[Federal Register: January 24, 2007 (Volume 72, Number 15)]
[Proposed Rules]
[Page 3093-3102]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ja07-27]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Parts 301, 302, 303 and 304
RIN 0970-AC24
Child Support Enforcement Program
AGENCY: Office of Child Support Enforcement (OCSE), Administration for
Children and Families (ACF), Department of Health and Human Services.
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: These proposed regulations implement provisions of title IV-D
of the Social Security Act (the Act) as amended by the Deficit
Reduction Act of 2005, Pub. L. 109-171 (DRA of 2005). The proposed
regulations address use of the tax refund intercept program to collect
past-due child support on behalf of children who are not minors,
mandatory review and adjustment of child support orders for families
receiving Temporary Assistance to Needy Families (TANF), reduction of
Federal matching rate for laboratory costs incurred in determining
paternity, States' option to pay more child support collections to
former assistance families, and the mandatory annual $25 fee in certain
child support (IV-D) cases in which the State has collected and
disbursed at least $500 of support. The regulations also make other
conforming changes necessary to implement changes to the distribution
and disbursement requirements.
DATES: Consideration will be given to comments received by March 26,
2007.
ADDRESSES: Send comments to: Office of Child Support Enforcement,
Administration for Children and Families, 370 L'Enfant Promenade, SW.,
4th Floor, Washington, DC 20447. Attention: Director, Policy Division,
Mail Stop: OCSE/DP. Comments will be available for public inspection
Monday through Friday from 8:30 a.m. to 5 p.m. on the 4th floor of the
Department's offices at the above address. You may also transmit
written comments electronically via the Internet at: http://www.regulations.acf.hhs.gov.
To download an electronic version of the
rule, you may access http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Paige Hausburg, Policy Specialist,
OCSE, 202-401-5635, e-mail: phausburg@acf.hhs.gov. Deaf and hearing-
impaired individuals may call
[[Page 3094]]
the Federal Dual Party Relay Service at 1-800-877-8339 between 8 a.m.
and 7 p.m. eastern time.
SUPPLEMENTARY INFORMATION:
I. Statutory Authority
This notice of proposed rulemaking is published under the authority
granted to the Secretary of the U.S. Department of Health and Human
Services (the Secretary) by section 1102 of the Act, 42 U.S.C. 1302.
Section 1102 authorizes the Secretary to publish regulations that may
be necessary for the efficient administration of the functions for
which he is responsible under the Act. The Deficit Reduction Act of
2005 (DRA of 2005), Title VII, Subtitle C--Child Support, sections
7301-7311 amends title IV-D of the Act. The specific sections of the
DRA of 2005 included in the proposed regulation are discussed in detail
under Provisions of the Regulation.
II. Provisions of the Regulations
Part 301--State Plan Approval and Grant Procedures
Section 301.1--General Definitions
Section 7301(f) of the DRA of 2005, effective October 1, 2007,
amends the definition of ``past-due support'' at section 464(c) of the
Act for purposes of the Federal income tax refund offset program.
Currently, the term ``past-due support'' limits access to the Federal
income tax refund offset process to past-due support owed to or on
behalf of a qualified child (a child who was a minor or who, while a
minor was determined to be disabled under subchapter II or XVI of the
Act and for whom an order of support is in force). Prior to enactment
of the DRA of 2005, only past-due support due to a qualified child or
adult child who was disabled could be submitted for offset. That
limitation is removed by section 7301(f) of the DRA of 2005, effective
October 1, 2007. This amendment will allow collection of past-due child
support from the Federal income tax refund offset program on behalf of
individuals who were owed child support as children but then aged out
of the system without having collected the full support amount owed to
them.
Under Sec. 301.1, we propose changes to two definitions. First, we
propose to amend the definition of ``past-due support'' by inserting
language to place a time limit on the definition. The revised language
would read: ``Through September 30, 2007, 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.'' Therefore,
effective October 1, 2007, past-due support owed in non-TANF cases will
be treated the same as past-due support owed in TANF cases and may be
submitted for Federal income tax refund offset until the debt is
satisfied.
Similarly, in Sec. 301.1, we propose to limit the applicability of
the definition of ``Qualified child'' through September 30, 2007,
because there is no longer any reference to a ``qualified child'' in
section 464 of the Act effective October 1, 2007. Therefore, on or
after October 1, 2007, past-due support owed on behalf of adults in
non-TANF cases would qualify for Federal income tax refund offset,
regardless of whether they are disabled.
Part 302--State Plan Approval Requirements
Section 302.32--Collection and Disbursement of Support Payments by the
IV-D Agency
The proposed regulations make conforming changes to certain
language in Sec. 302.32, Collection and Disbursement of Support
Payments by the IV-D Agency, for consistency with certain changes made
to sections 454 and 457 of the Act. (The term ``distribution'' refers
to how a support collection is allocated between families and the State
and Federal government in accordance with Federal requirements. The
term ``disbursement'' refers to the act of paying, by check or
electronic transfer, support collections to families.)
Under the new section 454(34) of the Act, effective October 1,
2009, or up to a year earlier at State option, States have a choice to
distribute collections first to satisfy support owed to families in IV-
D cases. These proposed regulations make technical changes in
Sec. Sec. 302.32(b)(2)(iv) and (3)(ii) to delete reference to a
specific statutory requirement for payments to families to simplify the
regulatory language. Technical changes to Sec. 302.51 are addressed
later in this preamble.
Section 302.33--Services to Individuals Not Receiving Title IV-A
Assistance
We propose to add a new Sec. 302.33(e) to address the statutory
requirement in section 454(6)(B)(ii) of the Act to impose an annual $25
fee in certain cases. We are also revising the title of the section to
more appropriately reflect the scope of the revised section.
Section 7310(a) of the DRA of 2005 added section 454(6)(B)(ii) of
the Act to require States, in the case of an individual who has never
received assistance under a State program funded under title IV-A of
the Act (hereinafter referred to as ``title IV-A program'') and for
whom the State has collected at least $500 of support in any given
Federal fiscal year, to impose an annual fee of $25 for each case in
which services are furnished. The statutory effective date is October
1, 2006, or if State legislation is necessary to impose the mandatory
$25 fee, the effective date is three months after the first day of the
first calendar quarter beginning after the close of the first regular
session of the State legislature that begins after the date of the
enactment of the DRA of 2005. However, final regulations governing the
requirement may not be published until after the mandatory effective
date for the annual $25 fee in a State. In such a case, the State
should implement the fee in accordance with the statutory requirements
until such time as the final regulations are effective.
Section 454(6)(B)(ii) of the Act only refers to State programs
funded under title IV-A of the Act. However, we believe it is
authorized and consistent with the purpose and the scope of the
statutory exemption from the $25 fee for current and former TANF cases
and the intent of the Congress to not impose the fee in IV-D cases
involving individuals who are receiving or have received assistance
from a Tribal title IV-A Temporary Assistance to Needy Families (TANF)
program as well. Tribal TANF recipients are a narrow, additional
category of individuals receiving assistance under the same basic title
IV-A statutory authority as State TANF recipients, just not under a
State TANF program. The two programs are linked. Funds to operate
Tribal IV-A programs in a State are deducted from the State's title IV-
A block grant. The Federal statute at section 454 of the Act does not
provide for any additional categories of exempt individuals besides
these who may be receiving, or who may have received in the past, other
types of Federal, State or Tribal assistance.
The proposed regulations at Sec. 302.33(e)(1) would read: ``Annual
$25 fee. (1) In the case of an individual who has never received
assistance under a State or Tribal title IV-A program, and for whom the
State has disbursed to the family at least $500 of support in the
Federal fiscal year, the State must impose in, and report for, that
year an annual fee of $25 for each case in which services are
provided.''
[[Page 3095]]
A State would be required to impose the $25 fee in any case that
meets the conditions for imposition of the fee under Sec. 302.33(e),
including both existing and new IV-D cases.
For purposes of Sec. 302.33(e)(1), an individual would be
considered to have received assistance under a State or Tribal title
IV-A program if he or she had received a cash assistance payment or
some other type of TANF assistance as defined in Federal regulations
governing the State title IV-A program at 45 CFR 260.31, or under a
Tribal title IV-A program at 45 CFR 286.10. A State title IV-A program
would include both assistance under a State TANF program as well as
assistance under the TANF program's predecessor, Aid to Families with
Dependent Children (AFDC), as defined in Federal regulations governing
the AFDC program.
Definition of ``Annual''
We propose that States impose the annual $25 fee within a Federal
fiscal year period and report the fees for that Federal fiscal year.
This proposal would ensure consistency among State programs in
assessing the fee and reporting fees as program income as part of a
State's mandated Federal reporting procedures. However, we encourage
comments on, and a rationale for, an alternative 12-month period, for
example, a calendar year, for providing more State flexibility.
When the $500 of Support Threshold Is Reached
Under section 454(6)(B)(ii) of the Act, the annual fee must be
imposed after the collection of at least $500 in a Federal fiscal year.
Paragraph (e)(1) would require that support payments that make up this
$500 also must have been disbursed to the family within the Federal
fiscal year.
We are proposing to require that the $500 support collection must
have actually been disbursed to the family in a title IV-D case before
imposing the $25 fee because to allow otherwise would result in
imposition of a $25 fee in cases in which support is collected but is
neither distributed nor disbursed to the family, e.g., a Federal income
tax refund offset that is being held by the State because the obligated
parent has requested a review under Sec. 303.72, or a collection that
has not yet been disbursed because the State has lost contact with, and
is attempting to locate, the family. We believe this would be
inconsistent with the statute's concept that a case subject to the $25
fee would have benefited from receipt of $500 in support during the
year before an annual $25 fee is imposed. Therefore, at least $500 in
support collections must have been disbursed to the family in a year
before an annual $25 fee is imposed for that year. If $500 in support
is collected in one year but not disbursed until the next year, the fee
would be imposed in the year in which the collection was actually
disbursed to the family.
Imposing a time period within which the $500 must be collected and
disbursed is consistent with the purpose of the fee provision which
requires States to impose an ``annual fee.'' Setting a specific time
period for reaching the $500 threshold (i.e. within a Federal fiscal
year) will also contribute to the efficient administration of HHS'
oversight responsibility with respect to the title IV-D program.
One $25 Fee for Each Qualifying Case
Section 454(6)(B)(ii) of the Act, in part, requires a $25 fee to be
imposed for each case in which services are provided. A title IV-D case
is defined in instructions to the Federal reporting form 157 as a
noncustodial parent (or putative father), custodial parent and
child(ren) in common. Therefore, only one $25 fee would be imposed in a
title IV-D case that otherwise met the requirements for imposition of
the fee. If a custodial parent has multiple children by different
noncustodial parents, there would be a separate title IV-D case for
each noncustodial parent, and the State must impose the annual $25 fee
for each of these title IV-D cases in which the State disburses at
least $500 in the Federal fiscal year. And, if a noncustodial parent
has multiple children in separate title IV-D cases, the State must
impose the $25 fee in each qualifying case in which the $500 threshold
and other conditions for imposing the fee under Sec. 302.33(e) are
met.
Who Imposes the Fee in Interstate, International and Intergovernmental
Tribal Title IV-D Cases?
Section 454(6)(B)(ii) of the Act does not directly address
imposition of the annual $25 fee in interstate cases, cases involving
tribal members or the Tribal title IV-D programs, or international
cases receiving services under section 454(32) of the Act. States have
asked for clarification in this regulation about which State imposes a
$25 fee when the conditions under section 454(6)(B)(ii) are met in
these kinds of cases. We address each type separately, starting with
interstate cases that involve more than one State. Many States take
direct action against noncustodial parents or putative fathers in
different States to establish paternity and a support order using long-
arm statutes or to enforce an order through direct income withholding,
for example. The requirements of proposed Sec. 302.33(e) would apply
to these interstate cases in which one State uses long-arm jurisdiction
to establish or enforce support orders in another State where the
noncustodial parent is living, without involving the IV-D agency in the
other State. Therefore, for purposes of this discussion, we are only
referring to title IV-D cases in which one State has requested
assistance from another State in a child support case as interstate
cases. The proposed regulation, under Sec. 303.7(e), requires the
annual $25 fee to be imposed and reported by the initiating State in an
interstate case. We have taken this position because the initiating
State is the only State that has sufficient information to determine
whether all the requirements for imposition of the fee have been met.
That change is discussed further later in this preamble.
With respect to international cases in which parents live in
different countries, we believe such cases are covered by the fee
provisions. However, section 454(32)(C) of the Act provides that ``no
applications will be required from, and no costs will be assessed for
such services against, the foreign reciprocating country or foreign
obligee (but costs may at State option be assessed against the
obligor).'' Section 459A of the Act addresses the Federal-level
declaration of a foreign country to be a foreign reciprocating country
and refers, under section 459A(d), to State-level reciprocal
arrangements with foreign countries that are not the subject of a
Federal-level declaration. (See PIQ-04-01, Processing Cases with
Foreign Reciprocating Countries.) Therefore, while the $25 fee must be
imposed when appropriate in international cases (when $500 has been
collected in a Federal fiscal year and the family has never received
State or Tribal TANF), it may not be taken out of the collection sent
to, or charged to, a custodial parent in another country. The State
could charge the noncustodial parent the fee or pay the fee itself in
such cases.
The proposed regulations at Sec. 302.33(e)(2) would require the
State that receives the request from a foreign reciprocating country or
a foreign country covered by a State level reciprocal agreement to
impose the annual $25 fee in international cases receiving services
under section 454(32) of the Act in which the criteria for imposition
of the annual $25 fee under Sec. 302.33(e)(1) are met. Proposed Sec.
302.33(e)(3), discussed later in the
[[Page 3096]]
preamble, will address how the fee will actually be recovered or paid
in these international cases, taking into account the prohibition in
section 454(32)(C) of the Act that no costs will be assessed against
the foreign reciprocating country or foreign obligee.
We also considered the impact of the annual $25 fee on Tribal
members and Tribal title IV-D programs. Section 454(6)(B)(ii) is a
State plan requirement and as such is not applicable to Tribal IV-D
programs. However, if a Tribe is under cooperative agreement with a
State title IV-D program under section 454(33) of the Act and Sec.
302.34 to assist the State in delivering title IV-D services, the Tribe
would be required to impose the annual $25 fee in appropriate cases, if
doing so is addressed under the cooperative agreement with the State.
If it is not addressed in the cooperative agreement, the State IV-D
agency would be responsible for collecting the fee in any case where it
is the jurisdiction receiving the application for services or receiving
a referral from the State TANF, foster care or title XIX programs. As
described above, under Sec. 302.33(e)(1), a State would only impose
the $25 fee in appropriate cases involving Tribal members who are
receiving services from a State IV-D program and who have never
received State or Tribal title IV-A assistance. A State may not impose
a fee in a Tribal IV-D case that is referred to the State IV-D program
for assistance in securing child support from a Tribal IV-D program
because section 454(6)(B)(ii) of the Act does not apply to Tribal title
IV-D programs under section 455(f) of the Act and 45 CFR Part 309. A
case where a State IV-D program receives a request from another State
IV-D program for assistance involving a tribal member would be treated
as an interstate case and the fee would be imposed by the initiating
State.
Collection of the Annual Fee: State Options To Retain, Charge, Recover
or Pay the Annual Fee
Under section 454(6)(B)(ii) of the Act, as added by section
7310(a)(1) of the DRA of 2005, there are four options for the
collection of the fee. The annual $25 fee may be retained by the State
from support collected on behalf of the individual (but not from the
first $500 so collected in a Federal fiscal year), or, it may be paid
by the individual applying for services, recovered from the absent
parent, or paid by the State out of its own funds. To implement this
provision, the proposed regulation adds Sec. 302.33(e)(3) under which
after the first $500 of support collected in a Federal fiscal year is
disbursed to the family, the annual fee must be collected by one or
more of the following methods: (i) retained by the State from support
collected in cases subject to the fee under Sec. 302.33(e)(1) and (2),
except in international cases receiving services under section 454(32)
of the Act; (ii) paid by the individual applying for title IV-D
services under section 454(4)(A)(ii) of the Act and implementing
regulations at Sec. 302.33; (iii) recovered from the noncustodial
parent; or (iv) paid by the State out of its own funds.
In accordance with section 454(6)(B)(ii), the proposed Sec.
302.33(e)(3) provides States with flexibility to choose the appropriate
method or methods in a case to collect the fee, once imposed. The
method or methods selected may affect the cost of administration of the
title IV-D program. For example, a State may decide to first attempt to
recover the fee by billing the noncustodial parent, and if the
noncustodial parent does not pay the fee in a specified period of time
(e.g., 60 days), may then choose to withhold the fee from a subsequent
collection. Alternatively, a State could choose to require the
noncustodial parent to pay the fee as part of the support order, and,
should the noncustodial parent designate a portion of a subsequent
payment as the $25 fee, or an employer remit to the State IV-D agency
withheld wages sufficient to cover both the fee and the support
obligation included in the support order, the State may retain that
amount from that payment.
Section 454(6)(B)(ii) of the Act also authorizes a State to retain
the fee from support collected in excess of the first $500 collected in
a Federal fiscal year. Section 7310 of the DRA of 2005 also made a
conforming amendment to section 457(a)(3) of the Act under which, in
the case of a family that has never received assistance under title IV-
A or title IV-E of the Act, the State shall distribute to the family
the portion of the amount of support collected that remains after
withholding any fee imposed pursuant to section 454(b)(B)(ii) of the
Act. (A change to Sec. 302.51 to reflect this authority is discussed
later in this preamble.) Therefore, under the option to retain the fee
from collections, a State does not need the custodial parent or
caretaker relative's permission to withhold the annual $25 fee from a
collection on his or her behalf. Alternatively, a State could charge
the custodial parent or caretaker relative the fee (assuming they were
the individuals who applied for services) and require payment within a
specified period of time or indicate that if the fee is not paid, the
State will use the option to retain the fee from support and the fee
will be deducted from the first collection following the deadline for
payment of the fee by the custodial parent or caretaker relative.
Retaining the annual fee from support collected on behalf of the
family may be the least administratively burdensome method when
collections in excess of the first $500 are disbursed to the family.
However, while a State may charge the $25 fee to a custodial parent in
an international case in which the custodial parent is in the U.S. and
the noncustodial parent is in a foreign country, a State may not impose
the fee on an individual residing in a foreign country in an
international case. As discussed previously, section 454(32) of the Act
prohibits States from charging application fees or assessing costs
against the foreign country or foreign obligee. In such cases, the
annual $25 fee imposed in international cases must be recovered from
the parent or guardian living in the U.S. or be paid by the State. For
purposes of international cases receiving services under section
454(32) of the Act, the $500 in support may be considered disbursed to
the family when it is transmitted to the foreign reciprocating country
or directly to the family.
Requirement That the Fee Be Collected by the End of the Fiscal Year
Under proposed Sec. 302.33(e)(4), using the Secretary's rulemaking
authority in section 1102 of the Act, the proposed regulations provide
that the State must report, in accordance with reporting requirements
under 45 CFR 302.15, and instructions issued to States by the
Secretary, the total amount of annual $25 fees imposed for each Federal
fiscal year as program income, regardless of which method or methods
are used under paragraph (e)(3). States are required to report program
income on the 4th quarter expenditure report. Requiring States to
report the total amount of fees imposed in that year will contribute to
the efficient administration of the Secretary's functions under title
IV-D of the Act by ensuring that States actually reduce title IV-D
administrative costs for the fiscal year by the amount of fees that are
due, as intended by the statute. Although section 7310 of the DRA of
2005 does not include any specific sanction for a State's failure to
collect the fee, section 454(6)(B)(ii) of the Act conveys a clear
expectation that the $25 fee will actually be imposed and retained,
collected, or paid in all eligible cases in which at least $500 of
support was
[[Page 3097]]
collected in a Federal fiscal year. Therefore, each State is
responsible for imposing, retaining, collecting or paying, and
reporting the total of amount of annual $25 fees imposed in all cases
in which it is required to be imposed during the fiscal year. If the
$500 threshold is reached toward the end of a Federal fiscal year, the
methods available to the State to collect or pay the fee may be limited
to retaining the fee from a subsequent collection, if there is one made
and disbursed before the end of the year, or paying the fee out of
State funds. If a State does not make any collections above the $500
threshold or collects less than $25 in excess of the first $500
disbursed to the family in the year, the State must collect the fee
using one of the other methods, and, if all else fails, pay the fee
itself by the end of the fiscal year. We are specifically soliciting
comments on ways to effectively ensure timely collection of the annual
fee.
Section 7310(b) of the DRA of 2005 makes a conforming amendment to
section 457(a)(3) of the Act, which requires that in the case of
families that never received assistance, the State must distribute to
the family the portion of the amount so collected that remains after
withholding any fee pursuant to section 454(6)(B)(ii) of the Act.
Therefore, if a State opts to retain the fee from a collection, the
State may retain the annual $25 fee imposed under Sec. 302.33(e)(1)
and (2) from a collection in excess of the first $500 disbursed to the
family in a never-assistance case, regardless of whether or not the
collection is considered, under section 457 of the Act and implementing
regulations at Sec. 302.51, a payment on current support or
arrearages.
For purposes of distribution under section 457 of the Act,
assistance is defined in section 457(c)(1) as assistance under a State
title IV-A TANF program or the program that TANF replaced, AFDC or
title IV-E foster care program. If the State withholds the annual $25
fee from the collection on behalf of a never assistance case (i.e.,
opts to retain the fee from a collection in such a case), and chooses
to assess the fee against the custodial parent the State must give the
noncustodial parent credit in the payment record for the entire amount
of the payment. However, the State may deduct the annual $25 fee from a
payment if the State has chosen to recover the fee from the
noncustodial parent and the noncustodial parent has designated a
portion of the payment as the annual $25 fee. In such a case, the
noncustodial parent must get credit for paying the fee, and for paying
support in the amount that is paid in excess of the fee.
Annual $25 Fee as Program Income
The intent of the annual $25 fee is to recoup in part the costs of
the title IV-D program to the Federal and State governments by
decreasing program expenditures. Under Sec. 304.50, Treatment of
Program Income, fees, recovered costs, and interest are considered
program income that must be used to reduce title IV-D expenditures
before seeking Federal financial participation in the title IV-D
program's expenditures. Program income is reported in accordance with
45 CFR 302.15 and instructions issued by the Secretary. This reported
program income must include the total amount of annual $25 fees
imposed, regardless of whether the fees are retained from collections,
paid by the custodial parent, recovered from the noncustodial parent or
paid by the State. In addition, State-paid annual $25 fees are not an
allowable title IV-D expenditure eligible for Federal matching under
section 455 of the Act or 45 CFR part 304. Section 454(6)(B)(ii) of the
Act requires that State funds used to pay the annual $25 fee may not be
considered as an administrative cost of the State title IV-D program
and must be counted as program income.
Therefore, proposed Sec. 302.33(e)(5) requires that State funds
used to pay the annual $25 fee shall not be considered administrative
costs of the State for operation of the title IV-D plan, and that all
annual $25 fees imposed during a Federal fiscal year must be considered
income to the program, in accordance with Sec. 304.50. States will be
required to report the total amount of annual $25 fees imposed on Line
2a, Fees and Costs Recovered, on Form OCSE-396A, Child Support
Enforcement Program Financial Report, in addition to any other fees,
costs recovered and interest.
Section 302.51--Distribution of Support Collections
Section 7301(b) of the DRA revises section 457(a)(3) of the Act to
require a State to pay, to a family that has never received assistance
under a title IV-A or IV-E program, the portion of an amount collected
that remains after withholding any annual $25 fee that may be imposed
under section 454(6)(B)(ii) of the Act. This statutory requirement is
being addressed in these proposed regulations by an amendment to Sec.
302.51(a)(1) to include an additional exception in accordance with
proposed paragraph (a)(5). Therefore, the revised paragraph (a)(1)
would read as follows: ``(a)(1)For purposes of distribution in a IV-D
case, amounts collected, except as provided under paragraphs (a)(3) and
(5) 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 represent payment on
the required support obligation for previous months.'' Paragraph (a)(5)
would read as follows: ``(a)(5) The State must pay to a family that has
never received assistance under a State program funded or approved
under title IV-A of the Act or foster care under title IV-E of the Act
the portion of the amount collected that remains after withholding any
annual $25 fee that the State imposes under Sec. 302.33(e) of this
part.''
Certain changes made by section 7301(b) of the DRA which allow
States to increase child support payments to families and simplify
child support distribution rules were explained earlier under the
discussion of Sec. 302.32, Collection and Disbursement of Support
Payments by the IV-D agency, including a new State plan requirement at
section 454(34) of the Act under which a State must certify which
option for distribution of collections in former assistance cases it
will use. This statutory requirement is being addressed in these
proposed regulations at Sec. 302.51(a)(3) for consistency with State
options for distribution of collections in former assistance cases
authorized under the section 7301(b) of the DRA of 2005.
Current Sec. 302.51(a)(3) requires that amounts collected through
Federal income tax refund offset must be distributed as arrearages in
accordance with implementing regulations for the Federal income tax
refund offset process in Sec. 303.72(h), and section 457(a)(2)(B)(iv)
of the Act, under which Federal income tax refund offsets are first
retained to satisfy any past-due support assigned to the State. We are
making a conforming change to Sec. 302.51(a)(3) to include the States'
option, effective October 1, 2009, or up to a year earlier at State
option, under section 454(34) of the Act, to use Federal income tax
refund offset collections to satisfy current support, if not already
paid for the month and to first pay collections, including Federal
income tax refund offsets, to a former assistance family, before
satisfying any support assigned to the State.
Section 302.70--Required State Laws
Section 7302 of the DRA of 2005 amended section 466(a)(10) of the
Act to require States to enact laws requiring
[[Page 3098]]
the use of procedures to review, and if appropriate, adjust at least
once every three years, child support orders for families receiving
TANF in which there is an assignment of support under title IV-A of the
Act. Under section 466(a)(10) of the Act and Sec. 303.8, States may
review orders using State child support guidelines and adjust them if
appropriate, apply a cost-of-living adjustment to the orders, or use
automated methods to identify orders eligible for review, conduct the
reviews and adjust the orders, if appropriate. Section 7302 of the DRA
of 2005 reinstates the pre-1996 requirement for States to review and,
if appropriate, adjust orders in TANF cases on a three-year cycle. This
change only affects those cases in which the families are currently
receiving TANF. It does not apply to arrearage-only IV-D cases in which
a State is only collecting arrearages assigned to the State because of
title IV-A assistance provided in years past.
For consistency with section 466(a)(10) of the Act, the proposed
regulations revise Sec. 302.70(a)(10), under which the State must have
in effect laws providing for the review and adjustment of child support
orders. The requirements in current Sec. Sec. 302.70(a)(10)(i) and
(ii) are obsolete and would be replaced with reference to requirements
for review and adjustment of child support orders in accordance with
Sec. 303.8. Specific changes to the content of Sec. 303.8(b)(1),
which address the requirements that are in effect until September 30,
2007 and those that become effective on October 1, 2007, are discussed
later in this preamble.
Part 303--Standards for Program Operations
Section 303.7--Provision of Services in Interstate Title IV-D Cases
In Sec. 302.33(c)(2), in an interstate case, the application fee
is charged by the State in which the individual applies for services.
Under responding State responsibilities in interstate cases in Sec.
303.7(c)(7)(iv), the responding State must forward collections to the
location specified by the initiating State title IV-D agency for
distribution and disbursement. Because the application fee is paid in
the initiating State and that State is responsible for distribution and
disbursement of collections in interstate cases in accordance with
Question and Answer 12 of OCSE-AT-98-24 (http://www.acf.hhs.gov/programs/cse/pol/AT/1998/at-9824.htm
, only the initiating State has all
the information necessary to know whether the annual $25 fee should be
imposed in a particular case. Accordingly, we believe it is appropriate
for the initiating State to impose the annual $25 fee in eligible cases
after the $500 threshold is met, and to report the amount of fees
imposed as required under Sec. 302.33(e)(3).
Section 7310 of the DRA does not specifically address which State
is to impose and collect the annual $25 fee. Using the Secretary's
rulemaking authority in section 1102 of the Act, we are proposing to
amend Sec. 303.7(e) to require that the title IV-D agency in the
initiating State impose the annual $25 fee in accordance with proposed
changes to Sec. 302.33(e) discussed earlier in this preamble. This
change is necessary to ensure consistency in the collection of the
mandatory annual $25 fee in interstate cases.
Section 303.8--Review and Adjustment of Child Support Orders
As discussed earlier, section 7302 of the DRA of 2005 revised
section 466(a)(10) of the Act, effective October 1, 2007, to require
States to review and, if appropriate, adjust orders in State title IV-A
cases at least once every three years. Now that title IV-A assistance
is time limited under TANF, it is especially important that States
ensure, prior to the family ceasing to receive TANF, that the support
order, which is essential to the family's continued financial
independence, is set at the appropriate level based on the responsible
parent's or parents' income and ability to pay.
Under current Sec. 303.8(b)(1), a State must conduct a review
every three years only if requested by either the parent or the title
IV-D agency. Proposed Sec. 303.8(b)(1) would require, effective
October 1, 2007, a State to have procedures under which, every three
years (or such shorter cycle as the State may determine), if there is
an assignment under part A or upon the request of either parent, the
State shall, with respect to a support order being enforced under this
part, take into account the best interests of the child involved and
(i) review and, if appropriate, adjust orders in accordance with the
State's guidelines; (ii) apply a cost-of-living adjustment to the
order; or (iii) use automated methods to identify orders eligible for
review, conduct the review, identify orders eligible for adjustment,
and apply the appropriate adjustment to the orders eligible for
adjustment under any threshold that may be established by the State.
Section 303.72--Requests for Collection of Past-Due Support by Federal
Tax Refund Offset
As discussed earlier in the preamble, section 7301(f) of the DRA of
2005 changes the definition of ``past-due support'' at section 464(c)
of the Act to allow, effective October 1, 2007, arrearages owed to
grown children to be submitted for Federal income tax refund offset
process. Therefore, the proposed regulations revise Sec.
303.72(a)(3)(i), with respect to past-due support owed in cases in
which the IV-D agency is providing services under Sec. 302.33, to
allow support owed to or on behalf of a child, or a child and the
parent with whom the child is living if the same support order includes
support for the child and the parent, to be submitted for Federal
income tax refund offset, effective October 1, 2007.
As discussed earlier with respect to distribution options for
States under section 454(34) of the Act, as added by section
7301(b)(2)(C) of the DRA of 2005, effective October 1, 2009, or up to a
year earlier at State option, a State may choose either to apply
amounts collected, including amounts offset from Federal income tax
refunds, to satisfy any support owed to the family first or to continue
to distribute Federal tax offset amounts, as under current
457(a)(2)(B)(iv), to satisfy any past-due support assigned to the State
first. Section 303.72(h)(1) would be revised to eliminate reference to
distributing amounts offset as past-due support and to refer simply to
distribution in accordance with section 457 of the Act, and effective
October 1, 2009, or up to a year earlier at State option, in accordance
with section 454(34) of the Act, pursuant to which States elect which
distribution priority in former assistance cases to use under their IV-
D programs. In addition, Sec. 303.72(h)(3) would be revised to include
the requirement that a IV-D agency, effective October 1, 2009, or up to
a year earlier at State option, must inform individuals receiving
services under Sec. 302.33 in advance, when the State has opted, under
section 454(34) of the Act, to continue to apply amounts offset first
to satisfy any past-due support which has been assigned to the State
and submitted for Federal income tax refund offset.
Part 304--Federal Financial Participation
Section 304.20--Availability and Rate of Federal Financial
Participation
Section 7303 of the DRA of 2005 reduces the previously enhanced
Federal matching rate for laboratory
[[Page 3099]]
costs to determine paternity, effective October 1, 2006. The enhanced
matching rate was originally implemented in 1988 because of the high
costs of genetic testing for the determination of paternity. However,
the cost of genetic testing is much more reasonable than it was in
1988. The Federal matching rate of 66 percent applies to laboratory
costs for determining paternity beginning October 1, 2006.
Currently, Sec. 304.20(d) allows Federal financial participation
at the 90 percent rate for laboratory costs incurred in determining
paternity on or after October 1, 1988. The proposed regulation revises
Sec. 304.20(d) by eliminating the availability of enhanced funding for
genetic testing costs after September 30, 2006.
III. Impact Analysis
Paperwork Reduction Act of 1995
This rule contains information collection requirements that have
been submitted to the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (PRA). Under this Act, no persons are
required to respond to a collection of information unless it displays a
valid OMB control number. These requirements will not become effective
until approved by OMB.
There is a new reporting requirement for a State's IV-D plan in
section 454(34) of the Act, to indicate which distribution option the
State will choose to implement. A new State plan preprint page has been
developed as part of this Paperwork Reduction Act (PRA) request. In
addition, a new State plan preprint page has been developed for the
State to indicate that a State will impose a fee and how it will be
collected. States will also be required to keep track of the total
amount of $25 fees that must be included as program income reported on
the OCSE-396A. A State plan preprint page is not necessary. However,
the tracking burden is indicated below.
All States already have the capability of automating the new and
revised information collection requirements imposed by the DRA of 2005
and these implementing regulations. Therefore, as provided below, the
paperwork impact on States under the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)) will be minimal.
The additional incremental estimated burdens for these data
collections (i.e. not including existing burden) are:
----------------------------------------------------------------------------------------------------------------
Average burden
Requirement Number of Yearly hours per Total burden
respondents submittals response hours
----------------------------------------------------------------------------------------------------------------
State Plan (OCSE-100)....................... .............. .............. ................ ................
Preprint page 2.4 Collection/Distribution of 54 1 .25 13.5
Support Payments...........................
State Plan Transmittal Page (Distribution).. 54 1 .25 13.5
Preprint page 2.5-4 Services to Individuals 54 1 .25 13.5
(Fee)......................................
State Plan Transmittal Page (Fee)........... 54 1 .25 13.5
Financial Form 396A (Tracking the $25 fee).. 54 4 1 216
----------------------------------------------------------------------------------------------------------------
The total estimated burden for the entire State Plan and Financial
Report Forms are:
----------------------------------------------------------------------------------------------------------------
Number of Yearly Total burden
Requirement respondents submittals hours *
----------------------------------------------------------------------------------------------------------------
State Plan (OCSE-100).......................................... 54 6 189
State Plan Transmittal (OCSE-21-U4)............................ 54 6 108
------------------------------------------------
Total...................................................... .............. .............. ...............
Financial Report Form (396A)................................... 54 4 1944
----------------------------------------------------------------------------------------------------------------
\*\ Includes incremental burden noted in previous chart.
In accordance with the Paperwork Reduction Act of 1995, this notice
invites the general public and other public agencies to comment on the
information collection requirements contained in this proposed rule.
The Administration for Children and Families (ACF) will consider
comments by the public on this proposed collection of information in
the following areas:
(1) Evaluating whether the proposed collection is necessary for the
proper performance of the functions of ACF, including whether the
information will have practical utility;
(2) Evaluating the accuracy of ACF's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
(3) Enhancing the quality, usefulness and clarity of the
information to be collected; and
(4) Minimizing the burden of the collection of information on those
who are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technology, e.g., permitting
electronic submission of responses.
OMB is required to make a decision concerning the collection of
information contained in these proposed regulations between 30 and 60
days after publication of this document in the Federal Register.
Therefore, a comment is best assured of having its full effect if OMB
receives it within 30 days of publication. This does not affect the
deadline for the public to comment to the Department on the proposed
regulations.
To make sure that your comments and related material do not reach
OMB more than once, please submit them by only one of the following
means:
1. By fax to OMB at (202) 395-6974. To ensure your comments are
received in time, mark the fax to the attention of the Desk Officer for
the Administration for Children and Families.
2. By e-mail to kmatsuoka@omb.eop.gov.
Copies of the proposed collection may be obtained by writing to the
Administration for Children and
[[Page 3100]]
Families, Office of Administration, Office of Information Services, 370
L'Enfant Promenade, SW., Washington, DC 20447, Attn: ACF Reports
Clearance Officer. All requests should be identified by the title of
the information collection (i.e., State Plan OCSE-100 and State Plan
Transmittal OCSE-21-U4). E-mail address: rsargis@acf.hhs.gov
Regulatory Flexibility Analysis
The Secretary certifies that, under 5 U.S.C. 605(b), as enacted by
the Regulatory Flexibility Act (Pub. L. 96-354), this rule will not
result in a significant impact on a substantial number of small
entities. The primary impact is on State governments. State governments
are not considered small entities under the Act.
Regulatory Impact Analysis
Executive 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
proposed rules are consistent with these priorities and principles and
is an economically significant rule as defined by the Executive Order
because it will have an estimated $500 million impact on the economy
over a 5 year period and, potentially, a $100 million impact on the
economy in any given year. Specifically, we estimate that the
requirement for review and adjustment of child support orders in TANF
cases every three years will cost the Federal government approximately
$15 million in FY 2008 but result in approximately $40 million in
savings over four years. Similarly, this provision will cost State
governments approximately $10 million in FY 2008 but save States almost
$40 million over four years with a net government impact of
approximately $25 million in costs in FY 2008 and approximately $80
million in savings by FY 2011. These costs reflect the upfront
increased administrative costs involved in reviewing these cases and as
appropriate updating the orders every three years and the savings that
will result overtime in the way of increased revenues (Federal and
State shares of the larger collections amounts). This provision also is
beneficial to families in terms of ensuring that support order remain
fair and equitable over time and reflect the noncustodial parent's
current ability to pay support.
The provision on imposition of a $25 annual collection fee for
never-TANF cases with at least $500 in collections will save the
Federal government a little less than $50 million in FY 2007 (when the
provision is effective) and result in approximately $270 in Federal
savings over five years. The provision will save State governments
approximately $25 million in FY 2007 and approximately $140 million
over five years. These fees will partially offset the government's
costs of providing services and are representative of Federal and State
cost sharing in the program (66 and 34 percent respectively).
Finally, the provision eliminating enhanced Federal funding for the
cost of paternity testing will save the Federal government almost $8
million in FY 2007 and approximately $40 million over five years and
will result in a dollar for dollar increase in State costs. In other
words, for each dollar saved by the Federal government because of the
decrease in federal financial participation will result in a dollar in
State costs. Enhanced federal funding for paternity testing is no
longer necessary because the cost of these tests has decreased
significantly over time.
All together these provisions save the Federal and State
governments approximately $66 million in FY 2007 and approximately $495
million over five years. As each of these provisions was mandated under
the Deficit Reduction Act of 2005, alternatives to this rulemaking are
limited. We could have chosen not to update program regulations to
reflect these statutory changes but that would be confusing to the
public and would ultimately have no budgetary impact since these
provisions are effective without regard to the issuance of regulations.
In the end, the proposed rule remains consistent with the statute
and the underlying budget implications.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that a covered agency prepare a budgetary impact statement before
promulgating a rule that includes any Federal mandate that may result
in the expenditure by State, local, and Tribal governments, in the
aggregate, or by the private sector, of $120 million or more in any one
year.
If a covered agency must prepare a budgetary impact statement,
section 205 further requires that it select the most cost-effective and
least burdensome alternative that achieves the objectives of the rule
and is consistent with the statutory requirements. In addition, section
203 requires a plan for informing and advising any small governments
that may be significantly or uniquely impacted by the rule.
The Department has determined that this proposed rule, in
implementing the new statutory requirements of the Deficit Reduction
Act, would not impose a mandate that will result in the expenditure by
State, local, and Tribal governments, in the aggregate, or by the
private sector, of more than $100 million in any one year. Rather, we
estimate that combined the proposed provisions will result in savings
to States. Over five years, the Federal government will save
approximately $315 million as a result of the review and adjustment and
collection fee provisions of the regulation and States will save almost
$180 million. States will receive approximately $40 million less in
federal reimbursement for laboratory costs associated with paternity
establishment over five years. Thus, the net impact of the regulation
on States is a savings of almost $140 million over five years.
Congressional Review
This notice of proposed rule making is not a major rule as defined
in 5 U.S.C. chapter 8.
Assessment of Federal Regulations and Policies on Families
Section 654 of the Treasury and General Government Appropriations
Act of 1999 requires Federal agencies to determine whether a proposed
policy or regulation may negatively affect family well-being. If the
agency's determination is affirmative, then the agency must prepare an
impact assessment addressing seven criteria specified in the law. The
required review of the regulations and policies to determine their
effect on family well-being has been completed and these regulations
will have a positive impact on family well-being as defined in the
legislation because expanded access to the Federal income tax refund
offset, mandatory three-year reviews of support orders in TANF cases,
and State options to pay more collections to families will ensure more
child support is paid to families.
Executive Order 13132
Executive Order 13132 prohibits an agency from publishing any rule
that has federalism implications if the rule either imposes substantial
direct compliance costs on State and local governments or is not
required by statute, or the rule preempts State law, unless the agency
meets the consultation and funding requirements of section 6 of the
Executive Order. We do not believe the regulation has federalism impact
as defined in the Executive order. However, consistent with Executive
Order 13132, the Department specifically solicits comments from State
and local
[[Page 3101]]
government officials on this proposed rule.
List of Subjects
45 CFR Part 301
Child support, Grants programs/social programs.
45 CFR Part 302
Child support, Grants programs/social programs.
45 CFR Part 303
Child support, Grant programs/social programs.
45 CFR Part 304
Child support, Grants programs/social programs.
(Catalog of Federal Domestic Assistance Programs No. 93.563, Child
Support Enforcement Program.)
Wade F. Horn,
Assistant Secretary for Children and Families.
Approved: October 23, 2006.
Michael O. Leavitt,
Secretary of Health and Human Services.
For the reasons discussed above, we propose to amend title 45
chapter III of the Code of Federal Regulations as follows:
PART 301--STATE PLAN APPROVAL AND GRANT PROCEDURES
1. The authority citation for part 301 continues to read as
follows:
Authority: 42 U.S.C. 651 through 658, 660, 664, 666, 667, 1301,
and 1302.
2. In Sec. 301.1, revise the definitions of ``Past-due support''
and ``Qualified child'' to read as follows:
Sec. 301.1 General definitions.
* * * * *
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. Through
September 30, 2007, 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.
* * * * *
Qualified child, through September 30, 2007, 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.
* * * * *
PART 302--STATE PLAN APPROVAL REQUIREMENTS
1. The authority citation for part 302 continues to read as
follows:
Authority: 42 U.S.C. 651 through 658, 660, 664, 666, 667, 1302,
1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396k.
2. In Sec. 302.32, revise paragraphs (b) introductory text, (b)(2)
introductory text, (b)(2)(iv), and (b)(3)(ii) to read as follows:
Sec. 302.32 Collection and disbursement of support payments by the
title IV-D Agency.
* * * * *
(b) Timeframes for disbursement of support payments by the State
disbursement unit (SDU) under section 454B of the Act.
(1) * * *
(2) Amounts collected by the title IV-D agency on behalf of
recipients of aid under the State's title IV-A or title IV-E plan for
whom an assignment under section 408(a)(3) or 471(a)(17) of the Act is
effective shall be disbursed by the SDU within the following
timeframes:
(i) * * *
(ii) * * *
(iii) * * *
(iv) Collections as a result of Federal income tax refund offset
paid to the family or distributed in title IV-E foster care cases under
Sec. 302.52(b)(4) of this part, must be sent to the title IV-A family
or title IV-E agency, as appropriate, within 30 calendar days of the
date of initial receipt by the title IV-D agency, unless State law
requires a post-offset appeal process and an appeal is filed timely, in
which case the SDU must send any payment to the title IV-A family or
title IV-E agency within 15 calendar days of the date the appeal is
resolved.
(3)(i) * * *
(ii) Collections due the family as a result of Federal income tax
refund offset must be sent to the family within 30 calendar days of the
date of initial receipt in the title IV-D agency, except:
(A) If State law requires a post-offset appeal process and an
appeal is timely filed, in which case the SDU 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.
3. In Sec. 302.33, revise the section heading and add new
paragraph (e) to read as follows:
Sec. 302.33 Services to individuals not receiving title IV-A
assistance.
* * * * *
(e) Annual $25 fee. (1) In the case of an individual who has never
received assistance under a State or Tribal title IV-A program, and for
whom the State has disbursed to the family at least $500 of support in
the Federal fiscal year, the State must impose in, and report for, that
year an annual fee of $25 for each case in which services are provided.
(2) The State must impose the annual $25 fee in international cases
under section 454(32) of the Act in which the criteria for imposition
of the annual $25 fee under paragraph (e)(1) of this section are met.
(3) For each Federal fiscal year, after the first $500 of support
is disbursed to the family, the fee must be collected by one or more of
the following methods:
(i) Retained by the State from support collected in cases subject
to the fee except in international cases receiving services under
section 454(32) of the Act;
(ii) Paid by the individual applying for services under section
454(4)(A)(ii) of the Act and implementing regulations in this section;
(iii) Recovered from the noncustodial parent; or
(iv) Paid by the State out of its own funds.
(4) The State must report, in accordance with Sec. 302.15 of this
part and instructions issued by the Secretary, the total amount of
annual $25 fees imposed under this section for each Federal fiscal year
as program income, regardless of which method or methods are used under
paragraph (e)(3) of this section.
(5) State funds used to pay the annual $25 fee shall not be
considered administrative costs of the State for the operation of the
title IV-D plan, and all annual $25 fees imposed during a Federal
fiscal year must be considered income to the program, in accordance
with Sec. 304.50 of this chapter.
4. In Sec. 302.51, revise paragraphs (a)(1) and (a)(3) and add
paragraph (a)(5) to read as follows:
Sec. 302.51 Distribution of support collections.
* * * * *
(a)(1) For purposes of distribution in a IV-D case, amounts
collected, except as provided under paragraphs (a)(3) and (5) 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
[[Page 3102]]
which represent payment on the required support obligation for previous
months.
(2) * * *
(3)(i) Except as provided in subparagraph (ii) of this paragraph,
amounts collected through Federal income tax refund offset must be
distributed as arrearages in accordance with Sec. 303.72 of this
chapter, and section 457 of the Act;
(ii) Effective October 1, 2009, or up to a year earlier at State
option, amounts collected through Federal income tax refund offset
shall be distributed in accordance with Sec. 303.72 of this chapter
and the option selected under section 454(34) of the Act.
(4) * * *
(5) The State must pay to a family that has never received
assistance under a state program funded or approved under title IV-A or
foster care under title IV-E of the Act the portion of the amount
collected that remains after withholding any annual $25 fee that the
State imposes under Sec. 302.33(e) of this part.
* * * * *
5. In Sec. 302.70, revise paragraph (a)(10) in its entirety to
read as follows:
Sec. 302.70 Required State laws.
(a) * * *
(10) Procedures for the review and adjustment of child support
orders in accordance with Sec. 303.8(b) of this chapter.
* * * * *
PART 303--STANDARDS FOR PROGRAM OPERATIONS
1. The authority citation for part 303 is revised to read as
follows:
Authority: 42 U.S.C. 651 through 658, 659, 659A, 660, 663, 664,
666, 667, 1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and
1396k.
2. In Sec. 303.7, add new paragraph (e) to read as follows:
Sec. 303.7 Provision of services in interstate cases.
* * * * *
(e) Imposition and reporting of annual $25 fee in interstate cases.
The title IV-D agency in the initiating State must impose and report
the annual $25 fee in accordance with Sec. 302.33(e) of this chapter.
* * * * *
3. In Sec. 303.8, revise paragraphs (b) introductory text and
(b)(1) introductory text to read as follows:
Sec. 303.8 Review and adjustment of child support orders.
(a) * * *
(b) Required procedures. Pursuant to section 466(a)(10) of the Act,
effective October 1, 2007, when providing services under this chapter:
(1) The State must have procedures under which, every three years
(or such shorter cycle as the State may determine), if there is an
assignment under part A, or upon the request of either parent, the
State shall, with respect to a support order being enforced under this
part, taking into account the best interests of the child involved:
* * * * *
4. In Sec. 303.72 revise paragraphs (a)(3) introductory text,
(a)(3)(i), and (h)(1) and (h)(3) to read as follows:
Sec. 303.72 Requests for collection of past-due support by Federal
tax refund offset.
(a) * * *
(1) * * *
(2) * * *
(3) For support owed in cases where the title IV-D agency is
providing title IV-D services under Sec. 302.33 of this chapter:
(i) The support is owed to or on behalf of a child, or a child and
the parent with whom the child is living if the same support order
includes support for the child and the parent.
* * * * *
(h) Distribution of collections. (1) Collections received by the
IV-D agency as a result of refund offset to satisfy title IV-A or non-
IV-A past-due support shall be distributed as required in accordance
with section 457 and, effective October 1, 2009, or up to a year
earlier at State option, in accordance with the option selected under
section 454(34) of the Act.
* * * * *
(3)(i) Through September 30, 2009, or up to a year earlier at State
option, the IV-D agency must inform individuals receiving services
under Sec. 302.33 of this chapter in advance that amounts offset will
be applied to satisfy any past-due support which has been assigned to
the State and submitted for Federal tax refund offset.
(ii) Effective October 1, 2009, or up to a year earlier at State
option, the IV-D agency must inform individuals receiving services
under Sec. 302.33 of this chapter in advance when the State has opted,
under section 454(34) of the Act, to continue to apply amounts offset
first to satisfy any past-due support which has been assigned to the
State and submitted for Federal tax refund offset.
* * * * *
PART 304--FEDERAL FINANCIAL PARTICIPATION
1. The authority citation for part 304 continues to read as
follows:
Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396a(a)(25),
1396b(d)(2), 1396b(o), 1396b(p), and 1396k.
Sec. 304.20 [Amended]
2. In Sec. 304.20, revise paragraph (d) to read as follows:
Sec. 304.20 Availability and rate of Federal financial participation.
* * * * *
(d) Federal financial participation at the 90 percent rate is
available for laboratory costs incurred in determining paternity on or
after October 1, 1988, and until September 30, 2006, 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
proceeding, but only if the expert witness costs are included as part
of the genetic testing contract.
[FR Doc. E7-953 Filed 1-23-07; 8:45 am]
BILLING CODE 4184-01-P