\[Code of Federal Regulations\]

\[Title 45, Volume 2, Parts 200 to 499\]

\[Revised as of October 1, 1998\]

From the U.S. Government Printing Office via GPO Access

\[CITE: 45CFR307\]

\[Page 186-198\]

TITLE 45\--PUBLIC WELFARE

AND HUMAN SERVICES

PART 307\--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS

Sec.

307.0 Scope of this part.

307.1 Definitions.

307.5 Mandatory computerized support enforcement systems.

307.10 Functional requirements for computerized support enforcement

systems in operation by October 1, 1997.

307.11 Functional requirements for computerized support enforcement

systems in operation by October 1, 2000.

307.13 Security and confidentiality for computerized support

enforcement systems in operation after October 1, 1997.

307.15 Approval of advance planning documents for computerized support

enforcement systems.

307.20 Submittal of advance planning documents for computerized support

enforcement systems.

\[\[Page 187\]\]

307.25 Review and certification of computerized support enforcement

systems.

307.30 Federal financial participation at the 90 percent rate for

statewide computerized support enforcement systems.

307.31 Federal financial participation at the 80 percent rate for

computerized support enforcement systems.

307.35 Federal financial participation at the applicable matching rate

for computerized support enforcement systems.

307.40 Suspension of approval of advance planning documents for

computerized support enforcement systems.

Authority: 42 U.S.C. 652 through 658, 664, 666 through 669A, and

1302\.

Source: 49 FR 33260, Aug. 22, 1984, unless otherwise noted.

Sec. 307.0 Scope of this part.

This part implements sections 452(d) and (e), 454(16) and (24),

454A, and 455(a)(1)(A) and (B), and (a)(3)(A) of the Act which

prescribe:

\(a\) The requirement for computerized support enforcement systems;

\(b\) The functional requirements that a statewide computerized

support enforcement system must meet;

\(c\) Security and confidentiality requirements for computerized

support enforcement systems;

\(d\) The criteria the Office must determine exist prior to approving

an advance planning document (APD);

\(e\) The requirements and procedures for the submittal of an APD;

\(f\) The requirement for continuous review of each approved statewide

computerized support enforcement system;

\(g\) The availability of FFP at the 90 percent rate;

\(h\) The availability of FFP at the applicable matching rate; and

\(i\) The conditions under which the Office will suspend approval of

an APD.

\[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998\]

Sec. 307.1 Definitions.

\(a\) Alternative approach to APD requirements means that the State

has developed an APD that does not meet all conditions for APD approval

in Sec. 307.15(b) resulting in the need for a waiver under Sec. 307.5.

\(b\) Business day means a day on which State offices are open for

business.

\(c\) Alternative system means the separate manual and/or automated

processes that perform one or more of the required functions separately

from the base system and that interfaces with the base system to ensure

that the State can meet all requirements for purposes of the audit

prescribed in section 403(h) of the Act. These separate processes may

involve geographic areas, such as counties; administrative

jurisdictions, such as courts; or separate means by which the State

meets particular program requirements, e.g., collection of support for

non-AFDC cases.

\(d\) Alternative system configuration means an alternative to a

comprehensive computerized support enforcement system. It includes a

base system with electronic linkages to an alternative system(s), which

is not part of the State\'s computerized support enforcement project

(i.e., not the State\'s sole system effort), but which is necessary to

meet the functional requirements of the statewide, comprehensive

computerized support enforcement system under Sec. 307.10, or

Sec. 307.11.

\(e\) Base system means the hardware, operational software,

applications software and electronic linkages in an alternative system

configuration which allow the State to monitor, account for and control

all support enforcement services and activities under the State plan.

\(f\) Certification means approval of an operational computerized

support enforcement system based on a determination that the system has

an efficient and effective design and is comprehensive, except where a

waiver applies.

\(g\) Comprehensive means that a computerized support enforcement

system meets the requirements prescribed in Sec. 307.10, or Sec. 307.11

of this part, as further defined in the OCSE guideline entitled

\`\`Automated Systems for Child Support Enforcement: A Guide for
States.\'\'

\(h\) Computerized support enforcement system means a comprehensive,

statewide system or an alternative system configuration which

encompasses all political subdivisions within the State and which

effectively and efficiently;

\[\[Page 188\]\]

\(1\) Introduces, processes, accounts for and monitors data used by

the Child Support Enforcement program in carrying out activities under

the State plan; and

\(2\) Produces utilization and management information about support

enforcement services as required by the State IV-D agency and Federal

government for program administration and audit purposes.

\(i\) Planning means: (1) The preliminary project activity to

determine the requirements necessitating the project, the activities to

be undertaken, and the resources required to complete the project;

\(2\) The preparation of an APD;

\(3\) The preparation of a detailed project plan describing when and

how the computer system will be designed or transferred and adapted; and

\(4\) The preparation of a detailed implementation plan describing

specific training, testing, and conversion plans to install the computer

system.

\(j\) The following terms are defined at 45 CFR part 95, subpart F, in

Sec. 95.605:

\`\`Advance Planning Document\'\';

\`\`Annually Updated APD\'\';

\`\`Design\'\' or \`\`System Design\'\';

\`\`Development\'\';

\`\`Enhancement\'\';

\`\`Implementation Advance Planning Document\'\';

\`\`Initial APD\'\';

\`\`Installation\'\';

\`\`Operation\'\';

\`\`Planning Advance Planning Document\'\';

\`\`Requirements Analysis\'\'; and

\`\`Software\'\'.

\(k\) The definitions found in Sec. 301.1 of this chapter are also

applicable to this part.

\[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998\]

Sec. 307.5 Mandatory computerized support enforcement systems.

\(a\) Basic requirement. (1) By October 1, 1997, each State must have

in effect an operational computerized support enforcement system, which

meets Federal requirements under Sec. 302.85(a)(1) of this chapter, OCSE

will review each system to certify that these requirements are met; and

\(2\) By October 1, 2000, each State must have in effect an

operational computerized support enforcement system, which meets Federal

requirements under Sec. 302.85(a)(2) of this chapter. OCSE will review

each system to certify that these requirements are met.

\(b\) Waiver option. A State may apply for a waiver of any functional

requirement in Sec. 307.10, or Sec. 307.11 by presenting a plan for an

alternative system configuration, or a waiver of any conditions for APD

approval in Sec. 307.15(b) by presenting an alternative approach. Waiver

requests must be submitted and approved as part of the State\'s APD or

APD update.

\(c\) Conditions for waiver. The Secretary may grant a State a waiver

if:

\(1\) The State demonstrates that it has an alternative approach to

the APD requirements or an alternative system configuration that enables

the State, in accordance with part 305 of this chapter, to be in

substantial compliance with the other requirements of this chapter; and

either:

\(2\) The waiver request meets the criteria set forth in section

1115(c) (1), (2) and (3) of the Act; or

\(3\) The State provides written assurance that steps will be taken to

otherwise improve the State\'s Child Support Enforcement program.

\(d\) APD submittal requirements for alternative system configuration.

APDs submitted by States which include requests for waiver for an

alternative system configuration must, in addition to meeting conditions

of Sec. 307.15(b):

\(1\) Describe the State\'s base system;

\(2\) Include a detailed description of the separate automated or

manual processes the State plans to use and how they will interface with

the base system;

\(3\) Provide documentation that the alternative system configuration

will enable the State to be in substantial compliance with title IV-D of

the Act in accordance with section 403(h) of the Act and implementing

regulations. In addition, if the State is subject to a Notice under

Sec. 305.99 of this part that it did not substantially comply with one

or more of the requirements of title IV-D of the Act, at the time a

waiver request is submitted, the State must:

\[\[Page 189\]\]

\(i\) Demonstrate that the deficiency is not related to or caused by

the performance of the system; or

\(ii\) Specify the corrective action taken to modify the system if the

system contributed to the deficiency.

\(e\) APD submittal requirements for alternative approach. APDs

submitted by States which include requests for waiver of conditions for

APD approval in Sec. 307.15(b) must demonstrate why meeting the

conditions is unnecessary or inappropriate.

\(f\) Review of waiver requests. (1) The Office will review waiver

requests to assure that all necessary information is provided, that all

processes provide for effective and efficient program operation, and

that the conditions for waiver in paragraph (d) of this section are met.

\(2\) When a waiver is approved, it becomes part of the State\'s

approved APD. A waiver is subject to the APD suspension provisions in

Sec. 307.40.

\(3\) When a waiver is disapproved, the APD will be disapproved. The

APD disapproval is a final administrative decision and is not subject to

administrative appeal.

\(g\) FFP limitations. (1) The provisions of Secs. 307.30 and 307.35

apply to requests for FFP for costs of computerized support enforcement

systems.

\(2\) FFP for alternative system configurations is further limited as

follows:

\(i\) FFP is available at the enhanced matching rate for development

of the base system and for hardware, operational system software, and

electronic linkages with the separate components of an alternative

system configuration.

\(ii\) FFP is available at the applicable matching rate for minor

alterations to the separate automated or manual processes that are part

of an alternative system configuration and for operating costs including

hardware, operational software and applications software of a

computerized support enforcement system.

\(iii\) FFP is not available for developing new systems or making

major changes and enhancements to separate automated or manual processes

so that alternative system configurations meet conditions for waiver.

\[57 FR 47003, Oct. 14, 1992, as amended at 61 FR 67241, Dec. 20, 1996;

63 FR 44814, Aug. 21, 1998\]

Sec. 307.10 Functional requirements for computerized support

enforcement systems in operation by October 1, 1997.

At a minimum, each State\'s computerized support enforcement system

established under the title IV-D State plan at Sec. 302.85(a)(1) of this

chapter must:

\(a\) Be planned, designed, developed, installed or enhanced in

accordance with an initial and annually updated APD approved under

Sec. 307.15; and

\(b\) Control, account for, and monitor all the factors in the support

collection and paternity determination processes under the State plan.

At a minimum this must include:

\(1\) Maintaining identifying information such as social security

numbers, names, dates of birth, home addresses and mailing addresses

(including postal zip codes) on individuals against whom support

obligations are sought to be established or enforced and on individuals

to whom support obligations are owed, and other data as required by the

Office;

\(2\) Periodically verifying the information on individuals referred

to in paragraph (b)(1) of this section with Federal, State and local

agencies, both intrastate and interstate;

\(3\) Maintaining data necessary to meet Federal Reporting

Requirements on a timely basis as prescribed by the Office;

\(4\) Maintaining information pertaining to:

\(i\) Delinquency and enforcement activities;

\(ii\) Intrastate, interstate and Federal location of absent parents;

\(iii\) The establishment of paternity; and

\(iv\) The establishment of support obligations;

\(5\) Collecting and distributing both intrastate and interstate

support payments;

\(6\) Computing and distributing incentive payments to political

subdivisions which share in the cost of funding the

\[\[Page 190\]\]

program and to other political subdivisions based on efficiency and

effectiveness if the State has chosen to pay such incentives;

\(7\) Maintaining accounts receivable on all amounts owed, collected,

and distributed;

\(8\) Maintaining costs of all services rendered, either directly or

by interfacing with State financial management and expenditure

information;

\(9\) Accepting electronic case referrals and update information from

the State\'s title IV-A program and using that information to identify

and manage support enforcement cases;

\(10\) Transmitting information electronically to provide data to the

State\'s TANF system so that the IV-A agency can determine (and report

back to the IV-D system) whether a collection of support causes a change

in eligibility for, or the amount of aid under, the AFDC program;

\(11\) Providing security to prevent unauthorized access to, or use

of, the data in the system;

\(12\) Providing management information on all IV-D cases under the

State plan from initial referral or application through collection and

enforcement;

\(13\) Providing electronic data exchange with the State Medicaid

system to provide for case referral and the transfer of the medical

support information specified in 45 CFR 303.30 and 303.31;

\(14\) Using automated processes to assist the State in meeting State

plan requirements under part 302 of this chapter and Standards for

program operations under part 303 of this chapter, including but not

limited to:

\(i\) The automated maintenance and monitoring of accurate records of

support payments;

\(ii\) Providing automated maintenance of case records for purposes of

the management ant tracking requirements in Sec. 303.2 of this chapter;

\(iii\) Providing title VI-D case workers with on-line access to

automated sources of absent parent employer and wage information

maintained by the State when available, by establishing an electronic

link or by obtaining an extract of the data base and placing it on-line

for access throughout the State;

\(iv\) Providing locate capability by automatically referring cases

electronically to locate sources within the State (such as State motor

vehicle department, State department of revenue, and other State

agencies), and to the Federal Parent Locator Service and utilizing

electronic linkages to receive return locate information and place the

information on-line to title IV-D case workers throughout the State;

\(v\) Providing capability for electronic funds transfer for purposes

of income withholding and interstate collections;

\(vi\) Integrating all processing of interstate cases with the

computerized support enforcement system, including the central registry;

and

\(15\) Providing automated processes to enable the Office to monitor

State operations and assess program performance through the audit

conducted under section 452(a) of the Act.

\[57 FR 47003, Oct. 14, 1992, as amended at 63 FR 44815, Aug. 21, 1998\]

Sec. 307.11 Functional requirements for computerized support

enforcement systems in operation by October 1, 2000.

At a minimum, each State\'s computerized support enforcement system

established and operated under the title IV-D State plan at

Sec. 302.85(a)(2) of this chapter must:

\(a\) Be planned, designed, developed, installed or enhanced, and

operated in accordance with an initial and annually updated APD approved

under Sec. 307.15 of this part;

\(b\) Control, account for, and monitor all the factors in the support

collection and paternity determination processes under the State plan.

At a minimum, this includes the following:

\(1\) The activities described in Sec. 307.10, except paragraphs

(b)(3), (8) and (11); and

\(2\) The capability to perform the following tasks with the frequency

and in the manner required under, or by this chapter:

\(i\) Program requirements. Performing such functions as the Secretary

may specify related to management of the State IV-D program under this

chapter including:

\[\[Page 191\]\]

\(A\) Controlling and accounting for the use of Federal, State and

local funds in carrying out the program either directly, through an

auxiliary system or through an interface with State financial management

and expenditure information; and

\(B\) Maintaining the data necessary to meet Federal reporting

requirements under this chapter in a timely basis as prescribed by the

Office;

\(ii\) Calculation of Performance Indicators. Enabling the Secretary

to determine the incentive payments and penalty adjustments required by

sections 452(g) and 458 of the Act by:

\(A\) Using automated processes to:

\(1\) Maintain the requisite data on State performance for paternity

establishment and child support enforcement activities in the State; and

\(2\) Calculate the paternity establishment percentage for the State

for each fiscal year;

\(B\) Having in place system controls to ensure the completeness, and

reliability of, and ready access to, the data described in paragraph

(b)(2)(i)(A)(1) of this section, and the accuracy of the calculation

described in paragraph (b)(2)(i)(A)(2) of this section; and

\(iii\) System Controls: Having systems controls (e.g., passwords or

blocking of fields) to ensure strict adherence to the policies described

in Sec. 307.13(a); and

\(3\) Activities described in the Act that were added by the Personal

Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L.

104-193, not otherwise addressed in this part.

\(c\) Collection and Disbursement of Support Payments. To the maximum

extent feasible, assist and facilitate the collection and disbursement

of support payments through the State disbursement unit operated under

section 454B of the Act through the performance of functions which, at a

minimum, include the following:

\(1\) Transmission of orders and notices to employers and other

debtors for the withholding of income:

\(i\) Within 2 business days after receipt of notice of income, and

the income source subject to withholding from a court, another State, an

employer, the Federal Parent Locator Service, or another source

recognized by the State; and

\(ii\) Using uniform formats prescribed by the Secretary;

\(2\) Ongoing monitoring to promptly identify failures to make timely

payment of support; and

\(3\) Automatic use of enforcement procedures, including procedures

under section 466(c) of the Act if payments are not timely;

\(d\) Expedited Administrative Procedures. To the maximum extent

feasible, be used to implement the expedited administrative procedures

required by section 466(c) of the Act.

\(e\) State case registry. Have a State case registry that meets the

requirements of this paragraph.

\(1\) Definitions. When used in this paragraph and paragraph (f) of

this section, the following definitions shall apply.

\(i\) Participant means an individual who owes or is owed a duty of

support, imposed or imposable by law, or with respect to or on behalf of

whom a duty of support is sought to be established, or who is an

individual connected to an order of support or a child support case

being enforced.

\(ii\) Participant type means the custodial party, non-custodial

parent, putative father, or child, associated with a case or support

order contained in the State or Federal case registry.

\(iii\) locate request type refers to the purpose of the request for

additional matching services on information sent to the Federal case

registry, for example, a IV-D locate (paternity or support establishment

or support enforcement), parental kidnapping or custody and visitation.

\(iv\) locate source type refers to the external sources a locate

submitter desires the information sent to the Federal case registry to

also be matched against.

\(2\) The State case registry shall contain a record of:

\(i\) Every IV-D case receiving child support enforcement services

under an approved State plan; and

\(ii\) Every support order established or modified in the State on or

after October 1, 1998.

\[\[Page 192\]\]

\(3\) Standardized data elements shall be included for each

participant. These data elements shall include:

\(i\) Names;

\(ii\) Social security numbers;

\(iii\) Dates of birth;

\(iv\) Case identification numbers;

\(v\) Other uniform identification numbers;

\(vi\) Data elements required under paragraph (f)(1) of this section

necessary for the operation of the Federal case registry;

\(vii\) Issuing State of an order; and

\(viii\) Any other information that the Secretary may require.

\(4\) The record required under paragraph (e)(2) of this section shall

include information for every case in the State case registry receiving

services under an approved State plan that has a support order in

effect. The information must include:

\(i\) The amount of monthly (or other frequency) support owed under

the order;

\(ii\) Other amounts due or overdue under the order including

arrearages, interest or late payment penalties and fees;

\(iii\) Any amounts described in paragraph (e)(4) (i) and (ii) of this

section that have been collected;

\(iv\) The distribution of such collected amounts;

\(v\) The birth date and, beginning no later than October 1, 1999, the

name and social security number of any child for whom the order requires

the provision of support; and

\(vi\) The amount of any lien imposed in accordance with section

466(a)(4) of the Act to enforce the order.

\(5\) Establish and update, maintain, and regularly monitor case

records in the State case registry for cases receiving services under

the State plan. To ensure information on an established IV-D case is up

to date, the State should regularly update the system to make changes to

the status of a case, the participants of a case, and the data contained

in the case record. This includes the following:

\(i\) Information on administrative and judicial orders related to

paternity and support;

\(ii\) Information obtained from comparisons with Federal, State or

local sources of information;

\(iii\) Information on support collections and distributions; and

\(iv\) Any other relevant information.

\(6\) States may link local case registries of support orders through

an automated information network in meeting paragraph (e)(2)(ii) of this

section provided that all other requirements of this paragraph are met.

\(f\) Information Comparisons and other Disclosures of Information.

Extract information, at such times and in such standardized format or

formats, as may be required by the Secretary, for purposes of sharing

and comparing with, and receiving information from, other data bases and

information comparison services, to obtain or provide information

necessary to enable the State, other States, the Office or other Federal

agencies to carry out this chapter. As applicable, these comparisons and

disclosures must comply with the requirements of section 6103 of the

Internal Revenue Code of 1986 and the requirements of section 453 of the

Act. The comparisons and sharing of information include:

\(1\) Effective October 1, 1998, (or for the child data, not later

than October 1, 1999) furnishing the following information to the

Federal case registry on participants in cases receiving services under

the State plan and in support orders established or modified on or after

October 1, 1998, and providing updates of such information within five

\(5\) business days of receipt by the IV-D agency of new or changed,

information, including information which would necessitate adding or

removing a Family Violence indicator and notices of the expiration of

support orders:

\(i\) State Federal Information Processing Standard (FIPS) code and

optionally, county code;

\(ii\) State case identification number;

\(iii\) State member identification number;

\(iv\) Case type (IV-D, non-IV-D);

\(v\) Social security number and any necessary alternative social

security numbers;

\(vi\) Name, including first, middle, last name and any necessary

alternative names;

\[\[Page 193\]\]

\(vii\) Sex (optional);

\(viii\) Date of birth;

\(ix\) Participant type (custodial party, non-custodial parent,

putative father, child);

\(x\) Family violence indicator (domestic violence or child abuse);

\(xi\) Indication of an order;

\(xii\) Locate request type (optional);

\(xiii\) Locate source (optional); and

\(xiv\) Any other information of the Secretary may require.

\(2\) Requesting or exchanging information with the Federal parent

locator service for the purposes specified in section 453 of the Act;

\(3\) Exchanging information with State agencies, both within and

outside of the State, administering programs under titles IV-A and XIX

of the Act, as necessary to perform State agency responsibilities under

this chapter and under such programs; and

\(4\) Exchanging information with other agencies of the State, and

agencies of other States, and interstate information networks, as

necessary and appropriate, to assist the State and other States in

carrying out the purposes of this chapter.

\[63 FR 44815, Aug. 21, 1998\]

Sec. 307.13 Security and confidentiality for computerized support

enforcement systems in operation after October 1, 1997.

The State IV-D agency shall:

\(a\) Information integrity and security. Have safeguards on the

integrity, accuracy, completeness of, access to, and use of data in the

computerized support enforcement system. These safeguards shall include

written policies concerning access to data by IV-D agency personnel, and

the sharing of data with other persons to:

\(1\) Permit access to and use of data to the extent necessary to

carry out the State IV-D program under this chapter; and

\(2\) Specify the data which may be used for particular IV-D program

purposes, and the personnel permitted access to such data; and

\(3\) Permit access to and use of data for purposes of exchanging

information with State agencies administering programs under titles IV-A

and XIX of the Act to the extent necessary to carry out State agency

responsibilities under such programs in accordance with section

454A(f)(3) of the Act.

\(b\) Monitoring of access. Monitor routine access to and use of the

computerized support enforcement system through methods such as audit

trails and feedback mechanisms to guard against, and promptly identify

unauthorized access or use;

\(c\) Training and information. Have procedures to ensure that all

personnel, including State and local staff and contractors, who may have

access to or be required to use confidential program data in the

computerized support enforcement system are:

\(1\) Informed of applicable requirements and penalties, including

those in section 6103 of the Internal Revenue Service Code and section

453 of the Act; and

\(2\) Adequately trained in security procedures; and

\(d\) Penalties. Have administrative penalties, including dismissal

from employment, for unauthorized access to, disclosure or use of

confidential information.

\[63 FR 44816, Aug. 21, 1998\]

Sec. 307.15 Approval of advance planning documents for computerized

support enforcement systems.

\(a\) Approval of an APD. The Office shall not approve the APD and

annually updated APD unless the document, when implemented, will carry

out the requirements of Sec. 307.10, or Sec. 307.11 of this part.

Conditions for APD approval are specified in this section.

\(b\) Conditions for initial approval. In order to be approvable, an

APD for a statewide computerized support enforcement system described

under Sec. 307.10, or Sec. 307.11 must meet the following requirements:

\(1\) The APD must represent the sole systems effort being undertaken

by the State in accordance with Sec. 307.10, or Sec. 307.11. If the

State is requesting a waiver under Sec. 302.85 of this chapter, the APD

must specify the conditions for which waiver is requested;

\(2\) The APD must specify how the objectives of the computerized

support enforcement system in Sec. 307.10, or Sec. 307.11 will be

carried out throughout the State; this includes a projection of

\[\[Page 194\]\]

how the proposed system will meet the functional requirements of

Sec. 307.10, or Sec. 307.11 and how the single State system will

encompass all political subdivisions in the State by October 1, 1997, or

October 1, 2000 respectively.

\(3\) The APD must assure the feasibility of the proposed effort and

provide for the conduct of a requirements analysis study which address

all system components within the State and includes consideration of the

program mission, functions, organization, services and constraints

related to the computerized support enforcement system;

\(4\) The APD must indicate how the results of the requirements

analysis study will be incorporated into the proposed system design,

development, installation or enhancement;

\(5\) The APD must contain a description of each component within the

proposed computerized support enforcement system as required by

Sec. 307.10, or Sec. 307.11 and must describe information flows, input

data, and output reports and uses;

\(6\) The APD must describe the security requirements to be employed

in the proposed computerized support enforcement system;

\(7\) The APD must describe the intrastate and interstate interfaces

set forth in Sec. 307.10, or Sec. 307.11 to be employed in the proposed

computerized support enforcement system;

\(8\) The APD must describe the projected resource requirements for

staff, hardware, and other needs and the resources available or expected

to be available to meet the requirements;

\(9\) The APD must contain a proposed budget and schedule of life-

cycle milestones relative to the size, complexity and cost of the

project which at a minimum address requirements analysis, program

design, procurement and project management; and, a description of

estimated expenditures by category and amount for:

\(i\) Items that are eligible for funding at the enhanced matching

rate, and

\(ii\) Items related to developing and operating the system that are

eligible for Federal funding at the applicable matching rate;

\(10\) The APD must contain an implementation plan and backup

procedures to handle possible failures in system planning, design,

development, installation or enhancement.

\(i\) These backup procedures must include provision for independent

validation and verification (IV&V) analysis of a State\'s system

development effort in the case of States:

\(A\) That do not have in place a statewide automated child support

enforcement system that meets the requirements of the FSA of 1988;

\(B\) States which fail to meet a critical milestone, as identified in

their APDs;

\(C\) States which fail to timely and completely submit APD updates;

\(D\) States whose APD indicates the need for a total system redesign;

\(E\) States developing systems under waivers pursuant to section

452(d)(3) of the Social Security Act; or,

\(F\) States whose system development efforts we determine are at risk

of failure, significant delay, or significant cost overrun.

\(ii\) Independent validation and verification efforts must be

conducted by an entity that is independent from the State (unless the

State receives an exception from OCSE) and the entity selected must:

\(A\) Develop a project workplan. The plan must be provided directly

to OCSE at the same time it is given to the State.

\(B\) Review and make recommendations on both the management of the

project, both State and vendor, and the technical aspects of the

project. The IV&V provider must provide the results of its analysis

directly to OCSE at the same time it reports to the State.

\(C\) Consult with all stakeholders and assess the user involvement

and buy-in regarding system functionality and the system\'s ability to

meet program needs.

\(D\) Conduct an analysis of past project performance sufficient to

identify and make recommendations for improvement.

\(E\) Provide risk management assessment and capacity planning

services.

\(F\) Develop performance metrics which allow tracking project

completion against milestones set by the State.

\[\[Page 195\]\]

\(iii\) The RFP and contract for selecting the IV&V provider (or

similar documents if IV&V services are provided by other State agencies)

must include the experience and skills of the key personnel proposed for

the IV&V analysis and specify by name the key personnel who actually

will work on the project and must be submitted to OCSE for prior

approval.

\(11\) The APD must describe each system considered during planning

including the advantages of selecting the proposed solution. If a

transfer system is not selected as the proposed solution, a transfer

system must be among those systems considered. If a system that is

already in place in the State could be enhanced to meet the requirements

for a computerized support enforcement system, that system must be among

the solutions considered;

\(12\) The APD must contain a cost benefit analysis of the proposed

computerized support enforcement system and all alternatives considered

that describes the proposed improvements to the IV-D program in both

qualitative and quantitative terms;

\(13\) The APD must specify the basis for determining direct and

indirect costs of the computerized support enforcement system during

development and operation, including the methodology for determining

costs of planning, design, development, installation or enhancement that

are eligible for 90 percent Federal funding versus costs of development

and operations that are eligible for Federal funding at the applicable

matching rate;

\(14\) The APD must contain a statement indicating the period of time

the State expects to use the proposed computerized support enforcement

system; and

\(15\) The APD must include any waiver requested in accordance with

Sec. 307.5 of this chapter.

\(c\) Conditions for approval of annual update. The APD for a

computerized support enforcement system described under Sec. 307.10, or

Sec. 307.11 must be updated annually. In order to be approvable, the

annual update of an APD for a computerized support enforcement system

described under Sec. 307.10 must meet only those requirements of

paragraph (b) of this section that are prescribed by instructions issued

by the Office.

(Approved by the Office of Management and Budget under control number

0960-0343)

\[49 FR 33260, Aug. 22, 1984, as amended at 51 FR 37732, Oct. 24, 1986;

55 FR 4379, Feb. 7, 1990; 57 FR 47004, Oct. 14, 1992; 61 FR 67241, Dec.

20, 1996; 63 FR 44816, Aug. 21, 1998\]

Sec. 307.20 Submittal of advance planning documents for computerized

support enforcement systems.

The State IV-D agency must submit an APD for a computerized support

enforcement system, approved and signed by the State IV-D Director and

the appropriate State official, in accordance with the submission

process prescribed in 45 CFR part 95, subpart F.

\[55 FR 4379, Feb. 7, 1990, as amended at 57 FR 47005, Oct. 14, 1992\]

Sec. 307.25 Review and certification of computerized support

enforcement systems.

The Office will review, assess and inspect the planning, design,

development, installation, enhancement and operation of computerized

support enforcement systems developed under Sec. 307.10, or Sec. 307.11

to determine the extent to which such systems:

\(a\) Meet the requirements found in Sec. 307.15; and

\(b\) Can be certified as meeting the requirements described in

Sec. 307.10 and in the OCSE guideline entitled \`\`Automated Systems for

Child Support Enforcement: A Guide for States\'\'.

\[57 FR 47005, Oct. 14, 1992, as amended at 63 FR 44817, Aug. 21, 1998\]

Sec. 307.30 Federal financial participation at the 90 percent rate for

statewide computerized support enforcement systems.

\(a\) Conditions that must be met for FFP. During the Federal fiscal

years 1996, and 1997, Federal financial participation is available at

the 90 percent rate in expenditures for the planning, design,

development, installation or enhancement of a computerized support

enforcement system as described in Secs. 307.5 and 307.10 limited to the

amount in an advance planning document, or APDU submitted on or before

\[\[Page 196\]\]

September 30, 1995, and approved by OCSE if:

\(1\) The Office has approved an APD in accordance with Sec. 307.15 of

this part;

\(2\) The system meets the requirements specified in Sec. 307.10;

\(3\) The Office determines that the expenditures incurred are

consistent with the approved APD;

\(4\) The Office determines that the computerized support enforcement

system or alternative system configuration is designed effectively and

efficiently and will improve the management and administration of the

State IV-D plan;

\(5\) The State IV-D agency agrees in writing to use the system for a

period of time which is consistent with the APD approved by the Office;

and

\(6\) The State or local government has ownership rights in software,

software modifications and associated documentation that is designed,

developed, installed, or enhanced with 90 percent FFP under this section

subject to the Department of Health and Human Services license specified

in paragraph (c) of this section.

\(b\) Federal financial participation in the costs of hardware and

proprietary software. (1) Until September 30, 1997, FFP at the 90

percent rate is available in expenditures for the rental or purchase of

hardware for the planning, design, development, installation or

enhancement of a computerized support enforcement system as described in

Sec. 307.10 in accordance with the limitation in paragraph (a) of this

section.

\(2\) Until September 30, 1997, FFP at the 90 percent rate is

available for expenditures for the rental or purchase of proprietary

operating/vendor software necessary for the operation of hardware during

the planning, design, development, installation or enhancement of a

computerized support enforcement system in accordance with the

limitation in paragraph (a) of this section, and the OCSE guideline

entitled \`\`Automated Systems for Child Support Enforcement: A Guide
for

States.\'\' FFP at the 90 percent rate is not available for proprietary

application software developed specifically for a computerized support

enforcement system. Sec. 307.35 of this part regarding reimbursement at

the applicable matching rate.)

\(c\) HHS rights to software. The Department of Health and Human

Services reserves a royalty-free, non-exclusive and irrevocable license

to reproduce, publish or otherwise use, and to authorize others to use

for Federal government purposes, software, software modifications, and

documentation developed under Sec. 307.10. This license would permit the

Department to authorize the use of software, software modifications and

documentation developed under Sec. 307.10 in another project or activity

funded by the Federal government.

\(d\) Consequences of suspension of the APD. If the Office suspends

approval of an APD in accordance with Sec. 307.40 of this part during

the planning design, development, installation, enhancement or operation

of the system:

\(1\) The Office shall disallow FFP as of the date the State failed to

comply substantially with the approved APD; and

\(2\) FFP at the 90 and applicable matching rates is not available in

any expenditures incurred under the APD after the date of the suspension

until the date the Office determines that the State has taken the

actions specified in the notice of suspension described in

Sec. 307.40(a)(2) of this part. The Office will notify the State in

writing upon making such a determination. (See Sec. 307.35(b) regarding

reimbursement for disallowed expenditures under part 95, subpart F of

this title.)

\[49 FR 33260, Aug. 22, 1984, as amended at 50 FR 19657, May 9, 1985; 55

FR 4379, Feb. 7, 1990; 57 FR 47005, Oct. 14, 1992; 63 FR 44817, Aug. 21,

1998\]

Sec. 307.31 Federal financial participation at the 80 percent rate for

computerized support enforcement systems.

\(a\) Conditions that must be met for 80 percent FFP. Until September

30, 2001, Federal financial participation is available at the 80 percent

rate to States, Territories and systems defined in 42 U.S.C.

655(a)(3)(B)(iii) \[455(a)(3)(B)(iii) of the Act\] (hereafter referred
to

as

\[\[Page 197\]\]

\`\`States\'\') for expenditures for the planning, design, development,

installation, or enhancement of a computerized support enforcement

system meeting the requirements as described in Secs. 307.5 and 307.10

or 42 U.S.C. Sec. 654(16) \[454(16) of the Act\], if:

\(1\) The Office has approved an APD in accordance with Sec. 307.15;

\(2\) The Office determines that the system meets the requirements

specified in Sec. 307.10, or 42 U.S.C. 654(16) \[454(16) of the Act\];

\(3\) The Office determines that the expenditures incurred are

consistent with the approved APD;

\(4\) The Office determines that the computerized support enforcement

system is designed effectively and efficiently and will improve the

management and administration of the State IV-D plan;

\(5\) The State IV-D agency agrees in writing to use the system for a

period of time which is consistent with the APD approved by the Office;

and

\(6\) The State or local government has ownership rights in software,

software modifications and associated documentation that is designed,

developed, installed or enhanced under this section subject to the

Department of Health and Human Services license specified in paragraph

\(c\) of this section.

\(b\) Federal financial participation in the costs of hardware and

proprietary software.

\(1\) Until September 30, 2001, FFP at the 80 percent rate is

available for expenditures for the rental or purchase of hardware for

the planning, design, development, installation, or enhancement of a

computerized support enforcement system as described in Sec. 307.10 or

42 U.S.C. 654(16) \[454(16) of the Act\].

\(2\) Until September 30, 2001, FFP at the 80 percent rate is

available for the rental or purchase of proprietary operating/vendor

software necessary for the operation of hardware during the planning,

design, development, installation, enhancement or operation of a

computerized support enforcement system in accordance with the OCSE

guideline entitled \`\`Automated Systems for Child Support Enforcement:
A

Guide for States.\'\' FFP at the 80 percent rate is not available for

proprietary application software developed specifically for a

computerized support enforcement system. (See Sec. 307.35 regarding

reimbursement at the applicable matching rate.)

\(c\) HHS rights to software. The Department of Health and Human

Services reserves a royalty-free, non-exclusive and irrevocable license

to reproduce, publish or otherwise use, and to authorize others to use

for Federal government purposes, software, software modifications, and

documentation developed under Sec. 307.10 or 42 U.S.C. 654(16) \[454(16)

of the Act\]. This license would permit the Department to authorize the

use of software, software modifications and documentation developed

under Sec. 307.10 or 42 U.S.C. 654(16) \[454(16) of the Act\] in another

project or activity funded by the Federal government.

\(d\) Consequences of suspension of the APD. If the Office suspends

approval of an APD in accordance with Sec. 307.40 during the planning,

design, development, installation, enhancement or operation of the

system:

\(1\) The Office shall disallow FFP as of the date the State failed to

comply substantially with the approved APD; and

\(2\) FFP at the 80 percent and applicable matching rates is not

available in any expenditure incurred under the APD after the date of

the suspension until the date the Office determines that the State has

taken the actions specified in the notice of suspension described in

Sec. 307.40(a). The Office will notify the State in writing upon making

such a determination.

\(e\) Limitation on 80 percent funding. Federal financial

participation at the 80 percent rate may not exceed \$400,000,000 in the

aggregate for fiscal years 1996 through 2001.

\(f\) Allocation formula. Payments at the 80 percent rate to

individual States, Territories and systems defined in 42 U.S.C.

655(a)(3)(B)(iii) \[455(a)(3)(B)(iii) of the Act\] (hereafter referred
to

as \`\`States\'\') will be equal to the sum of:

\(1\) A base amount of \$2,000,000; and

\(2\) An additional amount defined as the Allocation Factor computed

as follows:

\[\[Page 198\]\]

\(i\) Allocation Factor\--an average of the Caseload and Census Factors

which yields the percentage that is used to calculate a State\'s

allocation of the funds available, less amounts set aside pursuant to

paragraph (f)(1) of this section.

\(ii\) Caseload Factor\--a ratio of the six-year average IV-D caseload

as reported by a State for fiscal years 1990 through 1995 to the total

six-year average IV-D caseload in all States for the same period;

\(iii\) Census Factor\--a ratio of the number of children in a State

with one parent living elsewhere as reported in the 1992 Current

Population Survey\--Child Support Supplement to the total number of such

children in all States.

\[63 FR 44405, Aug. 19, 1998\]

Sec. 307.35 Federal financial participation at the applicable matching

rate for computerized support enforcement systems.

Federal financial participation at the applicable matching rate is

available only in computerized support enforcement systems expenditures

for:

\(a\) The operation of a system that meets the requirements specified

in Sec. 307.10, or Sec. 307.11 if the conditions for APD approval in

Secs. 307.5 and 307.15 are met; or

\(b\) Systems approved in accordance with part 95, subpart F of this

title. This may include expenditures for a system which were disallowed

by the Office because the system failed to comply substantially with an

APD approved under Sec. 307.15.

\[49 FR 33260, Aug. 22, 1984, as amended at 50 FR 19658, May 9, 1985; 57

FR 47005, Oct. 14, 1992; 63 FR 44817, Aug. 21, 1998\]

Sec. 307.40 Suspension of approval of advance planning documents for

computerized support enforcement systems.

\(a\) Suspension of approval. The Office will suspend approval of the

APD for a computerized support enforcement system approved and developed

under Sec. 307.10, or Sec. 307.11 as of the date that the system ceases

to comply substantially with the criteria, requirements, and other

provisions in the APD, including conditions in Sec. 307.15(b) and the

requirements in Sec. 307.10 or Sec. 307.11 of this part covered under a

waiver granted in accordance with Sec. 307.5. Federal funding will be

disallowed as described in Sec. 307.30(d) and Sec. 307.31(d).

\(b\) Duration of suspension. The suspension of approval of an APD

under paragraph (a) shall remain in effect until the Office determines

that actions required for Federal funding in the future, as specified in

the notice of suspension, have been taken and the Office so notifies the

State.

\[49 FR 33260, Aug. 22, 1984, as amended at 57 FR 47005, Oct. 14, 1992;

63 FR 44405, Aug. 19, 1998; 63 FR 44817, Aug. 21, 1998\]

PARTS 308\--399 \[RESERVED\]

\[\[Page 199\]\]