Child Support
| Published date | 09 June 2020 |
| Citation | 85 FR 35201 |
| Record Number | 2020-12188 |
| Section | Rules and Regulations |
| Court | Children And Families Administration |
Federal Register, Volume 85 Issue 111 (Tuesday, June 9, 2020)
[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Rules and Regulations]
[Pages 35201-35208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12188]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Parts 302, 303, 305, 307, and 309
RIN 0970-AC75
Child Support
AGENCY: Office of Child Support Enforcement (OCSE), Administration for
Children and Families (ACF), Department of Health and Human Services
(HHS).
ACTION: Final rule; technical corrections.
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SUMMARY: This rule is intended to eliminate regulations that are
outdated or unnecessary and to make technical amendments to the
Flexibility, Efficiency, and Modernization in Child Support Enforcement
(FEM) final rule, published on December 20, 2016, including to amend
the compliance date for review and adjustment of child support orders.
The Office of Child Support Enforcement is also making conforming
amendments to the regulations as a result of the Bipartisan Budget Act
of 2018.
DATES: This final rule is effective on July 9, 2020. The compliance
dates, or the dates that States must comply with the final rule, differ
among the various sections of the Federal regulations. The reasons for
delaying compliance dates include State legislative changes, system
modifications, procedural updates, etc.
For more information on compliance dates, see SUPPLEMENTARY
INFORMATION.
FOR FURTHER INFORMATION CONTACT: The OCSE Division of Policy and
Training at [email protected]. Deaf and hearing impaired individuals
may call the Federal Dual Party Relay Service at 1-800-877-8339 between
8 a.m. and 7 p.m. Eastern Time.
SUPPLEMENTARY INFORMATION:
Compliance Dates
The compliance date, or the date by which the States must follow
the rule, will be August 10, 2020 except, as noted below:
Review and adjustment of child support orders [45 CFR
303.8(b)(7)(ii)]: For those States that consider incarceration to be
voluntary unemployment, this final rule will delay the compliance date
for sending notices [45 CFR 303.8(b)(7)(ii)] to 1 year after completion
of the first quadrennial review of the State's guidelines that
commences on or after December 21, 2017.
Annual collection fee for individuals not receiving title
IV-A assistance [45 CFR 302.33(e)]: The compliance date is October 1,
2018 unless the Secretary of Health and Human Services determines that
State legislation (other than legislation appropriating funds) is
required for a State to meet the requirements in section 454(6)(B)(ii)
of the Social Security Act [42 U.S.C. 654(6)(B)(ii)]. In such a case,
the State shall not be regarded as failing to meet such requirements
before the first day of the first calendar quarter beginning after the
first regular session of the State legislature that begins after
February 9, 2018. For the purposes of determining this date, for States
with a 2-year legislative session, each year of the session is deemed
to be a separate regular session of the State legislature.
Quarterly wage and unemployment compensation claims
reporting to the National Directory of New Hires [45 CFR 303.108(c)]:
The compliance date for reporting quarterly wage information is 1 year
after the publication of the final rule. However, if State law
revisions are needed, the compliance date is the first day of the
second calendar quarter beginning after the close of the first regular
session of the State legislature that begins after July 9, 2020.
Functional requirements for computerized support
enforcement systems in operation by October 1, 2000 [45 CFR
307.11(c)(3)(i) and(ii)]: The compliance date for system enhancements
to add Social Security Retirement (SSR) with concurrent Supplemental
Security Income (SSI) to prevent garnishment of these funds from the
noncustodial parent's financial account will be February 4, 2021.
I. Statutory Authority
This final rule is published under the authority granted to the
Secretary of Health and Human Services by section 1102 of the Social
Security Act (Act) [42 U.S.C. 1302]. Section 1102 of the Act authorizes
the Secretary to publish regulations, not inconsistent with the Act, as
may be necessary for the efficient administration of the functions for
which the Secretary is responsible under the Act. Additionally, the
Secretary has authority under section 452(a)(1) of the Act [42 U.S.C.
652(a)(1)], through a designee, to ``establish such
[[Page 35202]]
standards for State programs for locating noncustodial parents,
establishing paternity, and obtaining child support . . . as [the
designee] determines to be necessary to assure that such programs will
be effective.'' Rules promulgated under section 452(a)(1) must meet two
conditions. First, the Secretary's designee must find that the rule
meets one of the statutory objectives of ``locating noncustodial
parents, establishing paternity, and obtaining child support.'' Second,
the Secretary's designee must determine that the rule is necessary to
``assure that such programs will be effective.''
Section 454(13) of the Act [42 U.S.C. 654(13)] requires a State
plan to ``provide that the State will comply with such other
requirements and standards as the Secretary determines to be necessary
to the establishment of an effective program for locating noncustodial
parents, establishing paternity, obtaining support orders, and
collecting support payments and provide that information requests by
parents who are residents of other States be treated with the same
priority as requests by parents who are residents of the State
submitting the plan.''
This final rule is published in accordance with the following
sections of the Act: Section 451--Appropriation; section 452--Duties of
the Secretary; section 453--Federal parent locator service; section
453A--State directory of new hires; section 454--State plan for child
and spousal support; section 454A--Automated data processing; section
455--Payments to States; section 459--Consent by the United States to
income withholding, garnishment, and similar proceedings for
enforcement of child support and alimony obligations; section 460--
Civil actions to enforce support obligations; section 464--Collection
of past-due support from Federal tax refunds; section 466--Requirement
of statutorily prescribed procedures to improve effectiveness of child
support enforcement; and section 467--State guidelines for child
support awards.
II. Background
This final rule carries out the President's directives in Executive
Orders (E.O.) 13771 and 13777. Executive Order 13777 requires each
agency to establish a Regulatory Reform Task Force that shall evaluate
existing regulations (as defined in section 4 of E.O. 13771) and make
recommendations to the agency head regarding their repeal, replacement,
or modification, consistent with applicable law. This rule eliminates
identified regulatory requirements that are outdated and unnecessary.
Additionally, this regulation makes a few technical amendments and
needed policy adjustments.
This Technical Corrections final rule addresses several updates we
will discuss in Section III, and the three substantive changes
mentioned here. First, OCSE is amending the compliance date for Review
and adjustment of child support orders in Sec. 303.8(b)(7)(ii). The
changes addressed in this rule, makes a technical change, that will
allow those States that consider incarceration to be voluntary
unemployment additional time to comply with the FEM final rule.
Second, on February 9, 2018, the President signed the Bipartisan
Budget Act of 2018, Public Law 115-123. Section 53117 of Public Law
115-123, Modernizing child support enforcement fees, amends section
454(6)(B)(ii) of the Social Security Act to increase the annual
collection fee from $25 to $35 for services provided by the State child
support agency to individuals not receiving title IV-A assistance,
i.e., Temporary Assistance for Needy Families (TANF). The law also
revises the amount from $500 to $550 that the State must collect and
disburse to the family before imposing the fee each Federal fiscal
year. This final rule codifies these statutory requirements.
Finally, to obtain more timely National Directory of New Hires
(NDNH) data, the Office of Child Support Enforcement (OCSE) is amending
Sec. 303.108(c) to reduce the timeframe to report wage information to
the NDNH from the end of the fourth month following the reporting
period to the end of the second month following the reporting period.
This is a change from the Notice of Proposed Rulemaking, due to
recommendations in comments received on the proposed rule, and is
outlined in the response to comments under Section III.
III. Summary Descriptions of the Regulatory Provisions and Response to
Comments
The following is a summary of the regulatory provisions included in
the final rule and, where appropriate, how these provisions differ from
what was initially included in the Notice of Proposed Rulemaking
(NPRM). The NPRM was published in the Federal Register on December 18,
2018 (83 FR 64803 through 64807). The regulatory provisions included in
this final rule are discussed by section, and includes the rationale
when changes from the NPRM were necessary.
OCSE received 43 sets of comments from States, the Department of
Labor, workforce agencies, and other interested entities. We posted 30
sets of comments on www.regulations.gov; 11 comments were duplicate
responses (when the same commenter submitted the same response more
than once or via alternate methods e.g., mail and online), and 2
comments were not posted because they were outside of the scope of the
NPRM. The posted comments were from the following groups: 21 State
child support agencies, 3 national child support organizations, 5 State
workforce agencies, and 1 national workforce agency.
Generally, the comments received on the NPRM were in agreement or
support of the proposed changes. However, there were comments that
sought further clarification or addressed concerns with the proposed
changes. Therefore, in this section, OCSE will discuss those comments
seeking clarification or addressing specific concerns. In drafting the
final rule, OCSE closely reviewed the comments and made a number of
adjustments in response to those comments. Additionally, some
provisions did not receive any comment. Immediately following the
Summary Description for each provision, OCSE includes the Response to
Comments and provides the rationale for any changes made to the
proposed rule.
Section 302.33: Services to Individuals Not Receiving Title IV-A
Assistance
OCSE proposed to revise 45 CFR 302.33(e) because section
454(6)(B)(ii) of the Social Security Act, on which it is based, was
amended by Section 53117 of the Bipartisan Budget Act of 2018, Public
Law 115-123, Modernizing Child Support Enforcement Fees. The $25 annual
fee was increased to $35 by this statutory amendment. In addition, this
amendment changed the amount the State must collect and disburse to the
family each year before imposing and collecting the annual fee which
was changed from $500 to $550. OCSE received four comments in support
of this provision.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, 45 CFR 302.33(e) is adopted as proposed.
Section 302.51: Distribution of Support Collections
This section has been added to the final rule to address a
technical correction needed in the regulations in section 45 CFR
302.51(a)(5), regarding the corresponding change made to Sec.
302.33(e) which updates the annual fee from $25 to $35 based on the
Bipartisan Budget Act of 2018. We are removing ``$25'' and replacing it
with
[[Page 35203]]
``$35'' to update the annual fee amount. This change was not proposed
in the NPRM and therefore no comments were received.
Section 303.7: Provision of Services in Intergovernmental IV-D Cases
This section has been added to the final rule to address a
technical correction needed in the regulations in section 45 CFR
303.7(f), regarding the corresponding change made to Sec. 302.33(e)
which updates the annual fee from $25 to $35 based on the Bipartisan
Budget Act of 2018. We are removing ``$25'' and replacing it with
``$35'' to update the annual fee amount. This change was not proposed
in the NPRM and therefore no comments were received.
Section 303.11: Case Closure Criteria
OCSE proposed to revise 45 CFR 303.11(b)(9)(ii) to allow case
closure when the noncustodial parent is also receiving concurrent
Supplemental Security Income (SSI) and Social Security Retirement (SSR)
benefits. The rationale for closing concurrent SSI/Social Security
Disability Income (SSDI) cases applies equally to concurrent SSI/SSR
cases because the noncustodial parent meets the low-income means-tested
criteria for the SSI program. The concurrent SSI/SSR noncustodial
parent receives no more income than a SSI/SSDI recipient. SSDI and SSR
benefits are related in that SSR benefits take the place of SSDI when
an individual reaches retirement age. Additionally, this provision
remains optional, and provides States with the flexibility to close the
case when deemed appropriate by the State. OCSE received nine comments
in support of this provision. Additionally, OCSE received two comments
suggesting that the case closure code be broadened to include other
means tested programs and one commenter asked if the case closure
criteria is still optional.
Comment: One commenter agreed with the proposed provision, and
suggested that OCSE broaden this closure code to include any case where
the noncustodial parent's only source of income is a means-tested
income program equal to or less than if the noncustodial parent
qualified for SSI. This commenter stated the rationale would be the
same and would not lead to some cases being unable to close due to an
unequal treatment of participants.
Response: OCSE understands that there are other income categories
that may seem related, however, this case closure provision is specific
to noncustodial parents who receive SSI payments.
Comment: One commenter suggested that Social Security Survivor's
benefits should be included ahead of including Social Security
Retirement and believed this should be added to this criteria.
Response: OCSE disagrees. We are including SSR as a technical
correction to this provision because of its close association with
SSDI, as described here and under Sec. 307.11. Considering any other
benefits at this time is outside the scope of the regulation. As
previously stated, a recipient receives concurrent SSI and either SSDI
or SSR benefits under title II of the Act when the disabled
noncustodial parent qualifies for the means-tested SSI benefits on the
basis of his or her income and assets, but also qualifies for the SSDI
or SSR benefits. In these cases, the Social Security Administration
pays a combination of benefits up to the SSI benefit level. Therefore,
a recipient who receives a concurrent SSI/SSDI or SSI/SSR benefit
receives no additional money if they transition from a SSDI benefit to
a SSR benefit because the recipient reached the appropriate retirement
age. As such, only those cases that the State deems appropriate to
close under Sec. 303.11(b)(9)(ii) may be considered.
Comment: One commenter asked if this case closure criteria is still
optional.
Response: Yes. This case closure criterion remains optional. The
IV-D agency should review those cases where the noncustodial parent is
a recipient of SSI to determine on a case-by-case basis if it is
appropriate to continue to enforce obligations for child support when
other forms of income may be available or to close the case.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, and considering the comments received, OCSE
finalizes 45 CFR 303.11(b)(9)(ii) as proposed.
Section 303.71: Requests for Full Collection Services by the Secretary
of the Treasury
OCSE proposed to remove 45 CFR 303.71, ``Requests for full
collection services by the Secretary of the Treasury.'' Due to the low
number of cases currently being referred, and the availability of other
more effective enforcement procedures, OCSE is removing this provision.
States have not submitted any new cases for this enforcement procedure
since 2013. Since the inception of this provision, we have made a
number of more effective enforcement procedures available to States.
Given that States are no longer widely using this enforcement tool, we
are streamlining the regulations by removing this provision. However,
this provision is statutory, therefore the removal of Sec. 303.71 will
not impact a State's ability to use this procedure, pursuant to section
452(b) of the Act [42 U.S.C. 652(b)], if it so chooses. Five commenters
agreed with the provision and two commenters agreed with the provision
and requested that OCSE publish guidance.
Comment: Two commenters agreed with the proposed provision, and
suggested publication of guidance to clarify when States can use this
enforcement action.
Response: States may contact [email protected] for guidance
if they elect to use this provision.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, and considering the comments received, OCSE
removes 45 CFR 303.71 as proposed.
Section 303.73: Applications To Use the Courts of the United States To
Enforce Court Orders
OCSE proposed to remove 45 CFR 303.73, ``Applications to use the
courts of the United States to enforce court orders,'' because it is no
longer necessary. As stated in the NPRM, this provision involves a
State seeking to use the Federal courts to enforce a child support
order against an absent parent in another State, by applying to the
Secretary for permission to use a United States district court for such
purpose based on instructions issued by OCSE. This provision,
originally promulgated at 45 CFR 302.72 in 1975, was needed to enforce
interstate orders. Since then, the ``Preventing Sex Trafficking and
Strengthening Families Act,'' enacted on September 29, 2014 (Pub. L.
113-183), amended section 466(f) of the Social Security Act, 42 U.S.C.
666, requiring all States to enact the 2008 amendments to the Uniform
Interstate Family Support Act ``officially adopted as of September 30,
2008 by the National Conference of Commissioners on Uniform State
Laws'' (referred to as UIFSA 2008). UIFSA 2008 makes the requirements
in this provision obsolete since it establishes procedures for
enforcing interstate orders.
Currently, all States are using UIFSA 2008, which defines a
tribunal as a court, administrative agency, or quasi-judicial entity
authorized to establish, enforce, or modify support orders or to
determine parentage of a child. UIFSA also establishes rules/standards
related to personal, subject matter, and long-arm jurisdiction, and
establishes procedures on registering/enforcing foreign orders.
However, OCSE acknowledges that there are still statutory provisions,
in sections
[[Page 35204]]
452(a)(8) and 460 of the Act, 42 U.S.C. 652(a)(8) and 660 that permit
States to apply to the Secretary for permission to use a United States
district court, and that Action Transmittal, issued February 6, 1976
(OCSE-AT-76-1) and revised May 12, 1976 (OCSE-AT-76-8), provides
guidance for use of Federal courts and instructions to State IV-D
agencies for preparation and submission of applications for
certification to use a U.S. district court. OCSE received four comments
in support of this proposed change.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE removes 45 CFR 303.73 as proposed.
Section 303.108: Quarterly Wage and Unemployment Compensation Claims
Reporting to the National Directory of New Hires
Section 453A(g)(2)(B) of the Act, 42 U.S.C. 653a(g)(2), requires
that the State Directory of New Hires shall, on a quarterly basis,
furnish to the NDNH information concerning the wages and unemployment
compensation paid to individuals, by such dates, in such format, and
containing such information as the Secretary of Health and Human
Services shall specify in regulations. In accordance with 45 CFR
303.108(c), the State must report quarterly wage information no later
than the end of the fourth month following the reporting period.
However, the State reports quarterly unemployment compensation claim
information no later than the end of the first month following the
reporting period.
In the NPRM, OCSE proposed to change that provision to reduce the
timeframe for reporting quarterly wage data, proposing that States
report by the end of the first month following the reporting period.
This would align the timeframes for when States must report wage and
unemployment compensation claims data to the NDNH and help ensure State
child support programs receive data more timely to locate parents and
to establish and enforce support orders. However, the timeframe OCSE
proposed garnered alternate suggestions from several commenters,
including the Department of Labor, national labor organizations, State
workforce agencies, and child support agencies. In addition, OCSE
received two comments regarding compliance with implementing the
requirement.
Comment: Several commenters expressed that the timeframe proposed
by the NPRM does not provide sufficient time for the State to report
quarterly wage data to the NDNH, based on the timeframe that employers
must report to their States. Commenters stated that most States permit
employers to file their wage reports up through the end of the month
after a calendar quarter ends. This would mean that those States would
need to provide the data to the NDNH on the same deadline. Commenters
advised that States provide information that has actually been received
and processed into their systems, and they are unable to do so with the
same deadline as employers. As an alternative, several commenters
suggested moving the deadline to report quarterly wage information to
the NDNH to no sooner than the end of the second month after a calendar
quarter.
Response: OCSE agrees with the alternative suggestion to change the
reporting timeframe from the proposed end of the first month following
the reporting period to the end of the second month following the
reporting period. This will assist in streamlining the receipt of
timely data to the NDNH and help State child support programs receive
data to locate parents and to establish and enforce support orders in a
more timely manner.
Comment: Some commenters suggested moving the deadline to report
quarterly wage information to the NDNH to no sooner than the end of the
third month after a calendar quarter.
Response: OCSE understands that, due to varying systems and
employer deadlines, more time would be preferable. However, we received
feedback from the Department of Labor and a national labor
organization. They have provided an alternative to the proposed change
in the NPRM. They suggested moving the deadline to report quarterly
wage information to the NDNH to no later than the end of the second
month after a calendar quarter, and OCSE agrees.
Comment: One commenter stated that there is concern regarding the
significant system changes required to implement this provision, and
stated that timely reporting may not always be possible because of
potentially conflicting reporting requirements placed on child support
agencies, State workforce development agencies, and employers and
indicated that it is impossible to know if implementation was possible.
Response: OCSE understands the complexities of implementation. In
the final rule, OCSE adopts a timeframe for reporting quarterly wage
data to the NDNH different than the timeframe proposed in the NPRM, so
that reporting is due by the end of the second month following the
reporting period. In addition, States will have one year from the
publication date of the final rule to comply with this change. For
those States that will be required to change their State law, the
compliance date will be the first day of the second calendar quarter
beginning after the close of the first regular session of the State
legislature that begins after July 9, 2020.
Comment: One commenter suggested that the compliance date for
implementation of the proposed changes to Sec. 303.108 should be
delayed, if a State needs to adopt changes in State law.
Response: OCSE agrees and has amended the compliance date from the
NPRM. The compliance date of this provision in the final rule is 1 year
after the publication of the final rule unless State law revisions are
needed, in which case the compliance date is the first day of the
second calendar quarter beginning after the close of the first regular
session of the State legislature that begins after July 9, 2020.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, and considering the comments received, OCSE
finalizes Sec. 303.108(c) by changing the timeframe for reporting
quarterly wage data to the end of the second month following the
reporting period, instead of the end of the first month as proposed.
Section 305.65: State Cooperation in Audit
This section has been added to the final rule to address a
technical correction needed in the regulations in section 45 CFR
305.65(b), regarding definitions of part 305, which are found in Sec.
305.1. We are removing ``Sec. 305.2'' and replacing it with ``Sec.
305.1'' to correct the section citation. This change was not proposed
in the NPRM and therefore no comments were received.
Section 307.11: Functional Requirements for Computerized Support
Enforcement Systems in Operation by October 1, 2000
OCSE proposed several revisions to Sec. 307.11(c)(3) (i) and (ii).
The first proposed change was a technical correction to the FEM final
rule to include noncustodial parents who receive concurrent
Supplemental Security Income (SSI) and Social Security Retirement (SSR)
benefits under title II of the Act. In the FEM final rule, Sec.
307.11(c)(3)(i) precludes garnishment of financial accounts for SSI
recipients and concurrent SSI and SSDI recipients. Paragraph (c)(3)(ii)
requires the State to make the SSI recipient whole if the State
inappropriately garnishes the SSI benefit or concurrent SSI and SSDI
benefits from the noncustodial parent's
[[Page 35205]]
financial account and return these monies within 5 business days after
the State becomes aware that the noncustodial parent was
inappropriately garnished. In the NPRM for this rule, OCSE proposed
amending these provisions to also apply these requirements to
concurrent SSI and SSR benefits. As indicated in the NPRM, a disabled
noncustodial parent qualifies for the means-tested SSI benefit on the
basis of his or her income and assets, but also qualifies for the SSDI
or SSR benefits because of employment credits. Individuals eligible to
receive SSR may be eligible to receive SSI benefits when their SSR
benefit is below SSI income and assets limits. Given that the
noncustodial parent is eligible for concurrent benefits, meets the SSI
means-tested criteria, and receives the same benefit amount as a SSI
beneficiary, the state should not garnish the SSDI or the SSR portion
from the noncustodial parent's financial account.
Second, OCSE proposed to amend Sec. 307.11(c)(3)(i) and (ii) by
adding ``or through an income withholding order'' as an additional
method of garnishment of funds that would be subject to the
requirements in these paragraphs, in addition to garnishment of funds
from the noncustodial parent's financial account. OCSE received several
comments regarding the proposed changes to Sec. 307.11(c)(3)(i) and
(ii). Most did not approve or agree with the proposed changes. However,
OCSE also received comments that were in favor of the proposed changes.
As stated in the FEM Final Rule, OCSE emphasizes that it makes no
changes to its policy regarding recipients of title II benefits being
subject to garnishment, as outlined in section 459(h)(1)(A)(ii)(I) of
the Act, 42 U.S.C. 659(h)(1)(A)(ii)(I). When a recipient receives title
II benefits only, those benefits are subject to garnishment, as can be
found in Dear Colleague Letters (DCL), and Policy Interpretation
Questions (PIQ) (DCL-13-06; PIQ-09-01; DCL-00-103). Title II benefits,
such as SSDI and SSR benefits, are considered remuneration from
employment, and therefore, State or Tribal child support agencies are
allowed to continue to garnish the benefits of child support directly
from the Federal payor as authorized under section 459(h) of the Act.
States can request Title II and Title XVI information through the State
Verification and Exchange System (SVES) when they submit a locate
request through their statewide system or the Child Support Portal.
Comment: Two commenters mentioned that the 5 days to return the
funds received via income withholding, already sent to families is
problematic.
Response: OCSE understands the concern regarding the timeframe by
which funds must be returned, and it has made some adjustments in the
final rule. The FEM final rule currently requires the State to refund
any funds improperly garnished within 5 business days after the agency
determines that SSI payments or concurrent SSI payments and SSDI
benefits were incorrectly garnished from the noncustodial parent's
financial account. This Technical Corrections final rule, amends
paragraphs (c)(3)(i) and (ii) to include concurrent SSI and SSR
recipients, but the number of days remains unchanged. In this final
rule, OCSE adds a new optional component under paragraph (c)(3)(iii),
which outlines that the State should return funds improperly garnished
from an income withholding order in accordance with Sec.
303.100(a)(8).
Comment: Three commenters requested that we not make the return of
concurrent SSI and SSDI or SSR retroactive.
Response: This policy applies once the regulation is in effect and
states have until February 4, 2021 to be compliant with Sec.
307.11(c)(3)(i) and (ii). There is no requirement that the policy be
applied retroactively. States will need to return funds improperly
garnished from financial accounts within 5 business days after
determining the payments were incorrectly garnished. However, if those
funds were from an income withholding order, the State should return
funds improperly garnished in accordance with Sec. 303.100(a)(8) for
States adopting Sec. 307.11(c)(3)(iii).
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, and considering the comments received, OCSE
finalizes the proposed revision to Sec. 307.11(c)(3) with changes.
OCSE amends paragraphs (c)(3)(i) and (ii) to include concurrent SSI and
SSR recipients, however, the income withholding provision that was
proposed has been modified in this final rule. Instead, OCSE adds, in
the final rule, a new paragraph (c)(3)(iii) to include an optional
component for States regarding noncustodial parents who receive
concurrent SSI payments and either SSDI or SSR benefits under title II
of the Act. For those noncustodial parents who are beneficiaries of SSI
and concurrent SSDI or SSR, the State has the option to prevent
garnishment of the concurrent SSI and SSDI or SSR payment through an
income withholding order, and return funds incorrectly withheld in
accordance with 45 CFR 303.100(a)(8) when deemed appropriate by the
State. This optional provision will give States flexibility regarding
concurrent SSI and SSDI or SSR benefits in cases involving noncustodial
parents living at or below the subsistence level.
Section 307.30: Federal Financial Participation at the 90 Percent Rate
for Statewide Computerized Support Enforcement Systems
OCSE proposed removing Sec. 307.30 because this section is
outdated. OCSE no longer has the authority to provide enhanced Federal
financial participation (FFP) funding at the 90 percent rate for
statewide computerized support enforcement systems. The 90 percent
enhanced funding was only available for expenditures for the planning,
design, development, installation, or enhancement of a statewide
computerized support enforcement system during the Federal fiscal years
1996 and 1997. OCSE received three comments in support of the proposed
removal.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE removes 45 CFR 307.30 as proposed.
Section 307.31: Federal Financial Participation at the 80 Percent Rate
for Computerized Support Enforcement Systems
OCSE proposed removing Sec. 307.31 because this section is
outdated. OCSE no longer has the authority to provide enhanced FFP
funding at the 80 percent rate for statewide computerized support
enforcement systems. The 80 percent enhanced funding was only available
for expenditures for the planning, design, development, installation,
or enhancement of a statewide computerized support enforcement system
until September 30, 2001. OCSE received two comments in support of the
proposed removal.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE removes 45 CFR 307.31 as proposed.
Section 309.20: Who submits a Tribal IV-D program application and
where?
OCSE proposed revising Sec. 309.20(b) to remove an outdated
address and add ``Federal Office of Child Support Enforcement''. OCSE
did not receive any comments on this provision.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE removes 45 CFR 309.20 as proposed.
[[Page 35206]]
Section 309.75: What administrative and management procedures must a
Tribe or Tribal organization include in a Tribal IV-D plan?
An Interim Final Rule effective December 26, 2014 (79 FR 75871),
issued jointly by the Office of Management and Budget (OMB), HHS, and a
number of Federal agencies, implements ``Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal
Awards'' (UAR). OCSE proposed revising the reference regarding OMB
Circular A-133, which was superseded by the UAR effective December 26,
2014 (79 FR 75871), to the updated reference 45 CFR part 75, subpart F.
OCSE did not receive any comments on this provision.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE revises 45 CFR 309.75 as proposed.
Section 309.155: What uses of Tribal IV-D program funds are not
allowable?
OCSE proposed revising the reference in Sec. 309.155(g) regarding
OMB Circular A-87, which was superseded by the UAR effective December
26, 2014 (79 FR 75871) to the updated reference 45 CFR part 75, subpart
E. OCSE did not receive any comments on this provision.
Summary of Regulatory Changes: For the reasons described in the
proposed rule and above, OCSE revises 45 CFR 309.155 as proposed.
Section 309.170: What statistical and narrative reporting requirements
apply to Tribal IV-D programs?
This section has been added to address a technical change needed in
the regulations in Sec. 309.170(a), regarding the OCSE-34 form and an
update to the reporting timeframe. The form was previously designated
as OCSE-34A, however it is now OCSE-34 and the reporting period for the
first three quarters of the funding period has changed from 30 days to
45 days. This change was not proposed in the NPRM and therefore no
comments were received.
Summary of Regulatory Changes: For the reasons described above,
OCSE finalizes the technical change to 45 CFR 309.170(a) by replacing
``OCSE-34A'' with ``OCSE-34,'' and changing ``30 days'' to ``45 days.''
IV. Regulatory Review
Paperwork Reduction Act
The Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq., provides
that a Federal agency generally cannot conduct or sponsor a collection
of information, and the public is generally not required to respond to
an information collection, unless it is approved by OMB under the PRA.
All Departments are required by the PRA to submit to OMB for review and
approval any reporting or recordkeeping requirements inherent in a
proposed or final rule. For this final rule, States will need to
resubmit the State plan preprint page 3.8-3, which is a PRA collection
activity already covered under OMB Control number 0970-0017 as part of
the ``State Plan for Child Support Collection and Establishment of
Paternity Under Title IV-D of the Social Security Act.'' This final
rule imposes no additional information collection requirements under
the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d); as a result, no
new PRA approval needs to be sought or obtained.
There is one amended and one new optional provision as a result of
these regulations, which are one-time enhancements to statewide child
support systems. The description and total estimated burden for the
changes are described in the chart below.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of respondents: Average burden hours National National state
Section and purpose Instrument 54 per response Total cost federal share share
--------------------------------------------------------------------------------------------------------------------------------------------------------
Added requirement under Sec. Systems Modification.. One time system 100 hours x $100 x 54 $540,000 $356,400 $183,600
307.11(c)(3)(i) and (ii) to enhancement. States.
include Social Security Retirement
(SSR) as part of the automated
procedure to identify the
recipient of Supplemental Security
Income (SSI).
Added optional requirement under Systems Modification.. One time system 100 hours x $100 x 27 270,000 178,200 91,800
Sec. 307.11(c)(3)(iii) to enhancement. States.
prevent garnishing through an
income withholding order related
to SSI or to return incorrectly
garnished funds.
--------------------------------------------
Totals......................... ...................... ...................... 8,100 hours........... 810,000 534,600 275,400
--------------------------------------------------------------------------------------------------------------------------------------------------------
The systems enhancements above will add SSR to existing State
systems functional requirements under Sec. 307.11(c)(3)(i) and (ii)
and, optionally, under Sec. 307.11(c)(3)(iii). For the optional
enhancement, we estimate half of the States, or approximately 27, will
opt to implement. OCSE has not included a burden estimate in this rule
to update the amount and collection threshold for the annual fee under
Sec. 302.33(e) because most States have already enacted this statutory
change, since it was promulgated February 2018.
Regulatory Flexibility Analysis
The Secretary certifies that, under 5 U.S.C. 605(b), as enacted by
the Regulatory Flexibility Act (Pub. L. 96-354), this rule will not
result in a significant impact on a substantial number of small
entities. The primary impact is on State governments. State governments
are not considered small entities under the Act.
Regulatory Impact Analysis
Executive Orders 12866, 13563, and 13771
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. OMB has determined that this rule is a significant
regulatory action under E.O. 12866. This rule has been reviewed by OMB.
While there are some costs associated with these regulations, they
are not economically significant as defined under E.O. 12866. One
economic impact of the final rule is associated with the change in the
annual fee from $25 to $35 under 45 CFR 302.33(e). Based on data
collected on the OCSE-34 Child Support Enforcement Program Quarterly
Collection Report, OCSE estimates the impact of this change to be
approximately $17 million, which represents a transfer from States and
parents to the Federal Government. An
[[Page 35207]]
area with associated Federal costs is modifying the child support
statewide automated system for one-time system enhancements to
accommodate amended and optional criteria to identify noncustodial
parents receiving SSI and concurrent SSR. The following estimates were
derived from our table in section IV under Paperwork Reduction Act. The
total cost for the required systems enhancement is estimated at
$540,000 and for the optional systems enhancement is $270,000. These
costs are to modify statewide IV-D systems for the States at a cost of
$100 an hour (with an assumption that 27 States will implement the
optional provision). The total net cost to modify statewide systems in
the final rule is $810,000, and the total Federal costs is $534,600.
This rule is not subject to the requirements of E.O. 13771 because this
rule results in no more than de minimis costs.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act (Pub. L. 104-4) requires agencies
to prepare an assessment of anticipated costs and benefits before
promulgating any rule that may result in an annual expenditure by
State, local, and Tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation). That threshold level is currently approximately $154
million. This rule does not impose any mandates on State, local, or
Tribal governments, or the private sector that will result in an annual
expenditure of $154 million or more.
Congressional Review
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of lnformation and Regulatory Affairs designated this rule
as not a 'major rule' as defined by 5 U.S.C. 804(2).
Assessment of Federal Regulations and Policies on Families
Section 654 of the Treasury and General Government Appropriations
Act of 1999 requires Federal agencies to determine whether a policy or
regulation may affect family well-being. If the agency's determination
is affirmative, then the agency must prepare an impact assessment
addressing seven criteria specified in the law. This regulation makes
technical changes in the child support regulations. This regulation
will not have an adverse impact on family well-being as defined in the
legislation.
Executive Order 13132
Executive Order 13132 prohibits an agency from publishing any rule
that has federalism implications if the rule either imposes substantial
direct compliance costs on State and local governments and is not
required by statute, or the rule preempts State law, unless the agency
meets the consultation and funding requirements of section 6 of the
Executive Order. This rule does not have federalism impact as defined
in the Executive Order.
List of Subjects
45 CFR Part 302
Child support, State Plan Requirements.
45 CFR Part 303
Child support, Standards for program operations.
45 CFR Part 305
Child support, Program performance measures, Standards, Financial
incentives, and Penalties.
45 CFR Part 307
Child support, Computerized support enforcement systems.
45 CFR Part 309
Child support, Tribal child support enforcement (IV-D) program.
(Catalog of Federal Domestic Assistance Programs No. 93.563, Child
Support Enforcement Program.)
Dated: May 29, 2020.
Lynn A. Johnson,
Assistant Secretary for Children and Families.
Approved: May 29, 2020.
Alex M. Azar II,
Secretary.
For the reasons discussed above, the Department of Health and Human
Services amends 45 CFR chapter III as follows:
PART 302--STATE PLAN REQUIREMENTS
0
1. The authority citation for part 302 continues to read as follows:
Authority: 42 U.S.C. 651 through 658, 659a, 660, 664, 666, 667,
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).
Sec. 302.33 [Amended]
0
2. Amend Sec. 302.33 by:
0
a. Removing ``Annual $25 fee'' and adding in its place ``Annual
collection fee'' in the paragraph (e) subject heading;
0
b. Removing the dollar amount ``$25'' and adding in its place``$35''
wherever it appears in paragraphs (e)(1) introductory text and (e)(2),
(4), and (5); and
0
c. Removing the dollar amount ``$500'' and adding in its place ``$550''
in paragraphs (e)(1)(i) and (e)(3) introductory text.
Sec. 302.51 [Amended]
0
3. Amend Sec. 302.51 in paragraphs (a)(5)(i) and (ii) by removing the
dollar amount ``$25'' and adding in its place ``$35'' wherever it
appears.
PART 303--STANDARDS FOR PROGRAM OPERATIONS
0
4. The authority citation for part 303 continues to read as follows:
Authority: 42 U.S.C. 651 through 658, 659a, 660, 663, 664, 666,
667, 1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and
1396(k), and 25 U.S.C. 1603(12) and 1621e.
Sec. 303.7 [Amended]
0
5. Amend Sec. 303.7 in paragraph (f) by removing the dollar amount
``$25'' and adding in its place ``$35'' wherever it appears.
0
6. Amend Sec. 303.11 by revising paragraph (b)(9)(ii) to read as
follows:
Sec. 303.11 Case closure criteria.
* * * * *
(b) * * *
(9) * * *
(ii) Both SSI payments and either Social Security Disability
Insurance (SSDI) or Social Security Retirement (SSR) benefits under
title II of the Act.
* * * * *
Sec. 303.71 [Removed]
0
7. Remove Sec. 303.71.
Sec. 303.73 [Removed]
0
8. Remove Sec. 303.73.
0
9. Amend Sec. 303.108 by revising the subject heading and the first
sentence in paragraph (c) to read as follows:
Sec. 303.108 Quarterly wage and unemployment compensation claims
reporting to the National Directory of New Hires.
* * * * *
(c) What timeframes apply for reporting quarterly wage and
unemployment compensation claims data? The State shall report wage
information for the reporting period no later than the end of the
second month following the reporting period. * * *
* * * * *
[[Page 35208]]
PART 305--PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL
INCENTIVES, AND PENALTIES
0
10. The authority citation for part 305 continues to read as follows:
Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and
1302.
Sec. 305.65 [Amended]
0
11. Amend Sec. 305.65 by removing ``Sec. 305.2'' and adding in its
place ``Sec. 305.1'' in paragraph (b).
PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS
0
12. The authority citation for part 307 continues to read as follows:
Authority: 42 U.S.C. 652 through 658, 664, 666 through 669A, and
1302.
0
13. Amend Sec. 307.11 by revising paragraphs (c)(3)(i) and (ii), and
adding paragraph (c)(3)(iii) as follows:
Sec. 307.11 Functional requirements for computerized support
enforcement systems in operation by October 1, 2000.
* * * * *
(c) * * *
(3) * * *
(i) Identify cases which have been previously identified as
involving a noncustodial parent who is a recipient of Supplemental
Security Income (SSI) payments or concurrent SSI payments and Social
Security Disability Insurance (SSDI) or Social Security Retirement
(SSR) benefits under title II of the Act, to prevent garnishment of
these funds from the noncustodial parent's financial account; and
(ii) Return funds to a noncustodial parent, within 5 business days
after the agency determines that SSI payments or concurrent SSI
payments and SSDI or SSR benefits under title II of the Act, in the
noncustodial parent's financial account have been incorrectly
garnished.
(iii) At the option of the State, identify cases involving a
noncustodial parent who is a recipient of concurrent SSI payments and
either SSDI or SSR benefits under title II of the Act and prevent
garnishment of these funds from the noncustodial parent through an
income withholding order; and return funds to a noncustodial parent in
accordance with Sec. 303.100(a)(8), after the agency determines that
concurrent SSI payments and either SSDI or SSR benefits have been
incorrectly garnished from the noncustodial parent through an income
withholding order.
* * * * *
Sec. 307.30 [Removed]
0
14. Remove Sec. 307.30.
Sec. 307.31 [Removed]
0
15. Remove Sec. 307.31.
PART 309--TRIBAL CHILD SUPPORT ENFORCEMENT (IV-D) PROGRAM
0
16. The authority citation for part 309 continues to read as follows:
Authority: 42 U.S.C. 655(f) and 1302.
Sec. 309.20 [Amended]
0
17. Amend Sec. 309.20 in paragraph (b) by removing the words ``Tribal
Child Support Enforcement Program, 370 L'Enfant Promenade, SW,
Washington, DC 20447'' and adding in their place the words ``Federal
Office of Child Support Enforcement''.
Sec. 309.75 [Amended]
0
18. Amend Sec. 309.75 in paragraph (d) by removing the words ``OMB
Circular A-133'' and adding in their place the words ``45 CFR part 75,
subpart F''.
Sec. 309.155 [Amended]
0
19. Amend Sec. 309.155 in paragraph (g) by removing the words ``OMB
Circular A-87'' and adding in their place the words ``45 CFR part 75,
subpart E''.
Sec. 309.170 [Amended]
0
20. Amend Sec. 309.170 in paragraph (a) by removing the words ``OCSE-
34A'' and adding in their place the words ``OCSE-34'', and by removing
``30'' and adding in its place ``45''.
[FR Doc. 2020-12188 Filed 6-8-20; 8:45 am]
BILLING CODE 4184-42-P
