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Final Rule: Title IV-D of the Social Security Act: Child Support Enforcement Program

AT-75-01

Published: June 26, 1975
Information About:
State/Local Child Support Agencies
Topics:
Case Management, Enforcement, Locate, Order Establishment, Paternity Establishment, State Plan, Federal Systems, Federal Parent Locator Service (FPLS), Funding, Federal Financial Participation (FFP), Incentive
Types:
Policy, Action Transmittals (AT), Regulations
Tags:
Cooperative Agreement, Social Security Number (SSN)

ACTION TRANSMITTAL

OCSE-AT-75-01

June 26, 1975

TO: STATE IV-D AGENCY ADMINISTRATORS AND OTHER INTERESTED AGENCIES AND ORGANIZATIONS

SUBJECT:Title IV-D of the Social Security Act: Child Support Enforcement Program

REGULATION REFERENCE:Chapter III, of Title 45.

ATTACHMENT:Final regulations to implement the Child Support Enforcement Program established by Part B of P.L. 93-647.

EFFECTIVE: July 1, 1975

ACTION REQUIRED:Implement a Child Support Enforcement Program.

PROGRAM APPLICABILITY:Child Support Enforcement Program

BACKGROUND:The proposed regulation was transmitted to you by SRS-AT-075-12(AO), dated May 8, 1975; and, SRS-AT-75-13, May 9, 1975.

INQUIRIES TO:Regional Office of Child Support Enforcement

Acting Director, Office of Child

Support Enforcement

Title 45---Public Welfare

CHAPTER II--SOCIAL AND REHABILITATION SERVICE (ASSISTANCE PROGRAMS), DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

CHILD SUPPORT ENFORCEMENT PROGRAM

General Administration

Notice of proposed rule making implementing certain provisions of Part B of Pub. L. 93-647 which impose new requirements under title IV-A of the Social Security Act as it relates to Child Support Enforcement was published in the Federal Register on May 2, 1975 (40 FR 19207).

We received 156 responses to the notice of proposed rule making from public welfare agencies, District Attorneys, private citizens, advocate groups, a Governor, and State Attorneys General. Most comments suggested improvements and clarifications in the regulations. Many of these suggestions are reflected in the final regulations. For example, several comments recommended a more precise definition of "cooperation" in § 232.12. The definition of "cooperation" in the final regulation has been expanded to provide better guidelines to agencies administering this AFDC requirement. However, a substantial number of comments raised objections which could only be resolved by amending the legislation upon which the regulations are based. For example, 85 identical letters were received from private citizens objecting to the requirement of furnishing social security account numbers in § 232.10. Since furnishing these numbers is specifically required by section 402(a)(25) of the Social Security Act as amended by Pub. L. 93-647, this requirement could not be deleted from the final regulation.

The vast majority of the changes made in the final regulations are either technical in nature or represent clarification of certain provisions of the proposed regulations. Major changes include the following:

1. Paragraph (a)(1)(i)(A) of § 205.50 has been changed to define a public official.

2. Paragraph (c) has been added to § 205.50 to conform the safeguarding of information regulation to the requirements contained in title XX of the Social Security Act relating to disclosure of information.

3. Paragraph (a)(2) of § 232.10 has been changed to specify that applicants and recipients are to comply with enumeration procedures that have been established with the Social Security Administration, or to apply for social security account numbers directly if such procedures are not in effect.

4. Paragraph (b) of § 232.11 has been added to specify that the requirement of this section may be met if the State has a statute that causes support rights to be assigned by operation of law.

5. Paragraph (b) of § 232.12 is added to further define cooperation. The provisions lists with greater specificity therequirements for cooperation in securing support.

6. Paragraph (c) of § 232.12 is added to specify that evidence of failure to cooperate submitted by the Child Support Agency to the IV-A agency shall be utilized by the IV-A agency to determine if the applicant or recipient is eligible for assistance.

7. Section 232.20 has been expanded to specify the treatment that the IV-A agency shall give to amounts of child support collections that have been made in a month and when such amounts shall or shall not be treated as income. Such amounts shall be treated as income in the month they are paid to the family by the IV-D agency. If these amounts are sufficient to make the family ineligible for an assistance payment, they will be paid to the family in the month for which the IV-A agency utilized these amounts to determine eligibility for an assistance payment and they will be income in that month (See 45 CFR 302.32). If these amounts are not sufficient to make the family ineligible for an assistance payment, they will be paid to the family in accordance with 45 CFR 302.51. The IV-A agency is also required to pay to the Federal government its share of collections made.

8. Technical amendments have been made to § § 233.20 and 233.90 so they will conform to the provisions of Part 232.

9. Paragraph (a) of § 235.70 has been clarified by adding a definition of the terms "furnishing" and "aid" to specify the precise time at which the IV-A agency must notify the IV-D agency that aid has been furnished under the IV-A program.

Accordingly, after considering all the comments, the proposed regulations, as modified, are adopted.

Chapter II, Title 45 of the Code of Federal Regulations is revised as follows:

PART 205--GENERAL ADMINISTRATION--PUBLIC ASSISTANCE PROGRAM

1. Section 205.50 is amended by revising paragraph (a); redesignating paragraph (b) as (d) and adding a new paragraph (b) and (c) as set forth below:

§ 205.50 Safeguarding information for the financial assistance and social services programs.

(a) State plan requirements. A State plan under title I, IV-A, IV-D, VI, X, XIV, or XVI, of the Social Security Act, except as provided in paragraph (c) of this section, must provide that:

(1) Pursuant to State statute which imposes legal sanctions:

(i) The use or disclosure of information concerning applicants and recipients will be limited to public officials who require such information in connection with their official duties, except that use or disclosure of information provided under 20 CFR Part 401 shall be limited to purposes directly connected with the administration of the program; and to other persons for purposes directly connected with the administration of the program. Such purposes include establishing eligibility, determining amount of assistance, and providing services for applicants and recipients. Under the requirement concerning the use or disclosure of information to public officials, such information shall be available only to public officials who certify in writing that:

(A) They are public officials as defined by State or Federal laws of general applicability; and

(B) The information to be disclosed or used is required in connection with their official duties.

* * * * *

(b) State plan requirements for the medical assistance programs. A State plan under title XIX of the Social Security Act must meet all the requirements of paragraph (a) of this section, except that disclosure shall be limited to purposes directly connected with the administration of the program.

(c) State administrative plan requirements for the Social Service program. A State administrative plan under title XX of the Social Security Act must meet all the requirements of paragraph (a) of this section, except that disclosure shall be limited to purposes directly connected with the purposes of that program, the plan of the State approved under Part A of title IV, the plan of the State developed under Part B of that title, the Supplemental Security Income program established by title XVI, or the plan of the State approved under title XIX;

* * * * *

2. A new Part 232 is added to read as follows :

PART 232--SPECIAL PROVISIONS APPLICABLE TO TITLE IV-A OF THE SOCIAL SECURITY ACT

Sec.

232.1 scope.

232.2 child support program; State plan requirement.

232.10 Furnishing of social security numbers.

232.11 Assignment of rights to support.

232.12 Cooperation in obtaining support.

232.20 Disregard of payments under section 457 of the Act.

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

§ 232.1 Scope.

This part implements provisions of Part B of P.L. 93-647 that are applicable only to title IV-A.

§ 232.2 Child Support program; State plan requirements.

The State plan must specify that the State:

(a) Has in effect a plan approved under part D of title IV of the Act; and

(b) Operates a child support program in conformity with suchplan.

§ 232.10 Furnishing of social security numbers.

The State plan must provide that:

(a) As a condition of eligibility, each applicant for or recipient of aid will be required:

(1) To furnish to the State or local agency a social security account number, hereinafter referred to as the SSN (or numbers, if more than one has been issued); and

(2) If he cannot furnish a SSN (either because such SSN has not been issued or is not known), to apply for such number through procedures adopted by the State or local agency with the Social Security Administration. If such procedures are not in effect, the applicant or recipient shall apply directly for such number, submit verification of such application, and provide the number upon its receipt.

(b) For new applicants, the requirements of paragraph (a) of this section shall be effective July 1, 1975: and, for current recipients, it shall be effective as determined by the State agency but not later than the time of the next redetermination of eligibility required by § 206.- 10(a)(9) of this chapter.

(c) The State or local agency will assist the applicant or recipient in making applications for SSNs and will comply with the procedures and requirements established by the Social Security Administration for application, issuance, and verification of social security account numbers. For purposes of AFDC foster care, the application for the SSN will be made by the State or local agency.

(d) The State or local agency will not deny, delay, or discontinue assistance pending the issuance or verification of such numbers if the applicant or recipient has complied with the requirements of paragraph (a) of this section.

(e) The State or local agency will use such account numbers, in addition to any other means of identification it may determine to employ, in the administration of the plan.

(f) "Applicant" and "recipient" include the caretaker relative, the children, and any other individual whose needs are considered in determining the amount of assistance.

(g) The State or local agency shall notify the applicant or recipient that the furnishing of the SSN is a condition of eligibility for assistance required by section 402(a)(25) of the Social Security Act and that the SSN will be utilized in the administration of the AFDC program.

§ 232.11 Assignments of right to support.

(a) The State plan must provide that:

(1) As a condition of eligibility for assistance, each applicant for or recipient of AFDC shall assign to the State any rights to support from any other person as such applicant or recipient may have:

(i) In his own behalf or in behalf of any other family member for whom the applicant or recipient is applying for or receivingassistance; and

(ii) Which have accrued at the time such assignment is executed.

(2) If the relative with whom a child is living fails to comply with the requirements of paragraph (a) (1), (2), or (3) of this section, such relative shall be denied eligibility without regard to other eligibility factors.

(3) If the relative with whom a child is living is found to be ineligible for assistance because of failure to comply with the requirements of paragraph (a) (1), (2), or (3) of this section, any aid for which such child is eligible (determined without regard to the needs of the ineligible relative) will be provided in the form of protective payments as described in § 234.60 of this chapter.

(4) For new applicants, the requirements of paragraph (a) of this section shall be effective July 1, 1975; and, for current recipients, it shall be effective as determined by the State agency but not later than the time of the next redetermination of eligibility required by § 206.10(a)(9) of this chapter.

(b) An assignment by operation of State law which is substantially identical to the requirements of paragraph (a) (1) may be utilized in lieu of the assignment described in that paragraph.

(c) If there is a failure to execute an assignment pursuant to this section, the State may attempt to establish paternity and collect child support pursuant to appropriate State statutes and regulations.

§ 232.12 Cooperation in obtaining support.

The State plan must provide that:

(a) As a condition of eligibility for assistance, each applicant for or recipient of AFDC will be required to cooperate with the State in:

(1) Identifying and locating the parent of a child with respect to whom aid is claimed;

(2) Establishing the paternity of a child born out of wedlock with respect to whom aid is claimed;

(3) Obtaining support payments for such applicant or recipient and for a child with respect to whom aid is claimed; and

(4) Obtaining any other payments or property due such applicant or recipient of such child.

(b) "Cooperate" includes the following:

(1) Appearing at the offices of the State or local agency or the child support agency as necessary to provide verbal or written information, or documentary evidence, known to, possessed by, or reasonably obtainable by him, that is relevant to achieving the objectives of paragraph (a) of this section;

(2) Appearing as a witness at court or other hearings or proceedings necessary to achieving the objectives of paragraph (a) of this section;

(3) Providing information, or attesting to the lack of information, under penalty of perjury; and

(4) After an assignment under § 232.11 has been made, paying to the child support agency any child support payments receivedfrom the absent parent which are covered by such assignment.

(c) If the child support agency notifies the State or local agency of evidence of failure to cooperate, the State or local agency shall act upon such information in order to enforce the eligibility requirements of this section.

(d) If the relative with whom a child is living fails to comply with the requirements of paragraph (a) of this section, such relative shall be denied eligibility without regard to other eligibility factors.

(e) If the relative with whom a child is living is found to be ineligible for assistance because of failure to comply with the requirements of paragraph (a) of this section, any aid for which such child is eligible (determined without regard to the needs of the caretaker relative) will be provided in the form of protective payments as described in § 234.60 of this chapter.

§ 232.20 Treatment of child support collections made in the Child Support Enforcement Program as income and resources in the Title IV-A Program.

(a) The State plan must provide that in any case in which child support payments are collected for a recipient of AFDC with respect to whom an assignment under section 232.11 is effective:

(1) Upon notification to the IV-A agency by the IV-D agency of the amount of a child support collection, such amount will be used to redetermine eligibility for an assistance payment the first time it is feasible for the IV-A agency to consider such collections in redetermining eligibility for and the amount of the assistance payment. This use of these amounts so collected shall not be later than the second month after the month in which the collections were made by the IV-D agency. In determining whether a child support collection made by the State's IV-D agency, which represents support amounts for a month as determined pursuant to § 302.51(a) of this title, is sufficient to make the family ineligible for an assistance payment for the month to which the redetermination applies, the State will determine if such collection, when treated as if it were income, makes the family ineligible for an assistance payment. If such treatment makes the family ineligible, the child support for the month will be considered to be income and the IV-A agency will notify the family and will inform the IV-D agency to pay such collection to the family in the month for which the family was determined to be ineligible. If such treatment does not make the family ineligible for an assistance payment, such collection will not be considered to be income and will be retained by the State's IV-D agency for distribution pursuant to § 302.51 of Chapter III of this title and the assistance payment will be calculated without regard to such collection.

(2) Any payment received pursuant to § 302.51(b)(1) shall not be considered as income or as a resource.

(3) Any payment received pursuant to § 302.51 (b) (3) or (5) shall be treated as income in the month following the month to which the redetermination in paragraph (1) applies.

(b) From any amounts of assistance payments which arereimbursed by child support collections made by the IV-D agency, the IV-A agency shall pay the Federal government its share of the collections made, after the incentive payments, if any, have been made pursuant to § 302.52 of Chapter III of this title.

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

3. Section 233.20 is amended by revising paragraphs (a)(3)(v) and (vi), and revoking paragraph (b)(4) to read as follows:

§ 233.20 Need and amount of assistance.

(a) Requirements for State plans.

* * * * *

(3) Income and resources; OAA, AFDC, AB, APTD, and AABD. * * (v) Provide that agency policies will assure that in determining the eligibility of an individual for an assistance payment or the amount of such payment, child support amounts which are collected as part of the State's child support enforcement program will be treated in accordance with § 232.20. Any child support amounts for which an assignment pursuant to § 232.11 is effective, which are received directly by the assistance unit shall be paid to the State child support enforcement unit. Whether or not the support payments are received regularly, the agency does not delay or reduce public assistance payments on the basis of assumed support which is not actually available.

(vi) Except for child support obligations assigned pursuant to § 232.11 of this chapter, if the State agency holds relatives responsible for the support of applicants and recipients, (a) include an income scale for use in determining whether responsible relatives have sufficient income to warrant expectation that they can contribute to the support of applicants or recipients, which income scale exceeds a minimum level of living and at least represents a minimum level of adequacy that takes account of the needs and other obligations of the relatives; and (b) provide that no request will be made for contributions from relatives whose net cash income is below the income scale. In family groups living together, income of the spouse is considered available for children under 21.

* * * * *

(b) (4) Revoked.

* * * * *

4. Section 233.90 is amended by revising paragraph (b) (4) to read as follows:

§ 233.90 Factors specific to AFDC.

* * * * *

(b) Conditions for plan approval.

* * * * *

(4) (i) A child may not be denied AFDC either initially or subsequently because a parent or other caretaker relative fails to cooperate with the child support agency in performing any of the activities needed to:

(A) Establish the paternity of a child born out of wedlock; or

(B) Obtain support from a person having a legal duty to support the child.

(ii) Any parent or caretaker relative who fails to so cooperate shall be treated in accordance with § 232.12 of this chapter.

PART 234--FINANCIAL ASSISTANCE TO INDIVIDUALS

5. Section 234.60 is amended by revising paragraph (a)(1), adding a new paragraph (a)(13). As amended, § 234.60 reads as follows:

§ 234.60 Protective and vendor payments for dependent children.

(a) State plan requirements. (1) If a State plan for AFDC under Title IV-A of the Social Security Act provides for protective and vendor payments for other than WIN cases and cases in which the caretaker relative fails to meet the eligibility requirements of

§ § 232.11 or 232.12 of this chapter, it must meet the requirements in paragraph (a)(2) through (11) of this section.

* * * * *

(13) For cases in which a caretaker relative fails to meet the eligibility requirements of § 232.11 or § 232.12 of this chapter by failing to assign rights to support or cooperate in determining paternity and securing support, the State plan must provide that only the requirements of paragraph (a)(7) and (9)(ii) of this section will be applicable. For such cases the entire amount of the assistance payment will be in the form of protective or vendor payments. These protective or vendor payments will be terminated, with return to money payment status, only upon compliance by the caretaker relative with the eligibility requirements of

§ § 232.11 and 232.12 of this chapter.

* * * * *

PART 235--ADMINISTRATION OF FINANCIAL ASSISTANCE PROGRAMS

6. Section 235.70 is revised to read as follows:

§ 235.70 Prompt notice to child support agency.

A State plan under title IV-A of the Social Security Act must provide for prompt notice to the State or local child supportagency designated pursuant to section 454(3) of the Social Security Act whenever AFDC is furnished with respect to a child who has been deserted or abandoned by a parent. Under this requirement:

(a) "Prompt notice" means written notice within two working days of the furnishing of aid including, a copy of the AFDC case record, or all relevant information as prescribed by the child support agency. The title IV-A agency and the child support agency may agree to provide notice immediately upon the filing of an application for assistance. Under this definition:

(1) "Furnish" means the date on which case is given to the family, a check or warrant is mailed to the family, a deposit is made in a bank for the family, or other similar circumstances in which an assistance payment is made to the family; and

(2) "Aid" means Aid to Families With Dependent Children, emergency assistance, or AFDC Foster Care.

(b) "A child who has been deserted or abandoned by a parent" means any child whose eligibility for AFDC is based on continued absence of a parent from the home, and includes a child born out of wedlock without regard to whether the paternity of such child has been established.

Effective date: The regulations in these parts shall be effective on July 1, 1975,

Dated: June 12, 1975.

John A. Svahn,

Acting Administrator, Social

and Rehabilitation Service.

Approved: June 20, 1975.

CASPAR W. WEINBERGER,

Secretary

[FR Doc. 75-16662 Filed 6-25-75: 8:45am]

CHAPTER III-OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT

ENFORCEMENT PROGRAM), DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

CHILD SUPPORT ENFORCEMENT PROGRAM

State Plan Requirements

Notice of proposed rule making to implement the Child Support Enforcement Program established by Part B of Pub. L. 93-647 was published in the FEDERAL REGISTER for Parts 301, 302, and 303 on May 8, 1975 (40 FR 20096) and Part 304 on May 9, 1975 (40 FR 20286). Part B of Pub. L. 93-647 repeals section 402(a)(17), (18), (21), and (22) of the Social Security Act effective July 1, 1975. This section provided the statutory basis for 45 CFR 220.48, which will be revoked.

We received 76 responses from public welfare agencies, private citizens, advocate groups, Federal agencies, District Attorneys, State Attorney Generals, and a court. Many comments suggested improvements and clarifications in the regulations. For example, a number of comments suggested that the procedures for treatment and distribution of child support collections be clarified. Sections 302.32 and 302.51 have been expanded to provide more specific guidelines for treatment of child support collections. However, a substantial number of comments raised objections that could only be resolved by amending the legislation upon which the regulations are based. For example, several comments recommended that the incentive payment provided for in § 302.52 be made available to States for intra-State collections and that the amount of the incentive payment be changed to a flat 15 or 20 percent. However, section 458 of the Act precludes States participation in incentive payments except when they collect on behalf of other States and mandates a 25 percent and 10 percent incentive payment amount. Therefore the Department would have no authority to adopt such recommended changes in the final regulations.

The vast majority of the changes being made in the final regulations are either technical in nature or represent clarification of certain provisions of the proposed regulations. Major changes include the following:

1. Section 302.17 of the proposed regulations relating to standards of personnel administration has been deleted, based on a determination that such standards are not required by title IV-D of the Act

2. Sections 302.32 and 302.51 have been amended to describe with greater specificity the system for treatment and distribution of child support collections. The system provides that amounts collected as child support in a month which represent the child support obligation for that month will be identified by the Child Support Enforcement Agency (IV-D agency). The IV-D agency will inform the State's IV-A agency of the amount of child support representing a month's obligation as soon after the close of the month as is possible. The IV-A agency will utilize this amount to determine if the family is eligible for an assistance payment in the first assistance payment redetermination it makes after being notified of the amount of the monthly collection. In no case will this redetermination be more than 2 months after the close of the month in which the collection was made (See also 45 CFR 232.20). The IV-A agency will inform the IV-D agency if the amount causes the family to be ineligible for an assistance payment, in which case the IV-A agency will notify the family of this fact and the IV-D agency will pay the family the amount of the child support collection in the month for which the IV-A agency had determined that the family is ineligible for an assistance payment. If the amount of the child support collection for the month does not make the family ineligible for an assistance payment for the month to which the redetermination applies, the collection shall be distributed pursuant to the requirements of § 302.51. Any payment to the family pursuant to § 302.51(b) (3) or (5) will be made in the month after the month in which the amount of the collection was used to redetermine the family's eligibility for an assistance payment.

3. Paragraph (d) has been added to § 302.33 to specify that the State may take an assignment of support rights from anindividual who is not a recipient of aid, but that such an assignment may not be a requirement for receipt of child support services nor may it constitute an assignment for purposes of 45 CFR 232.11.

4. Section 302.34 has been amended to specify that cooperative agreements may be entered into with a single official covering more than one court or agency, if the official has authority to enter into agreements on their behalf.

5. Paragraph (a)(2) of § 302.50 has been clarified by providing two examples of "other legal process" for purposes of establishing the support obligation, and paragraph (b) (2) has been clarified by indicating that the support formula must be utilized in conjunction with "other legal process."

6. Paragraph (f) has been added to § 302.51 to incorporate the provisions contained in § 302.50(d) of the proposed regulations and to specify that amounts collected which exceed the amount of unreimbursed past assistance must be paid to the family, and that for those cases in which current support collections are authorized under § 302.51(e), priority must be given to collecting current support.

7. Paragraph (c) has been added to § 302.52 to prescribe time periods within which the child support collection must be forwarded to the appropriate IV-D agency and within which the incentive payment must be made to the collecting jurisdiction.

8. Paragraph (d) has been added to § 302.52 to prescribe the use of the Federal Information Processing Standards Publication (FIPS) as a tracking device for purposes of making incentive payments.

9. Paragraph (b) (3) of § 302.72 has been modified to require that, prior to making a request for use of the United States District Courts, the IV-D agency must wait 60 days after its original request to the other State and then provide 30 days notice to such other State of its intent to seek use of the United States District Courts.

10. Section 303.3 has been amended to permit use of both State and local locator resources within a total of 60 days.

11. Section 303.5 has been amended to specify that in cases of rape, incest, or adoption, a State need not attempt to establish paternity if it would not be in the best interests of the child.

12. Section 303.20 has been amended to make the organizational requirements consistent with the provisions for Federal financial participation in Part 304. The IV-D agency may not delegate any of the IV-D functions to IV-A caseworkers, except upon approval of the Office of Child Support Enforcement for sparsely populated geographic areas.

13. Section 304.26 has been amended to provide alternatives in determining the amount of Federal reimbursement for those States that utilize section 403(a) of the Act in computing the Federal share of assistance payments.

Accordingly, after considering all the comments, the proposed regulations, as modified, are adopted.

1. Title 45 of the Code of Federal Regulations is amended by establishing a new Chapter III consisting of Parts 301 and 302, 303 and 304 as set forth below:

PART 301--STATE PLAN APPROVAL AND GRANT PROCEDURES

Sec.

301.0 Scope and applicability of this part.

301.1 General definitions.

301.10 State plan.

301.11 State plan; format.

301.12Submittal of State plan for Governor's review.

301.13Approval of State plans and amendments.

301.14Administrative review of certain administrative decisions.

301.15 Grants.

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

§ 301.0 Scope and applicability of this part.

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

§ 301.1 General definitions.

When used in this chapter, unless the context otherwise indicates:

(a) "Act" means the Social Security Act, and the title referred to is title IV-D of that Act;

(b) "Department" means the Department of Health, Education, and Welfare;

(c) "Director" means the Director, Office of Child Support Enforcement, who is the Secretary's designee to administer the Child Support Enforcement program under title IV-D;

(d) "Secretary" means the Secretary of Health, Education, and Welfare;

(e) "Office" means the Office of Child Support Enforcement which is the separate organizational unit within the Department with the responsibility for the administration of the program under this title;

(f) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam;

(g) "IV-D Agency" means the single and separate organizational unit in the State that has the responsibility for administering or supervising the administration of the State plan under title IV-D of the Act;

(h) The terms "Regional Office" and the central office of the Office of Child Support Enforcement, respectively;

(i) The "State plan" means the State plan for child support under section 454 of the Act;

(j) "Federal PLS" means the Parent Locator Service operated by the Office of Child Support Enforcement pursuant to section 452(a) (9) of the Act.

(k) "State PLS" means the service established by the IV-D agency pursuant to section 454(8) of the Act to locate absentparents.

§ 301.10 State plan.

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

§ 301.11 State plan; format.

The State plan must be submitted to the Office in the format and containing the information prescribed by the Office, and within time limits set in implementing instructions issued by the Office. Such time limits will be adequate for proper preparation of plans and submittal in accordance with the requirements for State Governors' review (see section 301.12 of this chapter).

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

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

§ 301.13 Approval of State plans and amendments.

The State plan consists of written documents furnished by the State to cover its Child Support Enforcement program under title IV-D of the Act. After approval of the original plan by the

Office, all relevant changes, required by new statutes, rules, regulations, interpretations, and court decisions, are required to be submitted currently so that the Office may determine whether the plan continues to meet Federal requirements and policies.

(a) Submittal. State plans and revisions of the plans are submitted first to the State governor or his designee for review in accordance with § 301.12, and then to the regional office. The States are encouraged to obtain consultation of the regional staff when a plan is in process of preparation or revision.

(b) Review. The Office of Child Support Enforcement in the regional offices is responsible for review of State plans and amendments. It also initiates discussion with the IV-D agency on clarification of significant aspects of the plan which come to its attention in the course of this review. State plan material onwhich the regional staff has questions concerning the application of Federal policy is referred with recommendations as required to the Office of Child Support Enforcement in the central office for technical assistance. Comments and suggestions, including those of consultants in specified areas, may be prepared by the central office for use by the regional staff in negotiations with the IV-D agency.

(c) Action. The Regional Office exercises delegated authority to take affirmative action on the State plan and amendments thereto on the basis of policy statements or precedents previously approved by the Director. The Director retains authority for determining that proposed plan material is not approvable, or that a previously approved plan no longer meets the requirements for approval, except that a final determination of disapproval may not be made without prior consultation and discussion by the Director with the Secretary. The Regional Office or the Director formally notifies the IV-D agency of the actions taken on the State plan or revisions thereto.

(d) Basis for approval. Determinations as to whether the State plan (including plan amendments and administrative practice under the plan) originally meets or continues to meet the requirements for approval are based on relevant Federal statutes and regulations. Guidelines are furnished to assist in the interpretation of the regulations.

(e) Prompt approval of the State plan. The determination as to whether the State plan submitted for approval conforms to the requirements for approval under the Act and regulations issued pursuant thereto shall be made promptly and not later than the 9Oth day following the date on which the plan submittal is received in the regional office, unless the Regional Office has secured from the IV-D agency a written agreement to extend that period.

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

(g) Effective date. The effective date of a new plan may not be earlier than the first day of the calendar quarter in which an approvable plan is submitted.

§ 301.14 Administrative review of certain administrative decisions.

Any State dissatisfied with a determination of the Director pursuant to § 301.13 (e) or (f) with respect to any plan or amendment may, within 60 days after the date of receipt of notification of such determination, file a petition with the Regional Office asking the Director for reconsideration of the issue of whether such plan or amendment conforms to therequirements for approval under the Act and pertinent Federal

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

§ 301.15 Grants.

To States with approved plans, a grant is made each quarter for expenditures under the plan for the administration of the Child Support Enforcement program. The determination as to the amount of a grant to be made to a State is based upon documents submitted by the IV-D agency containing information required under the Act and such other pertinent facts as may be found necessary.

(a) Form and manner of submittal.

(1) Time and place: An estimate for a grant for each quarterly period must be forwarded to the Regional Office 45 days prior to the period of the estimate. It includes a certification of State funds and a justification statement in support of the estimate. A statement of quarterly expenditures and any necessary supporting schedules must be forwarded to the Department of Health, Education, and Welfare, Social and Rehabilitation Service, Attention: Finance Division, Washington, D.C. 20201, not later than 30 days after the end of the quarter.

(2) Description of forms: "State Agency Expenditure Projection-Quarterly Projection by Program" represents the IV-D agency's estimate of the total amount and the Federal share of expenditures for the administration of the title IV-D program for the quarter. From this estimate the State and Federal shares of the total expenditures are computed. The State's computed share of total estimated expenditures is the amount of State and local funds necessary for the quarter. The Federal share is the basis for the funds to be advanced for the quarter. The agency must also certify, on this form or otherwise, the amount of State funds (exclusive of any balance of advances received from the Federal Government) actually on hand and available for expenditure; this certification must be signed by the executive officer of the IV-D agency submitting the estimate or a person officially designated by him, or by a fiscal officer of the State if required by State law or regulation. (A form "Certificate of Availability of State Funds for Assistance and Administration during Quarter" is available forsubmitting this information, but its use is optional.) If the amount of State funds (or State and local funds if localities participate in the program), shown as available for expenditures is not sufficient to cover the State's proportionate share of the amount estimated to be expended, the certification must contain a statement showing the source from which the amount of the deficiency is expected to be derived and the time when this amount is expected to be made available.

(3) The IV-D agency must also submit a quarterly statement of expenditures for the title IV-D program. This is an accounting statement of the disposition of the Federal funds granted for past periods and provides the basis for making the adjustments necessary; when the State's estimate for any prior quarter was greater or less than the amount the State actually expended in that quarter. The statement of expenditures also shows the share of the Federal Government in any recoupment, from whatever source, of expenditures claimed in any prior period, and also in expenditures not properly subject to Federal financial participation which are acknowledged by the IV-D agency or have been revealed in the course of an audit.

(b) Review. The State's estimate is analyzed by the regional office and is forwarded with recommendations as required to the central office. The central office reviews the State's estimate, other relevant information, and any adjustments to be made for prior periods, and computes the grant.

(c) Grant award.. The grant award computation form shows the amount of the estimate for the ensuing quarter, and the amounts by which the estimate is reduced or increased because of over-or under-estimate for the prior quarter and for other adjustments. This form is transmitted to the IV-D agency to draw the amount of the grant award as needed, to meet the Federal share of disbursements. The draw is through a commercial bank and the Federal Reserve system against a continuing letter of credit certified to the Secretary of the Treasury in favor of the State payee. A notice of the amount of the grant award is sent to the State Central Information Reception Agency in accord with section 201 of the Intergovernmental Cooperation Act of 1968.

(d) Letter of credit payment system. The letter of credit system for payment of advances of Federal funds was established pursuant to Treasury Department regulations (Circular No. 1075), published in the Federal Register on July 11, 1967 (32 FR 10201). The HEW "Instructions to Recipient Organizations for Use of Letter of Credit" was transmitted to all grantees by memorandum from the Assistant Secretary-Comptroller on January 15, 1968.

(e) General administrative requirements. With the following exceptions, the provisions of Part 74 of this title, establishing uniform administrative requirements and cost principles, shall apply to all grants made to States under this part:

45 CFR Part 74

Subpart G Matching and Cost Sharing.

Subpart I Financial Reporting Requirements

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PART 302---STATE PLAN REQUIREMENTS

Sec.

302.0 Scope of this part.

302.1 Definitions.

302.10 Statewide operations.

302.11 State financial participation.

302.12 Single and separate organizational unit.

302.13 Plan amendments.

302.14 Fiscal policies and accountability.

302.15 Reports and maintenance of records.

302.16 Cost allocation.

302.17 Inclusion of State statutes.

302.31 Establishing paternity and securing support.

302.32 Child support payments to the IV-D agency.

302.33 Individuals not otherwise eligible.

302.34 Cooperative arrangements.

302.35 State parent locator service.

302.36 Cooperation with other States.

302.37 Distribution of child support pay ments.

302.38 Payments to the family.

302.39 Standards for an effective program.

302.50 Support obligations.

302.51 Distribution of child support collections.

302.52 Incentive payments to States and political subdivisions.

302.53 Formula for determining the amount of the obligation.

302.70Requests for information from the Federal Parent Locator Service (PLS).

302.71 Requests for collection by the Secretary of the Treasury.

302.72Applications to use the courts of the United States to enforce court orders.

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

§ 302.0 Scope of this part.

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

§ 302.1 Definitions.

The definitions found in section 301.1 of this Chapter also are applicable to this part.

§ 302.10 Statewide operations.

The State plan shall provide that:

(a) It will be in operation on a statewide basis in accordance with equitable standards for administration that are mandatory throughout the State;

(b) If administered by a political subdivision of the State, the plan will be mandatory on such political subdivision:

(c) The IV-D agency will assure that the plan is continuously in operation in all appropriate offices or agencies, through:

(1) Methods for informing staff of State policies, standards, procedures and instructions; and

(2) Regular planned examination and evaluation of operations in local offices by regularly assigned State staff, including regular visits by such staff; and through reports, controls, or other necessary methods.

§ 302.11 State Financial participation.

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

§ 302.12 Single and separate organizational unit.

(a) The State plan shall provide for the establishment or designation of a single and separate organizational unit to administer the IV-D plan. Such unit is referred to as the IV-D agency. Under this requirement:

(1) The IV-D agency may be:

(i) Located in the single State agency designated pursuant to § 205.100 to administer title IV-A of the Act;

(ii) Located in any other agency of the State; or,

(iii) Established as a new agency of the State.

(2) The IV-D agency shall be responsible and accountable for the operation of the IV-D program. Except as provided in § 303.20 of this Part, the agency need not perform all the functions of the IVD program so long as it insures that all these functions are being carried out properly, efficiently, and effectively;

(3) If the IV-D agency delegates any of the functions of the IV-D program to any other State or local agency or official, or any official with whom a cooperative agreement as described in § 302.34 has been entered into or purchases services from any person or private agency pursuant to § 304.22 of this Part, the IV-D agency shall have responsibility for securing compliance with the requirements of the State plan by such agency or officials.

(b) The State plan shall describe the structure of the IV-D agency and the distribution of responsibilities among the major divisions within the unit, and if it is located within another agency, show its place in such agency. If any of the IV-D program functions are to be performed outside of the IV-D agency then these functions shall be listed with the name of the organization responsible for performing them.

§ 302.13 Plan amendments.

(a) The State plan shall provide that the plan will be amended whenever necessary to reflect new or revised Federal statutes or regulations, or material change in any phase of State law, organization, policy or IV-D agency operation.

(b) Federal financial participation. Except where otherwise provided, Federal financial participation is available in the additional expenditures resulting from an amended provision of theState plan as of the first day of the calendar quarter in which an approvable amendment is submitted or the date on which the amended provision becomes effective in the State, whichever is later.

§ 302.14 Fiscal policies and accountability.

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

§ 302.15 Reports and maintenance of records.

(a) The State plan shall provide that:

(1) The IV-D agency will maintain records necessary for the proper and efficient operation of the plan, including records regarding:

(i) Applications pursuant to § 302.33 for child support services available under the State plan;

(ii) Location of absent parents, actions to establish paternity and obtain and enforce child support, and the costs incurred in such actions;

(iii) Amount and sources of child support collections and the distribution of these collections:

(iv) Any fees charged or paid for child support enforcement services;

(v) Any other administrative costs;

(vi) Any other information required by the office; and,

(vii) Statistical, fiscal, and other records necessary for reporting and accountability required by the Secretary.

The retention and custodial requirements for these records are prescribed in 45 CFR Part 74.

(2) The IV-D agency will make such reports in such form and containing such information, as the Secretary may from time to time require, and comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports.

(b) Conditions for optional use of microfilm copies. Certified microfilm copies of the substantiating documents required for Federal audit and review purposes may be substituted for the originals (i.e., the originals may be destroyed), provided that:

(1) The IV-D agency can show, on the basis of a study of its record storage situation, that the use of microfilm copies is in the interest of efficiency and economy;

(2) The proposed microfilm system is adequate:

(i) To enable the IV-D agency to discharge its own audit responsibility for propriety of expenditures for which Federal financial participation is claimed and in no way hinders the IV-D agency's supervision and control of the programs; and

(ii) To enable the HEW Audit Agency and the Office to properly discharge their respective responsibilities for reviewing the manner in which all aspects of the Child Support Enforcementprogram are being administered in the State; and

(3) Prior approval is obtained from the regional office indicating that the system meets the conditions in paragraph (b)(2) of this section and that the proposed microfilming procedures are reliable and are supported by an adequate retrieval system.

§ 302.16 Cost allocation.

(a) The State plan shall provide that:

(1) The IV-D agency has an approved cost allocation plan on file with the Regional Office which identifies and describes the methods and procedures the State has established for properly charging the costs of administration, services, (excluding purchased services), and training activities under the plan in accordance with the Federal requirements set out in 45 CFR Part 74, Appendix C, and in Department and Office regulations and instructions.

(2) The cost allocation plan includes description of the functions and activities by organizational units or other cost centers prescribed in the State plan; estimated costs for an annual period by organizational units or other cost centers (unless specifically waived by the Regional Office); and the basis used for allocating the various pools of costs to programs and activities (with justification for each).

(3) The cost allocation plan contains such other information as is necessary to document the validity of the cost allocation methods and procedures and must include methods and procedures for:

(i) Allocating all such administrative costs of the State Department in which the IV-D agency is located between Federal and non-Federal programs;

(ii) Identifying, of the costs applicable to more than one of the Federal programs, those applicable to each of the separate programs, in accordance with program classifications specified by the Secretary; and

(iii) Segregating costs in paragraph (a)(3)(ii) of this section by classification as are found necessary by the Secretary.

(4) The estimated costs are included solely to permit evaluation of the methods of allocation, and therefore approval of the cost allocation plan shall not constitute approval of these estimated costs for use in calculating claims for Federal financial participation,

(5) A State shall revise its cost allocation plan when the allocation method shown in the existing plan is outdated due to organizational changes within the IV-D agency, changes in Federal law or regulations, or other similar changes.

(b) Federal financial participation. (1) As a condition for receipt of Federal financial participation in administration of the IV-D program for any quarterly period, a IV-D agency's claim for such expenditures must be in accord with a cost allocation plan on file with and approved by the Regional Office for that period.

(2) If a IV-D agency fails to revise its cost allocation plan as required by paragraph (a)(2) of this section within the quarter that such changes are effective, the Regional Office will defer payment of any overstated portions of expenditures which he determines to result from the IV-D agency using an outdated cost allocation method until the IV-D agency has submitted a revised cost allocation plan which is approved by him and the IV-D agency has revised its claim accordingly.

(3) If a IV-D agency does not have any cost allocation plan on file with the Regional Office, payment will not be made for those costs of administration which require an allocation method. Such payments will be deferred until such time as a cost allocation plan has been submitted and is approved by the Regional Office.

§ 302.17 Inclusion of State statutes.

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

§ 302.31 Establishing paternity and securing support.

The State plan shall provide that the IV-D agency will undertake:

(a) In the case of a child born out of wedlock with respect to whom an assignment under § 232.11 of this title is effective, to establish the paternity of such child; and

(b) In the case of any child with respect to whom such assignment is effective, to secure support for such child from any person who is legally liable for such support, utilizing reciprocal arrangements adopted with other States when appropriate.

§ 302.32 Child support payments to the IV-D agency.

The State Plan shall provide that:

(a) In any case in which child support payments are collected for a recipient of aid under the State's title IV-A plan with respect to whom an assignment under § 232.11 is effective, such payments shall be made to the IV-D agency and shall not be paid directly to the family except as provided in paragraph (b).

(b) As soon as possible but not later than 30 days after the end of a month, the IV-D agency will inform the agency administering the State's title IV-A plan of the amount of the collection which represents payment on the required support obligation for that month as determined in § 302.51(a). Upon being informed of this amount, the IV-A agency will determine if such amount is sufficient to make the family ineligible for an assistance payment pursuant to the State's IV-A plan (See § 232.20 of Chapter II of this title). If such amount is sufficient to make the family ineligible for an assistance payment, the IV-A agency will notify the IV-D agency of such fact and the IV-D agency must pay such amount to the family in the month for which the IV-A agency had determined that the family is ineligible for an assistance payment except in those cases pursuant to § 205.10 of this title in which a family is nevertheless entitled to an assistance payment pending the result of a hearing. With such payment the IV-D agency will notify thefamily if it will continue to collect and distribute current support payments pursuant to § 302.51(e)(1) of this part.

(c) If the IV-A agency determines that the amount of the collection which represents payment on the required support obligation for the month does not make the family ineligible for an assistance payment, or if a hearing is requested pursuant to § 205.10 of this title, the IV-A agency will notify the IV-D agency of such fact and the IV-D agency will distribute such amount pursuant to § 302.51 of this part.

(d) To the extent any amount collected in a month includes payment on required support obligations for past months, that portion of such amount will be distributed by the IV-D agency pursuant to § 302.51(b)(4) and (5) of this part.

(e) Child support collected in a month after any month in which the child support collected makes the family ineligible for an assistance payment (pursuant to § 232.20 of this title) but prior to or in the month in which the family receives its last assistance payment, shall be used to reimburse the State for any assistance paid in such months with any excess being paid to the family. This provision will not apply when a hearing is requested pursuant to § 205.10 of this title. In these cases, when the hearing results in a determination that the family was ineligible for an assistance payment, the IV-D agency will determine the amount by which the entire child support collection for a month that the family would have received pursuant to paragraph (b) above exceeds the amount the family actually received for a month as an assistance payment and pursuant to § 302.51. Such excess shall be paid to the family. If the family is determined to be eligible, distribution will continue to be made pursuant to § 302.51.

§ 302.33 Individuals not otherwise eligible for paternity and child support services.

(a) The State plan shall provide that the child support collection or paternity determination services established under the plan shall be made available to any individual not otherwise eligible for such services upon application filed by such individual with the IV-D agency.

(b) The State plan may provide for an application fee to be charged each individual who applies for services under this action. If the State elects to charge a fee, the State plan shall specify either;

(1) A flat dollar amount not to exceed $29 to be charged each applicant; or,

(2) A fee schedule to be used to determine the fee to be charged each applicant. Such fee schedule will be based on each applicant's income and will be designed so as not to discourage the application for such services by those most in need of them.

(c) The State plan must provide for recovery of any costs incurred in excess of the application fee in collection of child support. If the State elects to recover such costs they shall be deducted from the amount of such recovery. In a particular case, large initial costs of establishing paternity or collecting child support may be prorated over a period of months for purposes of recoveringsuch costs. If the State elects to recover cost under this paragraph, the individual for whom child support services are provided shall be informed of such fact.

(d) The IV-D agency may take an assignment of support rights from an individual applying for paternity or child support services under this section. However, such assignment shall not constitute an assignment for purposes of § 232.11 of this title and may not be a condition of receipt of such services.

§ 302.34 Cooperative arrangements.

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

(a) For the investigation and prosecution of fraud directly related to paternity and child support:

(b) To reimburse courts and law-enforcement officials for their assistance.

§ 302.35 State parent locator service.

The State plan shall provide that:

(a) The IV-D agency will establish a parent locator service utilizing:

(1) All sources of information and records available in the State, and in other States as appropriate; and

(2) The Federal PLS of the Department of Health, Education, and Welfare.

(b) The State PLS will have a central State office and may also establish or designate offices at the local level.

(c) The IV-D agency will accept applications to utilize the Federal PLS from:

(1) Any state or local agency or official seeking to collect child support obligations pursuant to the State plan:

(2) A court which has authority to issue an order against an absent parent for the support and maintenance of a child, or any agency of such court; or

(3) The resident parent, legal guardian, attorney, or agent of a child who is not receiving aid under title IV-A of the Act.

However, prior to the submission of any request to the Federal PLS,the State PLS must first make diligent and reasonable efforts to exhaust the State and local parent locator resources;

(d) Any requests to the Federal PLS under section 453 of the Act will be submitted only by the central State office in accordance with the manner and form prescribed by the Secretary.

(e) The IV-D agency will collect or pay the fee which is required by section 453(e)(2) of the Act to be charged the individuals described in paragraph (c) (3) of this section.

§ 302.36 Cooperation with other States.

The State plan shall provide that the State will cooperate with any other State:

(a) In establishing paternity, if necessary:

(b) In locating an absent parent who is present in the State and against whom any action is being taken under a IV-D program in any other State;

(c) In securing compliance by an absent parent who is present in the State with an order issued by a court of competent jurisdiction against such parent for the support and maintenance of a child or children of such Parent with respect to whom aid is being provided under the plan approved under title IV-A of the Social Security Act in any other State; and,

(d) In carrying out any other function required under a plan approved under title IV-D.

§ 302.37 Distribution of child support payments.

The State plan shall provide that, pursuant to the requirements of § 302.32 of this part, amounts collected as child support will be distributed as provided in § 302.51 of this Part.

§ 302.38 Payments to the family.

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

§ 302.39 Standard for an effective program.

The State plan shall provide that the IV-D agency will comply with the standards for an effective program and the organizational and staffing requirements prescribed by Part 303 of this Chapter.

§ 302.50 Support Obligations.

The State plan shall provide as follows:

(a) The support rights assigned to the IV-D agency pursuant to § 232.11 of this title constitute an obligation owed to the State by the individual responsible for providing such support. Such obligation shall be established by:

(1) Order of a court of competent jurisdiction,

(2) Other legal process as established by State laws, such as an administrative hearing process or a legally enforceable andbinding agreement; or,

(3) For cases receiving child support services under the provisions of section 402(a)(17) and (18) of the Act prior to July 1, 1975, the obligation may be that established by an agreement which was entered into prior to July 1, 1975 which does not meet the requirement of paragraph (a) (2) of this section. In the event of a breach of the agreement, such agreement must be superseded pursuant to paragraph (a) (1) or (2) of this section as soon as possible. All agreements not meeting the requirements of paragraph

(a) (2) of this section must be superseded pursuant to paragraph (a) (1) or (2) of this section on the basis of one-third by January 1, 1976, two-thirds by July 1, 1976, and all by January 1, 1977:

(b) The amount of the obligation described in paragraph (a) of this section shall be:

(1) The amount specified in the order of a court of competent jurisdiction which covers the assigned support rights: or

(2) If there is no court order, an amount determined in writing by the IV-D agency as part of the legal process referred to in paragraph (a) (2) of this section in accordance with a formula which meets the criteria prescribed in § 302.53.

(c) The obligation described in paragraph (a) of this section shall be deemed for collection purposes to be collectible under all applicable State and local processes.

(d) Any amounts which represent support payments collected from an individual responsible for providing support under the State plan shall reduce, dollar for dollar, the amount of his obligation under this section.

§ 302.51 Distribution of child support collections.

The State plan shall provide as follows :

(a) For the purposes of distribution under this section, amounts collected 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. (The IV-D agency may if it so desires round off the converted amount to whole dollar amounts for the purposes of distribution under this section and § 302.52). The date of collection shall be the date on which the payment is received by the IV-D agency or the legal entity of the State or political subdivision actually making the collection on behalf of the IV-D agency. For purposes of interstate collections, the date of collection shall be the date on which the payment is received by the IV-D agency of the State in which the family is receiving aid.

(b) The amounts collected as support by the IV-D agency pursuant to the State plan for children who are current recipients of aid under the State's title IV-A plan and for whom an assignment under § 232.11 of this title is effective shall be distributed as follows:

(1) Of any amount that is collected in a month which representspayment on the required support obligation for that month, 40 percent of the first $50 of such amount shall be paid to the family. This payment may not be used in determining the amount paid, if any, to the family in paragraph (b) (3) of this section. If the amount collected includes payment on the required support obligation for a previous month or months, the family shall only receive 40 percent of the first $50 of the amount which represents the required support obligation for the month in which the support was collected. If amounts are collected for one family which represents support payments from two or more absent parents, only 40 percent of the first $50 of the amount collected which represents the total required support obligation for the month in which the support was collected shall be paid to the family under this paragraph. No payment shall be made to a family under this paragraph for a month in which there is no child support collection. The requirements of this paragraph shall not be applicable after September 30, 1976.

(2) Any amount that is collected in a month which represents payment on the required support obligation for that month (and, prior to October 1, 1976, is in excess of the amount paid to the family under paragraph (b)(l) of this section) shall be retained by the State to reimburse, in whole or in part, the assistance payment for the month in which the child support was collected for the next month. Of the amount retained by the State as reimbursement for that month's assistance payment, the IV-D agency shall determine the Federal Government's share of the amount so retained so the IV-A agency may reimburse the Federal Government to the extent of its participation in the financing of the assistance payment. From the Federal government's share, the IV-D agency shall deduct and pay the incentive payments, if any, prescribed in § 302.52.

(3) If the amount collected is in excess of the amount required to be distributed under paragraphs (b) (1) and (2) of this section, the family shall be paid such excess up to the difference be tween the assistance payment for the month in which the amount of the collection was used to redetermine eligibility for an assistance payment under the State's title IV-A plan (see § 302.32) and the court ordered amount for that month. This payment shall be made in the month following the month in which the amount of the collection was used to redetermine eligibility for an assistance payment under the State's title IV-A plan. If such court ordered amount is less than such assistance payment, no amount shall be paid to the family under this paragraph. In cases in which there is no court order, the family shall not be paid any amount under this paragraph.

(4) If the amount collected is in excess of the amounts required to be distributed under paragraphs (b) (1)-(3) of this section, any such excess shall be retained by the State as reimbursement for past assistance payments made to the family for which the State has not been reimbursed. The State may apply the amount retained to any sequence of months for which it has not yet been reimbursed. Of the amount retained by the State as reimbursement of past assistance payments. the IV-D agency shall determine the Federal Government's share of the amounts so retained so the IV-A agency may reimburse the Federal Government to the extent of its participation in the financing of the assistance payments. From the Federalgovernment's share, the IV-D agency shall deduct and pay the incentive payment, if any, prescribed in § 302.52. If past assistance payments are greater than the total support obligation owed, the maximum amount the State may retain as reimbursement for such assistance payments is the amount of such obligation, unless amounts are collected which represent the required support obligation for periods prior to the first month in which the family received assistance under the State's title IV-A plan, in which case such amounts may be retained by the State to reimburse the difference between such support obligation and such assistance payments.

(5) If the amount collected is in excess of the amounts required to be distributed under paragraphs (b) (1)-(4) of this section, such excess shall be paid to the family. This payment shall be made in the month following the month in which the amount of the collection was used to redetermine eligibility for an assistance payment under the State's title IV-A Plan.

(c) lf an amount collected as child support represents payment on the required support obligation for future months, the amount shall be applied to such future months. However, no such amounts shall be applied to future months unless amounts have been collected which fully satisfy the support obligation assigned under section 402(a) (26) of the Act for the current month and all past months.

(d) Any amount paid under paragraph (b) (1), (3) or (5) of this section shall be identified as not being an assistance payment.

(e) Whenever a family for whom child support payments have been collected and distributed under the title IV-D State plan ceases to receive assistance under the title IV-A State plan, the IV-D agency may:

(1) Continue to collect current support payments from the absent parent for a period of not to exceed three months from the month following the month in which such family ceased to receive assistance under the title IV-A State plan, and pay all amounts so collected to the family; and,

(2) At the end of such three month period, if the IV-D agency is authorized to do so by the individual on whose behalf the collection will be made, continue to collect such support payments from the absent parent and pay the net amount of any amount so collected to the family after deducting any costs incurred in making the collection from the amount of any recovery made.

(f) When a family ceases receiving assistance under the State's title IV-A plan, the assignment of support rights under § 232.11 of this title terminates, except with respect to the amount of any unpaid support obligation that has accrued under such assignment. From this accrued amount, the IV-D agency shall attempt to collect such unpaid obligation. Under this requirement:

(1) Such collections shall be used to reimburse any amounts of past assistance which have not been reimbursed under paragraph (b)(4) of this section:

(2) Of the amount collected, the IV-D agency shall determine the Federal Government's share of the collection so the IV-A agency may reimburse the Federal Government to the extent of its participation in the financing of the assistance payments. From the Federal Government's share the IV-D agency shall deduct and pay theincentive payment, if any, prescribed in § 302.52;

(3) Only amounts collected pursuant to this paragraph which exceed the amount of unreimbursed past assistance shall be paid to the family:

(4) For those cases in which collections are authorized under paragraph (e) of this section, priority shall be given to collection of current support.

§ 302.52 Incentive payments to political subdivisions and other States.

The State plan shall provide as follows:

(a) When, pursuant to the State plan, a political subdivision of the State (or a legal entity of the political subdivision, such as a Prosecuting or District Attorney or a Friend of the Court) makes, for the State of which it is a political subdivision, or one State makes, for another State, the enforcement and collection of the support rights assigned under § 232.11 of this title (either within or outside of the State making the enforcement or collection), the IV-D agency making the distribution pursuant to § 302.51 of this Chapter of the amounts collected shall pay to the political subdivision or State making the enforcement and collection from the amounts which would otherwise represent the Federal share of the assistance payments to the family of the absent parent:

(1) An amount equal to 25 percent of any amount collected (and required to be retained by the State to reduce or repay assistance payments in accordance with § 302.51(b)(2) or (4)) which represents payment on the required support obligation owed for 12 months; and

(2) An amount equal to 10 percent of any amount collected (and required to be retained by the State to reduce or repay assistance payments in accordance with § 302.51(b)(2) or (4) which is attributable to the support obligation owed for any month after the first 12 months for which collections are made.

(b) The 25 percent incentive described in paragraph (a)(1) of this section shall be paid for any month in which amounts are collected (pursuant to an assignment under § 232.11 of this title) which represent payment on the required monthly support obligation owed for 12 months and shall continue to be paid for such amounts until the amounts that are collected equal the amount owed on the required support obligation for 12 months, even if the months during which such collections are made are not consecutive. In the case of a family who ceases receiving aid under the State's title IV-A plan, if such family begins receiving such aid again at a later date, a new 12 month period for payment of the 25 percent incentive shall commence.

(c) The jurisdiction making the collection shall transmit, no later than 10 days after the end of the month in which the collection was made, the entire amount of the collection to the appropriate IV-D agency. Such IV-D agency shall calculate and pay the incentive, if any, described in paragraph (a) of this section, within 60 days after the end of the month in which the collection was made by the collecting jurisdiction.

(d) In forwarding the child support collection to the appropriatedIV-D agency, the collecting jurisdiction shall include, as appropriate, either a two digit code identifying the collecting State or a five digit code identifying the collecting county. Such codes shall be those defined in the Federal Information Processing Standards Publication (PIPS) by the National Bureau of Standards and also promulgated by the General Services Administration in Worldwide Geographical Location Codes and shall be used by the IV-D agency to track the collection and pay the incentive.

(e) Where more than one jurisdiction within the State is involved in the enforcement or collection, or more than one State is involved in the enforcement or collection, the amount of the incentive payment determined in paragraph (a) of this section shall be allocated among such jurisdictions in a manner described by instructions issued by the Office.

§ 302.53 Formula for determining the amount of the obligation.

The State plan shall provide as follows:

(a) There shall be a formula to be utilized by the IV-D agency in determining the amount of the support obligation pursuant to § 302.50 when there is no court order covering the obligation. Such formula must take into consideration the following criteria:

(1) All earnings, income and resources of the absent parent including real and personal property:

(2) The earnings potential of the absent parent:

(3) The reasonable necessities of the absent parent:

(4) The ability of the absent parent to borrow:

(5) The needs of the child for whom the support is sought:

(6) The amount of assistance which would be paid to the child under the full standard of need of the State's IV-A plan:

(7) The existence of other dependents: and

(8) Other reasonable criteria which the State may choose to incorporate.

(b) The formula described in paragraph (a) of this section must be designed to insure, as a minimum, that the child for whom support is sought benefits from the income and resources of the absent parent on an equitable basis in comparison with any other minor children of the absent parent.

(c) The formula described in paragraph (a) of this section shall be utilized to determine the required monthly support obligation, the amount of support obligation arrearage, if any, and the amount to be paid periodically against such arrearage.

§ 302.70 Requests for information from the Federal Parent Locator Service (PLS).

The State plan shall provide as follows:

(a) All requests for information from the Federal PLS will originate from the central office of the State PLS.

(b) Diligent and reasonable efforts to exhaust all appropriate State and local locate sources will be made prior to requesting information from the Federal PLS.

(c) All requests will be on such forms and in such format as maybe prescribed by the Office.

(d) Each request to the Federal PLS must contain the following information:

(1) The absent parent's name:

(2) The absent parent's social security account number (SSN). If the SSN is unknown, the IV-D agency must make every reasonable effort to ascertain the individual's SSN before submitting the request to the Federal PLS

(3) Whether the individual is or has been a member of the armed services, if known :

(4) Whether the individual is receiving, or has received, any Federal compensation or benefits, if known; and

(5) Any other information prescribed by the Office.

(e) All requests to the Federal PLS will be accompanied by a statement, signed by the head of the IV-D agency or his designee, attesting to the following:

(1) That request is being made to locate an individual for the purpose of establishing paternity or securing child support, and for no other purpose.

(2) That any information obtained through the Federal PLS shall be treated as confidential and shall be safeguarded pursuant to the requirements of § 205.50 of this title.

(3) That the IV-D agency will take protective measures to safeguard personal information transmitted and received through use of the Federal PLS.

(f) The State PLS shall collect such fee as the Office may from time to time establish for each request to the Federal PLS pursuant to § 302.35(c)(3), this fee will be collected by the Office from the IV-D agency by an offset of the quarterly awards.

§ 302.71 Requests for collection by the Secretary of the Treasury

(a) The State plan shall provide that the IV-D agency may request the Secretary to certify the amount of any child support obligation assigned to the IV-D agency to the Secretary of the Treasury or his delegate for collection pursuant to the provisions of section 6305 of the Internal Revenue Code of 1954. Such requests shall be submitted to the Regional Office, using such forms as may be prescribed by the Office of Child Support Enforcement, signed by the head of the IV-D agency or his designee, attesting to the following:

(1) The amount of the delinquency under a court order for support, which shall not be less than the amount owed for three months and in no case less than $75, and whether such amount is in lieu of, or in addition to, any previous amounts which have been certified.

(2) There has not been a request for certification to the Secretary of the Treasury or his delegate in the case during the previous 6 months. If there has been a request for certification in the case prior to such 6 month period, the date of such request must be specified.

(3) The IV-D agency agrees to reimburse the United States for costs involved in making the collection.

(4) The IV-D agency has made diligent and reasonable efforts tocollect such amounts utilizing its own collection mechanisms as set forth in the State plan. Under this requirement, the following must be provided:

(i) A certified copy of the court order for support:

(ii) A description of action taken under any collection mechanisms described in the State plan, including certified copies of court orders if applicable;

(iii) An explanation as to why the State collection mechanisms were not utilized, or why such mechanisms failed to collect the amount of the delinquency and why further State action would be unproductive.

(5) The reasonable belief that the delinquent support obligee possesses assets which could be levied upon by the Secretary of the Treasury or his delegate to collect the delinquency, the nature of such assets and their location, if known.

(6) Sufficient information to enable the Secretary of the Treasury or his delegate to identify and locate the delinquent support obligee including:

(i) The individual's name and social security number, if known; and,

(ii) The individual's last known address and place of employment.

(b) The Regional Office will review each request for certification to determine if the request meets the requirements of paragraph (a) of this section,

(1) If the request meets such requirement it will promptly be certified and transmitted together with a copy of the documents submitted by the State under paragraph (a) of this section, to the Secretary of the Treasury or his delegate. The IV-D agency will then be notified of such action.

(2) If the request does not meet such requirements, it will be returned to the IV-D agency with an explanation of the refusal to certify.

(c) The State plan shall provide that after a case has been certified under this section, and prior to a distribution of the delinquent amount to the State by the Secretary of the Treasury or his delegate, any change in the status of the case that would affect the amount of the delinquency, or a change in the location or nature of the assets or address of the delinquent, support obligee, shall be reported by the IV-D agency to the Regional Office. (Such information will be transmitted to the Secretary of the Treasury or his delegate by the Regional Child Support Office.)

§ 302.72 Applications to use the courts of the United States to enforce court orders.

(a) The State plan shall provide that the IV-D agency may apply to the Secretary for permission to utilize a United States district court to enforce a child support order of a court of competent jurisdiction against an absent parent who is present in another State when the IV-D agency can furnish evidence to demonstrate that:

(1) The state in which the absent parent is present has not undertaken to enforce such order against such parent within 60 days of the receipt of a request by the originating State under uniformreciprocal enforcement of support procedures or other legal processes required by § 303.7(a)(3); and,

(2) Utilization of the United States district court is the only reasonable method of enforcing such order.

(b) The State plan shall provide that such applications will be submitted to the Regional Office, using such forms as may be prescribed, signed by the head of the IV-D agency or his designee, attesting to the following:

(1) The requesting IV-D agency has undertaken to obtain the assistance of such other State to enforce such order:

(2) such other State has failed to secure compliance with such order:

(3) The requesting IV-D agency has provided notice to the State-level central office of the IV-D agency of the other State 60 days or more after requesting the other State's assistance that it would request the Secretary to certify the case for use of a United States district court if such other State did not respond to the request for assistance within 30 days of the notice. and that an unsatisfactory response would not preclude a request to the Secretary. Copies of the original request, the notice, and any response thereto shall be furnished with the application.

(c) The Regional Office will review each application to determine if it meets the requirements of paragraphs (a) and (b) of this section. If a request meets such requirements, the case will promptly be certified for enforcement in the United States district court. If the request fails to meet such requirements, the application shall be denied and returned to the IV-D agency with an explanation of the refusal to certify.

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

PART 303----STANDARDS FOR AN EFFECTIVE PROGRAM

Sec.

303.0 Scope and applicability of this part.

303.1 Definitions.

303.2 Maintenance of case files.

303.3 Location of absent parents.

303.4 Establishment of support obligation.

303.5 Establishment of paternity.

303.6 Enforcement of support obligations.

303.7 Cooperation with other States.

303.20 Minimum organizational and staffing requirements.

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

§303.0 Scope and applicability of this part.

This part prescribes:

(a) The minimum organizational and staffing requirements the State IV-D agency must meet in carrying out the IV-D program, effective July 1, 1975: and,

(b) The standards which the IV-D agency must meet to be determined by the Office to have an effective program. The standards in this part must be met:

(1) By July 1, 1976, for all cases in which action has been taken prior to July 1, 1975 on behalf of individuals receiving assistance under the State IV-A plan or other individuals to either determine paternity or establish and enforce a support obligation by the State agency designated under Title IV-A of this Act or some other public agency such as a district attorney, State's attorney or other entity providing such services.

(2) With 90 days for all cases referred to the IV-D agency pursuant to § 235.70 of this title or applying under § 302.33 of this Chapter between July 1 and September 30, 1975:

(3) Within 60 days for all such cases referred or applying between October 1 and December 31, 1975;

(4) Within 30 days for all such cases referred or applying between January 1 and March 31, 1976:

(5) Within 15 days for all cases referred or applying between April 1 and June 30, 1976:

(6) Within 10 days for all such cases referred or applying between July 1 and September 30, 1976;

(7) Immediately for all such cases referred or applying after September 30, 1976.

§ 303.1 Definitions.

The definitions found in section 301.1 of this Chapter also are applicable to this part.

§ 303.2 Maintenance of case records.

For all cases referred to the IV-D agency pursuant to § 235.70 of this title or applying under § 302.33 of this Chapter, the IV-D agency must immediately establish a case record which will contain all information collected pertaining to the case. When applicable, such information will include, but not be limited to the following:

(a) The referral document or documents received from the IV-A agency or the application for IV-D services of any other individual;

(b) A record of any contacts with an applicant or recipient of assistance under Title IV-A who is required to cooperate pursuant to § 232.11 of this title, the date and reason therefor and the results of such contact;

(c) A record of any contacts with an individual who has applied for services under § 302.33, the date and reason therefor and the results of such contact;

(d) A record of any contacts with the absent parent, the date and reason therefor and the results of such contact;

(e) A record of efforts to utilize local locate resources and the dates and the results of these efforts;

(f) A record of efforts to utilize State locate resources and the dates and the results of these efforts;

(g) A record identifying the court order or, if there is no court order, the calculation of the amount of the obligation utilizing the formula prescribed in the State plan pursuant to § 302.53 of this Chapter.

(h) A record of any actions taken under § 303.3-303.6, and thedates and results thereof :

(i) A record of communications to and from the State or local agency administering the State's title IV-A plan ;

(j) A record of communications to and from any other IV-D agencies;

(k) A record of communications to and from the Regional Office and the Federal PLS; and,

(l) A notation in the case record of the closing of the case, the date thereof, and the reason for taking the action.

§ 303.3 Location of absent parents.

For all cases referred to the IV-D agency pursuant to § 235.70 of this title or applying under § 302.33 of this Chapter, the IV-D agency must attempt to locate all absent parents when their location is unknown. Under this standard, the IV-D agency must:

(a) Use appropriate local locate sources such as officials and employees administering public assistance, general assistance, medical assistance, food stamps and social services (whether such individuals are employed by the State or a political subdivision), relatives and friends of the absent parent, current or past employers, the local telephone company, the U.S. Postal Service, financial references, unions, fraternal organizations, and police, parole, and probation records if appropriate;

(b) Establish working relationships with all appropriate local agencies in order to utilize local locate resources effectively;

(c) Use appropriate State agencies and departments, which as a minimum must include those departments which maintain records of public assistance, unemployment insurance, income taxation, driver's licenses, vehicle registration, and criminal records ;

(d) Utilize all appropriate State and local locate sources within 60 days of referral of the case pursuant to S 235.70 of this title or application under 163 302.33 ;

(e) Transmit cases to the Federal PLS if a reasonable and diligent State and local locate effort has failed to locate the absent parent;

(f) Refer cases to the IV-D agency of any other State if there is reasonable belief that the absent parent may be present in such State. The IV-D agency of such other State shall follow the procedures prescribed in paragraph (a)(d) of this section for such cases.

§ 303.4 Establishment of support obligations.

For all cases referred to the IV-D agency pursuant to § 235.70 of this title or applying under § 302.33 of this Chapter, the IV-D Agency must:

(a) When necessary, establish paternity pursuant to the standards of § 303.5;

(b) Utilize appropriate State statutes and legal processes in establishing the support obligation pursuant to § 302.50 of this chapter.

(c) Review the support obligation periodically and whenever the IV-D agency becomes aware of changes in the factors which determinethe amount of the support obligation.

§ 303.5 Establishment of paternity.

(a) For all cases referred to the IV-D agency pursuant to § 235.70 of this title or applying under § 302.33 of this chapter in which paternity has not yet been established, the IV-D agency must:

(1) Attempt to establish paternity by court order or other legal process established under State law : or

(2) Establish paternity by acknowledgment if under the State law such acknowledgment has the same legal effect as court-ordered paternity, including the right to benefits other than child support.

(b) The IV-D agency need not attempt to establish paternity in any case involving incest or forcible rape, or in any case in which legal proceedings for adoption are pending, if, in the opinion of the IV-D agency, it would not be in the best interests of the child to establish paternity.

(c) The IV-D agency shall identify laboratories within the State which perform legally and medically acceptable tests, including blood tests, which tend to identify the father or exclude the alleged father from paternity. A list of such laboratories shall be available to appropriate costs and law enforcement officials, and to the public upon request,

§ 303.6 Enforcement of support obligations.

For all, cases under the State plan in which the obligation to support and the amount of the obligation have been established, the IV-D agency must maintain an effective system for identifying, within 30 day's, those cases in which there is a failure to comply with the support obligation and to contact such delinquent individuals as soon as possible in order to enforce the obligation and obtain the current support obligation and any arrearages. Such attempts to collect support must include the institution of the following procedures as applicable and necessary:

(a) Contempt proceedings to enforce an extant court order;

(b) Garnishment or similar proceedings if the State's statutes and constitution permit such a procedure and the individual can be brought under the jurisdiction of the courts of the State;

(c) Proceedings to attach real or personal property if the State's law provides for such a procedure and the individual is subject to such procedure;

(d) Any other collection or enforcement procedure described in the State plan pursuant to § 302.17 of this chapter :

(e) Applications to utilize the courts of the United States pursuant to § 302.72 of this chapter, and proceedings to enforce an order in the courts of the United States if such application is certified; and,

(f) Applications for collection of the delinquent child support obligation by the Secretary of the Treasury pursuant to § 302.71 of this chapter.

§ 303.7 Cooperation with other States.

(a) For all cases referred to the IV-D agency under the State plan of another State, the IV-D agency must assist the other State in locating an absent parent, establishing paternity, or securing support for a child in the other State. Under this standard, the IV-D agency must :

(1) When necessary, locate the putative father or absent parent utilizing the standards prescribed in § 303.3:

(2) When necessary, establish paternity or assign the other State in establishing paternity:

(3) Process and enforce all court orders referred by another State, whether pursuant to the Uniform Reciprocal Enforcement of Support Act or other legal processes. The IV-D agency shall utilize the same remedies normally applied to its own cases.

(4) Collect any support payments from the absent parent and forward them to the State to whom they are owed: and,

(5) Inform the State which initiated the action of the status of the case periodically and on request.

(b) For all cases referred for securing support by the IV-D agency under the State plan to the IV-D agency of another State, the IV-D agency must provide the IV-D agency of the other State sufficient information to act on the case, including but not limited to the following:

(1) Whether the case involves a recipient of aid under the State's title IV-A plan:

(2) The amount of the current assistance payment, if any;

(3) Notice of any termination of eligibility for assistance: and

(4) Any other information prescribed by instructions of the Office.

(c) For all cases referred by the IV-D agency under the State plan to the IV-D agency of another State which require location activities, the IV-D agency shall provide sufficient information to assist the IV-D agency of the other State, such as the absent parent's social security account number and other identifying information to the extent it is available.

§ 303.20 Minimum organizational and staffing requirements.

(a) The organizational structure of the IV-D agency (See § 302.12) provides for administration or supervision of all the functions for which it is responsible under the State plan, is appropriate to the size and scope of the program in the State, and contains clearly established lines for administrative and supervisory authority.

(b) There is an organizational structure and sufficient staff to fulfill the following required State level functions:

(1) The establishment and administration of the State plan.

(2) Formal evaluation of the quality, efficiency, effectiveness, and scope of services provided under the plan.

(3) Coordination of activities pursuant to, and assurance of compliance with, the requirements of the State's Reciprocal Enforcement of Support Act for cases pursuant to a State plan.

(4) Request to the DHEW Office of Child Support Enforcement for use of the Federal Parent Locator Service, the U.S. District Courts, and IRS collection procedures.

(5) Preparation and submission of reports required by the Office.

(6) financial control of the operation of the plan.

(7) Operation of the State Parent Locator Service as required under § 302.35 of this chapter.

(c) There is an organizational structure and sufficient staff, at the State or local level, to provide for the administration or supervision of the following child support enforcement functions:

(1) Intake. Activities associated with initial child support case opening.

(2) Establishing the legal obligation to support. Activities related to determining the absent parent's legal obligation to support his or her dependent children, including paternity determination when necessary.

(3) Locate. Activities associated with locating an absent parent.

(4) Financial assessment. Activities related to determining an absent parent's ability to provide support.

(5) Establishment of the amount of support. Activities related to determining an absent parent's support obligation, including method and terms of payment.

(6) Collection. Activities related to monitoring payment activities and processing cash flow.

(7) Enforcement. Activities to enforce collection of support, including but not limited to and executing contempt proceedings, wage assignments, obtaining garnishment orders, attaching real and personal property, criminal prosecution and executing judgments.

(8) Investigation. Activities related to investigation necessary to accomplish the functions of this paragraph.

(d) The functions referred to in paragraph (b) (1), (2) and (6) of this section may not be delegated by the IV-D agency. The functions referred to in paragraph (b) (5) of this section may be delegated to the extent necessary to report on activities delegated by the IV-D agency.

(e) No functions under the State plan may be delegated by the IV-D agency if such functions are to be performed by caseworkers who are also performing the assistance payment or social services functions under title IV-A or XX of the Act.

In the case of a sparsely populated geographic area, upon justification by the IV-D agency documenting a lack of administrative feasibility in not utilizing staff of the IV-A agency, the Office may approve alternate arrangements that include sufficient reporting and cost allocation methods that will assure compliance with Federal requirements and proper claims for Federal financial participation. Under this provision:

(1) "Caseworker" means any person who has decision-making authority over individual cases on a day-to-day basis and includes, but is not limited to such designations as intake worker, eligibility technician, caseworker, and social worker.

(2) The "assistance payments function" means activities related to determination of eligibility for, and amount of financial assistance under the approved State plan under title I, IV-A, X, XIV, or XVI. State Supplemental income payments under title XVI of the Act, and State or local General Assistance programs. It includes the complete process of determining initial and continuing eligibility for financial and medical assistance and commodities distribution or food stamps.

(3) The "social services function" means the activities included in the approved State plan and carried out pursuant to Parts 220, 222 and 226 of this title or carried out pursuant to title XX of the Act. It includes determination of eligibility for, and delivery of services to, families and individuals under the approved State plan or under title XX of the Act.

(f) There are the following types of staff in sufficient numbers to achieve the standards for an effective program prescribed in this Part:

(1) Attorneys or prosecutors to represent the agency in court or administrative proceedings with respect to the establishment and enforcement of orders of paternity and support, and

(2) Other personnel such as legal, interviewer, investigative, accounting, clerical, and other supportive staff.

Part 304--FEDERAL FINANCIAL PARTICIPATION

Sec.

304.10 General administrative requirement.

304.11 Effect of State rules.

304.20 Availability and rate of Federal financial participation.

304.21 Federal financial participation in costs of cooperative agreements with courts and law enforcement officials.

304.22 Federal financial participation purchased child support enforcement services.

305.23 Expenditures for which Federal financial participation is not available.

304.24 Federal financial participation in non-expendable personal property.

304.25 Deadline for submission of claims for Federal financial participation.

304.26 Treatment of collection.

304.30 Public sources of State's share

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

§ 304.10 General administrative requirements.

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

§ 304.11 Effect of State rules.

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

§ 304.20 Availability and rate of Federal financialparticipation.

(a) Federal financial participation at the 75 Percent rate is available for:

(1) Necessary expenditures under the State title IV-D plan for the child support enforcement services and activities specified in this section and § 302.21 provided to individuals from whom an assignment of support rights has been obtained pursuant to § 232.11 of this title:

(2) Collection services pursuant to § 302.51(e)(1) of this chapter; and

(3) Parent locator services for individuals eligible pursuant to § 302.33 of this title;

(4) During any period prior to July 1, 1976, paternity and child support services under the State plan for individuals eligible pursuant to § 302.33 of this chapter.

(b) Services and activities for which Federal financial participation will be available shall be those made pursuant to the approved title IV-D State plan which are determined by the Secretary to be necessary expenditures properly attributable to the child support enforcement program including the following:

(1) The administration of the State Child Support Enforcement Program, including, but not limited to the following:

(i) The establishment and administration of the State plan;

(ii) Monitoring the progress of program development and operations and evaluating the quality, efficiency, effectiveness and scope of child support enforcement services available in each political subdivision;

(iii) The establishment of all necessary agreements with other State and local agencies or private providers for the provision of services in support of child support enforcement in accordance with Subpart P, Procurement Standards, 45 CFR Part 74. These agreements may include:

(A) Necessary administrative agreements for support services; (B) Utilization of State and local information resources;

(C) Cooperation with courts and law enforcement officials pursuant to § 302.34 of this chapter;

(iv) Securing compliance with the requirements of the State plan in operations under any agreements;

(v) The development and maintenance of systems for fiscal and program records and reports required to be made to the Office based on these records;

(vi) The development of a cost allocation system pursuant to § 302.16 of this chapter:

(vii) The financial control of the State plan including the administration of Federal grants pursuant to § 301.15 of this chapter:

(viii) The establishment of agreements with agencies administering the State's Title IV-A plan in order to establish criteria for:

(A) Referral of cases to the IV-D agency:

(B) Reporting on a timely basis information necessary to the determination and redetermination of eligibility and amount of assistance payments:

(C) Determining if individuals receiving assistance under the IV-Aplan are cooperating adequately as required in § 232.12 of this title;

(D) The procedures to be used to transfer collections from the IV-D agency to the IV-A agency before or after the distribution described in § 302.51 of this chapter.

(2) The establishment of paternity including:

(i) Reasonable attempts to determine the identity of the child's father such as:

(A) Investigation

(B) The development of evidence including the use of the polygraph and blood tests;

(C) Pre-trial discovery;

(ii) Court or other actions to establish paternity pursuant to procedures established under State statutes or regulations having the effect of law,

(iii) Identifying competent laboratories that perform blood tests as described in § 303.5(b) of this part and making a list of those laboratories available:

(iv) Referral of cases to the IV-D agency of another State to establish paternity when appropriate;

(v) Cooperation with other States in determining paternity:

(3) The establishment and enforcement of support obligations including:

(i) Investigation, the development of evidence and when appropriate, bringing court actions;

(ii) Determination of the amount of the support obligation including developing the information needed for a financial assessment;

(iii) A Referral of cases to the IV-D agency of another State to establish a support obligation when appropriate;

(iv) Enforcement of the support obligation including those activities associated with collections and the enforcement of court orders, such as contempt citations, issuance of warrants, investigation, wage attachment and processing, and the obtaining and enforcing of court ordered support through civil or criminal proceedings either in the State that granted the order or in another State;

(v) Investigation and prosecution of fraud related to child support.

(4) The collection and distribution of support payments including:

(i) An effective system for making collections of established support obligation and identifying delinquent cases and attempting to collect support from these cases;

(ii) Collection of child support pursuant to § 302.51(e)(1) of this chapter:

(iii) Referral of cases to the IV-D agency of another State for collection when appropriate:

(iv) Making collections for another State:

(V) The distribution of funds as required by this chapter;

(vi) Making the IV-A agency aware of the amounts collected and distributed to the family for the purposes of determining eligibility for, and amount of, assistance under the State title IV-A plan;

(5) The establishment and operation of the State parent locatorservice including:

(i) Utilization of appropriate State and local locate sources to locate absent parents;

(ii) Utilization of the Federal Parent Locator Service:

(iii) Collection of the fee pursuant to § 302.35(e) and 302.70(f) of this chapter:

(iv) Referral of requests for location of an absent parent to the IV-D agency of another State:

(v) Cooperation with another State in locating an absent parent:

(6) Activities related to requests for certification of collection of child support delinquencies by the Secretary of the Treasury pursuant to § 302.71 of this chapter.

(7) Activities related to requests for utilization of the United States district courts pursuant to §302.72 of this chapter.

(8) Establishing and maintaining case records as required by § 302.2 of this chapter.

§ 304.21 Federal financial participation in the Costs of cooperative agreements with courts and law enforcement officials.

(a) Federal financial participation at the 75 Percent rate is available in the costs of cooperative agreements with appropriate courts and law enforcement officials pursuant to § 302.34 of this chapter. "Law-enforcement officials" means district attorneys, attorneys general, and similar public attorneys and prosecutors and their staff. Federal financial participation is available for costs incurred consistent with the agreement as of the first day of a calendar quarter if the agreement is executed prior to the end of the quarter. When performed pursuant to written agreement, cost of the following activities are subject to reimbursement:

(1) Subject to the conditions of § 304.20 (a) of this chapter, the activities, including administration of such activities, specified in § 304.20(b)(2)-(8) of this chapter:

(2) Reasonable and essential short term training of law enforcement staff assigned on a full or part time basis to child support enforcement functions pursuant to the cooperative agreement.

(b) Federal financial participation is not available for the ordinary administrative costs of the judiciary system. Under this provision:

(1) Service of process and court filing fees are reimbursable only if the law enforcement agency would normally be required to pay the cost of such fees:

(2) Compensation of individuals (other than judges) employed by a court is reimbursable at the 75 percent rate if such individual performs any of the activities described in paragraph (b)(2)-(8) of § 304.20 of this chapter;

(3) No other court or judicial costs are subject to Federal financial participation.

§ 304.22 Federal financial participation in purchased child support enforcement services.

Federal financial participation is available at the 75 percentrate for the purchase of child support enforcement services as provided for in the State plan to the extent that payment for such purchased services is in accordance with rates of payment established by the State which do not exceed the amounts reasonable and necessary to assure quality of such service and in the case of such services purchased from other public agencies, the cost reasonably assignable to such services. The determination that the amounts are reasonable and necessary and that the costs are reasonably assignable must be fully documented in the IV-D agency records. Child support enforcement services which may be purchased with Federal financial participation are those for which Federal financial participation is otherwise available under § 304.20 and which are included under the approved State plan.

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

Federal financial participation is not available under this part for:

(a) Activities related to administering title I, IV-A, X, XIV, XVI, XIX or XX of the Act.

(b) Purchased child support enforcement services which are not secured in accordance with § 304.22.

(c) Construction and major renovations.

(d) Education and training programs and educational services except direct cost of short term training provided to IV-D agency staff or pursuant to § 304.21.

(e) Any expenditures which have been reimbursed by fees collected as required by this chapter.

(f) Any costs of caseworkers as described in § 303.20(e) of this Part.

§ 304.24 Federal financial participation in non-expendable personal property.

(a) Conditions for Federal financial participation. Federal financial participation is available at the 75 percent rate in amounts expended by the IV-D agency for a unit of non-expendable personal property which has a useful life of more than one year only to the extent of the depreciation expense (or annual use allowance of 6 2/3 percent of acquisition cost) applicable to the period for which the property was used under a Federal program or activity: except that:

(1) Amounts expended for nonexpendable personal property costing less than $5,000 may be subject to Federal financial participation for the full cost at the 75 percent rate at the time of acquisition at the option of the IV-D agency, except as provided in paragraphs (a) (2) and (3) of this section.

(2) Non-expendable personal property acquired under cost reimbursement contracts with the IV-D agency or for use under contracts with other agencies or providers shall be capitalized and depreciated (or subject to a use allowance) when it has an acquisition cost of $300 or more.

(3) Non-expendable personal property acquired and assigned for use to organizational elements of the IV-D agency, or of the department in which the IV-D agency is located, which are treated as indirect cost centers or pools in a Departmental Indirect Cost Rate or in a department wide cost allocation plan, shall be capitalized and depreciated (or subject to a use allowance when it has an acquisition cost of $300 or more.

(b) Definitions. (1) Acquisition cost is the amount expended by a IV-D agency for the property (excluding interest) plus, in the case of property acquired with a trade-in, the book value (acquisition cost less amount depreciated through the date of trade in) of the properly traded in. Property which was expensive when acquired which is traded in has a book value of zero.

(2) Depreciation expense for any time period is the portion of the acquisition cost of property which is assignable to that time period. The acquisition cost of the property shall be divided by the number of years of estimated useful service life of the property to arrive at the depreciation expense per year. This method shall be used unless a State obtains approval from the Regional Child Support Office to use another method, which must be demonstrated to be more consistent with the using up of the asset.

(3) The number of years of estimated useful service life of property shall be based on the Department of Treasury, Internal Revenue Service policies on depreciation for tax purposes. However, the Regional Child Support Office will approve a shorter period, if the IV-D agency can document that such period is justified.

(c) Other administrative requirements-(1) Distribution of costs. Amounts expended by the IV-D agency for non-expendable personal property may be directly charged to the Child Support Enforcement Program, if the property is being exclusively used for the program or activity at the time of the expenditures for the property. Amounts expended for such property not exclusively used for the Child Support Enforcement Program shall be allocated to such program and to other programs or activities by using one of the following methods:

(i) Using cost centers or pools and allocation bases which will distribute the costs consistent with program or activity usage of the property at the time of the expenditures. Any credits for property sold or retained for agency use in non Federal programs (see § 74.134 of this title) shall be distributed to programs or activities consistent with the distribution methods used for such property expenditures at the time of acquisition; or

(ii) Using a common distribution factor for all property or for classifications of property (e.g., desks distributed based on number of staff employed in each program or activity, credits for property sold or retained for use in non-Federal programs shall be distributed to programs or activities using the same distribution factors which are applied to expenditures for property acquired in the quarter in which such credits occurred.

(2) Accountability and management of non-expendable property. The provision in § 304.24(a)(1) does not affect the requirements on the IV-D agency to account for and manage non-expendable personal property as defined in § 74.132 of this title, in accordance with the provision in § 74.134 through 136 of this title.

(3) Disposition of Certain Property. The IV-D agency shall not request disposition instructions for property with an acquisition cost of over $1,000 per unit as specified in § 74.134(c)(2) of this title, but rather shall sell the property and account for it as specified in § 74.134(c) (1) of this title.

§ 304.25 Deadline for submission of claims for federal financial participation.

(a) Treatment of expenditures. Expenditures are considered to be made on the date on which the cash disbursements occur or the date to which allocated in accordance with Part 74 of this title. In the case of local administration, the date of disbursements by the local agency governs. In the case of purchase of services from another public agency, the date of disbursements by such other public agency governs. Different rules may be applied with respect to a State, either generally or for particular classes of expenditures only upon justification by the State to the Office of Child Support Enforcement and approval by the Office.

(b) Due date for expenditure statements. The due date for the submission of the quarterly statement of expenditures under § 301.15 of this chapter is 30 days after the end of the quarter.

(c) Deadline for the submission of claims. The deadline for the submission of claims for Federal financial participation in expenditures incurred in any Federal fiscal year is the due date of the quarterly statement of expenditures for the second quarter subsequent to the end of the fiscal year.

§ 304.26 Treatment of collections.

(a) In the determination of the amount of reimbursement to the Federal Government of amounts retained by the State to reimburse it for assistance payments under §302.51(b)(2) and (4) of this chapter, if in the computation of the Federal share of assistance payments the State uses:

(1) The Federal medical assistance percentage under section 1118 of the Act, this percentage shall be used in the computation of the Federal reimbursement of retained child support payments.

(2) The computations in section 403 (a), the Federal reimbursement of amounts retained by the State to reimburse it for an assistance payment shall be to the extent of the Federal participation in the financing of

(i) the individual assistance payment: or

(ii) all of the assistance payments in the same month.

(b) If an incentive payment is made to a jurisdiction under

§ 302.52 of this chapter for the enforcement and collection of support obligations, such payment shall be made from the amounts computed in paragraph (a) or (b) of this section which would otherwise constitute the Federal share.

§ 304.30 Public sources of State's share.

(a) Public funds. Other than those derived from private resources, used by the IV-D agency for its child support enforcement program may be considered as the State's share in claiming Federalreimbursement where such funds are:

(1) Appropriated directly to the IV-D agency; or

(2) Funds of another public agency which are transferred to the IV-D agency and are under its administrative control.

(b) Public funds used by the IV-D agency for its child support enforcement program may not be considered as the State's share in claiming Federal reimbursement where such funds are:

(1) Federal funds, unless authorized by Federal law to be used to match other Federal funds;

(2) Used to match other Federal funds.

Effective date: The regulations in these parts shall be effective on July 1, 1975.

Dated: June 12, 1975.

John A. Svahn, Acting Director, Office of Child Support Enforcement.

Approved: June 20, 1975.

CASPAR W. WEINBERGER, Secretary

(FR Doc.75-16663 Filed 6-25-75;8:45 am)