The functions performed by presiding officers under 
expedited processes must include at minimum:
    (1) Taking testimony and establishing a record;
    (2) Evaluating evidence and making recommendations or decisions to 
establish paternity and to establish and enforce orders;
    (3) Accepting voluntary acknowledgment of paternity or support 
liability and stipulated agreements setting the amount of support to be 
paid;
    (4) Entering default orders upon a showing that process has been 
served on the defendant in accordance with State law, that the defendant 
failed to respond to service in accordance with State procedures, and 
any additional showing required by State law; and
    (5) Ordering genetic tests in contested paternity cases in 
accordance with Sec. 303.5(d)(1).
    (e) Exemption for political subdivisions. A State may request an 
exemption from any of the requirements of this section for a political 
subdivision on the basis of the effectiveness and timeliness of 
paternity establishment, support order issuance or enforcement within 
the political subdivision in accordance with the provisions of 
Sec. 302.70(d) of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19655, May 9, 1985, as amended at 50 FR 23958, June 7, 1985; 59 
FR 66251, Dec. 23, 1994]



Sec. 303.102  Collection of overdue support by State income tax refund offset.

    (a) Overdue support qualifying for offset. Overdue support qualifies 
for State income tax refund offset if:
    (1) There has been an assignment of the support obligation under 
Sec. 232.11 of this title or section 471(a)(17) of the Act or the IV-D 
agency is providing services under Sec. 302.33 of this chapter, and
    (2) The State does not determine, using guidelines it must develop 
which are generally available to the public, that the case is 
inappropriate for application of this procedure.
    (b) Accuracy of amounts referred for offset. The IV-D agency must 
establish procedures to ensure that:
    (1) Amounts referred for offset have been verified and are accurate; 
and
    (2) The appropriate State office or agency is notified of any 
significant reductions in (including an elimination of) an amount 
referred for collection by State income tax refund offset.

[[Page 170]]

    (c) Notice to custodial parent. The IV-D agency must inform 
individuals receiving services under Sec. 302.33 of this chapter, in 
advance:
    (1) That, for cases in which medical support rights have been 
assigned under 42 CFR 433.146, and amounts are collected which represent 
specific dollar amounts designated in the support order for medical 
purposes, amounts offset will be distributed under Sec. 302.51(e) of 
this chapter; and
    (2) If amounts offset will be applied first to satisfy any past-due 
support which has been assigned to the State under Sec. 232.11 of this 
title or section 471(a)(17) of the Act.
    (d) Advance notice to absent parent. The State must send a written 
advance notice to inform the absent parent of the referral for State 
income tax refund offset and of the opportunity to contest the referral.
    (e) Procedures for contesting offset and for reimbursing excess 
amounts offset. (1) The State must establish procedures, which are in 
full compliance with the State's procedural due process requirements, 
for an absent parent to use to contest the referral of overdue support 
for State income tax refund offset.
    (2) If the offset amount is found to be in error or to exceed the 
amount of overdue support, the State IV-D agency must take steps to 
refund the excess amount in accordance with procedures that include a 
mechanism for promptly reimbursing the absent parent.
    (3) The State must establish procedures for ensuring that in the 
event of a joint return, the absent parent's spouse can apply for a 
share of the refund, if appropriate, in accordance with State law.
    (f) Fee for certain cases. The State IV-D agency may charge an 
individual who is receiving services under Sec. 302.33(a)(1) (i) or 
(iii) of this chapter a reasonable fee to cover the cost of collecting 
past-due support using State tax refund offset. The State must inform 
the individual in advance of the amount of any fee charged.
    (g) Distribution of collections. (1) A State must distribute 
collections received as a result of State income tax refund offset: (i) 
For an AFDC case, under Sec. 302.51 (b) (4) and (5) and (e) of this 
chapter;
    (ii) For a foster care maintenance case, under Sec. 302.52(b) (3) 
and (4) of this chapter; and
    (iii) For a non-AFDC case, except as specified in paragraph 
(g)(1)(iv) of this section, by paying offset amounts to the family first 
or using them first to reimburse the State, depending on the State's 
method for distributing arrearage collections in non-AFDC cases.
    (iv) For cases in which medical support rights have been assigned 
under 42 CFR 433.146, and amounts are collected which represent specific 
dollar amounts designated in the support order for medical purposes, 
under Sec. 302.51(e) of this chapter.
    (2) If the amount collected is in excess of the amounts required to 
be distributed under paragraph (g)(1) of this section, the IV-D agency 
must repay the excess to the absent parent whose State income tax refund 
was offset within a reasonable period in accordance with State law.
    (3) The State must credit amounts offset on individual payment 
records.
    (h) Information to the IV-D agency. The State agency responsible for 
processing the State tax refund offset must notify the State IV-D agency 
of the absent parent's home address and social security number or 
numbers. The State IV-D agency must provide this information to any 
other State involved in enforcing the support order.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19655, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 
1991]



Sec. 303.103  Procedures for the imposition of liens against real and personal property.

    (a) The State shall have in effect and use procedures which require 
that a lien will be imposed against the real and personal property of an 
absent parent who owes overdue support and who resides or owns property 
in the State.
    (b) The State must develop guidelines which are generally available 
to the public to determine whether the

[[Page 171]]

case is inappropriate for application of this procedure.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19656, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 303.104  Procedures for posting security, bond or guarantee to secure payment of overdue support.

    (a) The State shall have in effect and use procedures which require 
that absent parents post security, bond or give some other guarantee to 
secure payment of overdue support.
    (b) The State must provide advance notice to the absent parent 
regarding the delinquency of the support payment and the requirement of 
posting security, bond or guarantee, and inform the absent parent of his 
or her rights and the methods available for contesting the impending 
action, in full compliance with the State's procedural due process 
requirements.
    (c) The State must develop guidelines which are generally available 
to the public to determine whether the case is inappropriate for 
application of this procedure.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19656, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec. 303.105  Procedures for making information available to consumer reporting agencies.

    (a) Consumer reporting agency means any person which, for monetary 
fees, dues, or on a cooperative nonprofit basis, regularly engages in 
whole or in part in the practice of assembling or evaluating consumer 
credit information or other information on consumers for the purpose of 
furnishing consumer reports to third parties, and which uses any means 
or facility of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
    (b) For cases in which the amount overdue support exceeds $1,000, 
the IV-D agency must have in effect procedures to make information 
available to consumer reporting agencies upon their request regarding 
the amount of overdue support owed by an absent parent. The procedures 
must include use of guidelines that are generally available to the 
public to determine whether application of this procedure is 
inappropriate in a particular case. In cases in which the overdue 
support is less than $1,000, these procedures are at the option of the 
State.
    (c) The State IV-D agency may charge the agency a fee not to exceed 
the actual cost to the State of providing the information under 
paragraph (b) of this section.
    (d) The IV-D agency must provide advance notice to the absent parent 
who owes the support concerning the proposed release of the information 
to the consumer reporting agency and must inform the absent parent of 
the methods available for contesting the accuracy of the information.
    (e) The IV-D agency must comply with all of the procedural due 
process requirements of State law before releasing the information.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19656, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986]



Sec. 303.106  Procedures to prohibit retroactive modification of child support arrearages.

    (a) The State shall have in effect and use procedures which require 
that any payment or installment of support under any child support order 
is, on and after the date it is due:
    (1) A judgment by operation of law, with the full force, effect, and 
attributes of a judgment of the State, including the ability to be 
enforced;
    (2) Entitled as a judgment to full faith and credit in such State 
and in any other State; and
    (3) Not subject to retroactive modification by such State or by any 
other State except as provided in paragraph (b) of this section.
    (b) The procedures referred to in paragraph (a)(3) of this section 
may permit modification with respect to any period during which there is 
pending a petition for modification, but only from the date that notice 
of such petition has been given, either directly or through the 
appropriate agent, to

[[Page 172]]

the obligee or (where the obligee is the petitioner) to the obligor.

[54 FR 15764, Apr. 19, 1989]



Sec. 303.107  Requirements for cooperative arrangements.

    The State must ensure that all cooperative arrangements:
    (a) Contain a clear description of the specific duties, functions 
and responsibilities of each party;
    (b) Specify clear and definite standards of performance which meet 
Federal requirements;
    (c) Specify that the parties will comply with title IV-D of the Act, 
implementing Federal regulations and any other applicable Federal 
regulations and requirements;
    (d) Specify the financial arrangements including budget estimates, 
covered expenditures, methods of determining costs, procedures for 
billing the IV-D agency, and any relevant Federal and State 
reimbursement requirements and limitations;
    (e) Specify the kind of records that must be maintained and the 
appropriate Federal, State and local reporting and safeguarding 
requirements; and
    (f) Specify the dates on which the arrangement begins and ends, any 
conditions for revision or renewal, and the circumstances under which 
the arrangement may be terminated.

[54 FR 30223, July 19, 1989]



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

    (a) What definitions apply to quarterly wage and unemployment 
compensation claims reporting? When used in this section:
    (1) Reporting period means time elapsed during a calendar quarter, 
e.g. January-March, April-June, July-September, October-December.
    (2) Wage information means:
    (i) The name of the employee;
    (ii) The social security number of the employee;
    (iii) The aggregate wages of the employee during the reporting 
period; and
    (iv) The name, address (and optionally, any second address for wage 
withholding purposes), and Federal employer identification number of an 
employer reporting wages.
    (3) Unemployment compensation or claim information means:
    (i) Whether an individual is receiving, has received or has applied 
for unemployment compensation;
    (ii) The individual's name and current (or most recent) home 
address;
    (iii) The individual's social security number; and
    (iv) The aggregate gross amount of compensation the claimant 
received during the reporting quarter.
    (b) What data must be transmitted to the National Directory of New 
Hires?
    The State shall disclose quarterly, to the National Directory of New 
Hires, wage and claim information as defined in paragraph (a) of this 
section that is collected pursuant to a State's unemployment 
compensation program referenced in Title III of the Act or pursuant to 
section 1137 of the Act.
    (c) What time frames 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 fourth month following the reporting period. 
The State shall report claim information for the reporting period no 
later than the end of the first month following the reporting period.
    (d) What reporting formats will be used for reporting data?
    The State must use standardized formats established by the Secretary 
of Health and Human Services for reporting wage and claim information.

[63 FR 36190, Jul. 2, 1998]



PART 304--FEDERAL FINANCIAL PARTICIPATION--Table of Contents




Sec.
304.10  General administrative requirements.
304.11  Effect of State rules.
304.12  Incentive payments.
304.15  Cost allocation.
304.20  Availability and rate of Federal financial participation.
304.21  Federal financial participation in the costs of cooperative 
          arrangements with courts and law enforcement officials.
304.22  Federal financial participation in purchased support enforcement 
          services.
304.23  Expenditures for which Federal financial participation is not 
          available.

[[Page 173]]

304.24  Equipment--Federal financial participation.
304.25  Treatment of expenditures; due date.
304.26  Determination of Federal share of collections.
304.27  [Reserved]
304.29  Applicability of other regulations.
304.30  Public sources of State's share.
304.40  Repayment of Federal funds by installments.
304.50  Treatment of program income.
304.95  [Reserved]

    Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396a(a)(25), 
1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).

    Source: 40 FR 27166, June 26, 1975, unless otherwise noted.



Sec. 304.10  General administrative requirements.

    As a condition for Federal financial participation, the provisions 
of part 74 of this title (with the exception of 45 CFR 74.23, Cost 
Sharing or Matching and 45 CFR 74.52, Financial Reporting) establishing 
uniform administrative requirements and cost principles shall apply to 
all grants made to States under this part.

[40 FR 27166, June 26, 1975, as amended at 61 FR 67241, Dec. 20, 1996]



Sec. 304.11  Effect of State rules.

    Subject to the provisions and limitations of title IV-D of the Act 
and chapter III, Federal financial participation will be available in 
expenditures made under the State plan (including the administration 
thereof) in accordance with applicable State laws, rules, regulations, 
and standards governing expenditures by State and local child support 
enforcement agencies.



Sec. 304.12  Incentive payments.

    (a) Definitions. For the purposes of this section: AFDC collections 
means support collections satisfying an assigned support obligation 
under Sec. 232.11 of this title or section 471(a)(17) of the Act, 
including collections treated in accordance with paragraph (b)(4)(ii) of 
this section.
    Non-AFDC collections means support collections, on behalf of 
individuals receiving services under this title, satisfying a support 
obligation which has not been assigned under Sec. 232.11 of this title 
or section 471(a)(17) of the Act, including collections treated in 
accordance with paragraph (b)(4)(ii) of this section .
    Total IV-D administrative costs means total IV-D administrative 
expenditures claimed by a State in a specified fiscal year adjusted in 
accordance with paragraphs (b)(4)(iii), (b)(4)(iv) and (b)(4)(v) of this 
section.
    (b) Incentive payments to States. Effective October 1, 1985, the 
Office shall compute incentive payments for States for a fiscal year in 
recognition of AFDC collections and of non-AFDC collections.
    (1) A portion of a State's incentive payment shall be computed as a 
percentage of the State's AFDC collections, and a portion of the 
incentive payment shall be computed as a percentage of its non-AFDC 
collections. The percentages are determined separately for AFDC and non-
AFDC portions of the incentive. The percentages are based on the ratio 
of the State's AFDC collections to the State's total administrative 
costs and the State's non-AFDC collections to the State's total 
administrative costs in accordance with the following schedule:

------------------------------------------------------------------------
                                                              Percent of
                                                              collection
  Ratio of collections to total IV-D administrative costs     paid as an
                                                              incentive
------------------------------------------------------------------------
Less than 1.4..............................................          6.0
At least 1.4...............................................          6.5
At least 1.6...............................................          7.0
At least 1.8...............................................          7.5
At least 2.0...............................................          8.0
At least 2.2...............................................          8.5
At least 2.4...............................................          9.0
At least 2.6...............................................          9.5
At least 2.8...............................................         10.0
------------------------------------------------------------------------

    (2) The ratios of the State's AFDC and non-AFDC collections to total 
IV-D administrative costs will be truncated at one decimal place.
    (3) The portion of the incentive payment paid to a State for a 
fiscal year in recognition of its non-AFDC collections is limited to the 
percentage of the portion of the incentive payment paid for that fiscal 
year in recognition of its AFDC collections, as follows:
    (i) 100 percent in fiscal years 1986 and 1987;
    (ii) 105 percent in fiscal year 1988;
    (iii) 110 percent in fiscal year 1989; and
    (iv) 115 percent in fiscal year 1990 and thereafter.

[[Page 174]]

    (4) In calculating the amount of incentive payments, the following 
conditions apply:
    (i) Only those AFDC and non-AFDC collections distributed and 
expenditures claimed by the State in the fiscal year shall be used to 
determine the incentive payment payable for that fiscal year;
    (ii) Support collected by one State on behalf of individuals 
receiving IV-D services in another State shall be treated as having been 
collected in full by each State;
    (iii) Fees paid by individuals, recovered costs, and program income 
such as interest earned on collections shall be deducted from total IV-D 
administrative costs;
    (iv) At the option of the State, laboratory costs incurred in 
determining paternity may be excluded from total IV-D administrative 
costs; and
    (v) Effective January 1, 1990, amounts expended by the State in 
carrying out a special project under section 455(e) of the Act shall not 
be included in the State's total IV-D administrative costs.
    (vi) Costs of demonstration projects for evaluating model procedures 
for reviewing child support awards under section 103(e) of Public Law 
100-485 shall not be included in the State's total IV-D administrative 
costs.
    (c) Payment of incentives. (1) The Office will estimate the total 
incentive payment that each State will receive for the upcoming fiscal 
year.
    (2) Each State will include one-quarter of the estimated total 
payment in its quarterly collection report which will reduce the amount 
that would otherwise be paid to the Federal government to reimburse its 
share of assistance payments under Secs. 302.51 and 302.52 of this 
chapter.
    (3) Following the end of a fiscal year, the Office will calculate 
the actual incentive payment the State should have received based on the 
reports submitted for that fiscal year. If adjustments to the estimate 
made under paragraph (c)(1) of this section are necessary, the State's 
IV-A grant award will be reduced or increased because of over- or under-
estimates for prior quarters and for other adjustments.
    (4) For FY 1985, the Office will calculate a State's incentive 
payment based on AFDC collections retained by the State and paid to the 
family under Sec. 302.51(b)(1) of this chapter.
    (5) For FY 1986 and 1987, a State will receive the higher of the 
amount due it under the incentive system and Federal matching rate in 
effect as of FY 1986 or 80 percent of what it would have received under 
the incentive system and Federal matching rate in effect during FY 1985.

[54 FR 32312, Aug. 4, 1989, as amended at 56 FR 8005, Feb. 26, 1991]



Sec. 304.15  Cost allocation.

    A State agency in support of its claims under title IV-D of the 
Social Security Act must have an approved cost allocation plan on file 
with the Department in accordance with the requirements contained in 
Subpart E of 45 CFR part 95. Subpart E also sets forth the effect on FFP 
if the requirements contained in that subpart are not met.

[47 FR 17509, Apr. 23, 1982]



Sec. 304.20  Availability and rate of Federal financial participation.

    (a) Federal financial participation at the applicable matching rate 
is available for:
    (1) Necessary expenditures under the State title IV-D plan for the 
support enforcement services and activities specified in this section 
and Sec. 304.21 provided to individuals from whom an assignment of 
support rights as defined in Sec. 301.1 of this chapter has been 
obtained;
    (2) Parent locator services for individuals eligible pursuant to 
Sec. 302.33 of this title;
    (3) Paternity and support services under the State plan for 
individuals eligible pursuant to Sec. 302.33 of this chapter.
    (b) Services and activities for which Federal financial 
participation will be available shall be those made pursuant to the 
approved title IV-D State plan which are determined by the Secretary to 
be necessary expenditures properly attributable to the Child Support 
Enforcement program, except any expenditure incurred in providing 
location

[[Page 175]]

services to individuals listed in Sec. 302.35(c)(4) of this title, 
including the following:
    (1) The administration of the State Child Support Enforcement 
program, including but not limited to the following:
    (i) The establishment and administration of the State plan;
    (ii) Monitoring the progress of program development and operations 
and evaluating the quality, efficiency, effectiveness and scope of 
support enforcement services available in each political subdivision;
    (iii) The establishment of all necessary agreements with other State 
and local agencies or private providers for the provision of services in 
support of support enforcement in accordance with the Procurement 
Standards found in 45 CFR 74.40 et seq. These agreements may include:
    (A) Necessary administrative agreements for support services;
    (B) Utilization of State and local information resources;
    (C) Cooperation with courts and law enforcement officials pursuant 
to Sec. 302.34 of this chapter;
    (iv) Securing compliance with the requirements of the State plan in 
operations under any agreements;
    (v) The development and maintenance of systems for fiscal and 
program records and reports required to be made to the Office based on 
these records;
    (vi) The development of a cost allocation system pursuant to 
Sec. 304.15 of this chapter;
    (vii) The financial control of the State plan including the 
administration of Federal grants pursuant to Sec. 301.15 of this 
chapter;
    (viii) The establishment of agreements with agencies administering 
the State's title IV-A and IV-E plans in order to establish criteria 
for:
    (A) Referral of cases to the IV-D agency;
    (B) Reporting on a timely basis information necessary to the 
determination and redetermination of eligibility and amount of 
assistance payments;
    (C) Determining if individuals receiving assistance under the IV-A 
plan are cooperating adequately as required in Sec. 232.12 of this 
title;
    (D) The procedures to be used to transfer collections from the IV-D 
agency to the IV-A or IV-E agency before or after the distribution 
described in Sec. 302.51 or Sec. 302.52, respectively, of this chapter.
    (ix) The establishment of agreements with Medicaid agencies 
necessary to carry out required IV-D activities and to establish 
criteria for:
    (A) Referring cases to the IV-D agency;
    (B) Reporting on a timely basis information necessary for the 
determination and redetermination of eligibility for Medicaid;
    (C) Determining if individuals receiving Medicaid are cooperating 
adequately;
    (D) Transferring collections from the IV-D agency to the Medicaid 
agency in accordance with Sec. 302.51(e) of this chapter.
    (2) The establishment of paternity including:
    (i) Reasonable attempts to determine the identity of the child's 
father such as:
    (A) Investigation;
    (B) The development of evidence including the use of the polygraph 
and genetic tests;
    (C) Pre-trial discovery;
    (ii) Court or other actions to establish paternity pursuant to 
procedures established under State statutes or regulations having the 
effect of law;
    (iii) Identifying competent laboratories that perform genetic tests 
as described in Sec. 303.5(c) of this chapter and making a list of those 
laboratories available;
    (iv) Referral of cases to the IV-D agency of another State to 
establish paternity when appropriate;
    (v) Cooperation with other States in determining paternity;
    (vi) Payments up to $20 to birthing hospitals and other entities 
that provide prenatal or birthing services for each voluntary 
acknowledgment obtained pursuant to an agreement with the IV-D agency;
    (vii) Developing and providing to birthing hospitals and other 
entities that provide prenatal or birthing services written and 
audiovisual materials about paternity establishment and

[[Page 176]]

forms necessary to voluntarily acknowledge paternity; and
    (viii) Reasonable and essential short-term training regarding 
voluntary acknowledgment of paternity associated with a State's 
hospital-based program as defined by Sec. 303.5(g)(2).
    (3) The establishment and enforcement of support obligations 
including:
    (i) Investigation, the development of evidence and when appropriate, 
bringing court actions;
    (ii) Determination of the amount of the child support obligation 
including developing the information needed for a financial assessment;
    (iii) Referral of cases to the IV-D agency of another State to 
establish a child support obligation when appropriate;
    (iv) Enforcement of a support obligation including those activities 
associated with collections and the enforcement of court orders, such as 
contempt citations, issuance of warrants, investigation, wage 
withholding and processing, and the obtaining and enforcing of court-
ordered support through civil or criminal proceedings either in the 
State that granted the order or in another State;
    (v) Investigation and prosecution of fraud related to child and 
spousal support.
    (4) The collection and distribution of support payments including:
    (i) An effective system for making collections of established 
support obligations and identifying delinquent cases and attempting to 
collect support from these cases;
    (ii) Referral of cases to the IV-D agency of another State for 
collection when appropriate;
    (iii) Making collections for another State;
    (iv) The distribution of funds as required by this chapter;
    (v) Making the IV-A agency aware of the amounts collected and 
distributed to the family for the purposes of determining eligibility 
for, and amount of, assistance under the State title IV-A plan;
    (vi) Making the Medicaid agency aware of amounts collected and 
distributed to the family for the purposes of determining eligibility 
for assistance under the State XIX plan.
    (5) The establishment and operation of the State parent locator 
service including:
    (i) Utilization of appropriate State and local locate sources to 
locate absent parents;
    (ii) Utilization of the Federal Parent Locator Service;
    (iii) Collection of the fee pursuant to Sec. 303.70(e) of this 
chapter;
    (iv) Referral of requests for location of an absent parent to the 
IV-D agency of another State;
    (v) Cooperation with another State in locating an absent parent;
    (6) Activities related to requests for certification of collection 
of support delinquencies by the Secretary of the Treasury pursuant to 
Sec. 303.71 of this chapter.
    (7) Activities related to requests for utilization of the United 
States district courts pursuant to Sec. 303.73 of this chapter.
    (8) Establishing and maintaining case records as required by 
Sec. 303.2 of this chapter.
    (9) The operation of systems that meet the conditions of 
Sec. 307.35(a) of this chapter; and
    (10) Systems approved in accordance with 45 CFR part 95, subpart F. 
(See Sec. 307.35(b) of this chapter.)
    (11) Required medical support activities as specified in 
Secs. 303.30 and 303.31 of this chapter.
    (c) Until September 30, 1997, Federal financial participation is 
available at the 90 percent rate for the planning design, development, 
installation and enhancement of computerized support enforcement systems 
that meet the requirements in Sec. 307.30(a) of this chapter.
    (d) Federal financial participation at the 90 percent rate is 
available for laboratory costs incurred in determining paternity on or 
after October 1, 1988, including the costs of obtaining and transporting 
blood and other samples of genetic material, repeated testing when 
necessary, analysis of test results, and the costs for expert witnesses 
in a paternity determination

[[Page 177]]

proceeding, but only if the expert witness costs are included as part of 
the genetic testing contract.

[40 FR 27166, June 26, 1975, as amended at 46 FR 1276, Jan. 6, 1981; 47 
FR 24719, June 8, 1982; 47 FR 57282, Dec. 23, 1982; 49 FR 33263, Aug. 
22, 1984; 50 FR 19656, May 9, 1985; 50 FR 41894, Oct. 16, 1985; 54 FR 
32313, Aug. 4, 1989; 56 FR 8005, Feb. 26, 1991; 56 FR 22355, May 15, 
1991; 57 FR 47002, Oct. 14, 1992; 59 FR 66251, Dec. 23, 1994; 61 FR 
67241, Dec. 20, 1996; 63 FR 44814, Aug. 21, 1998]



Sec. 304.21  Federal financial participation in the costs of cooperative arrangements with courts and law enforcement officials.

    (a) General. Subject to the conditions and limitations specified in 
this part, Federal financial participation (FFP) at the applicable 
matching rate is available in the costs of cooperative agreements with 
appropriate courts and law enforcement officials in accordance with the 
requirements of Sec. 302.34 of this chapter. Law enforcement officials 
means district attorneys, attorneys general, and similar public 
attorneys and prosecutors and their staff. Then performed under written 
agreement, costs of the following activities are subject to 
reimbursement:
    (1) The activities, including administration of such activities, 
specified in Sec. 304.20(b)(2) through (8) of this chapter;
    (2) Reasonable and essential short term training of court and law 
enforcement staff assigned on a full or part time basis to support 
enforcement functions under the cooperative agreement.
    (b) Limitations. Federal financial participation is not available 
in:
    (1) Service of process and court filing fees unless the court or law 
enforcement agency would normally be required to pay the cost of such 
fees;
    (2) Costs of compensation (salary and fringe benefits) of judges;
    (3) Costs of travel and training related to the judicial 
determination process incurred by judges;
    (4) Office-related costs, such as space, equipment, furnishings and 
supplies, incurred by judges;
    (5) Compensation (salary and fringe benefits), travel and training, 
and office-related costs incurred by administrative and support staffs 
of judges;
    (6) Costs of cooperative arrangements that do not meet the 
requirements of Sec. 303.107 of this chapter.
    (c) Methods of determining costs. The State IV-D agency has 
discretion with respect to the method of calculating eligible 
expenditures by courts and law enforcement officials under cooperative 
agreements. However, any method used must account for specific costs 
incurred on behalf of cases receiving services under the IV-D State 
plan.
    (d) When agreements take effect. FFP is available in IV-D costs 
incurred as of the first day of the calendar quarter in which a 
cooperative agreement or amendment is signed by parties sufficient to 
create a contractual arrangement under State law.

[47 FR 53017, Nov. 24, 1982, as amended at 47 FR 57284, Dec. 23, 1982; 
50 FR 19656, May 9, 1985; 54 FR 30223, July 19, 1989]



Sec. 304.22  Federal financial participation in purchased support enforcement services.

    Federal financial participation is available at the applicable 
matching rate for the purchase of support enforcement services as 
provided for in the State plan to the extent that payment for such 
purchased services is in accordance with rates of payment established by 
the State which do not exceed the amounts reasonable and necessary to 
assure quality of such service and in the case of such services 
purchased from other public agencies, the cost reasonably assignable to 
such services. The determination that the amounts are reasonable and 
necessary and that the costs are reasonably assignable must be fully 
documented in the IV-D agency records. Support enforcement services 
which may be purchased with Federal financial participation are those 
for which Federal financial participation is otherwise available under 
Sec. 304.20 and which are included under the approved State plan.

[40 FR 27166, June 26, 1975, as amended at 47 FR 57282, Dec. 23, 1982; 
50 FR 19656, May 9, 1985]

[[Page 178]]



Sec. 304.23  Expenditures for which Federal financial participation is not available.

    Federal financial participation at the applicable matching rate is 
not available for:
    (a) Activities related to administering title I, IV-A, X, XIV, XVI, 
XIX or XX of the Act.
    (b) Purchased support enforcement services which are not secured in 
accordance with Sec. 304.22.
    (c) Construction and major renovations.
    (d) Education and training programs and educational services except 
direct cost of short term training provided to IV-D agency staff or 
pursuant to Secs. 304.20(b)(2)(viii) and 304.21.
    (e) Any expenditures which have been reimbursed by fees collected as 
required by this chapter.
    (f) Any costs of caseworkers as described in Sec. 303.20(e) of this 
part.
    (g) Medical support enforcement activities performed under 
cooperative agreements in accordance with Secs. 303.30 and 303.31 of 
this chapter.
    (h) Any expenditures made to carry out an agreement under 
Sec. 303.15 of this chapter.
    (i) Any expenditures for jailing of parents in child support 
enforcement cases.
    (j) The costs of counsel for indigent defendants in IV-D actions.
    (k) The costs of guardians ad litem in IV-D actions.

[46 FR 54559, Nov. 3, 1981, as amended at 47 FR 57282, Dec. 23, 1982; 50 
FR 41894, Oct. 16, 1985; 52 FR 32132, Aug. 26, 1987; 54 FR 32313, Aug. 
4, 1989; 57 FR 54525, Nov. 19, 1992; 59 FR 66251, Dec. 23, 1994; 61 FR 
67241, Dec. 20, 1996]



Sec. 304.24  Equipment--Federal financial participation.

    Claims for Federal financial participation in the cost of equipment 
under the Child Support Enforcement Program are to be determined in 
accordance with subpart G of 45 CFR part 95. Requirements concerning the 
management and disposition of equipment under the Child Support 
Enforcement Program are also prescribed in subpart G of 45 CFR part 95.

[47 FR 41576, Sept. 21, 1982]



Sec. 304.25  Treatment of expenditures; due date.

    (a) Treatment of expenditures. Expenditures are considered to be 
made on the date on which the cash disbursements occur or the date to 
which allocated in accordance with part 74 of this title. In the case of 
local administration, the date of disbursements by the local agency 
governs. In the case of purchase of services from another public agency, 
the date of disbursements by such other public agency governs. Different 
rules may be applied with respect to a State, either generally or for 
particular classes of expenditures only upon justification by the State 
to the Office of Child Support Enforcement and approval by the Office.
    (b) Due date for expenditure statements. The due date for the 
submission of the quarterly statement of expenditures under Sec. 301.15 
of this chapter is 30 days after the end of the quarter.

[42 FR 26427, May 24, 1977]



Sec. 304.26  Determination of Federal share of collections.

    (a) From the amounts of support collected by the State and retained 
as reimbursement for AFDC payments, the State shall reimburse the 
Federal government to the extent of its participation in the financing 
of the AFDC payment. In computing the Federal share of support 
collections, the State has two options:
    (1) The State may use the AFDC FFP rate applicable to the period in 
which the assistance payment was made as follows:
    (i) If the State uses the Federal medical assistance percentage 
under section 1118 of the Act, this percentage shall be used in 
computing the Federal share of collections.
    (ii) If the State uses the computations in section 403(a) of the 
Act, the Federal share of collections shall be computed using the rate 
of Federal participation in the financing of:
    (A) The individual assistance payment; or
    (B) All of the assistance payments in the same month; or
    (2) The State may use the current rate of AFDC FFP as follows:

[[Page 179]]

    (i) If the State uses the Federal medical assistance percentage 
under section 1118 of the Act, the percentage applicable at the time of 
distribution shall be used in computing the Federal share of 
collections.
    (ii) If the State uses the computations in section 403(a) of the 
Act, the average rate of Federal participation in the financing of 
assistance payments during the immediately preceding quarter shall be 
used in computing the Federal share of collections.
    (b) If an incentive payment is made to a jurisdiction under 
Sec. 304.12 of this chapter for the enforcement and collection of 
support obligations, the payment shall be made from the Federal share of 
collections computed in paragraph (a) of this section.

[46 FR 6949, Jan. 22, 1981, as amended at 47 FR 37889, Aug. 27, 1982; 47 
FR 57282, Dec. 23, 1982; 54 FR 32313, Aug. 4, 1989]



Sec. 304.27  [Reserved]



Sec. 304.29  Applicability of other regulations.

    Sections 201.14 and 201.15 of chapter II of title 45 of the Code of 
Federal Regulations, which establish procedures for disallowance, 
deferral and reconsideration of claims for expenditures submitted by the 
States, shall apply to all expenditures claimed for FFP under title IV-D 
of the Act. For purposes of applying those provisions under title IV-D, 
Service shall read Office which refers to the Office of Child Support 
Enforcement; Administrator shall read Director which refers to the 
Director, Office of Child Support Enforcement; Deputy Administrator 
shall read Deputy Director which refers to the Deputy Director, Office 
of Child Support Enforcement; Regional Commissioner shall read Regional 
Representative which refers to the Regional Representatives of the 
Office of Child Support Enforcement; and State shall refer to the State 
IV-D agency.

[42 FR 3843, Jan. 21, 1977]



Sec. 304.30  Public sources of State's share.

    (a) Public funds, other than those derived from private resources, 
used by the IV-D agency for its child support enforcement program may be 
considered as the State's share in claiming Federal reimbursement where 
such funds are:
    (1) Appropriated directly to the IV-D agency; or
    (2) Funds of another public agency which are:
    (i) Transferred to the IV-D agency and are under its administrative 
control; or
    (ii) Certified by the contributing public agency as representing 
expenditures under the State's IV-D plan, subject to the limitations of 
this part.
    (b) Public funds used by the IV-D agency for its child support 
enforcement program may not be considered as the State's share in 
claiming Federal reimbursement where such funds are:
    (1) Federal funds, unless authorized by Federal law to be used to 
match other Federal funds;
    (2) Used to match other Federal funds.

[41 FR 7105, Feb. 17, 1976]



Sec. 304.40  Repayment of Federal funds by installments.

    (a) Basic conditions. When a State has been reimbursed Federal funds 
for expenditures claimed under title IV-D, which is later determined to 
be unallowable for Federal financial participation, the State may make 
repayment of such Federal funds in installments provided:
    (1) The amount of the repayment exceeds 2\1/2\ percent of the 
estimated annual State share of expenditures for the IV-D program as set 
forth in paragraph (b) of this section; and
    (2) The State has notified the OCSE Regional Representative in 
writing of its intent to make installment repayments. Such notice must 
be given prior to the time repayment of the total was otherwise due.
    (b) Criteria governing installment repayments. (1) The number of 
quarters over which the repayment of the total unallowable expenditures 
will be made will be determined by the percentage the total of such 
repayment is of the estimated State share of the annual expenditures for 
the IV-D program as follows:

[[Page 180]]



------------------------------------------------------------------------
                                                               Number of
   Total repayment amount as percentage of State share of      quarters
          annual expenditures for the IV-D program              to make
                                                               repayment
------------------------------------------------------------------------
2.5 percent or less.........................................           1
Greater than 2.5, but not greater than 5....................           2
Greater than 5, but not greater than 7.5....................           3
Greater than 7.5, but not greater than 10...................           4
Greater than 10, but not greater than 15....................           5
Greater than 15, but not greater than 20....................           6
Greater than 20, but not greater than 25....................           7
Greater than 25, but not greater than 30....................           8
Greater than 30, but not greater than 47.5..................           9
Greater than 47.5, but not greater than 65..................          10
Greater than 65, but not greater than 82.5..................          11
Greater than 82.5, but not greater than 100.................          12
------------------------------------------------------------------------


The quarterly repayment amounts for each of the quarters in the 
repayment schedule shall not be less than the following percentages of 
estimated State share of the annual expenditures for the program against 
which the recovery is made.

------------------------------------------------------------------------
                                                              Repayment
                                                             installment
                                                              may not be
             For each of the following quarters               less than
                                                                these
                                                             percentages
------------------------------------------------------------------------
1 to 4.....................................................          2.5
5 to 8.....................................................          5.0
9 to 12....................................................         17.5
------------------------------------------------------------------------


If the State chooses to repay amounts representing higher percentages 
during the early quarters, any corresponding reduction in required 
minimum percentages would be applied first to the last scheduled 
payment, then to the next to the last payment, and so forth as 
necessary.
    (2) The latest OCSE-OA-25 submitted by the State shall be used to 
estimatethe State's share of annual expenditures for the IV-D program. 
That estimated share shall be the sum of the State's share of the 
estimates (as shown on the latest OSCE-OA-25) for four quarters, 
beginning with the quarter in which the first installment is to be paid.
    (3) In case of termination of the program, the actual State share--
rather than the estimate--shall be used for determining whether the 
amount of the repayment exceeds 2\1/2\ percent of the annual State share 
for the IV-D program. The annual State share in these cases will be 
determined using payments computable for Federal funding as reported for 
the program by the State on its Quarterly Statement of Expenditures 
(SRA-OA-41) reports submitted for the last four quarters preceding the 
date on which the program was terminated.
    (4) Repayment shall be accomplished through adjustment in the 
quarterly grants over the period covered by the repayment schedule.
    (5) The amount of the repayment for purpose of paragraphs (a) and 
(b) of this section may not include any amount previously approved for 
installment repayment.
    (6) The repayment schedule may be extended beyond 12 quarterly 
installments if the total repayment amount exceeds 100% of the estimated 
State share of annual expenditures.

In these circumstances, the criteria in paragraphs (b) (1) and (2) or 
(3) of this section, as appropriate, shall be followed for repayment of 
the amount equal to 100% of the annual State share. The remaining amount 
of the repayment shall be in quarterly amounts not less than those for 
the 9th through 12th quarters.
    (7) The amount of a retroactive claim to be paid a State will be 
offset against any amounts to be, or already being, repaid by the State 
in installments, under the same title of the Social Security Act. Under 
this provision the State may choose to:
    (i) Suspend payments until the retroactive claim due the State has, 
in fact, been offset; or
    (ii) Continue payments until the reduced amount of its debt 
(remaining after the offset), has been paid in full. This second option 
would result in a shorter payment period.

A retroactive claim for the purpose of this regulation is a claim 
applicable to any period ending 12 months or more prior to the beginning 
of the quarter in which the payment is to be made by the Service.

[42 FR 28885, June 6, 1977, as amended at 52 FR 273, Jan. 5, 1987]



Sec. 304.50  Treatment of program income.

    The IV-D agency must exclude from its quarterly expenditure claims 
an amount equal to:

[[Page 181]]

    (a) All fees which are collected during the quarter under the title 
IV-D State plan; and
    (b) All interest and other income earned during the quarter 
resulting from services provided under the IV-D State plan.

[49 FR 36772, Sept. 19, 1984]



Sec. 304.95  [Reserved]



PART 305--AUDIT AND PENALTY--Table of Contents




Sec.
305.0  Scope.
305.1  Definitions.
305.10  Timing and scope of audit.
305.11  Audit period.
305.12  State comments.
305.13  State cooperation in the audit.
305.20  Effective support enforcement program.
305.21--305.57  [Reserved]
305.98  Performance indicators and audit criteria.
305.99  Notice and corrective action period.
305.100  Penalty for failure to have an effective support enforcement 
          program.

    Authority: 42 U.S.C. 603(h), 604(d), 652(a)(1), (4) and (g), and 
1302.

    Source: 41 FR 55348, Dec. 20, 1976, unless otherwise noted.



Sec. 305.0  Scope.

    This part implements the requirements in sections 452(a)(4) and 
403(h) of the Act for an audit, at least once every three years, of the 
effectiveness of State Child Support Enforcement programs under title 
IV-D and for a possible reduction in Federal reimbursement for a State's 
title IV-A program pursuant to sections 403(h) and 404(d) of the Act. 
Sections 305.10 through 305.13 describe the audit. Section 305.20 sets 
forth audit criteria and subcriteria the Office will use to determine 
program effectiveness and defines an effective program for purposes of 
an audit. Section 305.98 sets forth the performance indicators the 
Office will use to determine State IV-D program effectiveness. Section 
305.99 provides for the issuance of a notice and corrective action 
period if a State is found by the Secretary not to have an effective IV-
D program. Section 305.100 provides for the imposition of a penalty if a 
State is found by the Secretary not to have had an effective program and 
to have failed to take corrective action and achieve substantial 
compliance within the period prescribed by the Secretary.

[59 FR 66251, Dec. 23, 1994]



Sec. 305.1  Definitions.

    The definitions found in Sec. 301.1 of this chapter are also 
applicable to this part.

[59 FR 66251, Dec. 23, 1994]



Sec. 305.10  Timing and scope of audit.

    (a) The Office will conduct an audit in accordance with sections 
452(a)(4) and 403(h) of the Act, at least once every three years, to 
evaluate the effectiveness of each State's program in carrying out the 
purposes of title IV-D of the Act and to determine that the program 
meets the title IV-D requirements. The audit of each State's program 
will be a comprehensive review using the criteria prescribed in 
Secs. 305.20 and 305.98 of this part.
    (b) The Office will conduct an annual comprehensive audit in the 
case of a State that is being penalized. For a State operating under a 
corrective action plan, the review at the end of the corrective action 
period will cover only the criteria specified in the notice of non-
compliance as prescribed in Sec. 305.99 of this part.
    (c) During the course of the audit, the Office will:
    (1) Make a critical investigation of the State's IV-D program 
through inspection, inquiries, observation, and confirmation; and
    (2) Use the audit standards promulgated by the Comptroller General 
of the United States in ``Government Auditing Standards.''

[50 FR 40140, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 59 
FR 66252, Dec. 23, 1994]



Sec. 305.11  Audit period.

    The audit will cover a period comprised of any 12 consecutive 
months. When the State is operating under a corrective action plan, the 
review will cover the first three-month period after the corrective 
action period. When the State fails to meet audit criteria related to 
the performance indicator under Sec. 305.98 of this part, the review 
will cover the first full four quarters following the end of the 
corrective action period. The audit may, at State

[[Page 182]]

request, be conducted prior to the end of the one-year period prescribed 
under Sec. 305.10(b) of this part when the State is being penalized 
under Sec. 305.100 of this part.

[55 FR 8467, Mar. 8, 1990]



Sec. 305.12  State comments.

    (a) Prior to the start of the actual audit, the Office will hold an 
audit entrance conference with the IV-D agency. At that conference, the 
Office will explain how the audit will be performed and make any 
necessary arrangements.
    (b) Prior to concluding the audit fieldwork, the Office will afford 
the State IV-D agency an opportunity for an audit exit conference at 
which time preliminary audit findings will be discussed and the IV-D 
agency may present any additional matter it believes should be 
considered in the audit findings.
    (c) At the conclusion of the audit fieldwork, the Office will 
prepare and send to the IV-D agency a copy of its interim report on the 
results of the audit. Within 45 days from the date the report was sent 
by certified mail, the IV-D agency may submit written comments on any 
part of the report which the IV-D agency believes to be in error. The 
Office will incorporate such comments, if any, into the final audit 
report.

[41 FR 55348, Dec. 20, 1976, as amended at 59 FR 66252, Dec. 23, 1994]



Sec. 305.13  State cooperation in annual audit.

    (a) Each State shall make available to the Office such records or 
other supporting documentation as the Office's audit staff may request. 
The State shall also make available personnel associated with the 
State's IV-D program to provide answers which the audit staff may find 
necessary in order to conduct or complete the audit.
    (b) Failure to comply with the requirements of this section may 
necessitate a finding that the State has failed to comply with the 
particular criteria being audited.



Sec. 305.20  Effective support enforcement program.

    For the purposes of this part and section 403(h) of the Act, in 
order to be found to have an effective program in substantial compliance 
with the requirements of title IV-D of the Act:
    (a) For any audit period which begins on or after December 23, 1994, 
a State must meet the IV-D State plan requirements contained in part 302 
of this chapter measured as follows:
    (1) The State must meet the requirements under the following 
criteria:
    (i) Statewide operations, Sec. 302.10;
    (ii) Reports and maintenance of records, Sec. 302.15(a);
    (iii) Separation of cash handling and accounting functions, 
Sec. 302.20; and
    (iv) Notice of collection of assigned support, Sec. 302.54.
    (2) The State must have and use procedures required under the 
following criteria in at least 90 percent of the cases reviewed for each 
criterion:
    (i) Establishment of cases, Sec. 303.2(a); and
    (ii) Case closure criteria, Sec. 303.11.
    (3) The State must have and use procedures required under the 
following criteria in at least 75 percent of the cases reviewed for each 
criterion:
    (i) Collection and distribution of support payments, including: 
Collection and distribution of support payments by the IV-D agency under 
Sec. 302.32(b) and (f); distribution of support collections under 
Sec. 302.51; and distribution of support collected in title IV-E foster 
care maintenance cases under Sec. 302.52;
    (ii) Establishment of paternity and support orders, including: 
Establishment of a case under Sec. 303.2(b); services to individuals not 
receiving AFDC or title IV-E foster care assistance, under 
Sec. 302.33(a)(1) through (4); provision of services in interstate IV-D 
cases under Sec. 303.7(a), (b) and (c)(1) through (6) and (8) through 
(10); location of non-custodial parents under Sec. 303.3; establishment 
of paternity under Sec. 303.5(a) and (f); guidelines for setting child 
support awards under Sec. 302.56; and establishment of support 
obligations under Sec. 303.4(d), (e) and (f);
    (iii) Enforcement of support obligations, including, in all 
appropriate cases: Establishment of a case under

[[Page 183]]

Sec. 303.2(b); services to individuals not receiving AFDC or title IV-E 
foster care assistance, under Sec. 302.33(a)(1) through (4); provision 
of services in interstate IV-D cases under Sec. 303.7(a), (b) and (c)(1) 
through (6) and (8) through (10); location of non-custodial parents 
under Sec. 303.3; enforcement of support obligations under Sec. 303.6, 
including submitting once a year all appropriate cases in accordance 
with Sec. 303.6(c)(3) to State and Federal income tax refund offset; and 
wage withholding under Sec. 303.100. In cases in which wage withholding 
cannot be implemented or is not available and the non-custodial parent 
has been located, States must use or attempt to use at least one 
enforcement technique available under State law in addition to Federal 
and State tax refund offset, in accordance with State laws and 
procedures and applicable State guidelines developed under 
Sec. 302.70(b) of this chapter;
    (iv) Review and adjustment of child support orders, including: 
establishment of a case under Sec. 303.2(b); services to individuals not 
receiving AFDC or title IV-E foster care assistance, under 
Sec. 302.33(a)(1) through (4); provision of services in interstate IV-D 
cases under Sec. 303.7(a), (b) and (c)(1) through (6) and (8) through 
(10); location of non-custodial parents under Sec. 303.3; guidelines for 
setting child support awards under Sec. 302.56; and review and 
adjustment of support obligations under Sec. 303.8; and
    (v) Medical support, including: establishment of a case under 
Sec. 303.2(b); services to individuals not receiving AFDC or title IV-E 
foster care assistance, under Sec. 302.33(a)(1) through (4); provision 
of services in interstate IV-D cases under Sec. 303.7(a), (b) and (c)(1) 
through (6) and (8) through (10); location of non-custodial parents 
under Sec. 303.3; securing medical support information under 
Sec. 303.30; and securing and enforcing medical support obligations 
under Sec. 303.31.
    (4) With respect to the 75 percent standard in Sec. 305.20(a)(3):
    (i) Notwithstanding timeframes for establishment of cases in 
Sec. 303.2(b); provision of services in interstate IV-D cases under 
Sec. 303.7(a), (b) and (c)(4) through (6), (8) and (9); location and 
support order establishment under Secs. 303.3(b)(3) and (5), and 
303.4(d), if a support order needs to be established in a case and an 
order is established during the audit period in accordance with the 
State's guidelines for setting child support awards, the State will be 
considered to have taken appropriate action in that case for audit 
purposes.
    (ii) Notwithstanding timeframes for establishment of cases in 
Sec. 303.2(b); provision of services in interstate IV-D cases under 
Sec. 303.7(a), (b) and (c)(4) through (6), (8) and (9); and location and 
review and adjustment of support orders contained in Secs. 303.3(b)(3) 
and (5), and 303.8, if a particular case has been reviewed and meets the 
conditions for adjustment under State laws and procedures and 
Sec. 303.8, and the order is adjusted, or a determination is made, as a 
result of a review, during the audit period, that an adjustment is not 
needed, in accordance with the State's guidelines for setting child 
support awards, the State will be considered to have taken appropriate 
action in that case for audit purposes.
    (iii) Notwithstanding timeframes for establishment of cases in 
Sec. 303.2(b); provision of services in interstate IV-D cases under 
Sec. 303.7 (a), (b) and (c) (4) through (6), (8) and (9); and location 
and wage withholding in Secs. 303.3(b) (3) and (5), and 303.100, if wage 
withholding is appropriate in a particular case and wage withholding is 
implemented and wages are withheld during the audit period, the State 
will be considered to have taken appropriate action in that case for 
audit purposes.
    (iv) Notwithstanding timeframes for establishment of cases in 
Sec. 303.2(b); provision of services in interstate IV-D cases under 
Sec. 303.7 (a), (b) and (c) (4) through (6), (8) and (9); and location 
and enforcement of support obligations in Secs. 303.3(b) (3) and (5), 
and 303.6, if wage withholding is not appropriate in a particular case, 
and the State uses at least one enforcement technique available under 
State law, in addition to Federal and State income tax refund offset, 
which results in a collection received during the audit period, the 
State will be considered to have taken appropriate action in the case 
for audit purposes.
    (5) The State must meet the requirements for expedited processes 
under Sec. 303.101(b)(2) (i) and (iii), and (e).

[[Page 184]]

    (6) The State must meet the criteria referred to in Sec. 305.98(c) 
of this part relating to the performance indicators prescribed in 
Sec. 305.98(a).
    (b) [Reserved]

[59 FR 66252, Dec. 23, 1994]



Secs. 305.21--305.57  [Reserved]



Sec. 305.98  Performance indicators and audit criteria.

    (a) Beginning with the fiscal year 1986 audit period, the Office 
will use the following performance indicators in determining whether 
each State has an effective IV-D program.
    (1) AFDC IV-D collections divided by total IV-D expenditures (less 
laboratory cost incurred in determining paternity at State option);
    (2) Non-AFDC IV-D collections divided by total IV-D expenditures 
(less laboratory costs incurred in determining paternity at State 
option); and
    (3) AFDC IV-D collections divided by IV-A assistance payments (Less 
payments to unemployed parents).
    (b) Beginning with the fiscal year 1988 audit period, the Office 
will use the performance indicators prescribed in paragraph (a) of this 
section and the following performance indicators in determining whether 
each State has an effective IV-D program.
    (1) AFDC IV-D collections on support due (for a fiscal year) divided 
by total AFDC support due (for the same fiscal year);
    (2) Non-AFDC IV-D collections on support due (for a fiscal year) 
divided by total non-AFDC support due (for the same fiscal year);
    (3) AFDC IV-D collections on support due (for prior periods) divided 
by total AFDC support due (for the same periods); and
    (4) Non-AFDC IV-D collection on support due (for prior periods) 
divided by total non-AFDC support due (for the same periods).
    (c) The Office shall use the following procedures and audit criteria 
to measure State performance.
    (1) The ratio for each of the performance indicators in paragraph 
(a) of this section will be evaluated on the basis of the scores in the 
tables in paragraphs (c)(1)(i) through (iii) of this section. The tables 
show the scores the States will receive for different levels of 
performance.
    (i) Dollar of AFDC IV-D collections per dollar of total IV-D 
expenditures (less laboratory costs incurred in determining paternity at 
State option).

------------------------------------------------------------------------
                     Level of performance                        Score
------------------------------------------------------------------------
$.00.........................................................          0
$.01-$.09....................................................          2
$.10-$.19....................................................          4
$.20-$.29....................................................          6
$.30-$.39....................................................          8
$.40-$.49....................................................         10
$.50-$.59....................................................         12
$.60-$.69....................................................         14
$.70-$.79....................................................         16
$.80-$.89....................................................         18
$.90-$.99....................................................         20
$1.00-$1.19..................................................         22
$1.20-$1.39..................................................         24
$1.40 or more................................................         25
------------------------------------------------------------------------

    (ii) Dollar of non-AFDC IV-D collections per dollar of total IV-D 
expenditures (less laboratory costs incurred in determining paternity at 
State option).

------------------------------------------------------------------------
                     Level of performance                        Score
------------------------------------------------------------------------
$.00.........................................................          0
$.01-$.09....................................................          4
$.10-$.19....................................................          8
$.20-$.29....................................................         12
$.30-$.39....................................................         16
$.40-$.49....................................................         20
$.50-$.59....................................................         24
$.60-$.69....................................................         28
$.70-$.79....................................................         32
$.80-$.89....................................................         36
$.90-$.99....................................................         40
$1.00-$1.19..................................................         44
$1.20-$1.39..................................................         48
$1.40 or more................................................         50
------------------------------------------------------------------------

    (iii) AFDC IV-D collections divided by IV-A assistance payments 
(less payments to unemployed parents).

------------------------------------------------------------------------
              Level of performance (in percent)                  Score
------------------------------------------------------------------------
0 to 1.9 percent.............................................          0
2 to 3.9 percent.............................................          5
4 to 4.9 percent.............................................         10
5 to 5.9 percent.............................................         15
6 to 6.9 percent.............................................         20
7 or more....................................................         25
------------------------------------------------------------------------

    (2) To be found to meet the audit criteria, a State's total score 
must equal or exceed 70.

    Examples. A State achieves levels of performance of $1.22, $1.35 and 
6.5 percent on the performance indicators in paragraph (a) of this 
section. The State would receive individual scores of 24, 48 and 20 on 
these performance indicators. The State would be found to meet the audit 
criteria because the total score is 92.

[[Page 185]]

    A State achieves levels of performance of $.65, $.65 and 2.5 percent 
on the performance indicators in paragraph (a) of this section. The 
State would receive individual scores of 14, 28 and 5 on these 
performance indicators. The State would be found not to meet the audit 
criteria because the total score is 47.
    A State achieves levels of performance of $.92, $.96 and 4.2 percent 
on the performance indicators in paragraph (a) of this section. The 
State would receive individual scores of 20, 40 and 10 on these 
performance indicators. The State would be found to meet the audit 
criteria because the total score is 70.

    (d) The scoring system provided in paragraph (c) of this section 
will be described and updated whenever OCSE determines that it is 
necessary and appropriate by the Office in regulations.

[50 FR 40144, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 59 FR 66253, Dec. 
23, 1994]



Sec. 305.99  Notice and corrective action period.

    (a) If a State is found by the Secretary on the basis of the results 
of the audit described in this part not to comply substantially with the 
requirements of title IV-D of the Act, as implemented by chapter III of 
this title, the Office will notify the State in writing of such finding.
    (b) The notice will:
    (1) Cite the State for noncompliance, list the unmet audit criteria, 
apply a penalty and give reasons for the Secretary's finding;
    (2) Identify any audit criteria listed in Sec. 305.20(a)(3) of this 
part that the State met only marginally [that is, in 75 to 80 percent of 
cases reviewed for criteria in Sec. 305.20(a)(3)];
    (3) Specify that the penalty may be suspended if the State meets the 
conditions specified in paragraph (c) of this section; and
    (4) Specify the conditions that result in terminating the suspension 
of the penalty as specified in paragraph (d) of this section.
    (c) The penalty will be suspended for a period not to exceed one 
year from the date of the notice if the following conditions are met:
    (1) Within 60 days of the date of the notice, the State submits a 
corrective action plan to the appropriate Regional Office which contains 
a corrective action period not to exceed one year from the date of the 
notice and which contains steps necessary to achieve substantial 
compliance with the requirements of title IV-D of the Act;
    (2) The corrective action plan and any amendment are:
    (i) Approved by the Secretary within 30 days of receipt of the 
corrective action plan; or
    (ii) Approved automatically because the Secretary took no action 
within the period specified in paragraph (c)(2)(i) of this section; and
    (3) The Secretary finds that the corrective action plan (or any 
amendment to it approved by the Secretary) is being fully implemented by 
the State and that the State is progressing to achieve substantial 
compliance with the unmet criteria cited in the notice.
    (d) The suspension of the penalty will continue until such time as 
the Secretary determines that:
    (1) The State has achieved substantial compliance with the unmet 
criteria cited in the notice and maintained substantial compliance with 
any marginally-met criteria cited in the notice;
    (2) During the corrective action period, the State is not 
implementing its corrective action plan; or
    (3) The State has implemented its corrective action plan but has 
failed to achieve substantial compliance with the unmet criteria cited 
in the notice and maintain substantial compliance with any marginally-
met criteria cited in the notice. For State plan-related criteria, this 
determination will be made as of the first full three-month period after 
the corrective action period. For performance indicator-related 
criteria, this determination will be made as of the first full four 
quarters following the end of the corrective action period.
    (e) A corrective action plan disapproved under paragraph (c) of this 
section is not subject to appeal.
    (f) Only one corrective action period is provided to a State in 
relation to a given criterion when consecutive findings of noncompliance 
are made on that criterion.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[[Page 186]]


[50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 51 
FR 37732, Oct. 24, 1986; 55 FR 8468, Mar. 8, 1990; 59 FR 66253, Dec. 23, 
1994]



Sec. 305.100  Penalty for failure to have an effective support enforcement program.

    (a) If the Secretary finds, on the basis of the results of the audit 
described in this part, that a State's program does not substantially 
meet the requirements in title IV-D of the Act, as implemented by 
chapter III of this title, and the State does not achieve substantial 
compliance with those requirements identified in the notice within the 
corrective action period approved by the Secretary under Sec. 305.99(c) 
of this part and maintain compliance in areas cited in the notice as 
marginally acceptable under Sec. 305.99(b)(2) of this part, total 
payments to the State under title IV-A of the Act will be reduced for 
the period prescribed in paragraph (c) or (d) of this section by:
    (1) Not less than one nor more than two percent of such payments for 
a period beginning in accordance with paragraph (c) or (d) of this 
section not to exceed the one-year period following the end of the 
suspension period;
    (2) Not less than two nor more than three percent of such payments 
if the finding is the second consecutive finding made as a result of an 
audit for a period beginning as of the second one-year period following 
the suspension period not to exceed one year; or
    (3) Not less than three nor more than five percent of such payments 
if the finding is the third or subsequent consecutive finding as a 
result of an audit for a period beginning as of the third one-year 
period following the suspension period.
    (b) In the case of a State that has achieved substantial compliance 
with the unmet criteria identified in the notice and maintained 
substantial compliance with any marginally-met criteria identified in 
the notice within the corrective action period approved by the Secretary 
under Sec. 305.99 of this part, the penalty will not be applied.
    (c) In the case of a State whose penalty suspension ends because the 
State is not implementing its corrective action plan, the penalty will 
be applied as if the suspension had not occurred.
    (d) In the case of a State whose penalty suspension ends because the 
State is implementing its corrective action plan but has failed to 
achieve substantial compliance with the unmet criteria identified in the 
notice or maintain substantial compliance with any marginally-met 
criteria identified in the notice within the corrective action period 
approved by the Secretary under Sec. 305.99 of this part, the penalty 
will be effective for any quarter that ends after the expiration of the 
suspension period until the first quarter throughout which the State IV-
D program is in substantial compliance with the requirements of title 
IV-D of the Act.
    (e) A consecutive finding under paragraph (a)(2) or (3) of this 
section occurs only when the State does not achieve substantial 
compliance with the same criterion or criteria.
    (f) Any reduction required to be made under this section shall be 
made pursuant to Sec. 205.146(d) of this title.
    (g) The reconsideration of penalty imposition provided for by 
Sec. 205.146(e) of this title shall be applicable to any reduction made 
pursuant to this section.

[50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 55 FR 8468, Mar. 
8, 1990]

                           PART 306 [RESERVED]



PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS--Table of Contents




Sec.
307.0  Scope of this part.
307.1  Definitions.
307.5  Mandatory computerized support enforcement systems.
307.10  Functional requirements for computerized support enforcement 
          systems in operation by October 1, 1997.
307.11  Functional requirements for computerized support enforcement 
          systems in operation by October 1, 2000.
307.13  Security and confidentiality for computerized support 
          enforcement systems in operation after October 1, 1997.
307.15  Approval of advance planning documents for computerized support 
          enforcement systems.
307.20  Submittal of advance planning documents for computerized support 
          enforcement systems.

[[Page 187]]

307.25  Review and certification of computerized support enforcement 
          systems.
307.30  Federal financial participation at the 90 percent rate for 
          statewide computerized support enforcement systems.
307.31  Federal financial participation at the 80 percent rate for 
          computerized support enforcement systems.
307.35  Federal financial participation at the applicable matching rate 
          for computerized support enforcement systems.
307.40  Suspension of approval of advance planning documents for 
          computerized support enforcement systems.

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

    Source: 49 FR 33260, Aug. 22, 1984, unless otherwise noted.



Sec. 307.0  Scope of this part.

    This part implements sections 452(d) and (e), 454(16) and (24), 
454A, and 455(a)(1)(A) and (B), and (a)(3)(A) of the Act which 
prescribe:
    (a) The requirement for computerized support enforcement systems;
    (b) The functional requirements that a statewide computerized 
support enforcement system must meet;
    (c) Security and confidentiality requirements for computerized 
support enforcement systems;
    (d) The criteria the Office must determine exist prior to approving 
an advance planning document (APD);
    (e) The requirements and procedures for the submittal of an APD;
    (f) The requirement for continuous review of each approved statewide 
computerized support enforcement system;
    (g) The availability of FFP at the 90 percent rate;
    (h) The availability of FFP at the applicable matching rate; and
    (i) The conditions under which the Office will suspend approval of 
an APD.

[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998]



Sec. 307.1  Definitions.

    (a) Alternative approach to APD requirements means that the State 
has developed an APD that does not meet all conditions for APD approval 
in Sec. 307.15(b) resulting in the need for a waiver under Sec. 307.5.
    (b) Business day means a day on which State offices are open for 
business.
    (c) Alternative system means the separate manual and/or automated 
processes that perform one or more of the required functions separately 
from the base system and that interfaces with the base system to ensure 
that the State can meet all requirements for purposes of the audit 
prescribed in section 403(h) of the Act. These separate processes may 
involve geographic areas, such as counties; administrative 
jurisdictions, such as courts; or separate means by which the State 
meets particular program requirements, e.g., collection of support for 
non-AFDC cases.
    (d) Alternative system configuration means an alternative to a 
comprehensive computerized support enforcement system. It includes a 
base system with electronic linkages to an alternative system(s), which 
is not part of the State's computerized support enforcement project 
(i.e., not the State's sole system effort), but which is necessary to 
meet the functional requirements of the statewide, comprehensive 
computerized support enforcement system under Sec. 307.10, or 
Sec. 307.11.
    (e) Base system means the hardware, operational software, 
applications software and electronic linkages in an alternative system 
configuration which allow the State to monitor, account for and control 
all support enforcement services and activities under the State plan.
    (f) Certification means approval of an operational computerized 
support enforcement system based on a determination that the system has 
an efficient and effective design and is comprehensive, except where a 
waiver applies.
    (g) Comprehensive means that a computerized support enforcement 
system meets the requirements prescribed in Sec. 307.10, or Sec. 307.11 
of this part, as further defined in the OCSE guideline entitled 
``Automated Systems for Child Support Enforcement: A Guide for States.''
    (h) Computerized support enforcement system means a comprehensive, 
statewide system or an alternative system configuration which 
encompasses all political subdivisions within the State and which 
effectively and efficiently;

[[Page 188]]

    (1) Introduces, processes, accounts for and monitors data used by 
the Child Support Enforcement program in carrying out activities under 
the State plan; and
    (2) Produces utilization and management information about support 
enforcement services as required by the State IV-D agency and Federal 
government for program administration and audit purposes.
    (i) Planning means: (1) The preliminary project activity to 
determine the requirements necessitating the project, the activities to 
be undertaken, and the resources required to complete the project;
    (2) The preparation of an APD;
    (3) The preparation of a detailed project plan describing when and 
how the computer system will be designed or transferred and adapted; and
    (4) The preparation of a detailed implementation plan describing 
specific training, testing, and conversion plans to install the computer 
system.
    (j) The following terms are defined at 45 CFR part 95, subpart F, in 
Sec. 95.605:

``Advance Planning Document'';
``Annually Updated APD'';
``Design'' or ``System Design'';
``Development'';
``Enhancement'';
``Implementation Advance Planning Document'';
``Initial APD'';
``Installation'';
``Operation'';
``Planning Advance Planning Document'';
``Requirements Analysis''; and
``Software''.

    (k) The definitions found in Sec. 301.1 of this chapter are also 
applicable to this part.

[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998]



Sec. 307.5  Mandatory computerized support enforcement systems.

    (a) Basic requirement. (1) By October 1, 1997, each State must have 
in effect an operational computerized support enforcement system, which 
meets Federal requirements under Sec. 302.85(a)(1) of this chapter, OCSE 
will review each system to certify that these requirements are met; and
    (2) By October 1, 2000, each State must have in effect an 
operational computerized support enforcement system, which meets Federal 
requirements under Sec. 302.85(a)(2) of this chapter. OCSE will review 
each system to certify that these requirements are met.
    (b) Waiver option. A State may apply for a waiver of any functional 
requirement in Sec. 307.10, or Sec. 307.11 by presenting a plan for an 
alternative system configuration, or a waiver of any conditions for APD 
approval in Sec. 307.15(b) by presenting an alternative approach. Waiver 
requests must be submitted and approved as part of the State's APD or 
APD update.
    (c) Conditions for waiver. The Secretary may grant a State a waiver 
if:
    (1) The State demonstrates that it has an alternative approach to 
the APD requirements or an alternative system configuration that enables 
the State, in accordance with part 305 of this chapter, to be in 
substantial compliance with the other requirements of this chapter; and 
either:
    (2) The waiver request meets the criteria set forth in section 
1115(c) (1), (2) and (3) of the Act; or
    (3) The State provides written assurance that steps will be taken to 
otherwise improve the State's Child Support Enforcement program.
    (d) APD submittal requirements for alternative system configuration. 
APDs submitted by States which include requests for waiver for an 
alternative system configuration must, in addition to meeting conditions 
of Sec. 307.15(b):
    (1) Describe the State's base system;
    (2) Include a detailed description of the separate automated or 
manual processes the State plans to use and how they will interface with 
the base system;
    (3) Provide documentation that the alternative system configuration 
will enable the State to be in substantial compliance with title IV-D of 
the Act in accordance with section 403(h) of the Act and implementing 
regulations. In addition, if the State is subject to a Notice under 
Sec. 305.99 of this part that it did not substantially comply with one 
or more of the requirements of title IV-D of the Act, at the time a 
waiver request is submitted, the State must:

[[Page 189]]

    (i) Demonstrate that the deficiency is not related to or caused by 
the performance of the system; or
    (ii) Specify the corrective action taken to modify the system if the 
system contributed to the deficiency.
    (e) APD submittal requirements for alternative approach. APDs 
submitted by States which include requests for waiver of conditions for 
APD approval in Sec. 307.15(b) must demonstrate why meeting the 
conditions is unnecessary or inappropriate.
    (f) Review of waiver requests. (1) The Office will review waiver 
requests to assure that all necessary information is provided, that all 
processes provide for effective and efficient program operation, and 
that the conditions for waiver in paragraph (d) of this section are met.
    (2) When a waiver is approved, it becomes part of the State's 
approved APD. A waiver is subject to the APD suspension provisions in 
Sec. 307.40.
    (3) When a waiver is disapproved, the APD will be disapproved. The 
APD disapproval is a final administrative decision and is not subject to 
administrative appeal.
    (g) FFP limitations. (1) The provisions of Secs. 307.30 and 307.35 
apply to requests for FFP for costs of computerized support enforcement 
systems.
    (2) FFP for alternative system configurations is further limited as 
follows:
    (i) FFP is available at the enhanced matching rate for development 
of the base system and for hardware, operational system software, and 
electronic linkages with the separate components of an alternative 
system configuration.
    (ii) FFP is available at the applicable matching rate for minor 
alterations to the separate automated or manual processes that are part 
of an alternative system configuration and for operating costs including 
hardware, operational software and applications software of a 
computerized support enforcement system.
    (iii) FFP is not available for developing new systems or making 
major changes and enhancements to separate automated or manual processes 
so that alternative system configurations meet conditions for waiver.

[57 FR 47003, Oct. 14, 1992, as amended at 61 FR 67241, Dec. 20, 1996; 
63 FR 44814, Aug. 21, 1998]



Sec. 307.10  Functional requirements for computerized support enforcement systems in operation by October 1, 1997.

    At a minimum, each State's computerized support enforcement system 
established under the title IV-D State plan at Sec. 302.85(a)(1) of this 
chapter must:
    (a) Be planned, designed, developed, installed or enhanced in 
accordance with an initial and annually updated APD approved under 
Sec. 307.15; and
    (b) Control, account for, and monitor all the factors in the support 
collection and paternity determination processes under the State plan. 
At a minimum this must include:
    (1) Maintaining identifying information such as social security 
numbers, names, dates of birth, home addresses and mailing addresses 
(including postal zip codes) on individuals against whom 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) Periodically verifying the information on individuals referred 
to in paragraph (b)(1) of this section with Federal, State and local 
agencies, both intrastate and interstate;
    (3) Maintaining data necessary to meet Federal Reporting 
Requirements on a timely basis as prescribed by the Office;
    (4) Maintaining information pertaining to:
    (i) Delinquency and enforcement activities;
    (ii) Intrastate, interstate and Federal location of absent parents;
    (iii) The establishment of paternity; and
    (iv) The establishment of support obligations;
    (5) Collecting and distributing both intrastate and interstate 
support payments;
    (6) Computing and distributing incentive payments to political 
subdivisions which share in the cost of funding the

[[Page 190]]

program and to other political subdivisions based on efficiency and 
effectiveness if the State has chosen to pay such incentives;
    (7) Maintaining accounts receivable on all amounts owed, collected, 
and distributed;
    (8) Maintaining costs of all services rendered, either directly or 
by interfacing with State financial management and expenditure 
information;
    (9) Accepting electronic case referrals and update information from 
the State's title IV-A program and using that information to identify 
and manage support enforcement cases;
    (10) Transmitting information electronically to provide data to the 
State's TANF system so that the IV-A agency can determine (and report 
back to the IV-D system) whether a collection of support causes a change 
in eligibility for, or the amount of aid under, the AFDC program;
    (11) Providing security to prevent unauthorized access to, or use 
of, the data in the system;
    (12) Providing management information on all IV-D cases under the 
State plan from initial referral or application through collection and 
enforcement;
    (13) Providing electronic data exchange with the State Medicaid 
system to provide for case referral and the transfer of the medical 
support information specified in 45 CFR 303.30 and 303.31;
    (14) Using automated processes to assist the State in meeting State 
plan requirements under part 302 of this chapter and Standards for 
program operations under part 303 of this chapter, including but not 
limited to:
    (i) The automated maintenance and monitoring of accurate records of 
support payments;
    (ii) Providing automated maintenance of case records for purposes of 
the management ant tracking requirements in Sec. 303.2 of this chapter;
    (iii) Providing title VI-D case workers with on-line access to 
automated sources of absent parent employer and wage information 
maintained by the State when available, by establishing an electronic 
link or by obtaining an extract of the data base and placing it on-line 
for access throughout the State;
    (iv) Providing locate capability by automatically referring cases 
electronically to locate sources within the State (such as State motor 
vehicle department, State department of revenue, and other State 
agencies), and to the Federal Parent Locator Service and utilizing 
electronic linkages to receive return locate information and place the 
information on-line to title IV-D case workers throughout the State;
    (v) Providing capability for electronic funds transfer for purposes 
of income withholding and interstate collections;
    (vi) Integrating all processing of interstate cases with the 
computerized support enforcement system, including the central registry; 
and
    (15) Providing automated processes to enable the Office to monitor 
State operations and assess program performance through the audit 
conducted under section 452(a) of the Act.

[57 FR 47003, Oct. 14, 1992, as amended at 63 FR 44815, Aug. 21, 1998]



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

    At a minimum, each State's computerized support enforcement system 
established and operated under the title IV-D State plan at 
Sec. 302.85(a)(2) of this chapter must:
    (a) Be planned, designed, developed, installed or enhanced, and 
operated in accordance with an initial and annually updated APD approved 
under Sec. 307.15 of this part;
    (b) Control, account for, and monitor all the factors in the support 
collection and paternity determination processes under the State plan. 
At a minimum, this includes the following:
    (1) The activities described in Sec. 307.10, except paragraphs 
(b)(3), (8) and (11); and
    (2) The capability to perform the following tasks with the frequency 
and in the manner required under, or by this chapter:
    (i) Program requirements. Performing such functions as the Secretary 
may specify related to management of the State IV-D program under this 
chapter including:

[[Page 191]]

    (A) Controlling and accounting for the use of Federal, State and 
local funds in carrying out the program either directly, through an 
auxiliary system or through an interface with State financial management 
and expenditure information; and
    (B) Maintaining the data necessary to meet Federal reporting 
requirements under this chapter in a timely basis as prescribed by the 
Office;
    (ii) Calculation of Performance Indicators. Enabling the Secretary 
to determine the incentive payments and penalty adjustments required by 
sections 452(g) and 458 of the Act by:
    (A) Using automated processes to:
    (1) Maintain the requisite data on State performance for paternity 
establishment and child support enforcement activities in the State; and
    (2) Calculate the paternity establishment percentage for the State 
for each fiscal year;
    (B) Having in place system controls to ensure the completeness, and 
reliability of, and ready access to, the data described in paragraph 
(b)(2)(i)(A)(1) of this section, and the accuracy of the calculation 
described in paragraph (b)(2)(i)(A)(2) of this section; and
    (iii) System Controls: Having systems controls (e.g., passwords or 
blocking of fields) to ensure strict adherence to the policies described 
in Sec. 307.13(a); and
    (3) Activities described in the Act that were added by the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 
104-193, not otherwise addressed in this part.
    (c) Collection and Disbursement of Support Payments. To the maximum 
extent feasible, assist and facilitate the collection and disbursement 
of support payments through the State disbursement unit operated under 
section 454B of the Act through the performance of functions which, at a 
minimum, include the following:
    (1) Transmission of orders and notices to employers and other 
debtors for the withholding of income:
    (i) Within 2 business days after receipt of notice of income, and 
the income source subject to withholding from a court, another State, an 
employer, the Federal Parent Locator Service, or another source 
recognized by the State; and
    (ii) Using uniform formats prescribed by the Secretary;
    (2) Ongoing monitoring to promptly identify failures to make timely 
payment of support; and
    (3) Automatic use of enforcement procedures, including procedures 
under section 466(c) of the Act if payments are not timely;
    (d) Expedited Administrative Procedures. To the maximum extent 
feasible, be used to implement the expedited administrative procedures 
required by section 466(c) of the Act.
    (e) State case registry. Have a State case registry that meets the 
requirements of this paragraph.
    (1) Definitions. When used in this paragraph and paragraph (f) of 
this section, the following definitions shall apply.
    (i) Participant means an individual who owes or is owed a duty of 
support, imposed or imposable by law, or with respect to or on behalf of 
whom a duty of support is sought to be established, or who is an 
individual connected to an order of support or a child support case 
being enforced.
    (ii) Participant type means the custodial party, non-custodial 
parent, putative father, or child, associated with a case or support 
order contained in the State or Federal case registry.
    (iii) locate request type refers to the purpose of the request for 
additional matching services on information sent to the Federal case 
registry, for example, a IV-D locate (paternity or support establishment 
or support enforcement), parental kidnapping or custody and visitation.
    (iv) locate source type refers to the external sources a locate 
submitter desires the information sent to the Federal case registry to 
also be matched against.
    (2) The State case registry shall contain a record of:
    (i) Every IV-D case receiving child support enforcement services 
under an approved State plan; and
    (ii) Every support order established or modified in the State on or 
after October 1, 1998.

[[Page 192]]

    (3) Standardized data elements shall be included for each 
participant. These data elements shall include:
    (i) Names;
    (ii) Social security numbers;
    (iii) Dates of birth;
    (iv) Case identification numbers;
    (v) Other uniform identification numbers;
    (vi) Data elements required under paragraph (f)(1) of this section 
necessary for the operation of the Federal case registry;
    (vii) Issuing State of an order; and
    (viii) Any other information that the Secretary may require.
    (4) The record required under paragraph (e)(2) of this section shall 
include information for every case in the State case registry receiving 
services under an approved State plan that has a support order in 
effect. The information must include:
    (i) The amount of monthly (or other frequency) support owed under 
the order;
    (ii) Other amounts due or overdue under the order including 
arrearages, interest or late payment penalties and fees;
    (iii) Any amounts described in paragraph (e)(4) (i) and (ii) of this 
section that have been collected;
    (iv) The distribution of such collected amounts;
    (v) The birth date and, beginning no later than October 1, 1999, the 
name and social security number of any child for whom the order requires 
the provision of support; and
    (vi) The amount of any lien imposed in accordance with section 
466(a)(4) of the Act to enforce the order.
    (5) Establish and update, maintain, and regularly monitor case 
records in the State case registry for cases receiving services under 
the State plan. To ensure information on an established IV-D case is up 
to date, the State should regularly update the system to make changes to 
the status of a case, the participants of a case, and the data contained 
in the case record. This includes the following:
    (i) Information on administrative and judicial orders related to 
paternity and support;
    (ii) Information obtained from comparisons with Federal, State or 
local sources of information;
    (iii) Information on support collections and distributions; and
    (iv) Any other relevant information.
    (6) States may link local case registries of support orders through 
an automated information network in meeting paragraph (e)(2)(ii) of this 
section provided that all other requirements of this paragraph are met.
    (f) Information Comparisons and other Disclosures of Information. 
Extract information, at such times and in such standardized format or 
formats, as may be required by the Secretary, for purposes of sharing 
and comparing with, and receiving information from, other data bases and 
information comparison services, to obtain or provide information 
necessary to enable the State, other States, the Office or other Federal 
agencies to carry out this chapter. As applicable, these comparisons and 
disclosures must comply with the requirements of section 6103 of the 
Internal Revenue Code of 1986 and the requirements of section 453 of the 
Act. The comparisons and sharing of information include:
    (1) Effective October 1, 1998, (or for the child data, not later 
than October 1, 1999) furnishing the following information to the 
Federal case registry on participants in cases receiving services under 
the State plan and in support orders established or modified on or after 
October 1, 1998, and providing updates of such information within five 
(5) business days of receipt by the IV-D agency of new or changed, 
information, including information which would necessitate adding or 
removing a Family Violence indicator and notices of the expiration of 
support orders:
    (i) State Federal Information Processing Standard (FIPS) code and 
optionally, county code;
    (ii) State case identification number;
    (iii) State member identification number;
    (iv) Case type (IV-D, non-IV-D);
    (v) Social security number and any necessary alternative social 
security numbers;
    (vi) Name, including first, middle, last name and any necessary 
alternative names;

[[Page 193]]

    (vii) Sex (optional);
    (viii) Date of birth;
    (ix) Participant type (custodial party, non-custodial parent, 
putative father, child);
    (x) Family violence indicator (domestic violence or child abuse);
    (xi) Indication of an order;
    (xii) Locate request type (optional);
    (xiii) Locate source (optional); and
    (xiv) Any other information of the Secretary may require.
    (2) Requesting or exchanging information with the Federal parent 
locator service for the purposes specified in section 453 of the Act;
    (3) Exchanging information with State agencies, both within and 
outside of the State, administering programs under titles IV-A and XIX 
of the Act, as necessary to perform State agency responsibilities under 
this chapter and under such programs; and
    (4) Exchanging information with other agencies of the State, and 
agencies of other States, and interstate information networks, as 
necessary and appropriate, to assist the State and other States in 
carrying out the purposes of this chapter.

[63 FR 44815, Aug. 21, 1998]



Sec. 307.13  Security and confidentiality for computerized support enforcement systems in operation after October 1, 1997.

    The State IV-D agency shall:
    (a) Information integrity and security. Have safeguards on the 
integrity, accuracy, completeness of, access to, and use of data in the 
computerized support enforcement system. These safeguards shall include 
written policies concerning access to data by IV-D agency personnel, and 
the sharing of data with other persons to:
    (1) Permit access to and use of data to the extent necessary to 
carry out the State IV-D program under this chapter; and
    (2) Specify the data which may be used for particular IV-D program 
purposes, and the personnel permitted access to such data; and
    (3) Permit access to and use of data for purposes of exchanging 
information with State agencies administering programs under titles IV-A 
and XIX of the Act to the extent necessary to carry out State agency 
responsibilities under such programs in accordance with section 
454A(f)(3) of the Act.
    (b) Monitoring of access. Monitor routine access to and use of the 
computerized support enforcement system through methods such as audit 
trails and feedback mechanisms to guard against, and promptly identify 
unauthorized access or use;
    (c) Training and information. Have procedures to ensure that all 
personnel, including State and local staff and contractors, who may have 
access to or be required to use confidential program data in the 
computerized support enforcement system are:
    (1) Informed of applicable requirements and penalties, including 
those in section 6103 of the Internal Revenue Service Code and section 
453 of the Act; and
    (2) Adequately trained in security procedures; and
    (d) Penalties. Have administrative penalties, including dismissal 
from employment, for unauthorized access to, disclosure or use of 
confidential information.

[63 FR 44816, Aug. 21, 1998]



Sec. 307.15  Approval of advance planning documents for computerized support enforcement systems.

    (a) Approval of an APD. The Office shall not approve the APD and 
annually updated APD unless the document, when implemented, will carry 
out the requirements of Sec. 307.10, or Sec. 307.11 of this part. 
Conditions for APD approval are specified in this section.
    (b) Conditions for initial approval. In order to be approvable, an 
APD for a statewide computerized support enforcement system described 
under Sec. 307.10, or Sec. 307.11 must meet the following requirements:
    (1) The APD must represent the sole systems effort being undertaken 
by the State in accordance with Sec. 307.10, or Sec. 307.11. If the 
State is requesting a waiver under Sec. 302.85 of this chapter, the APD 
must specify the conditions for which waiver is requested;
    (2) The APD must specify how the objectives of the computerized 
support enforcement system in Sec. 307.10, or Sec. 307.11 will be 
carried out throughout the State; this includes a projection of

[[Page 194]]

how the proposed system will meet the functional requirements of 
Sec. 307.10, or Sec. 307.11 and how the single State system will 
encompass all political subdivisions in the State by October 1, 1997, or 
October 1, 2000 respectively.
    (3) The APD must assure the feasibility of the proposed effort and 
provide for the conduct of a requirements analysis study which address 
all system components within the State and includes consideration of the 
program mission, functions, organization, services and constraints 
related to the computerized support enforcement system;
    (4) The APD must indicate how the results of the requirements 
analysis study will be incorporated into the proposed system design, 
development, installation or enhancement;
    (5) The APD must contain a description of each component within the 
proposed computerized support enforcement system as required by 
Sec. 307.10, or Sec. 307.11 and must describe information flows, input 
data, and output reports and uses;
    (6) The APD must describe the security requirements to be employed 
in the proposed computerized support enforcement system;
    (7) The APD must describe the intrastate and interstate interfaces 
set forth in Sec. 307.10, or Sec. 307.11 to be employed in the proposed 
computerized support enforcement system;
    (8) The APD must describe the projected resource requirements for 
staff, hardware, and other needs and the resources available or expected 
to be available to meet the requirements;
    (9) The APD must contain a proposed budget and schedule of life-
cycle milestones relative to the size, complexity and cost of the 
project which at a minimum address requirements analysis, program 
design, procurement and project management; and, a description of 
estimated expenditures by category and amount for:
    (i) Items that are eligible for funding at the enhanced matching 
rate, and
    (ii) Items related to developing and operating the system that are 
eligible for Federal funding at the applicable matching rate;
    (10) The APD must contain an implementation plan and backup 
procedures to handle possible failures in system planning, design, 
development, installation or enhancement.
    (i) These backup procedures must include provision for independent 
validation and verification (IV&V) analysis of a State's system 
development effort in the case of States:
    (A) That do not have in place a statewide automated child support 
enforcement system that meets the requirements of the FSA of 1988;
    (B) States which fail to meet a critical milestone, as identified in 
their APDs;
    (C) States which fail to timely and completely submit APD updates;
    (D) States whose APD indicates the need for a total system redesign;
    (E) States developing systems under waivers pursuant to section 
452(d)(3) of the Social Security Act; or,
    (F) States whose system development efforts we determine are at risk 
of failure, significant delay, or significant cost overrun.
    (ii) Independent validation and verification efforts must be 
conducted by an entity that is independent from the State (unless the 
State receives an exception from OCSE) and the entity selected must:
    (A) Develop a project workplan. The plan must be provided directly 
to OCSE at the same time it is given to the State.
    (B) Review and make recommendations on both the management of the 
project, both State and vendor, and the technical aspects of the 
project. The IV&V provider must provide the results of its analysis 
directly to OCSE at the same time it reports to the State.
    (C) Consult with all stakeholders and assess the user involvement 
and buy-in regarding system functionality and the system's ability to 
meet program needs.
    (D) Conduct an analysis of past project performance sufficient to 
identify and make recommendations for improvement.
    (E) Provide risk management assessment and capacity planning 
services.
    (F) Develop performance metrics which allow tracking project 
completion against milestones set by the State.

[[Page 195]]

    (iii) The RFP and contract for selecting the IV&V provider (or 
similar documents if IV&V services are provided by other State agencies) 
must include the experience and skills of the key personnel proposed for 
the IV&V analysis and specify by name the key personnel who actually 
will work on the project and must be submitted to OCSE for prior 
approval.
    (11) The APD must describe each system considered during planning 
including the advantages of selecting the proposed solution. If a 
transfer system is not selected as the proposed solution, a transfer 
system must be among those systems considered. If a system that is 
already in place in the State could be enhanced to meet the requirements 
for a computerized support enforcement system, that system must be among 
the solutions considered;
    (12) The APD must contain a cost benefit analysis of the proposed 
computerized support enforcement system and all alternatives considered 
that describes the proposed improvements to the IV-D program in both 
qualitative and quantitative terms;
    (13) The APD must specify the basis for determining direct and 
indirect costs of the computerized support enforcement system during 
development and operation, including the methodology for determining 
costs of planning, design, development, installation or enhancement that 
are eligible for 90 percent Federal funding versus costs of development 
and operations that are eligible for Federal funding at the applicable 
matching rate;
    (14) The APD must contain a statement indicating the period of time 
the State expects to use the proposed computerized support enforcement 
system; and
    (15) The APD must include any waiver requested in accordance with 
Sec. 307.5 of this chapter.
    (c) Conditions for approval of annual update. The APD for a 
computerized support enforcement system described under Sec. 307.10, or 
Sec. 307.11 must be updated annually. In order to be approvable, the 
annual update of an APD for a computerized support enforcement system 
described under Sec. 307.10 must meet only those requirements of 
paragraph (b) of this section that are prescribed by instructions issued 
by the Office.

(Approved by the Office of Management and Budget under control number 
0960-0343)

[49 FR 33260, Aug. 22, 1984, as amended at 51 FR 37732, Oct. 24, 1986; 
55 FR 4379, Feb. 7, 1990; 57 FR 47004, Oct. 14, 1992; 61 FR 67241, Dec. 
20, 1996; 63 FR 44816, Aug. 21, 1998]



Sec. 307.20  Submittal of advance planning documents for computerized support enforcement systems.

    The State IV-D agency must submit an APD for a computerized support 
enforcement system, approved and signed by the State IV-D Director and 
the appropriate State official, in accordance with the submission 
process prescribed in 45 CFR part 95, subpart F.

[55 FR 4379, Feb. 7, 1990, as amended at 57 FR 47005, Oct. 14, 1992]



Sec. 307.25  Review and certification of computerized support enforcement systems.

    The Office will review, assess and inspect the planning, design, 
development, installation, enhancement and operation of computerized 
support enforcement systems developed under Sec. 307.10, or Sec. 307.11 
to determine the extent to which such systems:
    (a) Meet the requirements found in Sec. 307.15; and
    (b) Can be certified as meeting the requirements described in 
Sec. 307.10 and in the OCSE guideline entitled ``Automated Systems for 
Child Support Enforcement: A Guide for States''.

[57 FR 47005, Oct. 14, 1992, as amended at 63 FR 44817, Aug. 21, 1998]



Sec. 307.30  Federal financial participation at the 90 percent rate for statewide computerized support enforcement systems.

    (a) Conditions that must be met for FFP. During the Federal fiscal 
years 1996, and 1997, Federal financial participation is available at 
the 90 percent rate in expenditures for the planning, design, 
development, installation or enhancement of a computerized support 
enforcement system as described in Secs. 307.5 and 307.10 limited to the 
amount in an advance planning document, or APDU submitted on or before

[[Page 196]]

September 30, 1995, and approved by OCSE if:
    (1) The Office has approved an APD in accordance with Sec. 307.15 of 
this part;
    (2) The system meets the requirements specified in Sec. 307.10;
    (3) The Office determines that the expenditures incurred are 
consistent with the approved APD;
    (4) The Office determines that the computerized support enforcement 
system or alternative system configuration is designed effectively and 
efficiently and will improve the management and administration of the 
State IV-D plan;
    (5) The State IV-D agency agrees in writing to use the system for a 
period of time which is consistent with the APD approved by the Office; 
and
    (6) The State or local government has ownership rights in software, 
software modifications and associated documentation that is designed, 
developed, installed, or enhanced with 90 percent FFP under this section 
subject to the Department of Health and Human Services license specified 
in paragraph (c) of this section.
    (b) Federal financial participation in the costs of hardware and 
proprietary software. (1) Until September 30, 1997, FFP at the 90 
percent rate is available in expenditures for the rental or purchase of 
hardware for the planning, design, development, installation or 
enhancement of a computerized support enforcement system as described in 
Sec. 307.10 in accordance with the limitation in paragraph (a) of this 
section.
    (2) Until September 30, 1997, FFP at the 90 percent rate is 
available for expenditures for the rental or purchase of proprietary 
operating/vendor software necessary for the operation of hardware during 
the planning, design, development, installation or enhancement of a 
computerized support enforcement system in accordance with the 
limitation in paragraph (a) of this section, and the OCSE guideline 
entitled ``Automated Systems for Child Support Enforcement: A Guide for 
States.'' FFP at the 90 percent rate is not available for proprietary 
application software developed specifically for a computerized support 
enforcement system. Sec. 307.35 of this part regarding reimbursement at 
the applicable matching rate.)
    (c) HHS rights to software. The Department of Health and Human 
Services reserves a royalty-free, non-exclusive and irrevocable license 
to reproduce, publish or otherwise use, and to authorize others to use 
for Federal government purposes, software, software modifications, and 
documentation developed under Sec. 307.10. This license would permit the 
Department to authorize the use of software, software modifications and 
documentation developed under Sec. 307.10 in another project or activity 
funded by the Federal government.
    (d) Consequences of suspension of the APD. If the Office suspends 
approval of an APD in accordance with Sec. 307.40 of this part during 
the planning design, development, installation, enhancement or operation 
of the system:
    (1) The Office shall disallow FFP as of the date the State failed to 
comply substantially with the approved APD; and
    (2) FFP at the 90 and applicable matching rates is not available in 
any expenditures incurred under the APD after the date of the suspension 
until the date the Office determines that the State has taken the 
actions specified in the notice of suspension described in 
Sec. 307.40(a)(2) of this part. The Office will notify the State in 
writing upon making such a determination. (See Sec. 307.35(b) regarding 
reimbursement for disallowed expenditures under part 95, subpart F of 
this title.)

[49 FR 33260, Aug. 22, 1984, as amended at 50 FR 19657, May 9, 1985; 55 
FR 4379, Feb. 7, 1990; 57 FR 47005, Oct. 14, 1992; 63 FR 44817, Aug. 21, 
1998]



Sec. 307.31  Federal financial participation at the 80 percent rate for computerized support enforcement systems.

    (a) Conditions that must be met for 80 percent FFP. Until September 
30, 2001, Federal financial participation is available at the 80 percent 
rate to States, Territories and systems defined in 42 U.S.C. 
655(a)(3)(B)(iii) [455(a)(3)(B)(iii) of the Act] (hereafter referred to 
as

[[Page 197]]

``States'') for expenditures for the planning, design, development, 
installation, or enhancement of a computerized support enforcement 
system meeting the requirements as described in Secs. 307.5 and 307.10 
or 42 U.S.C. Sec. 654(16) [454(16) of the Act], if:
    (1) The Office has approved an APD in accordance with Sec. 307.15;
    (2) The Office determines that the system meets the requirements 
specified in Sec. 307.10, or 42 U.S.C. 654(16) [454(16) of the Act];
    (3) The Office determines that the expenditures incurred are 
consistent with the approved APD;
    (4) The Office determines that the computerized support enforcement 
system is designed effectively and efficiently and will improve the 
management and administration of the State IV-D plan;
    (5) The State IV-D agency agrees in writing to use the system for a 
period of time which is consistent with the APD approved by the Office; 
and
    (6) The State or local government has ownership rights in software, 
software modifications and associated documentation that is designed, 
developed, installed or enhanced under this section subject to the 
Department of Health and Human Services license specified in paragraph 
(c) of this section.
    (b) Federal financial participation in the costs of hardware and 
proprietary software.
    (1) Until September 30, 2001, FFP at the 80 percent rate is 
available for expenditures for the rental or purchase of hardware for 
the planning, design, development, installation, or enhancement of a 
computerized support enforcement system as described in Sec. 307.10 or 
42 U.S.C. 654(16) [454(16) of the Act].
    (2) Until September 30, 2001, FFP at the 80 percent rate is 
available for the rental or purchase of proprietary operating/vendor 
software necessary for the operation of hardware during the planning, 
design, development, installation, enhancement or operation of a 
computerized support enforcement system in accordance with the OCSE 
guideline entitled ``Automated Systems for Child Support Enforcement: A 
Guide for States.'' FFP at the 80 percent rate is not available for 
proprietary application software developed specifically for a 
computerized support enforcement system. (See Sec. 307.35 regarding 
reimbursement at the applicable matching rate.)
    (c) HHS rights to software. The Department of Health and Human 
Services reserves a royalty-free, non-exclusive and irrevocable license 
to reproduce, publish or otherwise use, and to authorize others to use 
for Federal government purposes, software, software modifications, and 
documentation developed under Sec. 307.10 or 42 U.S.C. 654(16) [454(16) 
of the Act]. This license would permit the Department to authorize the 
use of software, software modifications and documentation developed 
under Sec. 307.10 or 42 U.S.C. 654(16) [454(16) of the Act] in another 
project or activity funded by the Federal government.
    (d) Consequences of suspension of the APD. If the Office suspends 
approval of an APD in accordance with Sec. 307.40 during the planning, 
design, development, installation, enhancement or operation of the 
system:
    (1) The Office shall disallow FFP as of the date the State failed to 
comply substantially with the approved APD; and
    (2) FFP at the 80 percent and applicable matching rates is not 
available in any expenditure incurred under the APD after the date of 
the suspension until the date the Office determines that the State has 
taken the actions specified in the notice of suspension described in 
Sec. 307.40(a). The Office will notify the State in writing upon making 
such a determination.
    (e) Limitation on 80 percent funding. Federal financial 
participation at the 80 percent rate may not exceed $400,000,000 in the 
aggregate for fiscal years 1996 through 2001.
    (f) Allocation formula. Payments at the 80 percent rate to 
individual States, Territories and systems defined in 42 U.S.C. 
655(a)(3)(B)(iii) [455(a)(3)(B)(iii) of the Act] (hereafter referred to 
as ``States'') will be equal to the sum of:
    (1) A base amount of $2,000,000; and
    (2) An additional amount defined as the Allocation Factor computed 
as follows:

[[Page 198]]

    (i) Allocation Factor--an average of the Caseload and Census Factors 
which yields the percentage that is used to calculate a State's 
allocation of the funds available, less amounts set aside pursuant to 
paragraph (f)(1) of this section.
    (ii) Caseload Factor--a ratio of the six-year average IV-D caseload 
as reported by a State for fiscal years 1990 through 1995 to the total 
six-year average IV-D caseload in all States for the same period;
    (iii) Census Factor--a ratio of the number of children in a State 
with one parent living elsewhere as reported in the 1992 Current 
Population Survey--Child Support Supplement to the total number of such 
children in all States.

[63 FR 44405, Aug. 19, 1998]



Sec. 307.35  Federal financial participation at the applicable matching rate for computerized support enforcement systems.

    Federal financial participation at the applicable matching rate is 
available only in computerized support enforcement systems expenditures 
for:
    (a) The operation of a system that meets the requirements specified 
in Sec. 307.10, or Sec. 307.11 if the conditions for APD approval in 
Secs. 307.5 and 307.15 are met; or
    (b) Systems approved in accordance with part 95, subpart F of this 
title. This may include expenditures for a system which were disallowed 
by the Office because the system failed to comply substantially with an 
APD approved under Sec. 307.15.

[49 FR 33260, Aug. 22, 1984, as amended at 50 FR 19658, May 9, 1985; 57 
FR 47005, Oct. 14, 1992; 63 FR 44817, Aug. 21, 1998]



Sec. 307.40  Suspension of approval of advance planning documents for computerized support enforcement systems.

    (a) Suspension of approval. The Office will suspend approval of the 
APD for a computerized support enforcement system approved and developed 
under Sec. 307.10, or Sec. 307.11 as of the date that the system ceases 
to comply substantially with the criteria, requirements, and other 
provisions in the APD, including conditions in Sec. 307.15(b) and the 
requirements in Sec. 307.10 or Sec. 307.11 of this part covered under a 
waiver granted in accordance with Sec. 307.5. Federal funding will be 
disallowed as described in Sec. 307.30(d) and Sec. 307.31(d).
    (b) Duration of suspension. The suspension of approval of an APD 
under paragraph (a) shall remain in effect until the Office determines 
that actions required for Federal funding in the future, as specified in 
the notice of suspension, have been taken and the Office so notifies the 
State.

[49 FR 33260, Aug. 22, 1984, as amended at 57 FR 47005, Oct. 14, 1992; 
63 FR 44405, Aug. 19, 1998; 63 FR 44817, Aug. 21, 1998]

                        PARTS 308--399 [RESERVED]

[[Page 199]]



CHAPTER IV--OFFICE OF REFUGEE RESETTLEMENT, ADMINISTRATION FOR CHILDREN 
          AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES




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

Part                                                                Page
400             Refugee Resettlement Program................         201
401             Cuban/Haitian Entrant Program...............         229
402             State Legalization Impact Assistance Grants.         230
403-499

[Reserved]

[[Page 201]]



PART 400--REFUGEE RESETTLEMENT PROGRAM--Table of Contents




                         Subpart A--Introduction

Sec.
400.1  Basis and purpose of the program.
400.2  Definitions.
400.3  [Reserved]

          Subpart B--Grants to States for Refugee Resettlement

                             The State Plan

400.4  Purpose of the plan.
400.5  Content of the plan.
400.6  [Reserved]
400.7  Submittal of the State plan and plan amendments for Governor's 
          review.
400.8  Approval of State plans and plan amendments.
400.9  Administrative review of decisions on approval of State plans and 
          plan amendments.
400.10  [Reserved]

                        Award of Grants to States

400.11  Award of Grants to States.
400.12  Adverse determinations concerning State grants.
400.13  Cost allocation.

                    Subpart C--General Administration

400.20--400.21  [Reserved]
400.22  Responsibility of the State agency.
400.23  Hearings.
400.24  [Reserved]
400.25  Residency requirements.
400.26  [Reserved]
400.27  Safeguarding and sharing of information.
400.28  Maintenance of records and reports.

      Subpart D--Immigration Status and Identification of Refugees

400.40  Scope.
400.41  Definitions.

                     Documentation of Refugee Status

400.43  Requirements for documentation of refugee status.
400.44  Restriction.

             Subpart E--Refugee Cash and Medical Assistance

400.50  Basis and scope.
400.51  Definitions.
400.52  Recovery of overpayments and correction of underpayments.

 Applications, Determinations of Eligibility, and Furnishing Assistance

400.55  Opportunity to apply for cash assistance.
400.56  Determination of eligibility under other programs.
400.57  Emergency cash assistance to refugees.

          Conditions of Eligibility for Refugee Cash Assistance

400.60  General eligibilty requirements.
400.61  Consideration of income and resources.
400.62  Need standards and payment levels.
400.63  Proration of shelter, utilities, and similar needs.
400.64  Other AFDC requirements applicable to refugee cash assistance.

    Subpart F--Requirements for Employability Services and Employment

400.70  Basis and scope.
400.71  Definitions.
400.72  Arrangements for employability services.

                          General Requirements

400.75  Registration for employment services, participation in 
          employability service programs and targeted assistance 
          programs, going to job interviews, and acceptance of 
          appropriate offers of employment.
400.76  Criteria for exemption from registration for employment 
          services, participation in employability service programs, and 
          acceptance of appropriate offers of employment.
400.77  Effect of quitting employment or failing or refusing to 
          participate in required services.
400.78  Service requirements for employed recipients of refugee cash 
          assistance.
400.79  Development of an employability plan.

                         Job Search Requirements

400.80  Job search requirements.

     Criteria for Appropriate Employability Services and Employment

400.81  Criteria for appropriate employability services and employment.

    Failure or Refusal to Accept Employability Services or Employment

400.82  Failure or refusal to accept employability services or 
          employment.
400.83  Conciliation and fair hearings.

                  Subpart G--Refugee Medical Assistance

400.90  Basis and scope.

[[Page 202]]

400.91  Definitions.

 Applications, Determinations of Eligibility, and Furnishing Assistance

400.93  Opportunity to apply for medical assistance.
400.94  Determination of eligibility for Medicaid.

        Conditions of Eligibility for Refugee Medical Assistance

400.100  General eligibility requirements.
400.101  Financial eligibility standards.
400.102  Consideration of income and resources.
400.103  Coverage of refugees who spend down to AFDC need standard.
400.104  Continued coverage of recipients who receive increased earnings 
          from employment.

                        Scope of Medical Services

400.105  Mandatory services.
400.106  Additional services.
400.107  Medical screening.

                    Subpart H--Child Welfare Services

400.110  Basis and scope.
400.111  Definitions.
400.112  Child welfare services for refugee children.
400.113  Duration of eligibility.
400.114  [Reserved]
400.115  Establishing legal responsibility.
400.116  Service for unaccompanied minors.
400.117  Provision of care and services.
400.118  Case planning.
400.119  Interstate movement.
400.120  Reporting requirements.

                   Subpart I--Refugee Social Services

400.140  Basis and scope.
400.141  Definitions.

 Applications, Determinations of Eligibility, and Provision of Services

400.145  Opportunity to apply for services.

                     Funding and Service Priorities

400.146  Use of funds.
400.147  Priority in provision of services.

                          Purchase of Services

400.148  Purchase of services.

          Conditions of Eligibility for Refugee Social Services

400.150  General eligibility requirements.
400.152  Limitations on eligibility for services.

                    Scope of Refugee Social Services

400.154  Employability services.
400.155  Other services.
400.156  Service requirements.

                       Subpart J--Federal Funding

400.200  Scope.

    Federal Funding For Expenditures for Determining Eligibility and 
                    Providing Assistance and Services

400.202  Extent of Federal funding.
400.203  Federal funding for cash assistance.
400.204  Federal funding for medical assistance.
400.205  Federal funding for assistance and services for unaccompanied 
          minors.
400.206  Federal funding for social services and targeted assistance 
          services.
400.207  Federal funding for administrative costs.
400.208  Claims involving filing units which include both refugees and 
          nonrefugees.
400.209  Claims involving filing units which include refugees who have 
          been in the United States more than 36 months.
400.210  Time limits for obligating and expending funds and for filling 
          State claims.
400.211  Methodology to be used to determine time-eligibility of 
          refugees.
400.212  Restrictions in the use of funds.
400.220  Counting time-eligibility of refugees.

                   Subpart K--Waivers and Withdrawals.

400.300  Waivers.
400.301  Withdrawal from the refugee program.

                     Subpart L--Targeted Assistance

400.310  Basis and scope.
400.311  Definitions.
400.312  Opportunity to apply for services.

                     Funding and Service Priorities

400.313  Use of funds.
400.314  Priority in provision of services.
400.315  General eligibility requirements.
400.316  Scope of targeted assistance services.
400.317  Service requirements.
400.318  Eligible grantees.
400.319  Allocation of funds.

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

    Source: 45 FR 59323, Sept. 9, 1980, unless otherwise noted.

[[Page 203]]



                         Subpart A--Introduction



Sec. 400.1  Basis and purpose of the program.

    (a) This part prescribes requirements concerning grants to States 
and other public and private non-profit agencies, wherever applicable 
under title IV of the Immigration and Nationality Act.
    (b) It is the purpose of this program to provide for the effective 
resettlement of refugees and to assist them to achieve economic self-
sufficiency as quickly as possible.
    (c) Under the authority in section 412(a)(6)(B) of the Immigration 
and Nationality Act, the Director has established the provision of 
employment services and English language training as a priority in 
accomplishing the purpose of this program.

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33601, June 28, 1995]



Sec. 400.2  Definitions.

    The following definitions are applicable for purposes of this part:
    AABD means aid to the aged, blind, and disabled under title XVI of 
the Social Security Act.
    AB means aid to the blind under title X of the Social Security Act.
    Act means the Immigration and Nationality Act.
    AFDC means aid to families with dependent children under title IV-A 
of the Social Security Act.
    APTD means aid to the permanently and totally disabled under title 
XIV of the Social Security Act.
    Case management services means the determination of which service(s) 
to refer to a refugee to, referral to such service(s), and tracking of 
the refugee's participation in such service(s).
    Cash assistance means financial assistance to refugees, including 
AFDC, SSI, refugee cash assistance, and general assistance, as defined 
herein, under title IV of the Act.
    Director means the Director, Office of Refugee Resettlement.
    Federal Funding or `FF' means Federal funding for a State's 
expenditures under the refugee resettlement program.
    General assistance program means a financial and/or medical 
assistance program existing in a State or local jurisdiction which: (a) 
Is funded entirely by State and/or local funds; (b) is generally 
available to needy persons residing in the State or locality who meet 
specified income and resource requirements; and (c) consists of one-time 
emergency, or ongoing assistance intended to meet basic needs of 
recipients, such as food, clothing, shelter, medical care, or other 
essentials of living.
    HHS means the Department of Health and Human Services.
    Medical assistance means medical services to refugees, including 
Medicaid, refugee medical assistance, and general assistance, as defined 
herein, under title IV of the Act.
    OAA means old age assistance under title I of the Social Security 
Act.
    ORR means the Office of Refugee Resettlement.
    Plan means a written description of the State's refugee resettlement 
program and a commitment by the State to administer or supervise the 
administration of the program in accordance with Federal requirements in 
this part.
    Refugee means an individual who meets the definitions of a refugee 
under section 101(a)(42) of the Act.
    Refugee cash assistance (RCA) means cash assistance provided under 
section 412(e) of the Act to refugees who are ineligible for AFDC, OAA, 
AB, APTD, AABD, or SSI.
    Refugee medical assistance (RMA) means: (a) Medical assistance 
provided under section 412(e) of the Act to refugees who are ineligible 
for the Medicaid program; and (b) services provided in accordance with 
Secs. 400.106 and 400.107 of this part.
    Secretary means the Secretary of HHS.
    Sponsor means an individual, church, civic organization, State or 
local government, or other group or organization which has agreed to 
help in the reception and initial placement of refugees in the United 
States and other public and private non-profit agencies, wherever.
    SSI means supplemental security income under title XVI of the Social 
Security Act.
    State means the 50 States, the District of Columbia, Guam, Puerto 
Rico, the Virgin Islands, the Commonwealth

[[Page 204]]

of the Northern Mariana Islands, American Samoa, and the Trust 
Territories of the Pacific.
    State agency means the agency (or agencies) designated by the 
Governor or the appropriate legislative authority of the State to 
develop and administer, or supervise the administration of, the plan and 
includes any local agencies administering the plan under supervision of 
the State agency.
    State Coordinator means the individual designated by the Governor or 
the appropriate legislative authority of the State to be responsible 
for, and who is authorized to, ensure coordination of public and private 
resources in refugee resettlement.
    Support services means services provided or contracted for by a 
State, which are designed to meet resettlement needs of refugees, for 
which funding is available under title IV of the Act.
    Time-eligibility means the period for which FF (Federal funding) is 
provided under Secs. 400.203 and 400.204 of this part, after applying 
the limitation ``[s]ubject to the availability of funds'' in accordance 
with Sec. 400.202.
    Title IV of the Act means title IV, Chapter 2, of the Immigration 
and Nationality Act.
    Voluntary resettlement agency or voluntary agency or resettlement 
agency means one of the national resettlement agencies (or its local 
affiliate or subcontractor) or a State or local government that has 
entered into a grant, contract, or cooperative agreement with the United 
States Department of State or other appropriate Federal agency to 
provide for the reception and initial placement of refugees in the 
United States.

[51 FR 3912, Jan. 30, 1986, as amended at 54 FR 5475, Feb. 3, 1989; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993]



Sec. 400.3  [Reserved]



          Subpart B--Grants to States for Refugee Resettlement

                             The State Plan



Sec. 400.4  Purpose of the plan.

    (a) In order for a State to receive refugee resettlement assistance 
from funds appropriated under section 414 of the Act, it must submit to 
ORR a plan that meets the requirements of title IV of the Act and of 
this part and that is approved under Sec. 400.8 of this part.
    (b) A State must certify no later than 30 days after the beginning 
of each Federal fiscal year that the approved State plan is current and 
continues in effect. If a State wishes to change its plan, a State must 
submit a proposed amendment to the plan. The proposed amendment will be 
reviewed and approved or disapproved in accordance with Sec. 400.8.

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.5  Content of the plan.

    The plan must:
    (a) Provide for the designation of, and describe the organization 
and functions of, a State agency (or agencies) responsible for 
developing the plan and administering, or supervising the administration 
of, the plan;
    (b) Describe how the State will coordinate cash and medical 
assistance with support services to ensure their successful use to 
encourage effective refugee resettlement and to promote employment and 
economic self-sufficiency as quickly as possible.
    (c) Describe how the State will ensure that language training and 
employment services are made available to refugees receiving cash 
assistance, and to other refugees, including State efforts to actively 
encourage refugee registration for employment services;
    (d) Identify an individual designated by the Governor or the 
appropriate legislative authority of the State, with the title of State 
Coordinator, who is employed by the State and will have the 
responsibility and authority to ensure coordination of public and 
private resources in refugee resettlement in the State;
    (e) Provide for, and describe the procedures established for, the 
care and supervision of, and legal responsibility (including legal 
custody and/or guardianship under State law, as appropriate) for, 
unaccompanied refugee children in the State;
    (f) Provide for and describe (1) the procedures established to 
identify refugees who, at the time of resettlement

[[Page 205]]

in the State, are determined to have medical conditions requiring, or 
medical histories indicating a need for, treatment or observation, and 
(2) the procedures established to monitor any necessary treatment or 
observation;
    (g) Provide that assistance and services funded under the plan will 
be provided to refugees without regard to race, religion, nationality, 
sex, or political opinion; and
    (h) Provide that the State will, unless exempted from this 
requirement by the Director, assure that meetings are convened, not less 
often than quarterly, whereby representatives of local affiliates of 
voluntary resettlement agencies, local community service agencies, and 
other agencies that serve refugees meet with representatives of State 
and local governments to plan and coordinate the appropriate placement 
of refugees in advance of the refugees' arrival. All existing exemptions 
to this requirement will expire 90 days after the effective date of this 
rule. Any State that wishes to be exempted from the provisions regarding 
the holding and frequency of meetings may apply by submitting a written 
request to the Director. The request must set forth the reasons why the 
State considers these meetings unnecessary because of the absence of 
problems associated with the planning and coordination of refugee 
placement. An approved exemption will remain in effect for three years, 
at which time a State may reapply.

(Approved by the Office of Management and Budget under control number 
0960-0418)

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.6  [Reserved]



Sec. 400.7  Submittal of the State plan and plan amendments for Governor's review.

    A plan or plan amendment under title IV of the Act must be submitted 
to the State Governor or his or her designee, for review, comment, and 
signature before the plan is submitted to ORR.

[51 FR 3913, Jan. 30, 1986]



Sec. 400.8  Approval of State plans and plan amendments.

    (a) The State agency must submit the State plan and plan amendments 
which have been signed by the Governor, or his or her designee, together 
with one copy of such plan or amendment, to the Director of ORR, or his 
or her designee, for approval. States are encouraged to consult with the 
Director, or his or her designee, when a plan or amendment is in 
preparation.
    (b) The Director, or his or her designee, may initiate any necessary 
discussions with the State agency to clarify aspects of the plan.
    (c) No later than 45 days after the State plan or plan amendment is 
submitted, the Director, or his or her designee, will--(1) Determine 
whether a State plan or plan amendment meets or continues to meet 
requirements for approval based on relevant Federal statutes and 
regulations, and (2) approve or disapprove the plan or plan amendment.
    (d) The Director, or designee, will notify the State agency promptly 
of all actions taken on State plans and amendments.
    (e) The effective date of an approved State plan or plan amendment 
may not be earlier than the first day of the calendar quarter in which 
the State agency submits the plan or plan amendment, except as otherwise 
approved by the Director.

[51 FR 3913, Jan. 30, 1986]



Sec. 400.9  Administrative review of decisions on approval of State plans and plan amendments.

    (a) Any State dissatisfied with a determination by the Director, or 
his or her designee, under Sec. 400.8 with respect to any plan or plan 
amendment may, within 60 days after the date of notification of such 
determination, file a petition with the Director, or designee, for 
reconsideration of the determination.
    (b) A State may request that a hearing be held, but it is not 
required to do so.
    (c) If a State requests a hearing, the Director, or designee, will 
notify the State within 30 days after receipt of

[[Page 206]]

such a petition, of the time and location of the hearing to reconsider 
the issue.
    (d) The hearing must be held not less than 30 days nor more than 60 
days after the date the notice of the hearing is furnished to the State, 
unless the Director, or designee, and the State agree in writing on 
another time.
    (e) The hearing procedures in part 213 of this title will be used 
except that:
    (1) ``The Director'' is substituted where there is a reference to 
``the Administrator,'' and
    (2) ``ORR Hearing Clerk'' is substituted where there is reference to 
the ``SRS Hearing Clerk.''
    (f) The Director will affirm, modify, or reverse the original 
decisions within 60 days of the receipt of the State's petition or, if a 
hearing is held, within 60 days after the hearing.
    (g) The initial determination by the Director, or designee, that a 
plan or amendment is not approvable shall remain in effect pending the 
reconsideration.
    (h) If the Director reverses the original decision, ORR will 
reimburse any funds incorrectly withheld or otherwise denied.

[51 FR 3913, Jan. 30, 1986]



Sec. 400.10  [Reserved]

                        Award of Grants to States



Sec. 400.11  Award of Grants to States.

    (a) Quarterly grants. Subject to the availability of funds (and in 
accordance with the limitations of Subpart J of this part), ORR will 
make two types of quarterly grants to eligible States:
    (1) Grants for cash assistance, medical assistance, and related 
administrative costs (``CMA grants''), for the following purposes: Cash 
assistance provided by a State or local public agency under the program 
of aid to families with dependent children (AFDC) under part A of title 
IV of the Social Security Act, under the adult assistance programs 
(AABD, AB, APTD, or OAA) in the territories, or under section 412(e) of 
the Immigration and Nationality Act; foster care maintenance provided 
under part E of title IV of the Social Security Act; State supplementary 
payments under section 1616(a) of the Social Security Act or section 212 
of the Pub. L. 93-66; medical assistance under title XIX of the Social 
Security Act or under section 412(e) of the Immigration and Nationality 
Act; assistance and services to unaccompanied minors under section 
412(d)(2)(B) of the Immigration and Nationality Act; and cash or medical 
assistance provided under a public assistance program established under 
authority other than Federal law and under which such assistance is 
generally available to needy individuals or families in similar 
circumstances within the State; and
    (2) Grants for social services, as set forth in this part. ORR will 
compute the amount of the quarterly awards based on documents submitted 
by the State agency in accordance with this section and such other 
pertinent facts as the Director may find necessary.
    (b) Form and manner of State application for grant award--(1) CMA 
grants. For quarterly grants for cash assistance, medical assistance, 
and related administrative costs, including assistance and services to 
unaccompanied minors (``CMA grants''), a State must submit to the 
Director, or designee, yearly estimates for reimbursable costs for the 
fiscal year, identified by type of expense, and a justification 
statement in support of the estimates no later then 45 days prior to the 
beginning of the fiscal year in accordance with guidelines prescribed by 
the Director.
    (2) Grants for refugee social services. For quarterly grants for 
refugee social services, a State must submit to the Director, or 
designee, an annual plan developed on the basis of local consultative 
process on a form and at a time prescribed by the Director.
    (3) Quarterly adjustments. If a State revises its estimates required 
in paragraph (b)(1), it must submit to the Director, or designee, the 
revisions, accompanied by a justification statement, no later than 30 
days prior to the beginning of the quarter in which the revision or 
adjustment applies.
    (c) Financial status report. A State must submit to the Director, or 
designee, a financial status report described in Sec. 74.73(a) of this 
title, no later than 30 days after the end of each quarter. Final 
financial reports must

[[Page 207]]

be submitted in accordance with the requirements described in 
Sec. 400.210.
    (d) Review. ORR will determine whether the State's description of 
services, estimates, other relevant information, and any adjustments to 
be made for prior periods meet the requirements under this part, and 
will compute the quarterly award.
    (e) Grant award. (1) ORR will transmit to the State the grant award 
form showing, by type of assistance, the amount of the award.
    (2) The State may draw funds, under the Department's Payment 
Management System (PMS), as needed, to meet the Federal share of 
disbursements.

(Approved by the Office of Management and Budget under control number 
0960-0418)

[51 FR 3913, Jan. 30, 1986, as amended at 54 FR 5475, Feb. 3, 1989; 60 
FR 33602, June 28, 1995]



Sec. 400.12  Adverse determinations concerning State grants.

    (a) Policy. The Secretary has established a Departmental Grant 
Appeals Board for the purpose of reviewing and providing hearings on 
post-award disputes which may arise in the administration of certain 
grant programs by constituent agencies of HHS. Section 16.3(c) of this 
title mandates an appellant to exhaust any preliminary appeal process 
required by regulation before a formal appeal to the Board will be 
allowed. Paragraph (d) of this section provides an informal preliminary 
appeal process for resolution of such disputes within ORR prior to 
appeal to the Board.
    (b) Scope. Adverse determinations to which this procedure is 
applicable are as follows:
    (1) Termination, in whole or in part, of a grant for failure of the 
grantee to carry out its approved project or program in accordance with 
applicable law and the terms and conditions of such assistance or for 
failure of the grantee otherwise to comply with any law, regulation, 
assurance, term, or condition applicable to the grant.
    (2) A determination that an expenditure not allowable under the 
grant has been charged to the grant or that the grantee has otherwise 
failed to discharge its obligation to account for grant funds.
    (3) The disapproval of a grantee's written request for permission to 
incur an expenditure during the term of a grant.
    (4) A determination that a grant is void because the award was 
obtained fraudulently, or was otherwise illegal or invalid from 
inception.
    (c) Notice of adverse determination. If the Director, or his or her 
designee, makes an adverse determination with respect to a grant, he or 
she shall promptly issue a notice of adverse determination to the State 
which contains the reasons for the determination in sufficient detail to 
enable the State agency to respond and informing the State agency of the 
opportunity for review under paragraph (d) of this section.
    (d) Request for review of an adverse determination. (1) If the State 
agency wants a review of the determination, it must submit a request for 
such review to the Director no later than 30 days after the postmark on 
the notice, unless an extension of time is granted for good cause.
    (2) The request for review must contain a full statement of the 
State's position with respect to the determination being appealed and 
the pertinent facts and reasons in support of such position. The State 
agency must attach to the submission a copy of the notice.
    (3) The Director may, at his or her discretion, invite the State to 
discuss pertinent issues and to submit such additional information as he 
or she deems appropriate.
    (4) Based on his or her review, the Director will send a written 
response to the State. If the response is adverse to the State's 
position, the correspondence shall state the State's right to appeal to 
the Departmental Grant Appeals Board, pursuant to part 16 of this title.
    (e) Request for appeal of an adverse determination. (1) To appeal an 
adverse determination, a State agency must file an appeal with the 
Departmental Grant Appeals Board, in accordance with requirements 
contained in part 16 of this title.
    (2) The State's application for review must be postmarked no later 
than 30

[[Page 208]]

days after the postmark on the Director's response to the State's 
request for review in paragraph (d)(4) of this section.

[51 FR 3914, Jan. 30, 1986]



Sec. 400.13  Cost allocation.

    (a) A State must allocate costs, both direct and indirect, 
appropriately between the Refugee Resettlement Program (RRP) and other 
programs which it administers.
    (b) Within the RRP, a State must allocate costs appropriately among 
its CMA grant, social services grant, and any other Refugee Resettlement 
Program (RRP) grants which it may receive, as prescribed by the 
Director.
    (c) Certain administrative costs incurred for the overall management 
of the State's refugee program (e.g., development of the State plan, 
overall program coordination, and salary and travel costs of the State 
Refugee Coordinator), as identified by the Director, may be charged to 
the CMA grant. All other costs must be allocated among the CMA grant, 
social services grant, and any other Refugee Resettlement Program (RRP) 
grants.
    (d) Costs of case management services, as defined in Sec. 400.2, may 
not be charged to the CMA grant.

[54 FR 5476, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]



                    Subpart C--General Administration

    Source: 51 FR 3914, Jan. 30, 1986, unless otherwise noted.



Secs. 400.20--400.21  [Reserved]



Sec. 400.22  Responsibility of the State agency.

    (a) The State agency may not delegate, to other than its own 
officials, responsibility for administering or supervising the 
administration of the plan.
    (b) The State agency must have--
    (1) Methods for informing staff of State policies, standards, 
procedures, and instructions; and
    (2) Systematic planned examination and evaluation of operations in 
local offices.



Sec. 400.23  Hearings.

    (a) A State must provide applicants for, and recipients of, 
assistance and services under the Act with an opportunity for a hearing 
to contest adverse determinations using hearing procedures set forth in 
Sec. 205.10(a) of this title for public assistance programs.
    (b) If the issue is the date of entry into the United States of an 
applicant for or recipient of assistance or services, the State must 
provide for prompt resolution of the issue by inspection of the 
individual's documentation issued by the Immigration and Naturalization 
Service (INS) or by information obtained from INS, rather than by 
hearing.



Sec. 400.24  [Reserved]



Sec. 400.25  Residency requirements.

    A State may not impose requirements as to duration of residence as a 
condition of participation in the State's program for the provision of 
assistance or services.



Sec. 400.26  [Reserved]



Sec. 400.27  Safeguarding and sharing of information.

    (a) Except for purposes directly connected with, and necessary to, 
the administration of the program, a State must ensure that no 
information about, or obtained from, an individual and in possession of 
any agency providing assistance or services to such individual under the 
plan, will be disclosed in a form identifiable with the individual 
without the individual's consent, or if the individual is a minor, the 
consent of his or her parent or guardian.
    (b) The provision by a State to a voluntary resettlement agency, as 
defined in Sec. 400.2, of information as to whether an individual has 
applied for or is receiving cash assistance and the individual's address 
and telephone number is to be considered undertaken for a purpose 
directly connected with, and necessary to, the administration of the 
program during the first 36 months after such individual's entry into 
the United States.
    (c) The disclosure of information for any purpose set forth in 
Sec. 205.50(a) of

[[Page 209]]

this title shall be considered undertaken for a purpose directly 
connected with, and necessary to, the administration of the program.

[51 FR 3914, Jan. 30, 1986, as amended at 54 FR 5476, Feb. 3, 1989]



Sec. 400.28  Maintenance of records and reports.

    (a) A State must provide for the maintenance of such operational 
records as are necessary for Federal monitoring of the State's refugee 
resettlement program in accordance with part 74, Subpart D, of this 
title. This recordkeeping must include:
    (1) Documentation of services and assistance provided, including 
identification of individuals receiving those services;
    (2) Records on the location, progress, and status of unaccompanied 
minor refugee children, including the last known address of parents; and
    (3) Documentation that necessary medical followup services and 
monitoring have been provided.
    (b) A State must submit statistical or programmatic information that 
the Director determines to be required to fulfill his or her 
responsibility under the Act on refugees who receive assistance and 
services which are provided, or the costs of which are reimbursed, under 
the Act.

(Approved by the Office of Management and Budget under control number 
0960-0418)



      Subpart D--Immigration Status and Identification of Refugees

    Source: 51 FR 3915, Jan. 30, 1986, unless otherwise noted.



Sec. 400.40  Scope.

    This subpart sets forth requirements concerning the immigration 
status and identification of eligible applicants for assistance under 
title IV of the Act.



Sec. 400.41  Definitions

    For purposes of this subpart--
    Applicant for asylum means an individual who has applied for, but 
has not been granted, asylum under section 208 of the Act.
    Asylee means an individual who has been granted asylum under section 
208 of the Act.

                     Documentation of Refugee Status



Sec. 400.43  Requirements for documentation of refugee status.

    (a) An applicant for assistance under title IV of the Act must 
provide proof, in the form of documentation issued by the Immigration 
and Naturalization Service (INS), of one of the following statuses under 
the Act as a condition of eligibility:
    (1) Paroled as a refugee or asylee under section 212(d)(5) of the 
Act;
    (2) Admitted as a conditional entrant under section 203(a)(7) of the 
Act;
    (3) Admitted as a refugee under section 207 of the Act;
    (4) Granted asylum under section 208 of the Act;
    (5) Admitted with an immigration status that entitled the individual 
to refugee assistance prior to enactment of the Refugee Act of 1980, as 
specified by the Director; or
    (6) Admitted for permanent residence, provided the individual 
previously held one of the statuses identified above.
    (b) The Director will issue instructions specifying the 
documentation that applicants for assistance must submit.



Sec. 400.44  Restriction.

    An applicant for asylum is not eligible for assistance under title 
IV of the Act.



                   Subpart E--Refugee Cash Assistance

    Source: 54 FR 5476, Feb. 3, 1989, unless otherwise noted.



Sec. 400.50  Basis and scope.

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



Sec. 400.51  Definitions.

    For purposes of this subpart--
    Filing unit means the individual or individuals whose needs are 
considered in determining eligibility for, and the

[[Page 210]]

amount of, an assistance payment for which FF [Federal funding] is 
claimed under this part.
    Household means the individual or individuals living in a housing 
unit.



Sec. 400.52  Recovery of overpayments and correction of underpayments.

    The State agency must comply with regulations at Sec. 233.20(a)(13) 
of this title governing recovery of overpayments and correction of 
underpayments in the AFDC program.

 Applications, Determinations of Eligibility, and Furnishing Assistance



Sec. 400.55  Opportunity to apply for cash assistance.

    (a) A State must provide any individual wishing to do so, an 
opportunity to apply for cash assistance and must determine the 
eligibility of each applicant.
    (b) In determining eligibility for cash assistance, the State must--
    (1) Comply with regulations at part 206 of this title governing 
applications, determinations of eligibility, and furnishing assistance 
under public assistance programs, as applicable to the AFDC program;
    (2) Determine eligibility for other cash assistance programs in 
accordance with Sec. 400.56 of this part;
    (3) Verify with the applicant's sponsor or the resettlement agency 
the amount of financial assistance which the sponsor or resettlement 
agency is actually providing to the applicant and count any such 
assistance, provided in cash and, if the State counts in-kind assistance 
in its AFDC program, in kind, in considering income and resources of 
applicants under Sec. 400.61 of this part; and
    (4) Contact the applicant's sponsor or the resettlement agency 
concerning offers of employment and inquire whether the applicant has 
voluntarily quit employment or has refused to accept an offer of 
employment within 30 consecutive days immediately prior to the date of 
application, in accordance with Sec. 400.77(a) of this part.
    (c) Notwithstanding any other provision of law, the State must 
notify promptly the agency (or local affiliate) which provided for the 
initial resettlement of a refugee whenever the refugee applies for cash 
assistance.
    (d) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized or that it has been denied or 
terminated, the State must specify the program(s) to which the notice 
applies, clearly distinguishing between refugee cash assistance and 
other programs such as AFDC and GA. For example, if a refugee applies 
for assistance, is determined ineligible for AFDC but eligible for 
refugee cash assistance, the notice to the applicant must specify 
clearly the determinations with respect both to AFDC and to refugee cash 
assistance. Similarly, if a recipient of refugee cash assistance is 
notified of termination because of reaching the time limit on such 
assistance, and the State reviews the case file to determine possible 
eligibility for AFDC or GA, the notice to the recipient must indicate 
the result of that determination as well as the termination of refugee 
cash assistance.



Sec. 400.56  Determination of eligibility under other programs.

    (a) AFDC. (1) The State must determine eligibility under the AFDC 
program for refugees who apply for cash assistance.
    (2) A State must provide cash assistance under the AFDC program to 
all refugees who apply for and are eligible under that program.
    (3) If the appropriate State agency determines that the refugee 
applicant is not eligible for cash assistance under the AFDC program, 
the State must determine eligibility for refugee cash assistance in 
accordance with Sec. 400.60.
    (b) Cash assistance to the aged, blind, and disabled--(1) SSI. (i) 
The State agency must refer refugees who are 65 years of age or older, 
or who are blind or disabled, promptly to the Social Security 
Administration, HHS, to apply for cash assistance under the SSI program.
    (ii) If the State agency determines that a refugee who is 65 years 
of age or older, or blind or disabled, is eligible for refugee cash 
assistance, it must furnish such assistance until eligibility

[[Page 211]]

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



Sec. 400.57  Emergency cash assistance to refugees.

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

          Conditions of Eligibility for Refugee Cash Assistance



Sec. 400.60  General eligibility requirements.

    (a) Eligibility for refugee cash assistance is limited to those 
who--
    (1) Are ineligible for cash assistance under the AFDC, SSI, OAA, AB, 
APTD, and AABD programs but meet refugee cash assistance need standards;
    (2) Meet immigration status and identification requirements in 
Subpart D of this part or are the dependent children of, and part of the 
same filing unit as, individuals who meet the requirements in Subpart D, 
subject to the limitation in Sec. 400.208 of this part with respect to 
nonrefugee children;
    (3) Meet eligibility requirements and conditions in this subpart;
    (4) Meet the requirements contained in Subpart F of this part;
    (5) Provide the name of the resettlement agency which resettled 
them; and
    (6) Are not full-time students in institutions of higher education, 
as defined by the Director, except where such enrollment is approved by 
the State, or its designee, as part of an individual employability plan 
for a refugee under Sec. 400.79 of this part.
    (b) A refugee may be eligible for refugee cash assistance under this 
subpart during a period to be determined by the Director in accordance 
with Sec. 400.211.

[45 FR 59323, Sept. 9, 1980, as amended at 58 FR 46090, Sept. 1, 1993; 
58 FR 64507, Dec. 8, 1993]



Sec. 400.61  Consideration of income and resources.

    (a) In considering the income and resources of applicants for and 
recipients of refugee cash assistance, the State agency must apply the 
regulations at Sec. 233.20(a)(3) through (11) of this title for 
considering income and resources of AFDC applicants, except that the 
State agency may not apply the earned income disregard of $30 plus one-
third of the remainder of the earnings or the disregard of $30 set out 
in Sec. 233.20(a)(11)(ii)(B) of this title.
    (b) The State agency may not consider any resources remaining in the 
applicant's country of origin to be accessible to an applicant for or 
recipient of refugee cash assistance.
    (c) The State agency may not consider a sponsor's income and 
resources to be accessible to a refugee solely because the person is 
serving as a sponsor.



Sec. 400.62  Need standards and payment levels.

    (a) In determining need for refugee cash assistance, a State agency 
must use the State's AFDC need standards established under 
Sec. 233.20(a)(1) and (2) of this title.
    (b) In determining the amount of the refugee cash assistance payment 
to an eligible refugee who meets the standards in paragraph (a) of this 
section and applying the consideration of income and resources in 
Sec. 400.61, a State must pay 100 percent of the payment level which 
would be appropriate for an eligible filing unit of the same size under 
the AFDC program.
    (c) The date refugee cash assistance begins must be the same date, 
in relation to the date of application, as assistance would begin under 
a State's

[[Page 212]]

plan for AFDC under Sec. 206.10(a)(6) of this title.

[51 FR 3914, Jan. 30, 1986, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.63  Proration of shelter, utilities, and similar needs.

    If a State prorates allowances for shelter, utilities, and similar 
needs in its AFDC program under Sec. 233.20(a)(5) of this title, it must 
prorate such allowances in the same manner in its refugee cash 
assistance programs.



Sec. 400.64  Other AFDC requirements applicable to refugee cash assistance.

    In administering the program of refugee cash assistance, the State 
agency must also apply the following AFDC regulations in this title:



233.31  Budgeting methods for AFDC.



233.32  Payment and budget months (AFDC).



233.33  Determining eligibility prospectively for all payment months (AFDC).



233.34  Computing the assistance payment in the initial one or two months (AFDC).



233.35  Computing the assistance payment under retrospective budgeting after the initial one or two months (AFDC).



233.36  Monthly reporting (AFDC)--which shall apply to recipients of refugee cash assistance who have been in the United States more than 6 months.



233.37  How monthly reports are treated and what notices are required (AFDC).



235.110  Fraud.



    Subpart F--Requirements for Employability Services and Employment

    Source: 54 FR 5477, Feb. 3, 1989, unless otherwise noted.



Sec. 400.70  Basis and scope.

    This subpart sets forth requirements for applicants for and 
recipients of refugee cash assistance concerning registration for 
employment services, participation in social services or targeted 
assistance, and acceptance of appropriate employment under section 
412(e)(2)(A) of the Act. A refugee who is an applicant for or recipient 
of refugee cash assistance must comply with the requirements in this 
subpart.

[60 FR 33602, June 28, 1995]



Sec. 400.71  Definitions.

    For purposes of this subpart and Subpart I--
    Appropriate agency providing employment services means an agency 
providing services specified under Sec. 400.154(a) of this part which 
are specifically designed to assist refugees in becoming employed, which 
must include an established program of job referral to, and job 
placement with, private employers, and which must be determined 
acceptable by the State.
    Designee, when referring to the State agency's designee, means an 
agency designated by the State agency for the purpose of carrying out 
the requirements of Sec. 400.72(a) of this subpart.
    Employability plan means an individualized written plan for a 
refugee registered for employment services that sets forth a program of 
services intended to result in the earliest possible employment of the 
refugee.
    Employability services means services, as specified in Sec. 400.154 
of this part, designed to enable an individual to obtain employment and 
to improve the employability or work skills of the individual.
    Employable means not exempt from registration for employment 
services under Sec. 400.76 of this part.
    Employment services means the services specified in Sec. 400.154(a) 
of this part.
    Family self-sufficiency plan means a plan that addresses the 
employment-related service needs of the employable members in a family 
for the purpose of enabling the family to become self-supporting through 
the employment of one or more family members.
    Registrant means an individual who has registered for employment 
services under Sec. 400.75 of this part.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]

[[Page 213]]



Sec. 400.72  Arrangements for employability services.

    (a) The State agency must make such arrangements as are necessary to 
enable refugees to meet the requirements of, and receive the 
employability services specified in, this subpart.
    (b) If a State agency makes such arrangements with another agency or 
agencies, it must retain responsibility for meeting the requirements in 
this subpart.
    (c) In order for an agency to qualify to receive referrals from the 
State agency of refugees required to register for employability 
services, such agency must agree to advise the State agency whenever 
such a refugee fails or refuses to participate in the required services 
or to accept an offer of employment.

                          General Requirements



Sec. 400.75  Registration for employment services, participation in employability service programs and targeted assistance programs, going to job interviews, 
          and acceptance of appropriate offers of employment.

    (a) As a condition for receipt of refugee cash assistance, a refugee 
who is not exempt under Sec. 400.76 of this subpart must, except for 
good cause shown--
    (1) Register with an ``appropriate agency providing employment 
services,'' as defined in Sec. 400.71, and within 30 days of receipt of 
aid participate in the employment services provided by such agency, as 
defined in Sec. 400.154(a) of this part.
    (2) Go to a job interview which is arranged by the State agency or 
its designee.
    (3) Accept at any time, from any source, an offer of employment, as 
determined to be appropriate by the State agency or its designee.
    (4) Participate in any employability service program which provides 
job or language training in the area in which the refugee resides, which 
is funded under section 412(c) of the Act, and which is determined to be 
available and appropriate for that refugee; or if such a program funded 
under section 412(c) is not available or appropriate in the area in 
which the refugee resides, any other available and appropriate program 
in such area.
    (5) Participate in any targeted assistance program in the area in 
which the refugee resides, which is funded under section 412(c) of the 
Act, and which is determined to be available and appropriate for that 
refugee.
    (6)(i) Accept an offer of employment which is determined to be 
appropriate by the resettlement agency which was responsible for the 
initial resettlement of the refugee or by the appropriate State or local 
employment service;
    (ii) Go to a job interview which is arranged through such agency or 
service; and
    (iii) Participate in a social service or targeted assistance program 
which such agency or service determines to be available or appropriate.
    (b) The State agency must permit, but may not require, the voluntary 
registration for employment services of an applicant or recipient who is 
exempt under Sec. 400.76 of this part.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.76  Criteria for exemption from registration for employment services, participation in employability service programs, and acceptance of appropriate 
          offers of employment.

    (a) The State agency must consider an applicant for or recipient of 
refugee cash assistance to be employable and require him or her to meet 
the requirements of Sec. 400.75(a) unless the applicant or recipient 
is--
    (1) Under age 16.
    (2) Under age 18 and a full-time student (as defined by the State 
for its AFDC program); or (if the State's AFDC program extends coverage 
to this group) age 18 and a full-time student in secondary school or in 
the equivalent level of vocational or technical training (as defined by 
the State for its AFDC program) and reasonably expected to complete the 
program before reaching age 19.
    (3) Ill, when determined by the State agency on the basis of medical 
evidence or on another sound basis that the illness or injury is serious 
enough to temporarily prevent entry into employment or training.
    (4) Incapacitated, when determined by a physician or licensed or 
certified

[[Page 214]]

psychologist and verified by the State agency, that a physical or mental 
impairment, by itself or in conjunction with age, prevents the 
individual from engaging in employment or training.
    (5) 65 years of age or older.
    (6) Caring for another member of the household who has a physical or 
mental impairment which requires, as determined by a physician or 
licensed or certified psychologist and verified by the State agency, 
care in the home on a substantially continuous basis, and no other 
appropriate member of the household is available.
    (7) A parent or other caretaker relative of a child under age 3 who 
personally provides full-time care of the child with only very brief and 
infrequent absences from the child. Only one parent or other relative in 
a case may be exempt under this paragraph.
    (8) Working at least 30 hours a week in unsubsidized employment 
expected to last a minimum of 30 days. This exemption continues to apply 
if there is a temporary break in full-time employment expected to last 
no longer than 10 workdays. Or
    (9) Pregnant if it has been medically verified that the child is 
expected to be born in the month in which such registration would 
otherwise be required or within the next 6 months.
    (b) Inability to communicate in English does not exempt a refugee 
from registration for employment services, participation in 
employability service programs, and acceptance of appropriate offers of 
employment.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.77  Effect of quitting employment or failing or refusing to participate in required services.

    (a) As a condition of eligibility for refugee cash assistance, an 
employable applicant may not, without good cause, within 30 consecutive 
calendar days immediately prior to the application for assistance (or 
such longer period required by Sec. 400.82(b)(3)(ii), if applicable), 
have voluntarily quit employment or have refused to accept an offer of 
employment determined to be appropriate by the State agency or its 
designee, using criteria set forth in Sec. 400.81.
    (b) As a condition of continued receipt of refugee cash assistance, 
an employable recipient may not, without good cause, voluntarily quit 
employment or fail or refuse to meet the requirements of Sec. 400.75(a).



Sec. 400.78  Service requirements for employed recipients of refugee cash assistance.

    (a) As a condition of continued receipt of refugee cash assistance, 
a recipient who is not exempt under Sec. 400.76 of this part and who is 
employed less than 30 hours a week must accept part-time employability 
services, as available and as determined to be appropriate, using 
criteria set forth in Sec. 400.81 of this part, provided that such 
services must not interfere with the recipient's job.
    (b) A State agency may, but is not required to, require part-time 
employability services if a recipient of refugee cash assistance is 
employed at least 30 hours a week, provided that such services must not 
interfere with the recipient's job.



Sec. 400.79  Development of an employability plan.

    (a) An individual employability plan must be developed as part of a 
family self-sufficiency plan where applicable for each recipient of 
refugee cash assistance in a filing unit who is not exempt under 
Sec. 400.76 of this part.
    (b) If such a plan has been developed by the resettlement agency 
which sponsored the refugee, or its designee, the State agency, or its 
designee, may accept this plan if it determines that the plan is 
appropriate for the refugee and meets the requirements of this subpart.
    (c) The employability plan must--
    (1) Be designed to lead to the earliest possible employment and not 
be structured in such a way as to discourage or delay employment or job-
seeking;
    (2) Contain a definite employment goal, attainable in the shortest 
time period consistent with the employability of the refugee in relation 
to job openings in the area; and

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]

[[Page 215]]

                         Job Search Requirements



Sec. 400.80  Job search requirements.

    A State must require job search for employable refugees where 
appropriate.

[60 FR 33602, June 28, 1995]

     Criteria for Appropriate Employability Services and Employment



Sec. 400.81  Criteria for appropriate employability services and employment.

    The State agency or its designee must determine if employability 
services and employment are appropriate in accordance with the following 
criteria:
    (a) The services or employment must meet the following criteria, or, 
if approved by the Director, the comparable criteria applied by the 
State in an alternative program for AFDC recipients:
    (1) All assignments must be within the scope of the individual's 
employability plan. The plan may be modified to reflect changed services 
or employment conditions.
    (2) The services or employment must be related to the capability of 
the individual to perform the task on a regular basis. Any claim of 
adverse effect on physical or mental health must be based on adequate 
medical testimony from a physician or licensed or certified psychologist 
indicating that participation would impair the individual's physical or 
mental health.
    (3) The total daily commuting time to and from home to the service 
or employment site must not normally exceed 2 hours, not including the 
transporting of a child to and from a child care facility, unless a 
longer commuting distance or time is generally accepted in the 
community, in which case the round trip commuting time must not exceed 
the generally accepted community standards.
    (4) When child care is required, the care must meet the standards 
normally required by the State in its work and training programs for 
AFDC recipients.
    (5) The service or work site to which the individual is assigned 
must not be in violation of applicable Federal, State, or local health 
and safety standards.
    (6) Assignments must not be made which are discriminatory in terms 
of age, sex, race, creed, color, or national origin.
    (7) Appropriate work may be temporary, permanent, full-time, part-
time, or seasonal work if such work meets the other standards of this 
section.
    (8) The wage shall meet or exceed the Federal or State minimum wage 
law, whichever is applicable, or if such laws are not applicable, the 
wage shall not be substantially less favorable than the wage normally 
paid for similar work in that labor market.
    (9) The daily hours of work and the weekly hours of work shall not 
exceed those customary to the occupation. And
    (10) No individual may be required to accept employment if:
    (i) The position offered is vacant due to a strike, lockout, or 
other bona fide labor dispute; or
    (ii) The individual would be required to work for an employer 
contrary to the conditions of his existing membership in the union 
governing that occupation. However, employment not governed by the rules 
of a union in which he or she has membership may be deemed appropriate.
    (11) In addition to meeting the other criteria of this paragraph, 
the quality of training must meet local employers' requirements so that 
the individual will be in a competitive position within the local labor 
market. The training must also be likely to lead to employment which 
will meet the appropriate work criteria.
    (b) If an individual is a professional in need of professional 
refresher training and other recertification services in order to 
qualify to practice his or her profession in the United States, the 
training may consist of full-time attendance in a college or 
professional training program, provided that such training: Is approved 
as part of the individual's employability plan by the State agency, or 
its designee; does not exceed one year's duration (including any time 
enrolled in such program in the United States prior to the refugee's 
application for assistance); is specifically intended to assist the 
professional in becoming relicensed in his or

[[Page 216]]

her profession; and, if completed, can realistically be expected to 
result in such relicensing.
    (c) A job offered, if determined appropriate under the requirements 
of this subpart, is required to be accepted by the refugee without 
regard to whether such job would interrupt a program of services planned 
or in progress unless:
    (1) The refugee is currently participating in a program in progress 
of on-the-job training (as described in Sec. 400.154(c)) or vocational 
training (as described in Sec. 400.154(e)) which meets the requirements 
of this part and which is being carried out as part of an approved 
employability plan; or
    (2) The refugee is enrolled full-time in a professional 
recertification program which meets the requirements of paragraph (b) of 
this section.

    Failure or Refusal to Accept Employability Services or Employment



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

    (a) Voluntary registrant. When a voluntary registrant--i.e., a 
recipient of refugee cash assistance who is exempt from registration 
under Sec. 400.76 of this part--has failed or refused to participate in 
appropriate employability services, or to accept an appropriate offer of 
employment, the State agency, or its designee, may deregister the 
individual for up to 90 days from the date of determination that such 
failure or refusal has occurred, but the individual's cash assistance 
may not be affected.
    (b) Mandatory registrant--(1) Termination of assistance. When, 
without good cause, a mandatory registrant--i.e., an employable 
recipient of refugee cash assistance who is not exempt from registration 
under Sec. 400.76 of this part--has failed or refused to meet the 
requirements of Sec. 400.75(a) or has voluntarily quit a job, the State 
must terminate assistance, in accordance with paragraphs (b)(2) and (3) 
of this section.
    (2) Notice of intended termination. (i) In cases of proposed action 
to terminate, discontinue, suspend, or reduce assistance, the State 
agency must give timely and adequate notice, following the same 
procedures as those used in its AFDC program under Sec. 206.10(a)(7) of 
this title.
    (ii) The written notice must include--
    (A) An explanation of the reason for the action and the consequences 
of such failure or refusal; and
    (B) Notice of the registrant's right to a hearing under Sec. 400.83 
of this part.
    (3) Sanctions. (i) If the sanctioned individual is the only member 
of the filing unit, the assitance shall be terminated. If the filing 
unit includes other members, the State shall not take into account the 
sanctioned individual's needs in determining the filing unit's need for 
assistance.
    (ii) The sanction applied in paragraph (b)(3)(i) of this section 
shall remain in effect for 3 payment months for the first such failure 
and 6 payment months for any subsequent such failure.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]



Sec. 400.83  Conciliation and fair hearings.

    (a) A conciliation period prior to the imposition of sanctions must 
be provided for in accordance with the following time-limitations: The 
conciliation effort shall begin as soon as possible, but no later than 
10 days following the date of failure or refusal to participate, and may 
continue for a period not to exceed 30 days. Either the State or the 
recipient may terminate this period sooner when either believes that the 
dispute cannot be resolved by conciliation.
    (b) The State must provide an applicant for or recipient of refugee 
cash assistance an opportunity for a hearing, using the same procedures 
and standards set forth in Sec. 205.10(a) of this title, to contest a 
determination concerning employability, or failure or refusal to carry 
out job search or to accept an appropriate offer of employability 
services or employment, resulting in denial or termination of 
assistance.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995]

[[Page 217]]



                  Subpart G--Refugee Medical Assistance

    Source: 54 FR 5480, Feb. 3, 1989, unless otherwise noted.



Sec. 400.90  Basis and scope.

    This subpart sets forth requirements concerning grants to States 
under section 412(e) of the Act for refugee medical assistance (RMA), as 
defined at Sec. 400.2 of this part.



Sec. 400.91  Definitions.

    For purposes of this subpart--
    Medically needy means individuals who are eligible for medical 
assistance under a State's approved Medicaid State plan in accordance 
with section 1902(a)(10)(C) of the Social Security Act.
    Spend down means to deduct from countable income incurred medical 
expenses, thereby lowering the amount of countable income to a level 
that meets financial eligibility requirements in accordance with 42 CFR 
435.831 (or, as applicable to Guam, the Virgin Islands, and Puerto Rico, 
42 CFR 436.831).

 Applications, Determinations of Eligibility, and Furnishing Assistance



Sec. 400.93  Opportunity to apply for medical assistance.

    (a) A State must provide any individual wishing to do so an 
opportunity to apply for medical assistance and must determine the 
eligibility of each applicant.
    (b) In determining eligibility for medical assistance, the State 
agency must comply with regulations governing applications, 
determinations of eligibility, and furnishing Medicaid (including the 
opportunity for fair hearings) in the States and the District of 
Columbia under 42 CFR part 435, subpart J, and in Guam, Puerto Rico, and 
the Virgin Islands under 42 CFR part 436, subpart J, and 42 CFR part 
431, subpart E.
    (c) Notwithstanding any other provision of law, the State must 
notify promptly the agency (or local affiliate) which provided for the 
initial resettlement of a refugee whenever the refugee applies for 
medical assistance.
    (d) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized or that it has been denied or 
terminated, the State must specify the program(s) to which the notice 
applies, clearly distinguishing between refugee medical assistance and 
Medicaid. For example, if a refugee applies for assistance, is 
determined ineligible for Medicaid but eligible for refugee medical 
assistance, the notice must specify clearly the determinations with 
respect both to Medicaid and to refugee medical assistance.



Sec. 400.94  Determination of eligibility for Medicaid.

    (a) The State must determine Medicaid eligibility under its Medicaid 
State plan for each individual member of a family unit that applies for 
medical assistance.
    (b) A State that provides Medicaid to medically needy individuals in 
the State under its State plan must determine a refugee applicant's 
eligibility for Medicaid as medically needy.
    (c) A State must provide medical assistance under the Medicaid 
program to all refugees eligible under its State plan.
    (d) If the appropriate State agency determines that the refugee 
applicant is not eligible for Medicaid under its State plan, the State 
must determine the applicant's eligibility for refugee medical 
assistance.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

        Conditions of Eligibility for Refugee Medical Assistance



Sec. 400.100  General eligibility requirements.

    (a) Eligibility for refugee medical assistance is limited to those 
refugees who--
    (1) Are ineligible for Medicaid but meet the financial eligibility 
standards under Sec. 400.101;
    (2) Meet immigration status and identification requirements in 
subpart D of this part or are the dependent children of, and part of the 
same filing unit as, individuals who meet the requirements in subpart D, 
subject to the

[[Page 218]]

limitation in Sec. 400.208 of this part with respect to nonrefugee 
children;
    (3) Meet eligibility requirements and conditions in this subpart;
    (4) Have not been denied, or terminated from, refugee cash 
assistance under Sec. 400.82 of this part;
    (5) Provide the name of the resettlement agency which resettled 
them; and
    (6) Are not full-time students in institutions of higher education, 
as defined by the Director, except where such enrollment is approved by 
the State, or its designee, as part of an individual employability plan 
for a refugee under Sec. 400.79 of this part or a plan for an 
unaccompanied minor in accordance with Sec. 400.112.
    (b) A refugee may be eligible for refugee medical assistance under 
this subpart during a period of time to be determined by the Director in 
accordance with Sec. 400.211.
    (c) The State agency may not require that a refugee actually receive 
or apply for refugee cash assistance as a condition of eligibility for 
refugee medical assistance.
    (d) All recipients of refugee cash assistance who are not eligible 
for Medicaid are eligible for refugee medical assistance.

[45 FR 59323, Sept. 9, 1980, as amended at 58 FR 46090, Sept. 1, 1993; 
58 FR 64507, Dec. 8, 1993; 60 FR 33603, June 28, 1995]



Sec. 400.101  Financial eligibility standards.

    In determining eligibility for refugee medical assistance, the State 
agency must use--
    (a) In States with medically needy programs under 42 CFR Part 435, 
Subpart D, the State's medically needy financial eligibility standards 
established under 42 CFR Part 435, Subpart I, and as reflected in the 
State's approved title XIX State Medicaid plan; and
    (b) In States without a medically needy program, the State's AFDC 
need standards established under Sec. 233.20(a)(2) of this title.



Sec. 400.102  Consideration of income and resources.

    (a) Except as specified in paragraph (b) of this section, in 
considering financial eligibility of applicants for refugee medical 
assistance, the State agency must use--
    (1) In States with medically needy programs, the standards governing 
determination of income eligibility in 42 CFR 435.831, and as reflected 
in the State's approved title XIX State Medicaid plan; and
    (2) In States without medically needy programs, the standards 
governing consideration of income and resources of AFDC applicants in 
Sec. 233.20(a) (3) through (11) of this title, except as specified in 
Sec. 400.61(a) of this part.
    (b) The State may not consider in-kind services and shelter provided 
to an applicant by a sponsor or resettlement agency in determining 
eligibility for and receipt of refugee medical assistance.



Sec. 400.103  Coverage of refugees who spend down to AFDC need standard.

    In States without a medically needy program, if an applicant for 
refugee medical assistance does not meet the appropriate AFDC need 
standard, the State agency must allow that individual to spend down to 
the AFDC need standard using the methods for deducting incurred medical 
expenses set forth in 42 CFR 435.831(c).



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

    If a refugee who is receiving refugee medical assistance receives 
increased earnings from employment, the increased earnings shall not 
affect the refugee's continued medical assistance eligibility. The 
refugee shall continue to receive refugee medical assistance until he/
she reaches the end of his or her time-eligibility period for refugee 
medical assistance, in accordance with Sec. 400.100(b). In cases where a 
refugee obtains private medical coverage, any payment of RMA for that 
individual must be reduced by the amount of the third party payment.

[60 FR 33603, June 28, 1995]

                        Scope of Medical Services



Sec. 400.105  Mandatory services.

    In providing refugee medical assistance to refugees, a State must 
provide

[[Page 219]]

at least the same services in the same manner and to the same extent as 
under the State's Medicaid program, as delineated in 42 CFR Part 440.



Sec. 400.106  Additional services.

    If a State or local jurisdiction provides additional medical 
services beyond the scope of the State's Medicaid program to destitute 
residents of the State or locality through public facilities, such as 
county hospitals, the State may provide to refugees who are determined 
eligible under Secs. 400.94, only to the extent that sufficient funds 
are appropriated, or 400.100 of this part the same services through 
public facilities.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



Sec. 400.107  Medical screening.

    (a) As part of its refugee medical assistance program, a State may 
provide a medical screening to a refugee provided--
    (1) The screening is in accordance with requirements prescribed by 
the Director, or his or her designee; and
    (2) Written approval for the screening program or project has been 
provided to the State by the Director, or designee.
    (b) If such assessment is done during the first 90 days after a 
refugee's initial date of entry into the United States, it may be 
provided without prior determination of the refugee's eligibility under 
Secs. 400.94 or 400.100 of this part.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



                    Subpart H--Child Welfare Services

    Source: 51 FR 3915, Jan. 30, 1986, unless otherwise noted.



Sec. 400.110  Basis and scope.

    This subpart prescribes requirements concerning grants to States 
under section 412(d)(2)(B) of the Act for child welfare services to 
refugee unaccompanied minors.



Sec. 400.111  Definitions.

    For purposes of this subpart--
    Child welfare agency means an agency licensed or approved under 
State law to provide child welfare services to children in the State.
    Unaccompanied minor means a person who has not yet attained 18 years 
of age (or a higher age established by the State of resettlement in its 
child welfare plan under title IV-B of the Social Security Act for the 
availability of child welfare services to any other child in the State); 
who entered the United States unaccompanied by and not destined to (a) a 
parent or (b) a close nonparental adult relative who is willing and able 
to care for the child or (c) an adult with a clear and court-verifiable 
claim to custody of the minor; and who has no parent(s) in the United 
States. Limitation: No child may be considered by a State to be 
unaccompanied for the purpose of this part unless such child was 
identified by INS at the time of entry as unaccompanied, except that a 
child who was correctly classified as unaccompanied by a State in 
accordance with Action Transmittal SSA-AT-79-04 (and official 
interpretations thereof by the Director) prior to the effective date of 
this definition may continue to be so classified until such status is 
terminated in accordance with Sec. 400.113(b) of this subpart; and the 
Director may approve the classification of a child as unaccompanied on 
the basis of information provided by a State showing that such child 
should have been classified as unaccompanied at the time of entry.
    Title IV-B plan means a State's plan for providing child welfare 
services to children in the State under part B of title IV of the Social 
Security Act.



Sec. 400.112  Child welfare services for refugee children.

    (a) In providing child welfare services to refugee children in the 
State, a State must provide the same child welfare services and benefits 
to the same extent as are provided to other children of the same age in 
the State under a State's title IV-B plan.
    (b) A State must provide child welfare services to refugee children 
according to the State's child welfare standards, practices, and 
procedures.
    (c) Foster care maintenance payments must be provided under a 
State's program under title IV-E of the Social

[[Page 220]]

Security Act if a child is eligible under that program.



Sec. 400.113  Duration of eligibility.

    (a) Except as specified in paragraph (b), a refugee child may be 
eligible for services under Sec. 400.112 of this part during the 36-
month period beginning with the first month the child entered the United 
States.
    (b) An unaccompanied minor continues to meet the definition of 
``unaccompanied minor'' and is eligible for benefits and services under 
Secs. 400.115 through 400.120 of this part until the minor--
    (1) Is reunited with a parent; or
    (2) Is united with a nonparental adult (relative or nonrelative) 
willing and able to care for the child to whom legal custody and/or 
guardianship is granted under State law; or
    (3) Attains 18 years of age or such higher age as the State's title 
IV-B plan prescribes for the availability of child welfare services to 
any other child in the State.



Sec. 400.114  [Reserved]



Sec. 400.115  Establishing legal responsibility.

    (a) A State must ensure that legal responsibility is established, 
including legal custody and/or guardianship, as appropriate, in 
accordance with applicable State law, for each unaccompanied minor who 
resettles in the State. The State must initiate procedures for 
establishing legal responsibility for the minor, with an appropriate 
court (if action by a court is required by State law), within 30 days 
after the minor arrives at the location of resettlement.
    (b) In establishing legal responsibility, including legal custody 
and/or guardianship under State law, as appropriate, the minor's natural 
parents should not be contacted in their native country since contact 
could be dangerous to the parents.
    (c) Unaccompanied minors are not generally eligible for adoption 
since family reunification is the objective of the program. In certain 
rare cases, adoption may be permitted pursuant to adoption laws in the 
State of resettlement, provided a court finds that: (1) Adoption would 
be in the best interest of the child; and (2) there is termination of 
parental rights (for example, in situations where the parents are dead 
or are missing and presumed dead) as determined by the appropriate State 
court. When adoption occurs, the child's status as an unaccompanied 
minor terminates.



Sec. 400.116  Service for unaccompanied minors.

    (a) A State must provide unaccompanied minors with the same range of 
child welfare benefits and services available in foster care cases to 
other children in the State. Allowable benefits and services may include 
foster care maintenance (room, board, and clothing) payments; medical 
assistance; support services; services identified in the State's plans 
under titles IV-B and IV-E of the Social Security Act; services 
permissible under title XX of the Social Security Act; and expenditures 
incurred in establishing legal responsibility.
    (b) A State may provide additional services if the Director, or his 
or her designee, determines such services to be reasonable and necessary 
for a particular child or children and provides written notification of 
such determination to the State.



Sec. 400.117  Provision of care and services.

    (a) A State may provide care and services to an unaccompanied minor 
directly or through arrangements with a public or private child welfare 
agency approved or licensed under State law.
    (b) If a State arranges for the care and services through a public 
or private nonprofit child welfare agency, it must retain oversight 
responsibility for the appropriateness of the unaccompanied minor's 
care.



Sec. 400.118  Case planning.

    (a) A State, or its designee under Sec. 400.117, must develop and 
implement an appropriate plan for the care and supervision of, and 
services provided to, each unaccompanied minor, to ensure that the child 
is placed in a foster home or other setting approved by the legally 
responsible agency and in accordance with the child's need for care

[[Page 221]]

and for social, health, and educational services.
    (b) Case planning for unaccompanied minors must, at a minimum, 
address the following elements:
    (1) Family reunification;
    (2) Appropriate placement of the unaccompanied child in a foster 
home, group foster care, residential facility, supervised independent 
living, or other setting, as deemed appropriate in meeting the best 
interest and special needs if the child.
    (3) Health screening and treatment, including provision for medical 
and dental examinations and for all necessary medical and dental 
treatment.
    (4) Orientation, testing, and counseling to facilitate the 
adjustment of the child to American culture.
    (5) Preparation for participation in American society with special 
emphasis upon English language instruction and occupational as well as 
cultural training as necessary to facilitate the child's social 
integration and to prepare the child for independent living and economic 
self-sufficiency.
    (6) Preservation of the child's ethnic and religious heritage.
    (c) A State, or its designee under section 400.117 of this part, 
must review the continuing appropriateness of each unaccompanied minor's 
living arrangement and services no less frequently than every 6 months.

(Approved by the Office of Management and Budget under control number 
0960-0418)



Sec. 400.119  Interstate movement.

    After the initial placement of an unaccompanied minor, the same 
procedures that govern the movement of nonrefugee foster cases to other 
States apply to the movement of unaccompanied minors to other States.



Sec. 400.120  Reporting requirements.

    A State must submit to ORR, on forms prescribed by the Director, the 
following reports on each unaccompanied minor:
    (a) An initial report within 30 days of the date of the minor's 
placement in the State;
    (b) A progress report every 12 months beginning with 12 months from 
the date of the initial report in paragraph (a);
    (c) A change of status report within 60 days of the date that--
    (1) The minor's placement is changed;
    (2) Legal responsibility of any kind for the minor is established or 
transferred; or
    (d) A final report within 60 days of the date of that the minor--
    (1) Is reunited with a parent; or
    (2) Is united with an adult, other than a parent, in accordance with 
Sec. 400.113(b) or Sec. 400.115(c) of this part.
    (3) Is emancipated.

(Approved by the Office of Management and Budget under control number 
0960-0418)



                   Subpart I--Refugee Social Services



Sec. 400.140  Basis and scope.

    This subpart sets forth requirements concerning formula allocation 
grants to States under section 412(c) of the Act for refugee social 
services.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



Sec. 400.141  Definitions.

    For purposes of this subpart--
    Refugee social services means any service set forth in Secs. 400.154 
or 400.155 of this subpart.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

 Applications, Determinations of Eligibility, and Provision of Services



Sec. 400.145  Opportunity to apply for services.

    (a) A State must provide any individual wishing to do so an 
opportunity to apply for services and determine the eligibility of each 
applicant.
    (b) Except as otherwise specified in this subpart, a State must 
determine eligibility for and provide refugee social services specified 
in Secs. 400.154 and 400.155 in accordance with the same procedures 
which it follows in its social service program under title XX of the 
Social Security Act with respect to determining eligibility, acting on 
applications and requests for services, and

[[Page 222]]

providing notification of right to a hearing.
    (c) A State must insure that women have the same opportunities as 
men to participate in all services funded under this part, including job 
placement services.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

                     Funding and Service Priorities



Sec. 400.146  Use of funds.

    The State must use its social service grants primarily for 
employability services designed to enable refugees to obtain jobs within 
one year of becoming enrolled in services in order to achieve economic 
self-sufficiency as soon as possible. Social services may continue to be 
provided after a refugee has entered a job to help the refugee retain 
employment or move to a better job. Social service funds may not be used 
for long-term training programs such as vocational training that last 
for more than a year or educational programs that are not intended to 
lead to employment within a year.

[60 FR 33603, June 28, 1995]



Sec. 400.147  Priority in provision of services.

    A State must plan its social service program and allocate its social 
service funds in such a manner that services are provided to refugees in 
the following order of priority, except in certain individual extreme 
circumstances:
    (a) All newly arriving refugees during their first year in the U.S., 
who apply for services;
    (b) Refugees who are receiving cash assistance;
    (c) Unemployed refugees who are not receiving cash assistance; and
    (d) Employed refugees in need of services to retain employment or to 
attain economic independence.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

                          Purchase of Services



Sec. 400.148  Purchase of services.

    A state may provide services directly or it may purchase services 
from public or private service providers.

[54 FR 5481, Feb. 3, 1989]

          Conditions of Eligibility for Refugee Social Services



Sec. 400.150  General eligibility requirements.

    Eligibility for refugee social services is limited to those refugees 
who--
    (a) Meet immigration status and identification requirements in 
Subpart D of this part;
    (b) Meet the other eligibility requirements and conditions in this 
subpart.

[54 FR 5481, Feb. 3, 1989]



Sec. 400.152  Limitations on eligibility for services.

    (a) A State may provide the social services defined in Sec. 400.154 
to refugees who are 16 years of age or older and who are not full-time 
students in elementary or secondary school, except that such a student 
may be provided services under Sec. 400.154 (a) and (b) in order to 
obtain part-time or temporary (e.g., summer) employment while a student 
or full-time permanent employment upon completion of schooling.
    (b) A State may not provide services under this subpart, except for 
referral and interpreter services, to refugees who have been in the 
United States for more than 60 months, except that refugees who are 
receiving employability services, as defined in Sec. 400.154, as of 
September 30, 1995, as part of an employability plan, may continue to 
receive those services through September 30, 1996, or until the services 
are completed, whichever occurs first, regardless of their length of 
residence in the U.S.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

[[Page 223]]

                    Scope of Refugee Social Services



Sec. 400.154  Employability services.

    A State may provide the following employability services--
    (a) Employment services, including development of a family self-
sufficiency plan and an individual employability plan, world-of-work and 
job orientation, job clubs, job workshops, job development, referral to 
job opportunities, job search, and job placement and followup.
    (b) Employability assessment services, including aptitude and skills 
testing.
    (c) On-the job training, when such training is provided at the 
employment site and is expected to result in full-time, permanent, 
unsubsidized employment with the employer who is providing the training.
    (d) English language instruction, with an emphasis on English as it 
relates to obtaining and retaining a job.
    (e) Vocational training, including driver education and training 
when provided as part of an individual employability plan.
    (f) Skills recertification, when such training meets the criteria 
for appropriate training in Sec. 400.81(b) of this part.
    (g) Day care for children, when necessary for participation in an 
employability service or for the acceptance or retention of employment.
    (h) Transportation, when necessary for participation in an 
employability service or for the acceptance or retention of employment.
    (i) Translation and interpreter services, when necessary in 
connection with employment or participation in an employability service.
    (j) Case management services, as defined in Sec. 400.2 of this part, 
for refugees who are considered employable under Sec. 400.76 and for 
recipients of AFDC and GA who are considered employable, provided that 
such services are directed toward a refugee's attainment of employment 
as soon as possible after arrival in the United States.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



Sec. 400.155  Other services.

    A State may provide the following other services--
    (a) Information and referral services.
    (b) Outreach services, including activities designed to familiarize 
refugees with available services, to explain the purpose of these 
services, and facilitate access to these services.
    (c) Social adjustment services, including:
    (1) Emergency services, as follows: Assessment and short-term 
counseling to persons or families in a perceived crisis; referral to 
appropriate resources; and the making of arrangements for necessary 
services.
    (2) Health-related services, as follows: Information; referral to 
appropriate resources; assistance in scheduling appointments and 
obtaining services; and counseling to individuals or families to help 
them understand and identify their physical and mental health needs and 
maintain or improve their physical and mental health.
    (3) Home management services, as follows: Formal or informal 
instruction to individuals or families in management of household 
budgets, home maintenance, nutrition, housing standards, tenants' 
rights, and other consumer education services.
    (d) Day care for children, when necessary for participation in a 
service other than an employability service.
    (e) Transportation, when necessary for participation in a service 
other than an employability service.
    (f) Translation and interpreter services, when necessary for a 
purpose other than in connection with employment or participation in an 
employability service.
    (g) Case management services, when necessary for a purpose other 
than in connection with employment or participation in employability 
services.
    (h) Any additional service, upon submission to and approval by the 
Director of ORR, aimed at strengthening and supporting the ability of a 
refugee individual, family, or refugee community to achieve and maintain 
economic self-sufficiency, family stability, or community integration 
which has been demonstrated as effective and is not available from any 
other funding source.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

[[Page 224]]



Sec. 400.156  Service requirements.

    (a) In order to avoid interference with refugee employment, English 
language instruction and vocational training funded under this part must 
be provided to the fullest extent feasible outside normal working hours.
    (b) In planning and providing services under Secs. 400.154 and 
400.155, a State must take into account those services which a 
resettlement agency is required to provide for a refugee whom it 
sponsors in order to ensure the provision of seamless, coordinated 
services to refugees that are not duplicative.
    (c) English language instruction funded under this part must be 
provided in a concurrent, rather than sequential, time period with 
employment or with other employment-related services.
    (d) Services funded under this part must be refugee-specific 
services which are designed specifically to meet refugee needs and are 
in keeping with the rules and objectives of the refugee program, except 
that vocational or job skills training, on-the-job training, or English 
language training need not be refugee-specific.
    (e) Services funded under this part must be provided to the maximum 
extent feasible in a manner that is culturally and linguistically 
compatible with a refugee's language and cultural background.
    (f) Services funded under this part must be provided to the maximum 
extent feasible in a manner that includes the use of bilingual/
bicultural women on service agency staffs to ensure adequate service 
access by refugee women.
    (g) A family self-sufficiency plan must be developed for anyone who 
receives employment-related services funded under this part.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33604, June 28, 1995]



                       Subpart J--Federal Funding

    Source: 51 FR 3916, Jan. 30, 1986, unless otherwise noted.



Sec. 400.200  Scope.

    This subpart specifies when, and the extent to which, Federal 
funding (FF) is available under this regulation in expenditures for 
determining eligibility and for providing assistance and services to 
refugees determined eligible under this part, and prescribes limitations 
and conditions on FF for those expenditures.

    Federal Funding for Expenditures for Determining Eligibility and 
                    Providing Assistance and Services



Sec. 400.202  Extent of Federal funding.

    Subject to the availability of funds and under the terms and 
conditions approved by the Director, FF will be provided for 100 percent 
of authorized allowable costs of determining eligibility and providing 
assistance and services in accordance with this part.



Sec. 400.203  Federal funding for cash assistance.

    (a) To the extent that sufficient funds are appropriated, Federal 
funding is available for cash assistance provided to eligible refugees 
during the 36-month period beginning with the first month the refugee 
entered the United States, as follows--
    (1) If a refugee is eligible for AFDC, adult assistance programs, or 
foster care maintenance payments under title IV-E of the Social Security 
Act, FF is available only for the non-Federal share of such assistance.
    (2) If a refugee is eligible for SSI, FF is available for any 
supplementary payment a State may provide under that program.
    (b) Federal funding is available for refugees cash assistance (RCA) 
provided to eligible refugees during a period of time to be determined 
by the Director in accordance with Sec. 400.211.
    (c) To the extent that sufficient funds are appropriated, Federal 
funding is available for general assistance (GA) provided to eligible 
refugees during the 24-month period beginning with the 13th month after 
the refugee entered the United States.

[51 FR 3916, Jan. 30, 1986 as amended at 53 FR 32224, Aug. 24, 1988; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993; 60 FR 33604, June 
28, 1995]

[[Page 225]]



Sec. 400.204  Federal funding for medical assistance.

    (a) To the extent that sufficient funds are appropriated, Federal 
funding is available for the non-Federal share of medical assistance 
provided to refugees who are eligible for Medicaid or adult assistance 
programs during the 36-month period beginning with the first month the 
refugee entered the United States.
    (b) Federal funding is available for refugee medical assistance 
(RMA) provided to eligible refugees during a period of time to be 
determined by the Director in accordance with Sec. 400.211.
    (c) To the extent that sufficient funds are appropriated, Federal 
funding is available for a State's expenditures for medical assistance 
under a general assistance (GA) program during the 24-month period 
beginning with the 13th month after the refugee entered the United 
States.

[51 FR 3916, Jan. 30, 1986, as amended at 53 FR 32225, Aug. 24, 1988; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993; 60 FR 33604, June 
28, 1995]



Sec. 400.205  Federal funding for assistance and services for unaccompanied minors.

    Federal funding is available for a State's expenditures for service 
to unaccompanied minors under Secs. 400.115 through 400.120 of this part 
until the minor's status as an unaccompanied minor is terminated as 
specified by Sec. 400.113.



Sec. 400.206    Federal funding for social services and targeted assistance services.

    (a) Federal funding is available for refugee social services as set 
forth in Subpart I of this part, including the reasonable and necessary 
identifiable administrative costs of providing such services, in 
accordance with allocations by the Director.
    (b) Federal funding is available for targeted assistance services as 
set forth in subpart L of this part, including reasonable and necessary 
identifiable State administrative costs of providing such services, not 
to exceed 5 percent of the total targeted assistance award to the State.

[54 FR 5483, Feb. 3, 1989, as amended at 60 FR 33604, June 28, 1995]



Sec. 400.207  Federal funding for administrative costs.

    Federal funding is available for reasonable and necessary 
identifiable administrative costs of providing assistance and services 
under this part only for those assistance and service programs set forth 
in Secs. 400.203 through 400.205 for which Federal funding is currently 
made available under the refugee program. A State may claim only those 
costs that are determined to be reasonable and allowable as defined by 
the Administration for Children and Families. Such costs may be included 
in a State's claims against its quarterly grants for the purposes set 
forth in Secs. 400.203 through 400.205 of this part.

[60 FR 33604, June 28, 1995]



Sec. 400.208  Claims involving filing units which include both refugees and nonrefugees.

    (a) Federal funding is available for a State's expenditures for 
assistance and services to a filing unit which includes a refugee parent 
or two refugee parents and one or more of their children who are 
nonrefugees, including children who are United States citizens.
    (b) Federal funding is not available for a State's expenditures for 
assistance and services provided to a nonrefugee adult member of a 
filing unit or to a nonrefugee child or children in a filing unit if one 
parent in the filing unit is a nonrefugee.



Sec. 400.209  Claims involving filing units which include refugees who have been in the United States more than 36 months.

    Federal funding is not available for State expenditures for cash and 
medical assistance and child welfare services (except services for 
unaccompanied minors) provided to any refugee within a filing unit who 
has been in the United States
    (a) More than 36 months if the filing unit is eligible for AFDC, 
SSI, Medicaid, GA, or child welfare services (except services for 
unaccompanied minors), or

[[Page 226]]

    (b) More than a period of time to be determined by the Director in 
accordance with Sec. 400.211 if the filing unit is eligible for RCA or 
RMA. A State agency must exclude expenditures made on behalf of such 
refugees from its claim.

[51 FR 3916, Jan. 30, 1986 as amended at 53 FR 32225, Aug. 24, 1988; 57 
FR 1115, Jan. 10, 1992; 58 FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 
1993]



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

    Federal funding is available for a State's expenditures for 
assistance and services to eligible refugees for which the following 
time limits are met:
    (a) CMA grants, as described at Sec. 400.11(a)(1) of this part:
    (1) Except for services for unaccompanied minors, a State must use 
its CMA grants for costs attributable to the Federal fiscal year (FFY) 
in which the Department awards the grants. With respect to CMA funds 
used for services for unaccompanied minors, the State may use its CMA 
funds for services provided during the Federal fiscal year following the 
FFY in which the Department awards the funds.
    (2) A State's final financial report on expenditures of CMA grants, 
including CMA expenditures for services for unaccompanied minors, must 
be received no later than one year after the end of the FFY in which the 
Department awarded the grant. At that time, the Department will 
deobligate any unexpended funds, including any unliquidated obligations.
    (b) Social service grants and targeted assistance grants, as 
described, respectively, at Secs. 400.11(a)(2) and 400.311 of this part:
    (1) A State must obligate its social service and targeted assistance 
grants no later than one year after the end of the FFY in which the 
Department awards the grant.
    (2) A State's final financial report on expenditures of social 
service and targeted assistance grants must be received no later than 
two years after the end of the FFY in which the Department awarded the 
grant. At that time, the Department will deobligate any unexpended 
funds, including any unliquidated obligations.

[60 FR 33604, June 28, 1995]



Sec. 400.211  Methodology to be used to determine time-eligibility of refugees.

    (a) The time-eligibility period for refugee cash assistance and 
refugee medical assistance will be determined by the Director each year, 
based on appropriated funds available for the fiscal year. The Director 
will make a determination of the eligibility period each year as soon as 
possible after funds are appropriated for the refugee program, and also 
at subsequent points during the fiscal year, only if necessary, based on 
updated information on refugee flows and State reports on receipt of 
assistance and expenditures. The method to be used to determine the RCA/
RMA eligibility period will include the following steps and will be 
applied to various RCA/RMA time-eligibility periods in order to 
determine the time-eligibility period which will provide the most number 
of months without incurring a shortfall in funds for the fiscal year.
    (1) The time-eligibility population for the projected fiscal year 
will be estimated on the basis of the refugee admissions ceiling 
established by the President for that fiscal year and the anticipated 
arrival of other persons eligible for refugee assistance, to the extent 
that data on these persons are available. The anticipated pattern of 
refugee flow for the projected fiscal year will be estimated based on 
the best available historical and current refugee flow information that 
will most accurately forecast the refugee flow for the projected fiscal 
year. These arrival figures will then be used to determine the time-
eligible population for a given duration of RCA/RMA benefits.
    (2) The average annual member of RCA and RMA recipients will be 
determined by multiplying the estimated time-eligible population 
established in paragraph (a)(1) of this section by the estimated RCA and 
RMA participation rates. The RMA participation rate will take into 
account both RCA recipients, who are also eligible for RMA, and RMA-only 
recipients. Recipient data

[[Page 227]]

from quarterly performance reports submitted by States for the most 
recent 4 quarters for which reports are available will be used to 
determine the appropriate participation rates for various RCA/RMA time-
eligibility periods.
    (3) The average annual per recipient cost for RCA and RMA will be 
estimated separately, based on estimated per recipient costs for the 
most recent fiscal year, using available data, and inflated for the 
projected fiscal year using projected increases in per capita AFDC cash 
assistance costs for RCA and per capita AFDC Medicaid costs for RMA.
    (4) The expected average number of RCA recipients will be multiplied 
by the expected RCA per recipient cost to derive estimated RCA costs. 
The expected average annual number of RMA recipients will be multiplied 
by the expected RMA per recipient cost to derive estimated RMA costs.
    (5) State administrative costs for the projected fiscal year for all 
States in the aggregate will be estimated based on total actual 
allowable expenditures for State administration for the most recent 
fiscal year. The variable portion of administrative costs will be 
adjusted for changes in program participation and inflated by the 
Consumer Price Index (CPI) for all items as estimated by the Office of 
Management and Budget (OMB). The fixed portion of administrative costs 
will be adjusted by the CPI inflator only.
    (6) The total estimated costs for the projected fiscal year will 
equal the combined estimated costs for RCA, RMA, and State 
administration as calculated in paragraphs (a)(1) through (5) of this 
section.
    (b) If, as the Director determines, the period of eligibility needs 
to be changed from the eligibility period in effect at the time, the 
Director will publish a final notice in the Federal Register, announcing 
the new period of eligibility for refugee cash assistance and refugee 
medical assistance and the effective date for impleting the new 
eligibility period. States will be given as much notice as available 
funds will allow without resulting in a further reduction in the 
eligibility period. At a minimum, States will be given 30 days' notice.

[58 FR 64507, Dec. 8, 1993]



Sec. 400.212  Restrictions in the use of funds.

    Federal funding under this part is not available for travel outside 
the United States without the written approval of the Director.

[60 FR 33604, June 28, 1995]



Sec. 400.220  Counting time-eligibility of refugees.

    A State may calculate the time-eligibility of a refugee under this 
part in either of the following ways:
    (a) On the basis of calendar months, in which case the month of 
arrival in the United States must count as the first month; or
    (b) On the basis of the actual date of arrival, in which case each 
month will be counted from that specific date.

[54 FR 5483, Feb. 3, 1989]



                   Subpart K--Waivers and Withdrawals



Sec. 400.300  Waivers.

    If a State wishes to apply for a waiver of a requirement of this 
part, the Director may waive such requirement with respect to such 
State, unless required by statute, if the Director determines that such 
waiver will advance the purposes of this part and is appropriate and 
consistent with Federal refugee policy objectives. To the fullest extent 
practicable, the Director will approve or disapprove an application for 
a waiver within 130 days of receipt of such application. The Director 
shall provide timely written notice of the reasons for denial to States 
whose applications are disapproved.

[60 FR 33604, June 28, 1995]



Sec. 400.301  Withdrawal from the refugee program.

    (a) In the event that a State decides to cease participation in the 
refugee program, the State must provide 120 days advance notice to the 
Director before withdrawing from the program.
    (b) To participate in the refugee program, a State is expected to 
operate all

[[Page 228]]

components of the refugee program, including refugee cash and medical 
assistance, social services, preventive health, and an unaccompanied 
minors program if appropriate. A State is also expected to play a 
coordinating role in the provision of assistance and services in 
accordance with Sec. 400.5(b). In the event that a State wishes to 
retain responsibility for only part of the refugee program, it must 
obtain prior approval from the Director of ORR. Such approval will be 
granted only under extraordinary circumstances and if it is in the best 
interest of the Government.
    (c) When a State withdraws from all or part of the refugee program, 
the Director may authorize a replacement designee or designees to 
administer the provision of assistance and services, as appropriate, to 
refugees in that State. A replacement designee must adhere to the same 
regulations under this part that apply to a State-administered program, 
with the exception of the following provisions: 45 CFR 400.5(d), 400.7, 
400.55(b)(2), 400.56(a)(1), 400.56(a)(2), 400.56(b)(2)(i), 400.94(a), 
400.94(b), 400.94(c), and subpart L. Certain provisions are excepted 
because they apply only to States and become moot when a State withdraws 
from participation in the refugee program and is replaced by another 
entity. States would continue to be responsible for administering the 
other excepted provisions because these provisions refer to the 
administration of other State-run public assistance programs.

[60 FR 33604, June 28, 1995]



                     Subpart L--Targeted Assistance

    Source: 60 FR 33604, June 28, 1995, unless otherwise noted.



Sec. 400.310  Basis and scope.

    This subpart sets forth requirements concerning formula allocation 
grants to States under section 412(c)(2) of the Act for targeted 
assistance.



Sec. 400.311  Definitions.

    For purposes of this subpart--
    ``Targeted assistance grants'' means formula allocation funding to 
States for assistance to counties and similar areas in the States where, 
because of factors such as unusually large refugee populations 
(including secondary migration), high refugee concentrations, and high 
use of public assistance by refugees, there exists and can be 
demonstrated a specific need for supplementation of available resources 
for services to refugees.



Sec. 400.312  Opportunity to apply for services.

    A State must provide any individual wishing to do so an opportunity 
to apply for targeted assistance services and determine the eligibility 
of each applicant.

                     Funding and Service Priorities



Sec. 400.313  Use of funds.

    A State must use its targeted assistance funds primarily for 
employability services designed to enable refugees to obtain jobs with 
less than one year's participation in the targeted assistance program in 
order to achieve economic self-sufficiency as soon as possible. Targeted 
assistance services may continue to be provided after a refugee has 
entered a job to help the refugee retain employment or move to a better 
job. Targeted assistance funds may not be used for long-term training 
programs such as vocational training that last for more than a year or 
educational programs that are not intended to lead to employment within 
a year.



Sec. 400.314  Priority in provision of services.

    A State must plan its targeted assistance program and allocate its 
targeted assistance funds in such a manner that services are provided to 
refugees in the following order of priority, except in certain 
individual extreme circumstances:
    (a) Cash assistance recipients, particularly long-term recipients;
    (b) Unemployed refugees who are not receiving cash assistance; and
    (c) Employed refugees in need of services to retain employment or to 
attain economic independence.



Sec. 400.315  General eligibility requirements.

    (a) For purposes of determining eligibility of refugees for services 
under

[[Page 229]]

this subpart, the same standards and criteria shall be applied as are 
applied in the determination of eligibility for refugee social services 
under Secs. 400.150 and 400.152(a).
    (b) A State may not provide services under this subpart, except for 
referral and interpreter services, to refugees who have been in the 
United States for more than 60 months, except that refugees who are 
receiving employability services, as defined in Sec. 400.316, as of 
September 30, 1995, as part of an employability plan, may continue to 
receive those services through September 30, 1996, or until the services 
are completed, whichever occurs first, regardless of their length of 
residence in the U.S.



Sec. 400.316  Scope of targeted assistance services.

    A State may provide the same scope of services under this subpart as 
may be provided to refugees under Secs. 400.154 and 400.155, with the 
exception of Sec. 400.155(h).



Sec. 400.317  Service requirements.

    In providing targeted assistance services to refugees, a State must 
adhere to the same requirements as are applied to the provision of 
refugee social services under Sec. 400.156.



Sec. 400.318  Eligible grantees.

    Eligible grantees are those agencies of State governments which are 
responsible for the refugee program under 45 CFR 400.5 in States 
containing counties which qualify for targeted assistance awards. The 
use of targeted assistance funds for services to Cuban and Haitian 
entrants is limited to States which have an approved State plan under 
the Cuban/Haitian Entrant Program (CHEP).



Sec. 400.319  Allocation of funds.

    (a) A State with more than one qualifying targeted assistance county 
may allocate its targeted assistance funds differently from the formula 
allocations for counties presented in the ORR targeted assistance notice 
in a fiscal year only on the basis of its population of refugees who 
arrived in the U.S. during the most recent 5-year period. A State may 
use welfare data as an additional factor in the allocation of targeted 
assistance funds if it so chooses; however, a State may not assign a 
greater weight to welfare data than it has assigned to population data 
in its allocation formula.
    (b) A State must assure that not less than 95 percent of the total 
award to the State is made available to the qualified county or 
counties, except in those cases where the qualified county or counties 
have agreed to let the State administer the targeted assistance program 
in the county's stead.



PART 401--CUBAN/HAITIAN ENTRANT PROGRAM--Table of Contents




Sec.
401.1  [Reserved]
401.2  Definitions.
401.3--401.11  [Reserved]
401.12  Cuban and Haitian entrant cash and medical assistance.

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

    Source: 47 FR 10850, Mar. 12, 1982, unless otherwise noted.



Sec. 401.1  [Reserved]



Sec. 401.2  Definitions.

    For purposes of this part a Cuban and Haitian entrant or entrant is 
defined as:
    (a) Any individual granted parole status as a Cuban/Haitian Entrant 
(Status Pending) or granted any other special status subsequently 
established under the immigration laws for nationals of Cuba or Haiti, 
regardless of the status of the individual at the time assistance or 
services are provided; and
    (b) Any other national of Cuba or Haiti
    (1) Who:
    (i) Was paroled into the United States and has not acquired any 
other status under the Immigration and Nationality Act;
    (ii) Is the subject of exclusion or deportation proceedings under 
the Immigration and Nationality Act; or
    (iii) Has an application for asylum pending with the Immigration and 
Naturalization Service; and
    (2) With respect to whom a final, nonappealable, and legally 
enforceable

[[Page 230]]

order of deportation or exclusion has not been entered.



Secs. 401.3--401.11  [Reserved]



Sec. 401.12  Cuban and Haitian entrant cash and medical assistance.

    Except as may be otherwise provided in this section, cash and 
medical assistance shall be provided to Cuban and Haitian entrants by 
the same agencies, under the same conditions, and to the same extent as 
such assistance is provided to refugees under Part 400 of this title.
    (a) For purposes of determining the eligibility of Cuban and Haitian 
entrants for cash and medical assistance under this section and the 
amount of assistance for which they are eligible under this section, the 
same standards and critieria shall be applied as are applied in the 
determination of eligibility for an amount of cash and medical 
assistance for refugees under Sec. 400.62 of this title.
    (b) Federal reimbursement will be provided to States for the costs 
of providing cash and medical assistance (and related administrative 
costs) to Cuban and Haitian entrants according to procedures and 
requirements, including procedures and requirements relating to the 
submission and approval of a State plan, identical to those applicable 
to the Refugee Program and set forth in Part 400 of this title.
    (c) The number of months during which an entrant may be eligible for 
cash and medical assistance for which Federal reimbursement is available 
under this section shall be counted starting with the first month in 
which an individual meeting the definition of a Cuban and Haitian 
entrant in Sec. 401.2 was first issued documentation by the Immigration 
and Naturalization Service indicating:
    (1) That the entrant has been granted parole by the Attorney General 
under the Immigration and Nationality Act,
    (2) That the entrant is in a voluntary departure status, or
    (3) That the entrant's residence in a United States community is 
known to the Immigration and Naturalization Service.
    The amendments are to be issued under the authority contained in 
section 412(a)(9), Immigration and Nationality Act (8 U.S.C. 
1522(a)(9)).



PART 402--STATE LEGALIZATION IMPACT ASSISTANCE GRANTS--Table of Contents




                         Subpart A--Introduction

402.1  General.
402.2  Definitions.

                         Subpart B--Use of Funds

402.10  Allowable use of funds.
402.11  Limitations on Use of SLIAG Funds.
402.12  Use of SLIAG Funds for Costs Incurred Prior to October 1, 1987.

                   Subpart C--Administration of Grants

402.20  General provisions.
402.21  Fiscal control.
402.22  [Reserved]
402.23  Repayment.
402.24  Withholding.
402.25  Appeals.
402.26  Time period for obligation and expenditure of grant funds.

                      Subpart D--State Allocations

402.30  Basis of awards.
402.31  Determination of allocations.
402.32  Determination of state allotments.
402.33  Allotment of excess funds.
402.34  Allocation of unexpected funds.

                      Subpart E--State Applications

402.40  General.
402.41  Application content.
402.42  Application format.
402.43  Application deadline.
402.44  Basis for approval.
402.45  Amendments to applications.

                 Subpart F--Recordkeeping and Reporting

402.50  Recordkeeping.
402.51  Reporting.

    Authority: 8 U.S.C. 1255a note, as amended.

    Source: 53 FR 7858, Mar. 10, 1988, unless otherwise noted.



                         Subpart A--Introduction



Sec. 402.1  General.

    (a) These regulations implement section 204 of Pub. L. 99-603, the 
Immigration Reform and Control Act of 1986

[[Page 231]]

(IRCA), as amended. This act establishes a temporary program of State 
Legalization Impact Assistance Grants (SLIAG) for States. The purpose of 
SLIAG is to lessen the financial impact on State and local governments 
resulting from the adjustment of immigration status under the Act of 
certain groups of aliens residing in the States, the District of 
Columbia, Puerto Rico, the Virgin Islands, and Guam.
    (b) Funds appropriated by section 204 may be applied by States with 
approved applications to certain State and local government costs 
incurred:
    (1) In providing public assistance and public health assistance to 
eligible legalized aliens,
    (2) For making payments to State educational agencies for the 
purpose of assisting local educational agencies in providing certain 
educational services to eligible legalized aliens,
    (3) To provide public education and outreach to lawful temporary 
resident aliens concerning the adjustment to lawful permanent resident 
status and other matters,
    (4) To make payments for education and outreach efforts by State 
agencies regarding unfair discrimination in employment practices based 
on national origin or citizenship status, and
    (5) To administer the funds provided under this Part.

[56 FR 21246, May 7, 1991]



Sec. 402.2  Definitions.

    As used in this part--
    The Act means the Immigration Reform and Control Act of 1986, Public 
Law 99-603, as amended.
    Allocation means an amount designated for a State, as determined 
under Sec. 402.31, Sec. 402.33, or Sec. 402.34.
    Allotment means the total amount awarded to a State, as determined 
under Sec. 402.31, Sec. 402.33, or Sec. 402.34.
    Department means the U.S. Department of Health and Human Services.
    Educational Services means:
    (1) For eligible legalized aliens regardless of age enrolled in 
elementary or secondary school, services allowable under section 607 of 
the Emergency Immigrant Education Act, 20 U.S.C. 4101, et seq. (Pub. L. 
98-511), as in effect on November 6, 1986.
    (2) For adult eligible legalized aliens:
    (i) Services authorized under the Adult Education Act, 20 U.S.C. 
1201 et seq. (Pub. L. 89-750, as amended), as in effect November 6, 
1986, and
    (ii) English language and other programs designed to enable eligible 
legalized aliens to attain the citizenship skills required by section 
245A(b)(1)(D)(i) of the INA.
    Eligible legalized alien means an alien whose status has been 
adjusted to lawful temporary resident under section 245A, 210, or 210A 
of the Immigration and Nationality Act, beginning on the effective date 
of such adjustment as established by the Immigration and Naturalization 
Service, and continuing until the end of the five-year period beginning 
on the effective date of such adjustment, provided that during that time 
the alien remains in lawful temporary or permanent resident status 
granted under the Act.
    Employment discrimination education and outreach means education and 
outreach efforts by State agencies regarding unfair discrimination in 
employment practices based on national origin or citizenship status.
    INA means the Immigration and Nationality Act, 8 U.S.C. 1101, et 
seq.
    Local educational agency means--
    (a) A public board of education or other public authority legally 
constituted within a State for either administrative control of or 
direction of, or to perform service functions for, public elementary or 
secondary schools in--
    (1) A city, county, township, school district, or other political 
subdivision of a State; or
    (2) Such combination of school districts or counties a State 
recognizes as an administrative agency for its public elementary or 
secondary schools; or
    (b) Any other public institution or agency that has administrative 
control and direction of a public elementary or secondary school.
    Local government has the same meaning as in 45 CFR part 92.
    Nonpublic, as applied to an agency, organization, or institution, 
means that the agency, organization, or institution is nonprofit and is 
not under Federal or public supervision or control.

[[Page 232]]

    Phase II outreach means public education and outreach (including the 
provision of information to individuals) to inform temporary resident 
aliens under section 210, 210A, 245A of the INA and aliens whose 
applications for such status are pending with the Immigration and 
Naturalization Service regarding:
    (1) The requirements of sections 210, 210A, and 245A of the INA 
regarding the adjustment of resident status;
    (2) Sources of assistance for such aliens obtaining the adjustment 
of status described in paragraph (1) of this definition, including 
educational, informational, and referral services, and the rights and 
responsibilities of such aliens and aliens lawfully admitted for 
permanent residence;
    (3) The identification of health, employment, and social services; 
and,
    (4) The importance of identifying oneself as a temporary resident 
alien to service providers.
    Program administrative costs means those costs associated with 
administering public assistance, public health assistance, educational 
services, Phase II outreach, and employment discrimination education and 
outreach activities.
    Public, as applied to an agency, organization, or institution, means 
that the agency, organization, or institution is under the 
administrative supervision or control of a government other than the 
Federal Government.
    Public assistance means cash, medical, or other assistance provided 
to meet the basic subsistence needs or health needs of individuals.
    (1) That is generally available to needy individuals residing in a 
State and
    (2) That is provided with funds from units of State or local 
government.

As used in this definition, basic subsistence needs are minimal living 
requirements, including food, shelter and clothing. For purposes of this 
definition, assistance is considered to have been provided to needy 
individuals if specified income or resource requirements are used to 
determine eligibility or the amount of a fee or other charges to be paid 
for services. Other assistance means assistance and services, other than 
cash or medical assistance, that are directed at meeting basic 
subsistence needs, and that meet all of the criteria in this definition. 
Other assistance also means assistance and services in which 
participation is required as a condition of receipt of cash or medical 
assistance.
    Public health assistance means health services (1) that are 
generally available to needy individuals residing in a State; (2) that 
receive funding from units of State or local government; and, (3) that 
are provided for the primary purpose of protecting the health of the 
general public, including, but not limited to, immunizations for 
immunizable diseases, testing and treatment for tuberculosis and 
sexually-transmitted diseases, and family planning services.
    Recipient means grantee or subgrantee.
    Secretary means the Secretary of the Department of Health and Human 
Services.
    SLIAG administrative costs means the direct and indirect costs 
related to administration of funds provided under this part, including: 
planning and conferring with local officials, preparing the application, 
audits, allocation of funds, tracking and recordkeeping, monitoring use 
of funds, and reporting.
    SLIAG-reimbursable activity means programs of public assistance, 
programs of public health assistance, educational services, employment 
discrimination education and outreach, Phase II outreach, program 
administrative costs, and SLIAG administrative costs, as those terms are 
defined in this part, that are included in a State's application 
approved pursuant to subpart E of this part.
    SLIAG-related costs means expenditures made: To provide public 
assistance, public health assistance, or educational services, as 
defined in this part, to eligible legalized aliens; to provide public 
health assistance to aliens applying on a timely basis to become lawful 
temporary residents under sections 210, 210A, or 245A of the INA during 
such time as that alien's application with INS is pending approval; to 
provide employment discrimination education and outreach, as defined in 
this part; to provide Phase II outreach, as defined in this part; and 
for SLIAG administrative costs, as defined in this part. SLIAG-related 
costs include all

[[Page 233]]

allowable expenditures, including program administrative costs 
determined in accordance with Sec. 402.21(c), regardless of whether 
those expenditures actually are reimbursed or paid for with funds 
allotted to the State under this part. SLIAG-related costs for 
educational services, Phase II outreach, and employment discrimination 
education and outreach are limited to the amount of payment that can be 
made under the Act for those activities, as described in Sec. 402.11 
(e), (k) and (l), respectively. SLIAG-related costs exclude: (1) 
Expenditures by a State or local government for costs which are 
reimbursed or paid for by Federal programs other than SLIAG; and (2) 
program income (as defined in 45 CFR 74.42 or 45 CFR 92.25(b), as 
applicable) received from or on behalf of eligible legalized aliens 
receiving services or benefits for which payment or reimbursement may be 
made under this part.
    State means the 50 States, the District of Columbia, Puerto Rico, 
Guam, and the Virgin Islands of the United States.
    State educational agency means--
    (1) The State board of education or other agency or officer 
primarily responsible for the supervision of public elementary and 
secondary schools in a State. In the absence of this officer or agency, 
it is an officer or agency designated by the Governor or State law; or
    (2) The State board of education or other agency or officer 
primarily responsible for the State supervision of public elementary and 
secondary schools; or if there is a separate State agency or officer 
primarily responsible for supervision of adult education in public 
schools, then that agency or officer may be designated for the purpose 
of the Act by the Governor or by State law. If no agency or officer 
qualifies under the preceding sentence, the term means an appropriate 
agency or officer designated for the purpose of the Act by the Governor.
    Unexpended funds means the amount by which allotments awarded to a 
State, as determined under Sec. 402.31 and Sec. 402.33 of this part, 
exceed the State's SLIAG-related costs, as defined in this part, 
reported in annual reports pursuant to Sec. 402.51 and accepted by the 
Department as of March 15, 1995.
    Unreimbursed SLIAG-related costs means the amount by which a State's 
total SLIAG-related costs, as defined in this part, reported in annual 
reports pursuant to Sec. 402.51 and accepted by the Department as of 
March 15, 1995, exceed the allotments awarded to a State, as determined 
under Sec. 402.31 and Sec. 402.33 of this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21246, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



                         Subpart B--Use of Funds



Sec. 402.10  Allowable use of funds.

    (a) Funds provided under Sec. 402.31 and 402.33 of this part for a 
fiscal year may be used only with respect to SLIAG-related costs 
incurred in that fiscal year or succeeding fiscal years, except that 
funds provided for FY 1993 and FY 1994 may be used for SLIAG-related 
costs incurred in FY 1990 or succeeding years. Funds provided under 
Sec. 402.34 of this part may be used with respect to SLIAG-related costs 
incurred in any fiscal year of the program. Funds may be used, subject 
to Secs. 402.11 and 402.26, for the following activities, as defined in 
this part:
    (1) Public assistance;
    (2) Public health assistance;
    (3) Educational services;
    (4) Employment discrimination education and outreach;
    (5) Phase II outreach;
    (6) SLIAG administrative costs; and
    (7) Program administrative costs.
    (b) Unless specifically prohibited by a statute enacted subsequent 
to November 6, 1986, a State may use SLIAG funds to pay the non-Federal 
share of costs allowable under (a) of this section incurred in providing 
assistance or services to eligible legalized aliens under Federal 
programs that have a matching or cost-sharing requirement, subject to 
the provisions of Sec. 402.11(f) of this part.
    (c) [Reserved]
    (d) Except as provided for in Sec. 402.11(n), funds awarded under 
this part may be used to reimburse or pay SLIAG-related costs incurred 
prior to the approval of a State's application or

[[Page 234]]

amendment to its application, pursuant to subpart E of this part, 
provided that such reimbursement or payment is consistent with the Act 
and this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21246, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



Sec. 402.11  Limitations on Use of SLIAG Funds.

    (a) Funds provided under this part may be used only for SLIAG-
reimbursable activities that--
    (1) Meet the definitions of Sec. 402.2 of this part; and
    (2) Are otherwise consistent with the rules and procedures governing 
such activities.
    (b) Funds provided under this part may not be used for costs to the 
extent that those costs are otherwise reimbursed or paid for under other 
Federal programs.
    (c) The amount of reimbursement or payment may not exceed 100% of 
SLIAG-related costs, as defined in this part, associated with SLIAG-
reimbursable activites.
    (d) A State must use a minimum of 10 percent of its allotment under 
this part in any fiscal year for costs associated with each of the 
following program categories: public assistance, public health 
assistance, and educational services. In the event that a State does not 
require use of a full 10% in one of the above categories, it must 
allocate the unused portion equally among the remaining categories 
listed in this paragraph.
    (e) Payments for educational services in any fiscal year may not 
exceed the amounts described in (e) (3), (4) and (5) of this section, 
and are subject to the limitations in (e) (1), (2), and (6) of this 
section.
    (1) Payments may be made to a local educational agency in a fiscal 
year for the purpose of providing educational services to eligible 
legalized aliens enrolled in elementary or secondary school only if 500 
eligible legalized aliens meeting the conditions in (e)(2) of this 
section, are enrolled in elementary or secondary public or non-public 
schools in that local educational agency's jurisdiction in that fiscal 
year or if such eligible legalized aliens represent at least 3 percent 
of the total number of students enrolled in elementary or secondary 
public or non-public schools within that local educational agency's 
jurisdiction in that fiscal year.
    (2) In computing payments to local education agencies or to 
providers of educational services described in section 204(c)(3)(C) of 
the Act, State educational agencies may take into account only eligible 
legalized aliens who have been enrolled in elementary or secondary 
school, public or non-public school or in educational activities for 
adults described in Sec. 402.2 in the United States for fewer than three 
complete academic years.
    (3) The amount that may be paid in any fiscal year to a local 
educational agency with respect to eligible legalized aliens enrolled in 
elementary and secondary public or non-public school may not exceed an 
amount equal to $500 (less, in States receiving Emergency Immigrant 
Education Act (EIEA) funds, the amount described in (e)(6) of this 
section) multiplied by the number of eligible legalized aliens meeting 
the criteria specified in (e)(2) of this section, who are enrolled in 
public or private non-profit elementary and secondary schools in the 
jurisdiction of that local educational agency in that fiscal year.
    (4) The amount that may be paid in any fiscal year to a local 
educational agency or other provider of educational services for adults 
(who are not enrolled in elementary or secondary school), as described 
in section 204(c)(3)(C) of the Act, may not exceed an amount equal to 
$500 multiplied by the number of eligible legalized aliens meeting the 
criteria in paragraph (e)(2) of this section who receive educational 
services from that provider in that fiscal year.
    (5) In no event may the amount paid to a local education agency or 
other provider of educational services exceed the actual costs of 
providing those services to eligible legalized aliens, as determined in 
accordance with 45 CFR part 74 (for grants awarded in FY 1988) or 45 CFR 
part 92 (for grants awarded in FY 1989 and succeeding fiscal years).

[[Page 235]]

    (6) The maximum amount of payment to a local educational agency with 
respect to eligible legalized aliens enrolled in elementary and 
secondary school will be reduced from the amount described in (e)(3) of 
this section, by an amount equal to the amount of funds received by the 
local educational agency with respect to such eligible legalized aliens 
pursuant to section 606 of the Emergency Immigrant Education Act.
    (f) Funds provided under this part may not be used to provide 
assistance under the programs of financial assistance from which 
eligible legalized aliens are barred by section 245A(h)(1), 210(f), or 
210A(d)(6) of the INA. However, such funds may be used for the State and 
local share of the costs of providing such assistance to eligible 
legalized aliens who are excepted from the bar by section 245A(h) (2) or 
(3), 210(f), or 210A(d)(6) of the INA, provided that such individuals 
are otherwise eligible for benefits under such programs, and that the 
costs of providing those benefits are otherwise allowable under the Act, 
this regulation, and the State's approved application.
    (g) Funds provided under this part shall not be used to perform 
abortions except where the life of the mother would be endangered if the 
fetus were carrier to term.
    (h) Funds provided under this part shall not be used to reimburse or 
pay costs inurred by any public or private entity or any individual, in 
the conduct of a medical examination as required for application for 
adjustment to lawful temporary resident status under 8 CFR 245a.2(i), 8 
CFR 210.2(d), or 8 CFR 210a.6(f).
    (i) Funds provided under this part shall not be used for client 
counselling or any other service which would assume responsibility for 
the adjustment of status of aliens to that of lawful temporary or 
permanent residence. This prohibition includes assisting an alien to 
appeal INS decisions or representation of an alien before any 
administrative or judicial body.
    (j) Funds under this part shall not be used to investigate or 
prosecute discrimination complaints beyond initial intake and referral, 
to pay legal fees or other expenses incurred to provide legal counsel to 
a party alleging discrimination, or to represent such parties before any 
administrative or judicial body.
    (k) A State may use funds to make payments for Phase II outreach 
activities, including related program administration, from allotments 
made to it under this part for FY 1989 and succeeding fiscal years. The 
maximum amount that a State may use for this purpose from a fiscal 
year's allotment is the greater of 1% of its allotment for that fiscal 
year or $100,000.
    (l) A State may use funds to make payments for employment 
discrimination education and outreach activities, including related 
program administration, from allotments made to it under this part for 
FY 1989 and succeeding fiscal years. The maximum amount that a State may 
use from a fiscal year's allotment for this purpose is the greater of 1% 
of the State's allotment for that fiscal year or $100,000.
    (m)  [Reserved]
    (n)(1) Except as provided for in paragraph (n)(2) of this section, a 
State may use SLIAG funds alloted to it for a fiscal year to reimburse 
or pay only those SLIAG-related costs for employment discrimination 
education and outreach activities which occurred after approval by the 
Department of an application or amendment describing those activities, 
as required by Sec. 402.41(d).
    (2) Costs incurred in FY 1990 prior to approval by the Department of 
an application or amendment containing the information required by 
Sec. 402.41(d), but after December 18, 1989, for reproduction and 
dissemination of public information material certified by the Office of 
the Special Counsel for Immigration-Related Unfair Employment Practices, 
Department of Justice (hereafter, ``Office of the Special Counsel''), 
pursuant to paragraph (o) of this section may be reimbursed with funds 
allotted under this part.
    (o)(1) With respect to employment discrimination education and 
outreach, a State shall not use SLIAG funds to pay for the cost of 
producing or distributing materials prepared for public dissemination 
unless the Office of the Special Counsel has certified that

[[Page 236]]

those materials meet the criteria in paragraph (o)(2) of this section.
    (2) Certification of materials described in paragraph (o)(1) of this 
section shall consist of a finding by the Office of the Special Counsel 
that information contained in such materials relating to the 
discrimination provision of the Act is legally accurate and that those 
materials include reference to the Office of the Special Counsel as a 
source of information and referral for complaints of discrimination 
based on citizenship status or national origin. Information regarding 
the Office of the Special Counsel shall include its address and 
telephone number, including the toll-free number and toll-free TDD 
number for the hearing impaired. The Office of the Special Counsel, in 
the exercise of discretion, may agree to the deletion of any portion of 
the information referenced in the previous sentence, in those instances 
where space limitations in printed materials, or time limitations in 
electronically recorded materials, make inclusion of all the required 
information impractical.
    (p) Funds provided under this part may be used only for SLIAG-
related costs submitted to the Department pursuant to Sec. 402.51 and 
accepted as allowable costs by March 15, 1995.
    (q) Funds made available to a State pursuant to Sec. 402.34 shall be 
utilized by the State to reimburse all allowable costs within 90 days 
after such State has received a reallocation of funds from the 
Secretary, but in no event later than July 31, 1995.

[53 FR 7858, Mar. 10, 1991, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21247, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



Sec. 402.12  Use of SLIAG Funds for Costs Incurred Prior to October 1, 1987.

    (a) Except as indicated in (b) and (c) of this section, States may 
not use funds provided under this part of costs incurred prior to 
October 1, 1987.
    (b) A State may use funds provided under this part for 
administrative costs incurred prior to October 1, 1987, but after 
November 6, 1986, that are directly associated with implementation of 
this part. Such costs may include planning, preparing the application, 
establishing fund accounting and reporting systems, data development 
associated with the application, and other costs directly resulting from 
planning for implementation of this part.
    (c) A State may use funds provided under this part for costs 
incurred prior to October 1, 1987, but after November 6, 1986, in 
providing public health assistance to eligible legalized aliens and to 
applicants for lawful temporary residence under sections 210, 210A and 
245A of the INA, in conformity with the provisions of Sec. 402.10(a).

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21247, May 7, 1991]



                   Subpart C--Administration of Grants



Sec. 402.20  General provisions.

    Except where otherwise required by Federal law, the Department rules 
codified at 45 CFR part 74 (for grants awarded in FY 1988) or 45 CFR 
part 92 (for grants awarded in FY 1989 and succeeding fiscal years), 
relating to the administration of grants, apply to funds awarded under 
this part. A State may, however, apply any or all provisions of part 92 
to FY 1988 SLIAG funds.

[56 FR 19808, Apr. 30, 1991]



Sec. 402.21  Fiscal control.

    (a) Fiscal control and accounting procedures must be sufficient to 
permit preparation of reports required by the Act, this regulation, and 
other applicable statutes and regulations.
    (b) States must have accounting procedures in place which allow 
funds provided under this part to be traced from drawdown to allowable 
SLIAG-related costs. Allowability of the amount and purpose of 
expenditures must be established for each recipient of SLIAG funds. 
States must demonstrate that SLIAG-related costs, as defined in this 
part, incurred in SLIAG-reimbursable activities, equal or exceed the 
amount of SLIAG funds expended with respect to costs incurred in those 
activities. Documentation of the method of accounting and appropriate 
supporting information must be available for audit purposes and for 
Federal program reviews. To establish allowability of expenditures, 
States may use methods

[[Page 237]]

prescribed in (c) of this section. Alternatively, the State may use any 
other reliable method of cost calculation, subject to Federal review.
    (c)(1) For public assistance, States may establish allowability by 
accounting for actual expenditures made to or on behalf of identifiable 
eligible legalized aliens who qualify for and receive assistance and/or 
services from the recipient, or by use of a statistically valid sampling 
of a recipient's public assistance caseload.
    (2) For public health assistance, States may establish allowability 
by accounting for actual expenditures made to or on behalf of 
identifiable eligible legalized aliens, or applicants for lawful 
temporary resident status under sections 210, 210A, or 245A of the INA, 
who qualify for and receive such assistance and/or services, by use of a 
statistically valid sampling of clients in the public health system of 
the State or local government, or by using the ratio of eligible 
legalized aliens in a service population to all members of the relevant 
service population.
    (3) For educational services, States must be able to demonstrate 
that:
    (i) Funds provided under this part were used to provide educational 
services, as defined in this part, to eligible legalized aliens, as 
defined in this part; and,
    (ii) Payments to local educational agencies or other providers of 
educational services, as described in section 204(c)(3)(C) of the Act, 
did not exceed the amounts described in Sec. 402.11(e) of this part.
    (4) With respect to Phase II outreach, as defined in this part, a 
State must demonstrate that the costs of activities that provide 
information directly to specific individuals are attributable only to 
lawful temporary residents under sections 210, 210A, or 245A of the INA, 
and applicants for such status whose applications were pending with the 
Immigration and Naturalization Service at the time information is 
provided. For Phase II outreach activities that do not involve the 
provision of information directly to specific individuals, States must 
demonstrate that such activities are targeted predominantly to or 
intended primarily for lawful temporary residents under sections 210, 
210A, or 245A of the INA or applicants for such status whose 
applications are pending with the Immigration and Naturalization Service 
at the time information is provided. The State must demonstrate that the 
amount of any fiscal year's allotment used for this purpose did not 
exceed the amount described in Sec. 402.11(k) and was consistent with 
the limitations of Sec. 402.11(i).
    (5) With respect to employment discrimination education and 
outreach, as defined in this part, the State must demonstrate that funds 
were expended only for activities described in the State's approved 
application pursuant to Sec. 402.41(d) and the limitations of 
Sec. 402.11 (i), (n), and (o) and that the amount of any fiscal year's 
allotment used for this purpose did not exceed the amount described in 
Sec. 402.11(1).
    (6)(i) For program administrative costs, as defined in this part, a 
State may establish allowability by use of the proportion of eligible 
legalized aliens provided assistance and/or services allowable under 
this part by a recipient, as defined in this part, relative to all 
persons provided such assistance and/or services; by use of the 
proportion of program or service costs actually incurred in providing 
assistance and/or services allowable under this part by a recipient, 
relative to all costs of providing the same assistance and/or services 
allowable under this part by the recipient; or by use of such other 
basis as will document that administrative costs incurred in providing 
such assistance and/or services and reimbursed under this part are 
allowable, allocable to SLIAG, and reasonable.
    (ii) Consistent with section 604 of the Emergency Immigrant 
Education Act, of the amount paid to a State educational agency for 
educational services, only 1.5 percent may be used for administrative 
costs incurred by the State educational agency in carrying out its 
function under this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21247, May 7, 1991]



Sec. 402.22  [Reserved]



Sec. 402.23  Repayment.

    The Department will order a State to repay amounts found not to have 
been

[[Page 238]]

expended in accordance with Federal law, regulations, the State's 
approved application, or terms of the State's grant. If a State refuses 
to repay such amounts, the Department may offset the amount against any 
other amount to which the State is or may become entitled under this 
part.



Sec. 402.24  Withholding.

    After notice and opportunity for a hearing, the Secretary may 
withhold payment of funds to any State which is not using its allotment 
in accordance with the Act, these regulations, 45 CFR part 74 (for 
grants awarded in FY 1988) or 45 CFR part 92 (for grants awarded in FY 
1989 and succeeding fiscal years), and terms of the grant award.

[56 FR 19808, Apr. 30, 1991]



Sec. 402.25  Appeals.

    Appeals under this Subpart will be subject to 45 CFR Part 16, 
Procedures of the Departmental Grant Appeals Board.



Sec. 402.26  Time period for obligation and expenditure of grant funds.

    (a) Any amount awarded to a State for a fiscal year and remaining 
unobligated at the end of such year shall remain available to the State 
for obligation in subsequent fiscal years, but not after September 30, 
1994. The funding period of a SLIAG grant begins on October 1 of the 
Federal fiscal year for which the allotment is made and ends on 
September 30, 1994.
    (b) Obligations by the State of funds awarded under Sec. 402.31 and 
Sec. 402.33 must be liquidated within the time limit set by 45 CFR 
92.23(b). This time limit will not be extended. The time limit 
established by 45 CFR 92.23(b) does not apply to funds awarded under 
Sec. 402.34.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 59 
FR 65727, Dec. 21, 1994]



                      Subpart D--State Allocations



Sec. 402.30  Basis of awards.

    The Secretary will award funds in a fiscal year under Sec. 402.31 or 
Sec. 402.33 to States with approved applications for that fiscal year in 
accordance with the apportionment of funds from the Office of Management 
and Budget. The Secretary will award funds under Sec. 402.34 to States 
whose annual reports submitted pursuant to Sec. 402.51 establish that 
their allowable SLIAG-related costs exceed the total of their 
allotments, as determined under Sec. 402.31 and Sec. 402.33. The grant 
award constitutes the authority to draw and expend funds for the 
purposes set forth in the Act and this regulation.

[53 FR 7858, Mar. 10, 1988, as amended at 59 FR 65727, Dec. 21, 1994]



Sec. 402.31  Determination of allocations.

    (a) Allocation formula. Allocations will be computed according to a 
formula using the following factors and weights:
    (1) 50 percent based on the State's eligible legalized alien 
population, with 49 percent based upon the number of eligible legalized 
aliens in a State relative to the number of such aliens in all States, 
and 1 percent to States which have higher-than-average ratios of 
eligible legalized aliens to total population relative to the average 
for all States, based on the proportional number of such aliens; and
    (2) 50 percent based on the ratio of SLIAG-related costs in a State 
to the total of all such costs in all States.
    (b) Calculation of allocations. (1) Each time the Department 
calculates State allocations, it will use the best data then available 
to the Secretary on the distribution of eligible legalized aliens by 
State.
    (2) For all years except fiscal years 1993 and 1994, the Department 
will determine each State's SLIAG-related costs to be included in the 
computation of its allocation for a fiscal year by adding to the sum of 
SLIAG-related costs reported for all previous fiscal years by that 
State, pursuant to Sec. 402.51(e) (1) and (2), the total amount of 
estimated SLIAG-related costs included in the State's approved 
application for that fiscal year, pursuant to Sec. 402.41(c) (1) and 
(2). For fiscal years 1993 and 1994, the Department will add to the 
amount of estimated SLIAG-related costs included in the State's approved 
applications for fiscal years 1993 and 1994, respectively, the sum of 
SLIAG-related costs for all previous years ending with FY 1991 (for FY 
1993

[[Page 239]]

applications) or FY 1992 (for FY 1994 applications), and the first and 
second quarters of FY 1992 (for FY 1993 applications) or FY 1993 (for FY 
1994 applications), pursuant to Sec. 402.52(e)(4). In the event that a 
State has not submitted an approved report for a fiscal year, the 
Department will include no costs for that fiscal year in its 
calculation.

[53 FR 7858, March 10, 1988, as amended at 56 FR 21248, May 7, 1991; 57 
FR 19386, May 6, 1992; 58 FR 31913, June 7, 1993; 59 FR 65727, Dec. 21, 
1994]



Sec. 402.32  Determination of state allotments.

    Except as noted below, a State's allotment is the difference between 
the amount determined under Sec. 402.31(b) of this regulation and the 
cumulative amount previously allotted to the State. In the event that 
the amount determined under Sec. 402.31(b) is less than the cumulative 
amount previously allotted to a State, that State's allotment will be 
zero. The allotments of the remaining States would be calculated by 
multiplying the difference between the amount determined under 
Sec. 402.31(b) of this regulation and the cumulative amount previously 
allotted to the State by the ratio of the amount of funds available for 
grants to States to the sum of the differences between the amounts 
determined under Sec. 402.31(b) and the amounts previously awarded to 
those States.

[56 FR 21248, May 7, 1991]



Sec. 402.33  Allotment of excess funds.

    If a State fails to qualify for an allotment in a particular fiscal 
year because it did not submit an approvable application by the deadline 
established in Sec. 402.43 of this part, or is not allotted its 
designated allocation amount because it indicated in its application 
that it does not intend to use, in the fiscal year for which the 
application is made or in any succeeding fiscal year before FY 1995, the 
full amount of its allocation, funds which would otherwise have been 
allotted to the State in that fiscal year shall be allotted among the 
remaining States submitting timely approved applications in proportion 
to the amount that otherwise would have been allotted to such State in 
that fiscal year.

[56 FR 19808, Apr. 30, 1991]



Sec. 402.34  Allocation of unexpended funds.

    (a) Any unexpended funds, as defined in this part, from allotments 
awarded to States under Sec. 402.31 and Sec. 402.33 of this part, will 
be allocated to States with unreimbursed SLIAG-related costs, as defined 
in this part.
    (b) To determine the allocations, the ratio of each State's 
unreimbursed SLIAG-related costs to the total of all such costs in all 
States will be calculated. The ratio for each State with unreimbursed 
SLIAG-related costs will be multiplied by total unexpended funds to 
determine the allocation for each State. The amount allotted to a State 
will be the amount of the State's allocation under this section or the 
amount of the State's unreimbursed SLIAG-related costs, whichever is 
less.

[59 FR 65727, Dec. 21, 1994]



                      Subpart E--State Applications



Sec. 402.40  General.

    In order to be eligible for funds available under Sec. 402.31 and 
Sec. 402.33 of this part in a fiscal year, a State must submit an annual 
application. A State's application must be approved by the Secretary 
prior to the award of funds to that State. In order to be eligible for 
funds under Sec. 402.34 of this part, a State must submit annual reports 
pursuant to Sec. 402.51 which establish that the State has incurred 
SLIAG-related costs in excess of the amount of the allotments it 
received under Sec. 402.31 and Sec. 402.33 of this part.

[53 FR 7858, Mar. 10, 1988, as amended at 59 FR 65727, Dec. 21, 1994]



Sec. 402.41  Application content.

    A State application must:
    (a) Contain certifications by the chief executive officer or an 
individual specifically designated to make such certifications on behalf 
of the chief executive officer that, notwithstanding other contents of 
the application, the State assures that:

[[Page 240]]

    (1) Funds allotted to the State will be used only to carry out the 
purposes described in the Act and this part.
    (2) The State will provide a fair method for the allocation of funds 
among State and local agencies (as determined by the State) in 
accordance with the information in the application as required under (b) 
and (c) of this section and in accordance with the provisions of 
Sec. 402.11(d) of this part, which sets forth minimum funding levels for 
program categories.
    (3) Fiscal control and accounting procedures used in the 
administration of SLIAG funds will be established that are adequate to 
meet the requirements established by the Act and this regulation.
    (4) The State will comply with the prohibitions against 
discrimination on the basis of age under the Age Discrimination Act of 
1975, on the basis of handicap under section 504 of the Rehabilitation 
Act of 1973, on the basis of sex under title IX of the Education 
Amendments of 1972, on the basis of race, color, or national origin 
under title VI of the Civil Rights Act of 1964, and on the basis of sex 
or religion under section 204(h)(1)(B) of the Immigration Reform and 
Control Act of 1986.
    (b) Contain information on the number of eligible legalized aliens 
residing in the State. A State may either (1) adopt as its official 
State-level estimate the estimate of the State's number of eligible 
legalized aliens provided by the Department, or (2) provide its own 
estimate, including detailed information on the method and data used in 
deriving the estimate. If a State has previously provided this 
information to the Department, it need not be included in the 
application unless the information has changed.
    (c) Contain an estimate of likely SLIAG-related costs for the fiscal 
year for which application is being made for each program or activity in 
which SLIAG-related costs will be incurred. Programs and activities must 
be identified by the purposes listed in Sec. 402.10(a). Such estimates 
for FY 1988 should include, as a discrete subset, costs incurred in FY 
1987, pursuant to Sec. 402.12.
    (d) Contain the following information pertaining to the estimates 
required by paragraph (c) of this section (the application must include 
sufficient detail to permit assessment by the Department of the 
reasonableness of such estimates and the allowability of such costs 
under the Act and this part):
    (1)(i) Descriptions of the programs and activities for which SLIAG-
related costs will be incurred; and,
    (ii) If a State elects to use its allotment for employment 
discrimination education and outreach, a description of the State's 
planned education and outreach activities, including: descriptions of 
the kinds of government or private agencies or other entities, if any, 
through which these activities will be conducted; brief descriptions of 
the targeted audience(s) for these activities; and, preproduction copies 
or the text of any material intended for distribution to the public to 
be produced or disseminated with SLIAG funds, if available at the time 
the application is submitted.
    (2) Descriptions of the methodologies used to determine SLIAG-
related cost. This description is to include (i) the methodology used in 
determining the proportion (or actual number) of eligible legalized 
aliens who are likely to participate in or benefit from the program or 
service, and (ii) a description of how a unit or other measure of the 
cost of providing services or benefits was calculated, or, if the 
estimate is based on actual cost data, a description of how the data 
were obtained. For SLIAG administrative costs, Phase II outreach, and 
employment discrimination education and outreach, the descriptions must 
instead include the basis for the estimate of SLIAG-related costs, as 
defined in this Part.
    (e) Contain information on the criteria for and administrative 
methods of disbursing funds received under this part.
    (f) Designate a single point of contact (SPOC) in the State 
responsible for securing and submitting information required by the Act 
and this regulation and provide the name, title, mailing address, and 
telephone number of such official. If the grantee agency is different 
from the SPOC, also provide the name, title, mailing address, and 
telephone number of the official in that agency responsible for State 
administration of funds available under this

[[Page 241]]

part. In either case, provide the employer identification number of the 
grantee agency. If the State elects to use SLIAG funds for employment 
discrimination education and outreach, it must also designate in its 
application a contact person for this activity, if different from the 
single point of contact.

[53 FR 7858, May 7, 1991, as amended at 56 FR 21248, May 7, 1991; 56 FR 
49707, Oct. 1, 1991]



Sec. 402.42  Application format.

    A State may determine the format of its application as long as it 
contains all the information required by Sec. 402.41.



Sec. 402.43  Application deadline.

    (a) An application from a State for SLIAG funds for any Federal 
fiscal year except fiscal years 1993 and 1994 must be received by the 
Department by October 1 of that fiscal year. Applications for fiscal 
years 1993 and 1994 must be received by July 1, 1992, and July 1, 1993, 
respectively. If a State fails to submit an application by this date, 
funds which it may otherwise have been eligible to receive shall be 
distributed among States submitting timely approved applications in 
accordance with Sec. 402.33 of this Part.
    (b) In order to receive funds under this part, a State's application 
for any fiscal year except fiscal years 1993 and 1994 must be approvable 
by the Secretary by December 15 of that fiscal year. Applications for 
fiscal years 1993 and 1994 must be approvable by the Secretary by 
September 15, 1992, and September 15, 1993, respectively. This may 
necessitate a State's providing clarification, revision, or additional 
material, as required, to render its application approvable by the 
Secretary. If a State fails to render its application approvable by the 
Secretary by these dates, funds which it may otherwise have been 
eligible to receive shall be distributed among States which have 
submitted approvable applications in accordance with Sec. 402.32 of this 
part.

(Approved by the Office of Management and Budget under control number 
0970-0079)

[53 FR 7858, Mar. 10, 1988, as amended at 54 FR 23984, June 5, 1989; 55 
FR 26207, June 27, 1990; 56 FR 21248, May 7, 1991; 57 FR 19386, May 6, 
1992; 58 FR 31913, June 7, 1993]



Sec. 402.44  Basis for approval.

    (a) The Department will review each State's application to ensure 
that it contains all of the required assurances and information and 
otherwise is consistent with the Act and this part.
    (b) The Department will assess the reasonableness of each State's 
estimates of SLIAG-related costs, as required by Sec. 402.41(c) (1) and 
(2), based on the following:
    (1) Are the activities for which estimates are included in the 
application allowable under the Act and this part?
    (2) Are the rates of participation by eligible legalized aliens in 
the activities for which estimates of SLIAG-related costs are included 
in the application and other assumptions underlying the cost estimates 
based on reliable empirical data?
    (3) To what extent are the estimates based on actual costs incurred? 
Are actual costs based on methodologies described in this part or other 
methodologies likely to result in valid measures of SLIAG-related costs?
    (4) Do current estimates appear to be consistent with past 
estimates, known actual costs pursuant to Sec. 402.41(c)(2), and current 
INS eligible legalized alien population data?
    (5) Are revised estimates a result (all or in part) of changes in 
program activities?
    (c) The Department will notify the State that (1) its application 
has been approved or (2) its application has been disapproved, together 
with the reasons for disapproval.
    (d)(1) The Department will forward to the Office of Special Counsel 
information provided by a State pursuant to Sec. 402.41(d).
    (2) The Office of the Special Counsel will review information 
forwarded to it by the Department pursuant to paragraph (d) (1) of this 
section to determine whether the activities described therein conflict 
with or unnecessarily duplicate other employment discrimination 
education and outreach efforts. Certification to the Department by the 
Office of the Special Counsel that the State's submission meets this 
criterion

[[Page 242]]

is a prerequisite for approval by the Department.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21248, May 7, 1991]



Sec. 402.45  Amendments to applications.

    (a)(1) If, during the course of a fiscal year, a State adds a 
program or activity for which it intends to claim reimbursement or make 
payment in that fiscal year, it must submit an amendment (containing 
appropriate information pursuant to Sec. 402.41(c)) to its approved 
application for that fiscal year prior to the due date for reports 
required by Sec. 402.51 of this part.
    (2) If a State plans to initiate employment discrimination education 
and outreach activities not described in its application pursuant to 
Sec. 402.41(d), it must submit an application amendment, which shall be 
reviewed in accordance with procedures described in Sec. 402.41(d) of 
this part. The Department's approval of such an amendment is a 
prerequisite for the initiation of such new activities, except as 
provided for in Sec. 402.11(n) (2).
    (b) Except as provided for in Sec. 402.11(k) and (n), a State may 
use SLIAG funds received for a fiscal year to reimburse or pay SLIAG 
related costs for programs or activities described in paragraph (a) of 
this section retroactive to the date the activity began, but no earlier 
than the first day of the fiscal year and only to the extent described 
in Sec. 402.10(d), except that funds received in FY 1992, if any, may be 
used for costs incurred on or after October 1, 1989. Costs incurred 
prior to October 1, 1987, are allowable only to the extent described in 
Sec. 402.12.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21249, May 7, 1991]



                 Subpart F--Recordkeeping and Reporting



Sec. 402.50  Recordkeeping.

    A State must provide for the maintenance of such records as are 
necessary:
    (a) To meet the requirements of the Act and Department regulations 
relating to retention of and access to records.
    (b) To allow the State to provide to the Department (1) an accurate 
description of its activities undertaken with SLIAG funds, and (2) a 
complete record of the purposes for which SLIAG funds were spent, and of 
the recipients of such funds; and
    (c) To allow the Department and auditors of the State to determine 
the extent to which SLIAG funds were expended consistent with the Act 
and this regulation.



Sec. 402.51  Reporting.

    (a)(1) After the end of each Federal fiscal year through FY 1994 for 
which it received or during which it obligated or expended SLIAG funds 
and by the due date indicated below, a State must submit annual reports 
containing the information identified in (c) and (e) of this section. 
The reports are due no later than 90 days after the end of a Federal 
fiscal year.
    (2) A State which receives funds pursuant to Sec. 402.31 and 
Sec. 402.33 and which expends funds pursuant to Sec. 402.26(b) must 
submit a report containing the information identified in paragraph (e) 
of this section. The report is due no later than December 29, 1994.
    (b)(1) Failure to submit the annual report required in (a) of this 
section by the deadline, without prior written permission from the 
Secretary, constitutes a basis for withholding of SLIAG funds.
    (2) Failure by a State to submit the required information prior to 
the calculation of allocations pursuant to Subpart D will result in the 
Secretary's including no SLIAG-related costs for the fiscal year for 
that State in the calculation of State allocations.
    (c) A State's annual report must provide information on the status 
of each fiscal year's funds, as of September 30, for the fiscal year for 
funds received under Sec. 402.31 and Sec. 402.33, including:
    (1) Identification of the amount obligated and the amount expended 
by the State grantee agency;
    (2) Identification of any amount remaining unobligated at the end of 
the fiscal year which the State intends to carry over to succeeding 
fiscal years; and,
    (3) Identification of any amount remaining unobligated at the end of 
the

[[Page 243]]

fiscal year which the State does not desire to carry over to the 
succeeding fiscal year.
    (d) A State must use SF-269 in its reporting under paragraph (c) of 
this section, but it may determine the format of its annual report 
content under paragraph (e) of this section.
    (e)(1) For all years except fiscal years 1992 and 1993, a State's 
annual report must also provide the actual SLIAG-related costs incurred 
during the fiscal year. The report must provide, for each program or 
activity identified in the State's application, the amount of SLIAG-
related costs, as defined in this part, incurred in that program or 
activity, identified as public assistance, public health assistance, 
educational services, Phase II outreach, employment discrimination 
education and outreach, and SLIAG administrative costs, as defined in 
this part, the amount of SLIAG funds obligated for that program or 
activity, and the time period for which the funds were obligated.
    (2) The report must contain a description of the methodology used to 
determine actual SLIAG-related costs, if different from the description 
provided in the State's application pursuant to Sec. 402.41 (d) (2) of 
this part.
    (3) Federal and State costs of providing assistance under a State 
plan approved under title XIX of the Social Security Act to aliens whose 
status has been adjusted under sections 245A and 210A of the INA by 
virtue of the exceptions to the bar to Medicaid eligibility (sections 
245A (h) (2) and (3) of the INA) must be shown separately in States' 
reports.
    (4) For fiscal years 1992 and 1993, a State must report actual 
SLIAG-related costs, pursuant to paragraphs (e) (1), (2) and (3) of this 
section, for the first and second quarters, along with its application 
for SLIAG funding for fiscal years 1993 and 1994, respectively, in 
accordance with Sec. 402.43(a) of this part, and for the third and 
fourth quarters in accordance with paragraph (a) of this section.

(Approved by the Office of Management and Budget under control number 
0970-0079)

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21249, May 7, 1991; 57 
FR 19386, May 6, 1992; 58 FR 31913, June 7, 1993; 59 FR 65727, Dec. 21, 
1994]

                        PARTS 403--499 [RESERVED]


[[Page 245]]



                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected



[[Page 247]]



                    Table of CFR Titles and Chapters




                   (Revised as of September 29, 1998)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)

[[Page 248]]

      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture

[[Page 249]]

         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
      XIII  Northeast Dairy Compact Commission (Parts 1300--1399)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]

[[Page 250]]

    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)

[[Page 251]]

        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)

[[Page 252]]

        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)

[[Page 253]]

        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

[[Page 254]]

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Multifamily Housing Assistance 
                Restructuring, Department of Housing and Urban 
                Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

[[Page 255]]

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)

[[Page 256]]

       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)

[[Page 257]]

       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

[[Page 258]]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)

[[Page 259]]

        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300.99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)

[[Page 260]]

        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)

[[Page 261]]

       III  Coast Guard (Great Lakes Pilotage), Department of 
                Transportation (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)

[[Page 262]]

        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)

[[Page 263]]

        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 265]]





           Alphabetical List of Agencies Appearing in the CFR




                   (Revised as of September 29, 1998)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 266]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 267]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1

[[Page 268]]

Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302

[[Page 269]]

  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Multifamily Housing Assistance Restructuring    24, IV
       Office
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II

[[Page 270]]

  Mines, Bureau of                                30,