[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-12106] [[Page Unknown]] [Federal Register: May 19, 1994] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children and Families 45 CFR Parts 205 and 233 RIN 0970-AB14 Aid to Families With Dependent Children Program; Certain Provisions of the Omnibus Budget Reconciliation Act of 1990 AGENCY: Administration for Children and Families (ACF), HHS. ACTION: Final rules. ----------------------------------------------------------------------- SUMMARY: These final rules apply to State agencies administering the Aid to Families with Dependent Children (AFDC) program under Title IV-A of the Social Security Act. They implement three provisions of the Omnibus Budget Reconciliation Act of 1990 (OBRA 90), Public Law 101- 508. The changes delete all references to income-deeming by legal guardians in minor parent cases; expand State agency responsibility for reporting, to an appropriate agency or official, known or suspected instances of child abuse and neglect of a child receiving AFDC; and add an explicit reference to title IV-E on the list of programs for which information about AFDC applicants and recipients may be made available. In addition, the reference to tile IV-C from 45 CFR 205.50(a)(1)(A) was deleted since the WIN program is no longer operative. The regulatory provisions contained in these final rules reflect a direct implementation of the statutory requirements and do not include any changes to the interim final rules previously published on September 22, 1993. EFFECTIVE DATE: May 19, 1994. FOR FURTHER INFORMATION CONTACT: Mack A. Storrs, Director, Division of AFDC Program, Office of Family Assistance, Fifth Floor, 370 L'Enfant Promenade SW., Washington, DC 20447, telephone (202) 401-9289. SUPPLEMENTARY INFORMATION: On September 22, 1993, we published an interim final regulation (see 58 FR 49218-49220) to implement three provisions of the Omnibus Budget Reconciliation Act of 1990, as amended. Discussion of these provisions follow. Eliminating the Use of the Term ``Legal Guardian'' (Section 233.20 of the Final Rule) The Omnibus Budget Reconciliation Act (OBRA) of 1981 added section 402(a)9(39) of the Social Security Act to acquire that, in determining AFDC benefits for a dependent child whose parent or legal guardian is under the age of 18, the State agency must include the income of the minor parent's own parents or legal guardians who are living in the same home. Section 5053 of Omnibus Budget Reconciliation Act of 1990 (OBRA 90) amended section 402(a)(39) of the Social Security Act by eliminating the use of the term ``legal guardian.'' Section 402(a)(39) provides that in determining AFDC benefits for a dependent child whose parent is under the age of 18, the State agency must include the income of the minor parent's own parents who are living in the same home. We have amended Federal regulations at Sec. 233.20(a)(3)(xviii) to reflect this statutory change. As stated in the OBRA 90 conference report (H.R. Conf. Rep. No. 964, 101st Cong. 2d Sess. (Oct. 1990) pp. 911-12), Congress recognized that legal guardianship is not relevant to eligibility determination. Even if a legal guardian were appointed, the child would not be eligible for AFDC unless living with a relative as defined in section 406 of the Social Security Act. Congress also recognized that the use of the term ``legal guardian'' with respect to the deeming of income is inappropriate in the context of the AFDC statute. Unlike the parent-child relationship, legal guardianship has not been a basis for attributing income to AFDC beneficiaries. An example given in the Conference report illustrates that there is the potential for unequal treatment under the AFDC program when legal guardianship is used as a source of attributed income in three-generation families. If a minor child is living with an aunt who is her legal guardian, the aunt's income is not automatically attributed to the AFDC beneficiary; however, if the minor has a child, the guardian's income is included in the AFDC determination for the minor and her child. (H.R. Conf. Rep. No. 964, 101st Cong. 2d Sess. (Oct. 1990) p. 912). The OBRA amendment resolved these problems. Reporting of Child Abuse and Neglect (Sections 205.50 and 233.90 of the Final Rule) Prior to OBRA 90, section 402(a)(16) of the Social Security Act provided that, if the State agency has reason to believe that a child and a relative receiving aid are residing in an unsuitable home due to the neglect, abuse, or exploitation of the child, the State must take action. The State is required to report the situation with all the relevant information to the appropriate court or law enforcement agencies in the State. This statutory provision is currently reflected in the Federal regulations at Sec. 233.90(a)(2). Section 5054 of OBRA 90 amended section 402(a)(16) of the Social Security Act to require that each State agency report, to an appropriate agency or official, known or suspected instances of child abuse and neglect of a child receiving AFDC. A conforming change was made to section 402(a)(9) to allow the release of information to appropriate individuals. The amendment includes as ``instances'' of abuse and neglect situations where a child experiences physical or mental injury, sexual abuse or exploitation, or negligent treatment or maltreatment under circumstances which indicate that the child's health or welfare is threatened. To implement these statutory changes we have amended Sec. 233.90(a)(2) and revised Sec. 205.50(a)(1) by adding a new paragraph (G). Disclosure of Information About AFDC Applicants and Recipients for Purposes Directly Connected With Foster Care and Adoption Assistance Programs (Section 205.50 of the Final Rule) Prior to the enactment of OBRA 90, the use or disclosure of information concerning AFDC applicants and recipients was restricted by section 402(a)(9) of the Social Security Act. Information on AFDC recipients and applicants could only be used for purposes directly connected with: (1) The administration of the AFDC program or several other specified Social Security Act programs; (2) any investigation, prosecution, or criminal or civil proceeding conducted in connection with such programs; (3) the administration of any other Federal or Federally-assisted program providing assistance or services to individuals on the basis of need; and (4) any audit of such programs (H.R. Conf. Rep. No. 964, 101st Cong. 2d Sess. (Oct. 1990) p. 913). This section of the Social Security Act did not contain a specific reference to title IV-E, which covers the foster care and adoption assistance programs. Section 5055 of OBRA 90 amended section 402(a)(9)(A) of the Social Security Act by adding an explicit reference to title IV-E in the list of programs for which information about AFDC applicants and recipients may be made available. We have amended Sec. 205.50(a)(1)(i)(A) to reflect this statutory change. In addition, the reference to title IV-C was deleted from 45 CFR 205.50(a)(1)(A), since the WIN program is no longer operative. Discussion of Comments No comments were received; therefore, these rules reflect no changes from the provisions previously published in the interim final rule. Executive Order 12866 on Regulatory Planning and Review Executive Order 12866 requires that regulations be reviewed to ensure that they are consistent with the priorities and principles set forth in the Executive Order. The Department has determined that these rules are consistent with these priorities and principles. An assessment of the costs and benefits of available regulatory alternatives (including not regulating) demonstrated that the approach taken in the regulation is the most cost-effective and least burdensome while still achieving the regulatory objectives. Paperwork Reduction Act These final rules do not require any information collection activities and, therefore no approval is necessary under section 3504 (h) of the Paperwork Reduction Act of 1980 (Pub. L. 96-511). Regulatory Flexibility Act The Regulatory Flexibility Act (Pub. L. 96-354) requires the Federal government to anticipate and reduce the impact of regulations and paperwork requirements on small businesses. The primary impact of these final rules is on State governments and individuals. Therefore, we certify that these rules will not have a significant economic impact on a substantial number of small entities because they effect benefits to individuals and payments to States. Thus, a regulatory flexibility analysis is not required. (Catalog of Federal Domestic Assistance Programs 13.780, Assistance Payments-Maintenance Assistance) List of Subjects 45 CFR Part 205 Computer technology, Grant programs--social programs, Privacy, Public assistance programs, Reporting and recordkeeping requirements, Wages. 45 CFR Part 233 Aliens, Grant programs--social programs, Public assistance programs, Reporting and recordkeeping requirements. Dated: March 28, 1994. Mary Jo Bane, Assistant Secretary for Children and Families. Approved May 9, 1994. Donna E. Shalala, Secretary of Health and Human Services. PART 205--GENERAL ADMINISTRATION PUBLIC ASSISTANCE PROGRAMS Accordingly, the interim final rule amending 45 CFR part 205 which was published at 58 FR 49218-49220 on September 22, 1993, is adopted as a final rule without change and is republished for the convenience of the reader. 1. The authority citation for part 205 continues to read as follows: Authority: 5 U.S.C. 552a note; 42 U.S.C. 602, 603, 606, 607, 611, 1302, 1306(a), and 1320b-7. 2. Section 205.50 is amended by revising paragraph (a)(1)(i)(A) and adding paragraph (a)(1)(i)(G) to read as follows: Sec. 205.50 Safeguarding information for the financial assistance programs. (a) * * * (1) * * * (i) * * * (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. * * * * * (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. * * * * * PART 233--COVERAGE AND CONDITIONS OF ELIGIBILITY IN FINANCIAL ASSISTANCE PROGRAMS Accordingly, the interim final rule amending 45 CFR part 233 which was published at 58 FR 49218-49220 on September 22, 1993, is adopted as a final rule without change and is republished for the convenience of the reader. 1. The authority citation for part 233 continues to read as follows: Authority: 42 U.S.C. 301, 602, 606, 607, 1202, 1302, 1352, and 1382 note. 2. Section 233.20 is amended by revising paragraph (a)(3)(xviii) to read as follows: Sec. 233.20 Need and amount of assistance. (a) * * * (3) * * * (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. * * * * * 3. Section 233.90 is amended by revising paragraph (a)(2) introductory text to read as follows: Sec. 233.90 Factors specific to AFDC. (a) * * * (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: * * * * * [FR Doc. 94-12106 Filed 5-18-94; 8:45 am] BILLING CODE 4184-01-M