at-8701.htm

OCSE-AT-87-1

Jan. 15, 1987

Subj: Grants to States for Public Assistance Programs and

Federal Financial Participation

FINAL RULE

ACTION TRANSMITTAL

OCSE-AT-87-1

January 15, 1987

TO:STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS

SUBJECT:Grants to States for Public Assistance Programs and Federal Financial Participation

REGULATION

REFERENCE:45 CFR Parts 201 and 304

ATTACHMENT:Attached is a final regulation, issued jointly by the Office of Family Assistance and the Office of Child Support Enforcement, Department of Health and Human Services, which amends current regulations governing grants to States for public assistance programs and Federal financial participation in the child support enforcement programs under the Social Security Act. These changes are being made so that the revised regulation will conform to the amendments to the Department's Claims Collections Regulations, 45 CFR Part 30.

EFFECTIVE

DATE:February 4, 1987

INQUIRIES TO: OCSE Regional Representative

Deputy Director

Office of Child Support Enforcement

Family Support Administration

Office of Child Support Enforcement

45 CFR Parts 201 and 304

Grants to States for Public Assistance

Programs and Federal Financial Participation

AGENCIES: Office of Family Assistance and Office of Child Support Enforcement, Family Support Administration, HHS.

ACTION: Final rule.

ACTION: The Department of Health and Human Services is revising its regulations governing grants to States for public assistance programs and Federal financial prticipation in the child support enforcement programs under the Social Security Act so that they may conform to the amendments to the Department's Claims Collections Regulations, 45 CFR Part 30, published in this same issue of the Federal Register. Section 201.66 governs the States' repayment by installments of debts or other amounts determined to be unallowable under Titles I, IV-A, X, XVI (ADDBD) or XIX of the Social Security Act. Paragraph (b)(8) of õ201.66 provides that the Department will not charge the States interest on repayments made under this section unless mandated by court order. Section 304.40 governs the States' repayment by installments of debts to the Department arising from audit disallowances under title IV-D of the Social Security Act. Paragraph (b)(8) of õ304.40 also provides that the Department will not charge the States interest on repayments made under this section unless mandated by court order. The Department is removing these provisions.

EFFECTIVE DATE: February 4, 1987.

FOR FURTHER INFORMATION CONTACT: Sandra H. Shapiro, (202) 475-0150.

SUPPLEMENTARY INFORMATION: By providing that States will not be charged interest on repayments to the Federal Government under 45 CFR 201.66 and 304.40, paragraph (b)(8) of each of these sections conflicts with the Department's policy regarding interest charges on outstanding debts, as set forth in amendments to 45 CFR Part 30.

Sections 201.66(b)(8) and 304.40(b)(2) bestow upon the affected debtors a benefit that will not be available to other debtors of this Department. Under the Department's Claims Collection Regulation at 45 CFR Part 30, all debtors will be required to pay interest on debts that are not paid promptly unless a statute provides otherwise, or certain other criteria specified in 45 Part 30.13 or 30.14 are present. A decision not to charge interest on debts that are repaid under 45 CFR 201.66or 304.40 should be based on the same criteria. A blanket exemption is not justified. Paragraph (b)(8) of these regulations was not issued pursuant to a statute prohibiting the charging of interest on the covered debt.

Therefore, in the interest of fairness and consistency, we are removing paragraph (b)(8) of 45 CFR 201.66 and 304.40.

E.O. 12291

These are not "major rules" as defined Executive Order 12291, dated February 7, 1981.

Regulatory Flexibility Act

I certify that these regulations will not have a significant impact on a substantial number of small entities.

List of Subjects in 45 CFR Parts 201 and 304

Administrative practice and procedures, Claims, Public assistance.

Dated: July 11, 1986.

Otis R. Bowen,

Secretary

PART 45 - [AMENDED]

For the reasons set forth in the preamble, we hereby amend 45 CFR Parts 201 and 304 as follows:

1. The authority citation for Part 45 CFR Part 201 continues to read as follows:

Authority: Secs. 403 and 1102 of the Social Security Act, as amended; 49 Stat. 628, as amended; 49 Stat. 647, as amended; 42 U.S.C. 603, and 1302, and 1302.

õ201.66 [Amended]

2. In õ201.66, paragraph (b)(8) is removed.

PART 304 - [AMENDED]

3. The authority citation for Part 304 continues to read as follows:

Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 139k.

õ304.40 [Amended]

4. In õ304.40, paragraph (b)(8) is removed.

[FR Doc. 87-113 Filed 1-2-87; 8:45 am] Billing Code 4190-11-M