Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 3093 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 and 81 

[EPA–R09–OAR–2006–0580; FRL–8270–4] 

Approval and Promulgation of Air 

Quality Implementation Plans; 

Designation of Areas for Air Quality 

Planning Purposes; Arizona; Miami 

Sulfur Dioxide State Implementation 

Plan and Request for Redesignation to 

Attainment; Correction of Boundary of 

Miami Sulfur Dioxide Nonattainment 

Area 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

the maintenance plan for the Miami 

Area in Gila County, Arizona, as a 

revision to the Arizona state 

implementation plan; to grant the 

request submitted by the State to 

redesignate this area from 

nonattainment to attainment of the 

national ambient air quality standards 

for sulfur dioxide (SO2); and to correct 

the boundary for the Miami SO2

nonattainment area. EPA is proposing 

this action in accordance with the Clean 

Air Act. 

DATES: Any comments on this proposal 

must arrive by February 23, 2007. 

ADDRESSES: Submit comments, 

identified by docket number EPA–R09–

OAR–2006–0580, by one of the 

following methods: 

1. Federal eRulemaking Portal: 

www.regulations.gov. Follow the online 

instructions. 

2. E-mail: vagenas.ginger@epa.gov. 

3. Mail or deliver: Ginger Vagenas 

(Air–2), U.S. Environmental Protection 

Agency Region IX, 75 Hawthorne Street, 

San Francisco, CA 94105–3901. 

Instructions: All comments will be 

included in the public docket without 

change and may be made available 

online at www.regulations.gov, 

including any personal information 

provided, unless the comment includes 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. Information that 

you consider CBI or otherwise protected 

should be clearly identified as such and 

should not be submitted through 

www.regulations.gov or e-mail. 

www.regulations.gov is an ‘‘anonymous 

access’’ system, and EPA will not know 

your identity or contact information 

unless you provide it in the body of 

your comment. If you send e-mail 

directly to EPA, your e-mail address 

will be automatically captured and 

included as part of the public comment. 

If EPA cannot read your comment due 

to technical difficulties and cannot 

contact you for clarification, EPA may 

not be able to consider your comment. 

Docket: The index to the docket for 

this action is available electronically at 

www.regulations.gov and in hard copy 

at EPA Region IX, 75 Hawthorne Street, 

San Francisco, California. While all 

documents in the docket are listed in 

the index, some information may be 

publicly available only at the hard copy 

location (e.g., copyrighted material), and 

some may not be publicly available in 

either location (e.g., CBI). To inspect the 

hard copy materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Ginger Vagenas, EPA Region IX, (415) 

972–3964, vagenas.ginger@epa.gov. 

SUPPLEMENTARY INFORMATION: In the 

Rules and Regulations section of this 

Federal Register, we are taking direct 

final action to approve the maintenance 

plan for the Miami SO2 nonattainment 

area and to approve the State of 

Arizona’s request to redesignate the 

Miami area from nonattainment to 

attainment. We are also taking direct 

final action to correct the boundary of 

the Miami SO2 nonattainment area. We 

are taking these actions without prior 

proposal because we believe these SIP 

revisions are not controversial. If we 

receive adverse comments, however, we 

will publish a timely withdrawal of the 

direct final rule and address the 

comments in subsequent action based 

on this proposed rule. 

We do not plan to open a second 

comment period, so anyone interested 

in commenting should do so at this 

time. If we do not receive adverse 

comments, no further activity is 

planned. For further information, please 

see the direct final rule in this Federal 

Register. 

Authority: 42 U.S.C. 7401 et seq. 

Dated: December 22, 2006. 

Sally Seymour, 

Acting Regional Administrator, Region IX. 

[FR Doc. E7–995 Filed 1–23–07; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Administration for Children and 

Families 

45 CFR Parts 301, 302, 303 and 304 

RIN 0970–AC24 

Child Support Enforcement Program 

AGENCY: Office of Child Support 

Enforcement (OCSE), Administration for 

Children and Families (ACF), 

Department of Health and Human 

Services. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: These proposed regulations 

implement provisions of title IV–D of 

the Social Security Act (the Act) as 

amended by the Deficit Reduction Act 

of 2005, Pub. L. 109–171 (DRA of 2005). 

The proposed regulations address use of 

the tax refund intercept program to 

collect past-due child support on behalf 

of children who are not minors, 

mandatory review and adjustment of 

child support orders for families 

receiving Temporary Assistance to 

Needy Families (TANF), reduction of 

Federal matching rate for laboratory 

costs incurred in determining paternity, 

States’ option to pay more child support 

collections to former assistance families, 

and the mandatory annual $25 fee in 

certain child support (IV–D) cases in 

which the State has collected and 

disbursed at least $500 of support. The 

regulations also make other conforming 

changes necessary to implement 

changes to the distribution and 

disbursement requirements. 

DATES: Consideration will be given to 

comments received by March 26, 2007. 

ADDRESSES: Send comments to: Office of 

Child Support Enforcement, 

Administration for Children and 

Families, 370 L’Enfant Promenade, SW., 

4th Floor, Washington, DC 20447. 

Attention: Director, Policy Division, 

Mail Stop: OCSE/DP. Comments will be 

available for public inspection Monday 

through Friday from 8:30 a.m. to 5 p.m. 

on the 4th floor of the Department’s 

offices at the above address. You may 

also transmit written comments 

electronically via the Internet at: http:// 

www.regulations.acf.hhs.gov. To 

download an electronic version of the 

rule, you may access http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Paige Hausburg, Policy Specialist, 

OCSE, 202–401–5635, e-mail: 

phausburg@acf.hhs.gov. Deaf and 

hearing-impaired individuals may call 


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3094 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 

the Federal Dual Party Relay Service at 

1–800–877–8339 between 8 a.m. and 7 

p.m. eastern time. 

SUPPLEMENTARY INFORMATION: 

I. Statutory Authority 

This notice of proposed rulemaking is 

published under the authority granted 

to the Secretary of the U.S. Department 

of Health and Human Services (the 

Secretary) by section 1102 of the Act, 42 

U.S.C. 1302. Section 1102 authorizes the 

Secretary to publish regulations that 

may be necessary for the efficient 

administration of the functions for 

which he is responsible under the Act. 

The Deficit Reduction Act of 2005 (DRA 

of 2005), Title VII, Subtitle C—Child 

Support, sections 7301–7311 amends 

title IV–D of the Act. The specific 

sections of the DRA of 2005 included in 

the proposed regulation are discussed in 

detail under Provisions of the 

Regulation. 

II. Provisions of the Regulations 

Part 301—State Plan Approval and 

Grant Procedures 

Section 301.1—General Definitions 

Section 7301(f) of the DRA of 2005, 

effective October 1, 2007, amends the 

definition of ‘‘past-due support’’ at 

section 464(c) of the Act for purposes of 

the Federal income tax refund offset 

program. Currently, the term ‘‘past-due 

support’’ limits access to the Federal 

income tax refund offset process to pastdue support owed to or on behalf of a 

qualified child (a child who was a 

minor or who, while a minor was 

determined to be disabled under 

subchapter II or XVI of the Act and for 

whom an order of support is in force). 

Prior to enactment of the DRA of 2005, 

only past-due support due to a qualified 

child or adult child who was disabled 

could be submitted for offset. That 

limitation is removed by section 7301(f) 

of the DRA of 2005, effective October 1, 

2007. This amendment will allow 

collection of past-due child support 

from the Federal income tax refund 

offset program on behalf of individuals 

who were owed child support as 

children but then aged out of the system 

without having collected the full 

support amount owed to them. 

Under § 301.1, we propose changes to 

two definitions. First, we propose to 

amend the definition of ‘‘past-due 

support’’ by inserting language to place 

a time limit on the definition. The 

revised language would read: ‘‘Through 

September 30, 2007, for purposes of 

referral for Federal income tax refund 

offset of support due an individual who 

is receiving services under § 302.33 of 

this chapter, past-due support means 

support owed to or on behalf of a 

qualified child, or a qualified child and 

the parent with whom the child is living 

if the same support order includes 

support for the child and the parent.’’

Therefore, effective October 1, 2007, 

past-due support owed in non-TANF 

cases will be treated the same as pastdue support owed in TANF cases and 

may be submitted for Federal income 

tax refund offset until the debt is 

satisfied. 

Similarly, in § 301.1, we propose to 

limit the applicability of the definition 

of ‘‘Qualified child’’ through September 

30, 2007, because there is no longer any 

reference to a ‘‘qualified child’’ in 

section 464 of the Act effective October 

1, 2007. Therefore, on or after October 

1, 2007, past-due support owed on 

behalf of adults in non-TANF cases 

would qualify for Federal income tax 

refund offset, regardless of whether they 

are disabled. 

Part 302—State Plan Approval 

Requirements 

Section 302.32—Collection and 

Disbursement of Support Payments by 

the IV–D Agency 

The proposed regulations make 

conforming changes to certain language 

in § 302.32, Collection and 

Disbursement of Support Payments by 

the IV–D Agency, for consistency with 

certain changes made to sections 454 

and 457 of the Act. (The term 

‘‘distribution’’ refers to how a support 

collection is allocated between families 

and the State and Federal government in 

accordance with Federal requirements. 

The term ‘‘disbursement’’ refers to the 

act of paying, by check or electronic 

transfer, support collections to families.) 

Under the new section 454(34) of the 

Act, effective October 1, 2009, or up to 

a year earlier at State option, States have 

a choice to distribute collections first to 

satisfy support owed to families in IV–

D cases. These proposed regulations 

make technical changes in 

§§ 302.32(b)(2)(iv) and (3)(ii) to delete 

reference to a specific statutory 

requirement for payments to families to 

simplify the regulatory language. 

Technical changes to § 302.51 are 

addressed later in this preamble. 

Section 302.33—Services to Individuals 

Not Receiving Title IV–A Assistance 

We propose to add a new § 302.33(e) 

to address the statutory requirement in 

section 454(6)(B)(ii) of the Act to impose 

an annual $25 fee in certain cases. We 

are also revising the title of the section 

to more appropriately reflect the scope 

of the revised section. 

Section 7310(a) of the DRA of 2005 

added section 454(6)(B)(ii) of the Act to 

require States, in the case of an 

individual who has never received 

assistance under a State program funded 

under title IV–A of the Act (hereinafter 

referred to as ‘‘title IV–A program’’) and 

for whom the State has collected at least 

$500 of support in any given Federal 

fiscal year, to impose an annual fee of 

$25 for each case in which services are 

furnished. The statutory effective date is 

October 1, 2006, or if State legislation is 

necessary to impose the mandatory $25 

fee, the effective date is three months 

after the first day of the first calendar 

quarter beginning after the close of the 

first regular session of the State 

legislature that begins after the date of 

the enactment of the DRA of 2005. 

However, final regulations governing 

the requirement may not be published 

until after the mandatory effective date 

for the annual $25 fee in a State. In such 

a case, the State should implement the 

fee in accordance with the statutory 

requirements until such time as the final 

regulations are effective. 

Section 454(6)(B)(ii) of the Act only 

refers to State programs funded under 

title IV–A of the Act. However, we 

believe it is authorized and consistent 

with the purpose and the scope of the 

statutory exemption from the $25 fee for 

current and former TANF cases and the 

intent of the Congress to not impose the 

fee in IV–D cases involving individuals 

who are receiving or have received 

assistance from a Tribal title IV–A 

Temporary Assistance to Needy 

Families (TANF) program as well. Tribal 

TANF recipients are a narrow, 

additional category of individuals 

receiving assistance under the same 

basic title IV–A statutory authority as 

State TANF recipients, just not under a 

State TANF program. The two programs 

are linked. Funds to operate Tribal IV–

A programs in a State are deducted from 

the State’s title IV–A block grant. The 

Federal statute at section 454 of the Act 

does not provide for any additional 

categories of exempt individuals besides 

these who may be receiving, or who 

may have received in the past, other 

types of Federal, State or Tribal 

assistance. 

The proposed regulations at 

§ 302.33(e)(1) would read: ‘‘Annual $25 

fee. (1) In the case of an individual who 

has never received assistance under a 

State or Tribal title IV–A program, and 

for whom the State has disbursed to the 

family at least $500 of support in the 

Federal fiscal year, the State must 

impose in, and report for, that year an 

annual fee of $25 for each case in which 

services are provided.’’


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Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 3095 

A State would be required to impose 

the $25 fee in any case that meets the 

conditions for imposition of the fee 

under § 302.33(e), including both 

existing and new IV–D cases. 

For purposes of § 302.33(e)(1), an 

individual would be considered to have 

received assistance under a State or 

Tribal title IV–A program if he or she 

had received a cash assistance payment 

or some other type of TANF assistance 

as defined in Federal regulations 

governing the State title IV–A program 

at 45 CFR 260.31, or under a Tribal title 

IV–A program at 45 CFR 286.10. A State 

title IV–A program would include both 

assistance under a State TANF program 

as well as assistance under the TANF 

program’s predecessor, Aid to Families 

with Dependent Children (AFDC), as 

defined in Federal regulations governing 

the AFDC program. 

Definition of ‘‘Annual’’

We propose that States impose the 

annual $25 fee within a Federal fiscal 

year period and report the fees for that 

Federal fiscal year. This proposal would 

ensure consistency among State 

programs in assessing the fee and 

reporting fees as program income as part 

of a State’s mandated Federal reporting 

procedures. However, we encourage 

comments on, and a rationale for, an 

alternative 12-month period, for 

example, a calendar year, for providing 

more State flexibility. 

When the $500 of Support Threshold Is 

Reached 

Under section 454(6)(B)(ii) of the Act, 

the annual fee must be imposed after the 

collection of at least $500 in a Federal 

fiscal year. Paragraph (e)(1) would 

require that support payments that make 

up this $500 also must have been 

disbursed to the family within the 

Federal fiscal year. 

We are proposing to require that the 

$500 support collection must have 

actually been disbursed to the family in 

a title IV–D case before imposing the 

$25 fee because to allow otherwise 

would result in imposition of a $25 fee 

in cases in which support is collected 

but is neither distributed nor disbursed 

to the family, e.g., a Federal income tax 

refund offset that is being held by the 

State because the obligated parent has 

requested a review under § 303.72, or a 

collection that has not yet been 

disbursed because the State has lost 

contact with, and is attempting to 

locate, the family. We believe this 

would be inconsistent with the statute’s 

concept that a case subject to the $25 fee 

would have benefited from receipt of 

$500 in support during the year before 

an annual $25 fee is imposed. Therefore, 

at least $500 in support collections must 

have been disbursed to the family in a 

year before an annual $25 fee is 

imposed for that year. If $500 in support 

is collected in one year but not 

disbursed until the next year, the fee 

would be imposed in the year in which 

the collection was actually disbursed to 

the family. 

Imposing a time period within which 

the $500 must be collected and 

disbursed is consistent with the purpose 

of the fee provision which requires 

States to impose an ‘‘annual fee.’’

Setting a specific time period for 

reaching the $500 threshold (i.e. within 

a Federal fiscal year) will also 

contribute to the efficient 

administration of HHS’ oversight 

responsibility with respect to the title 

IV–D program. 

One $25 Fee for Each Qualifying Case 

Section 454(6)(B)(ii) of the Act, in 

part, requires a $25 fee to be imposed 

for each case in which services are 

provided. A title IV–D case is defined in 

instructions to the Federal reporting 

form 157 as a noncustodial parent (or 

putative father), custodial parent and 

child(ren) in common. Therefore, only 

one $25 fee would be imposed in a title 

IV–D case that otherwise met the 

requirements for imposition of the fee. 

If a custodial parent has multiple 

children by different noncustodial 

parents, there would be a separate title 

IV–D case for each noncustodial parent, 

and the State must impose the annual 

$25 fee for each of these title IV–D cases 

in which the State disburses at least 

$500 in the Federal fiscal year. And, if 

a noncustodial parent has multiple 

children in separate title IV–D cases, the 

State must impose the $25 fee in each 

qualifying case in which the $500 

threshold and other conditions for 

imposing the fee under § 302.33(e) are 

met. 

Who Imposes the Fee in Interstate, 

International and Intergovernmental 

Tribal Title IV–D Cases? 

Section 454(6)(B)(ii) of the Act does 

not directly address imposition of the 

annual $25 fee in interstate cases, cases 

involving tribal members or the Tribal 

title IV–D programs, or international 

cases receiving services under section 

454(32) of the Act. States have asked for 

clarification in this regulation about 

which State imposes a $25 fee when the 

conditions under section 454(6)(B)(ii) 

are met in these kinds of cases. We 

address each type separately, starting 

with interstate cases that involve more 

than one State. Many States take direct 

action against noncustodial parents or 

putative fathers in different States to 

establish paternity and a support order 

using long-arm statutes or to enforce an 

order through direct income 

withholding, for example. The 

requirements of proposed § 302.33(e) 

would apply to these interstate cases in 

which one State uses long-arm 

jurisdiction to establish or enforce 

support orders in another State where 

the noncustodial parent is living, 

without involving the IV–D agency in 

the other State. Therefore, for purposes 

of this discussion, we are only referring 

to title IV–D cases in which one State 

has requested assistance from another 

State in a child support case as 

interstate cases. The proposed 

regulation, under § 303.7(e), requires the 

annual $25 fee to be imposed and 

reported by the initiating State in an 

interstate case. We have taken this 

position because the initiating State is 

the only State that has sufficient 

information to determine whether all 

the requirements for imposition of the 

fee have been met. That change is 

discussed further later in this preamble. 

With respect to international cases in 

which parents live in different 

countries, we believe such cases are 

covered by the fee provisions. However, 

section 454(32)(C) of the Act provides 

that ‘‘no applications will be required 

from, and no costs will be assessed for 

such services against, the foreign 

reciprocating country or foreign obligee 

(but costs may at State option be 

assessed against the obligor).’’ Section 

459A of the Act addresses the Federallevel declaration of a foreign country to 

be a foreign reciprocating country and 

refers, under section 459A(d), to Statelevel reciprocal arrangements with 

foreign countries that are not the subject 

of a Federal-level declaration. (See PIQ–

04–01, Processing Cases with Foreign 

Reciprocating Countries.) Therefore, 

while the $25 fee must be imposed 

when appropriate in international cases 

(when $500 has been collected in a 

Federal fiscal year and the family has 

never received State or Tribal TANF), it 

may not be taken out of the collection 

sent to, or charged to, a custodial parent 

in another country. The State could 

charge the noncustodial parent the fee 

or pay the fee itself in such cases. 

The proposed regulations at 

§ 302.33(e)(2) would require the State 

that receives the request from a foreign 

reciprocating country or a foreign 

country covered by a State level 

reciprocal agreement to impose the 

annual $25 fee in international cases 

receiving services under section 454(32) 

of the Act in which the criteria for 

imposition of the annual $25 fee under 

§ 302.33(e)(1) are met. Proposed 

§ 302.33(e)(3), discussed later in the 


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3096 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 

preamble, will address how the fee will 

actually be recovered or paid in these 

international cases, taking into account 

the prohibition in section 454(32)(C) of 

the Act that no costs will be assessed 

against the foreign reciprocating country 

or foreign obligee. 

We also considered the impact of the 

annual $25 fee on Tribal members and 

Tribal title IV–D programs. Section 

454(6)(B)(ii) is a State plan requirement 

and as such is not applicable to Tribal 

IV–D programs. However, if a Tribe is 

under cooperative agreement with a 

State title IV–D program under section 

454(33) of the Act and § 302.34 to assist 

the State in delivering title IV–D 

services, the Tribe would be required to 

impose the annual $25 fee in 

appropriate cases, if doing so is 

addressed under the cooperative 

agreement with the State. If it is not 

addressed in the cooperative agreement, 

the State IV–D agency would be 

responsible for collecting the fee in any 

case where it is the jurisdiction 

receiving the application for services or 

receiving a referral from the State 

TANF, foster care or title XIX programs. 

As described above, under 

§ 302.33(e)(1), a State would only 

impose the $25 fee in appropriate cases 

involving Tribal members who are 

receiving services from a State IV–D 

program and who have never received 

State or Tribal title IV–A assistance. A 

State may not impose a fee in a Tribal 

IV–D case that is referred to the State 

IV–D program for assistance in securing 

child support from a Tribal IV–D 

program because section 454(6)(B)(ii) of 

the Act does not apply to Tribal title IV–

D programs under section 455(f) of the 

Act and 45 CFR Part 309. A case where 

a State IV-D program receives a request 

from another State IV–D program for 

assistance involving a tribal member 

would be treated as an interstate case 

and the fee would be imposed by the 

initiating State. 

Collection of the Annual Fee: State 

Options To Retain, Charge, Recover or 

Pay the Annual Fee 

Under section 454(6)(B)(ii) of the Act, 

as added by section 7310(a)(1) of the 

DRA of 2005, there are four options for 

the collection of the fee. The annual $25 

fee may be retained by the State from 

support collected on behalf of the 

individual (but not from the first $500 

so collected in a Federal fiscal year), or, 

it may be paid by the individual 

applying for services, recovered from 

the absent parent, or paid by the State 

out of its own funds. To implement this 

provision, the proposed regulation adds 

§ 302.33(e)(3) under which after the first 

$500 of support collected in a Federal 

fiscal year is disbursed to the family, the 

annual fee must be collected by one or 

more of the following methods: (i) 

retained by the State from support 

collected in cases subject to the fee 

under § 302.33(e)(1) and (2), except in 

international cases receiving services 

under section 454(32) of the Act; (ii) 

paid by the individual applying for title 

IV–D services under section 

454(4)(A)(ii) of the Act and 

implementing regulations at § 302.33; 

(iii) recovered from the noncustodial 

parent; or (iv) paid by the State out of 

its own funds. 

In accordance with section 

454(6)(B)(ii), the proposed § 302.33(e)(3) 

provides States with flexibility to 

choose the appropriate method or 

methods in a case to collect the fee, 

once imposed. The method or methods 

selected may affect the cost of 

administration of the title IV–D 

program. For example, a State may 

decide to first attempt to recover the fee 

by billing the noncustodial parent, and 

if the noncustodial parent does not pay 

the fee in a specified period of time 

(e.g., 60 days), may then choose to 

withhold the fee from a subsequent 

collection. Alternatively, a State could 

choose to require the noncustodial 

parent to pay the fee as part of the 

support order, and, should the 

noncustodial parent designate a portion 

of a subsequent payment as the $25 fee, 

or an employer remit to the State IV–D 

agency withheld wages sufficient to 

cover both the fee and the support 

obligation included in the support 

order, the State may retain that amount 

from that payment. 

Section 454(6)(B)(ii) of the Act also 

authorizes a State to retain the fee from 

support collected in excess of the first 

$500 collected in a Federal fiscal year. 

Section 7310 of the DRA of 2005 also 

made a conforming amendment to 

section 457(a)(3) of the Act under 

which, in the case of a family that has 

never received assistance under title IV–

A or title IV–E of the Act, the State shall 

distribute to the family the portion of 

the amount of support collected that 

remains after withholding any fee 

imposed pursuant to section 

454(b)(B)(ii) of the Act. (A change to 

§ 302.51 to reflect this authority is 

discussed later in this preamble.) 

Therefore, under the option to retain the 

fee from collections, a State does not 

need the custodial parent or caretaker 

relative’s permission to withhold the 

annual $25 fee from a collection on his 

or her behalf. Alternatively, a State 

could charge the custodial parent or 

caretaker relative the fee (assuming they 

were the individuals who applied for 

services) and require payment within a 

specified period of time or indicate that 

if the fee is not paid, the State will use 

the option to retain the fee from support 

and the fee will be deducted from the 

first collection following the deadline 

for payment of the fee by the custodial 

parent or caretaker relative. 

Retaining the annual fee from support 

collected on behalf of the family may be 

the least administratively burdensome 

method when collections in excess of 

the first $500 are disbursed to the 

family. However, while a State may 

charge the $25 fee to a custodial parent 

in an international case in which the 

custodial parent is in the U.S. and the 

noncustodial parent is in a foreign 

country, a State may not impose the fee 

on an individual residing in a foreign 

country in an international case. As 

discussed previously, section 454(32) of 

the Act prohibits States from charging 

application fees or assessing costs 

against the foreign country or foreign 

obligee. In such cases, the annual $25 

fee imposed in international cases must 

be recovered from the parent or 

guardian living in the U.S. or be paid by 

the State. For purposes of international 

cases receiving services under section 

454(32) of the Act, the $500 in support 

may be considered disbursed to the 

family when it is transmitted to the 

foreign reciprocating country or directly 

to the family. 

Requirement That the Fee Be Collected 

by the End of the Fiscal Year 

Under proposed § 302.33(e)(4), using 

the Secretary’s rulemaking authority in 

section 1102 of the Act, the proposed 

regulations provide that the State must 

report, in accordance with reporting 

requirements under 45 CFR 302.15, and 

instructions issued to States by the 

Secretary, the total amount of annual 

$25 fees imposed for each Federal fiscal 

year as program income, regardless of 

which method or methods are used 

under paragraph (e)(3). States are 

required to report program income on 

the 4th quarter expenditure report. 

Requiring States to report the total 

amount of fees imposed in that year will 

contribute to the efficient 

administration of the Secretary’s 

functions under title IV–D of the Act by 

ensuring that States actually reduce title 

IV–D administrative costs for the fiscal 

year by the amount of fees that are due, 

as intended by the statute. Although 

section 7310 of the DRA of 2005 does 

not include any specific sanction for a 

State’s failure to collect the fee, section 

454(6)(B)(ii) of the Act conveys a clear 

expectation that the $25 fee will 

actually be imposed and retained, 

collected, or paid in all eligible cases in 

which at least $500 of support was 


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collected in a Federal fiscal year. 

Therefore, each State is responsible for 

imposing, retaining, collecting or 

paying, and reporting the total of 

amount of annual $25 fees imposed in 

all cases in which it is required to be 

imposed during the fiscal year. If the 

$500 threshold is reached toward the 

end of a Federal fiscal year, the methods 

available to the State to collect or pay 

the fee may be limited to retaining the 

fee from a subsequent collection, if there 

is one made and disbursed before the 

end of the year, or paying the fee out of 

State funds. If a State does not make any 

collections above the $500 threshold or 

collects less than $25 in excess of the 

first $500 disbursed to the family in the 

year, the State must collect the fee using 

one of the other methods, and, if all else 

fails, pay the fee itself by the end of the 

fiscal year. We are specifically soliciting 

comments on ways to effectively ensure 

timely collection of the annual fee. 

Section 7310(b) of the DRA of 2005 

makes a conforming amendment to 

section 457(a)(3) of the Act, which 

requires that in the case of families that 

never received assistance, the State 

must distribute to the family the portion 

of the amount so collected that remains 

after withholding any fee pursuant to 

section 454(6)(B)(ii) of the Act. 

Therefore, if a State opts to retain the fee 

from a collection, the State may retain 

the annual $25 fee imposed under 

§ 302.33(e)(1) and (2) from a collection 

in excess of the first $500 disbursed to 

the family in a never-assistance case, 

regardless of whether or not the 

collection is considered, under section 

457 of the Act and implementing 

regulations at § 302.51, a payment on 

current support or arrearages. 

For purposes of distribution under 

section 457 of the Act, assistance is 

defined in section 457(c)(1) as 

assistance under a State title IV–A 

TANF program or the program that 

TANF replaced, AFDC or title IV-E 

foster care program. If the State 

withholds the annual $25 fee from the 

collection on behalf of a never 

assistance case (i.e., opts to retain the 

fee from a collection in such a case), and 

chooses to assess the fee against the 

custodial parent the State must give the 

noncustodial parent credit in the 

payment record for the entire amount of 

the payment. However, the State may 

deduct the annual $25 fee from a 

payment if the State has chosen to 

recover the fee from the noncustodial 

parent and the noncustodial parent has 

designated a portion of the payment as 

the annual $25 fee. In such a case, the 

noncustodial parent must get credit for 

paying the fee, and for paying support 

in the amount that is paid in excess of 

the fee. 

Annual $25 Fee as Program Income 

The intent of the annual $25 fee is to 

recoup in part the costs of the title IV–

D program to the Federal and State 

governments by decreasing program 

expenditures. Under § 304.50, 

Treatment of Program Income, fees, 

recovered costs, and interest are 

considered program income that must 

be used to reduce title IV–D 

expenditures before seeking Federal 

financial participation in the title IV–D 

program’s expenditures. Program 

income is reported in accordance with 

45 CFR 302.15 and instructions issued 

by the Secretary. This reported program 

income must include the total amount 

of annual $25 fees imposed, regardless 

of whether the fees are retained from 

collections, paid by the custodial 

parent, recovered from the noncustodial 

parent or paid by the State. In addition, 

State-paid annual $25 fees are not an 

allowable title IV–D expenditure eligible 

for Federal matching under section 455 

of the Act or 45 CFR part 304. Section 

454(6)(B)(ii) of the Act requires that 

State funds used to pay the annual $25 

fee may not be considered as an 

administrative cost of the State title IV–

D program and must be counted as 

program income. 

Therefore, proposed § 302.33(e)(5) 

requires that State funds used to pay the 

annual $25 fee shall not be considered 

administrative costs of the State for 

operation of the title IV–D plan, and that 

all annual $25 fees imposed during a 

Federal fiscal year must be considered 

income to the program, in accordance 

with § 304.50. States will be required to 

report the total amount of annual $25 

fees imposed on Line 2a, Fees and Costs 

Recovered, on Form OCSE–396A, Child 

Support Enforcement Program Financial 

Report, in addition to any other fees, 

costs recovered and interest. 

Section 302.51—Distribution of Support 

Collections 

Section 7301(b) of the DRA revises 

section 457(a)(3) of the Act to require a 

State to pay, to a family that has never 

received assistance under a title IV–A or 

IV–E program, the portion of an amount 

collected that remains after withholding 

any annual $25 fee that may be imposed 

under section 454(6)(B)(ii) of the Act. 

This statutory requirement is being 

addressed in these proposed regulations 

by an amendment to § 302.51(a)(1) to 

include an additional exception in 

accordance with proposed paragraph 

(a)(5). Therefore, the revised paragraph 

(a)(1) would read as follows: ‘‘(a)(1)For 

purposes of distribution in a IV–D case, 

amounts collected, except as provided 

under paragraphs (a)(3) and (5) of this 

section, shall be treated first as payment 

on the required support obligation for 

the month in which the support was 

collected and if any amounts are 

collected which are in excess of such 

amount, these excess amounts shall be 

treated as amounts which represent 

payment on the required support 

obligation for previous months.’’

Paragraph (a)(5) would read as follows: 

‘‘(a)(5) The State must pay to a family 

that has never received assistance under 

a State program funded or approved 

under title IV–A of the Act or foster care 

under title IV–E of the Act the portion 

of the amount collected that remains 

after withholding any annual $25 fee 

that the State imposes under § 302.33(e) 

of this part.’’

Certain changes made by section 

7301(b) of the DRA which allow States 

to increase child support payments to 

families and simplify child support 

distribution rules were explained earlier 

under the discussion of § 302.32, 

Collection and Disbursement of Support 

Payments by the IV–D agency, including 

a new State plan requirement at section 

454(34) of the Act under which a State 

must certify which option for 

distribution of collections in former 

assistance cases it will use. This 

statutory requirement is being addressed 

in these proposed regulations at 

§ 302.51(a)(3) for consistency with State 

options for distribution of collections in 

former assistance cases authorized 

under the section 7301(b) of the DRA of 

2005. 

Current § 302.51(a)(3) requires that 

amounts collected through Federal 

income tax refund offset must be 

distributed as arrearages in accordance 

with implementing regulations for the 

Federal income tax refund offset process 

in § 303.72(h), and section 

457(a)(2)(B)(iv) of the Act, under which 

Federal income tax refund offsets are 

first retained to satisfy any past-due 

support assigned to the State. We are 

making a conforming change to 

§ 302.51(a)(3) to include the States’

option, effective October 1, 2009, or up 

to a year earlier at State option, under 

section 454(34) of the Act, to use 

Federal income tax refund offset 

collections to satisfy current support, if 

not already paid for the month and to 

first pay collections, including Federal 

income tax refund offsets, to a former 

assistance family, before satisfying any 

support assigned to the State. 

Section 302.70—Required State Laws 

Section 7302 of the DRA of 2005 

amended section 466(a)(10) of the Act to 

require States to enact laws requiring 


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the use of procedures to review, and if 

appropriate, adjust at least once every 

three years, child support orders for 

families receiving TANF in which there 

is an assignment of support under title 

IV–A of the Act. Under section 

466(a)(10) of the Act and § 303.8, States 

may review orders using State child 

support guidelines and adjust them if 

appropriate, apply a cost-of-living 

adjustment to the orders, or use 

automated methods to identify orders 

eligible for review, conduct the reviews 

and adjust the orders, if appropriate. 

Section 7302 of the DRA of 2005 

reinstates the pre-1996 requirement for 

States to review and, if appropriate, 

adjust orders in TANF cases on a threeyear cycle. This change only affects 

those cases in which the families are 

currently receiving TANF. It does not 

apply to arrearage-only IV–D cases in 

which a State is only collecting 

arrearages assigned to the State because 

of title IV–A assistance provided in 

years past. 

For consistency with section 

466(a)(10) of the Act, the proposed 

regulations revise § 302.70(a)(10), under 

which the State must have in effect laws 

providing for the review and adjustment 

of child support orders. The 

requirements in current 

§§ 302.70(a)(10)(i) and (ii) are obsolete 

and would be replaced with reference to 

requirements for review and adjustment 

of child support orders in accordance 

with § 303.8. Specific changes to the 

content of § 303.8(b)(1), which address 

the requirements that are in effect until 

September 30, 2007 and those that 

become effective on October 1, 2007, are 

discussed later in this preamble. 

Part 303—Standards for Program 

Operations 

Section 303.7—Provision of Services in 

Interstate Title IV–D Cases 

In § 302.33(c)(2), in an interstate case, 

the application fee is charged by the 

State in which the individual applies for 

services. Under responding State 

responsibilities in interstate cases in 

§ 303.7(c)(7)(iv), the responding State 

must forward collections to the location 

specified by the initiating State title IV–

D agency for distribution and 

disbursement. Because the application 

fee is paid in the initiating State and 

that State is responsible for distribution 

and disbursement of collections in 

interstate cases in accordance with 

Question and Answer 12 of OCSE–AT–

98–24 (http://www.acf.hhs.gov/ 

programs/cse/pol/AT/1998/at9824.htm, only the initiating State has 

all the information necessary to know 

whether the annual $25 fee should be 

imposed in a particular case. 

Accordingly, we believe it is 

appropriate for the initiating State to 

impose the annual $25 fee in eligible 

cases after the $500 threshold is met, 

and to report the amount of fees 

imposed as required under 

§ 302.33(e)(3). 

Section 7310 of the DRA does not 

specifically address which State is to 

impose and collect the annual $25 fee. 

Using the Secretary’s rulemaking 

authority in section 1102 of the Act, we 

are proposing to amend § 303.7(e) to 

require that the title IV–D agency in the 

initiating State impose the annual $25 

fee in accordance with proposed 

changes to § 302.33(e) discussed earlier 

in this preamble. This change is 

necessary to ensure consistency in the 

collection of the mandatory annual $25 

fee in interstate cases. 

Section 303.8—Review and Adjustment 

of Child Support Orders 

As discussed earlier, section 7302 of 

the DRA of 2005 revised section 

466(a)(10) of the Act, effective October 

1, 2007, to require States to review and, 

if appropriate, adjust orders in State title 

IV–A cases at least once every three 

years. Now that title IV–A assistance is 

time limited under TANF, it is 

especially important that States ensure, 

prior to the family ceasing to receive 

TANF, that the support order, which is 

essential to the family’s continued 

financial independence, is set at the 

appropriate level based on the 

responsible parent’s or parents’ income 

and ability to pay. 

Under current § 303.8(b)(1), a State 

must conduct a review every three years 

only if requested by either the parent or 

the title IV–D agency. Proposed 

§ 303.8(b)(1) would require, effective 

October 1, 2007, a State to have 

procedures under which, every three 

years (or such shorter cycle as the State 

may determine), if there is an 

assignment under part A or upon the 

request of either parent, the State shall, 

with respect to a support order being 

enforced under this part, take into 

account the best interests of the child 

involved and (i) review and, if 

appropriate, adjust orders in accordance 

with the State’s guidelines; (ii) apply a 

cost-of-living adjustment to the order; or 

(iii) use automated methods to identify 

orders eligible for review, conduct the 

review, identify orders eligible for 

adjustment, and apply the appropriate 

adjustment to the orders eligible for 

adjustment under any threshold that 

may be established by the State. 

Section 303.72—Requests for Collection 

of Past-Due Support by Federal Tax 

Refund Offset 

As discussed earlier in the preamble, 

section 7301(f) of the DRA of 2005 

changes the definition of ‘‘past-due 

support’’ at section 464(c) of the Act to 

allow, effective October 1, 2007, 

arrearages owed to grown children to be 

submitted for Federal income tax refund 

offset process. Therefore, the proposed 

regulations revise § 303.72(a)(3)(i), with 

respect to past-due support owed in 

cases in which the IV–D agency is 

providing services under § 302.33, to 

allow support owed to or on behalf of 

a child, or a child and the parent with 

whom the child is living if the same 

support order includes support for the 

child and the parent, to be submitted for 

Federal income tax refund offset, 

effective October 1, 2007. 

As discussed earlier with respect to 

distribution options for States under 

section 454(34) of the Act, as added by 

section 7301(b)(2)(C) of the DRA of 

2005, effective October 1, 2009, or up to 

a year earlier at State option, a State 

may choose either to apply amounts 

collected, including amounts offset from 

Federal income tax refunds, to satisfy 

any support owed to the family first or 

to continue to distribute Federal tax 

offset amounts, as under current 

457(a)(2)(B)(iv), to satisfy any past-due 

support assigned to the State first. 

Section 303.72(h)(1) would be revised to 

eliminate reference to distributing 

amounts offset as past-due support and 

to refer simply to distribution in 

accordance with section 457 of the Act, 

and effective October 1, 2009, or up to 

a year earlier at State option, in 

accordance with section 454(34) of the 

Act, pursuant to which States elect 

which distribution priority in former 

assistance cases to use under their IV–

D programs. In addition, § 303.72(h)(3) 

would be revised to include the 

requirement that a IV–D agency, 

effective October 1, 2009, or up to a year 

earlier at State option, must inform 

individuals receiving services under 

§ 302.33 in advance, when the State has 

opted, under section 454(34) of the Act, 

to continue to apply amounts offset first 

to satisfy any past-due support which 

has been assigned to the State and 

submitted for Federal income tax refund 

offset. 

Part 304—Federal Financial 

Participation 

Section 304.20—Availability and Rate of 

Federal Financial Participation 

Section 7303 of the DRA of 2005 

reduces the previously enhanced 

Federal matching rate for laboratory 


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costs to determine paternity, effective 

October 1, 2006. The enhanced 

matching rate was originally 

implemented in 1988 because of the 

high costs of genetic testing for the 

determination of paternity. However, 

the cost of genetic testing is much more 

reasonable than it was in 1988. The 

Federal matching rate of 66 percent 

applies to laboratory costs for 

determining paternity beginning 

October 1, 2006. 

Currently, § 304.20(d) allows Federal 

financial participation at the 90 percent 

rate for laboratory costs incurred in 

determining paternity on or after 

October 1, 1988. The proposed 

regulation revises § 304.20(d) by 

eliminating the availability of enhanced 

funding for genetic testing costs after 

September 30, 2006. 

III. Impact Analysis 

Paperwork Reduction Act of 1995 

This rule contains information 

collection requirements that have been 

submitted to the Office of Management 

and Budget (OMB) under the Paperwork 

Reduction Act of 1995 (PRA). Under 

this Act, no persons are required to 

respond to a collection of information 

unless it displays a valid OMB control 

number. These requirements will not 

become effective until approved by 

OMB. 

There is a new reporting requirement 

for a State’s IV–D plan in section 

454(34) of the Act, to indicate which 

distribution option the State will choose 

to implement. A new State plan preprint 

page has been developed as part of this 

Paperwork Reduction Act (PRA) 

request. In addition, a new State plan 

preprint page has been developed for 

the State to indicate that a State will 

impose a fee and how it will be 

collected. States will also be required to 

keep track of the total amount of $25 

fees that must be included as program 

income reported on the OCSE–396A. A 

State plan preprint page is not 

necessary. However, the tracking burden 

is indicated below. 

All States already have the capability 

of automating the new and revised 

information collection requirements 

imposed by the DRA of 2005 and these 

implementing regulations. Therefore, as 

provided below, the paperwork impact 

on States under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

3507(d)) will be minimal. 

The additional incremental estimated 

burdens for these data collections (i.e. 

not including existing burden) are: 

Requirement Number of 

respondents 

Yearly 

submittals 

Average 

burden hours 

per 

response 

Total 

burden hours 

State Plan (OCSE–100) .......................................................................... ........................ ........................ ............................ ............................

Preprint page 2.4 Collection/Distribution of Support Payments .............. 54 1 .25 13 .5 

State Plan Transmittal Page (Distribution) .............................................. 54 1 .25 13 .5 

Preprint page 2.5–4 Services to Individuals (Fee) .................................. 54 1 .25 13 .5 

State Plan Transmittal Page (Fee) .......................................................... 54 1 .25 13 .5 

Financial Form 396A (Tracking the $25 fee) ........................................... 54 4 1 216 

The total estimated burden for the 

entire State Plan and Financial Report 

Forms are: 

Requirement Number of 

respondents 

Yearly 

submittals 

Total 

burden hours * 

State Plan (OCSE–100) ............................................................................................................ 54 6 189 

State Plan Transmittal (OCSE–21–U4) ..................................................................................... 54 6 108 

Total .................................................................................................................................... ........................ ........................ ..........................

Financial Report Form (396A) ................................................................................................... 54 4 1944 

* Includes incremental burden noted in previous chart. 

In accordance with the Paperwork 

Reduction Act of 1995, this notice 

invites the general public and other 

public agencies to comment on the 

information collection requirements 

contained in this proposed rule. The 

Administration for Children and 

Families (ACF) will consider comments 

by the public on this proposed 

collection of information in the 

following areas: 

(1) Evaluating whether the proposed 

collection is necessary for the proper 

performance of the functions of ACF, 

including whether the information will 

have practical utility; 

(2) Evaluating the accuracy of ACF’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

(3) Enhancing the quality, usefulness 

and clarity of the information to be 

collected; and 

(4) Minimizing the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technology, e.g., permitting electronic 

submission of responses. 

OMB is required to make a decision 

concerning the collection of information 

contained in these proposed regulations 

between 30 and 60 days after 

publication of this document in the 

Federal Register. Therefore, a comment 

is best assured of having its full effect 

if OMB receives it within 30 days of 

publication. This does not affect the 

deadline for the public to comment to 

the Department on the proposed 

regulations. 

To make sure that your comments and 

related material do not reach OMB more 

than once, please submit them by only 

one of the following means: 

1. By fax to OMB at (202) 395–6974. 

To ensure your comments are received 

in time, mark the fax to the attention of 

the Desk Officer for the Administration 

for Children and Families. 

2. By e-mail to 

kmatsuoka@omb.eop.gov. 

Copies of the proposed collection may 

be obtained by writing to the 

Administration for Children and 


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3100 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 

Families, Office of Administration, 

Office of Information Services, 370 

L’Enfant Promenade, SW., Washington, 

DC 20447, Attn: ACF Reports Clearance 

Officer. All requests should be 

identified by the title of the information 

collection (i.e., State Plan OCSE–100 

and State Plan Transmittal OCSE–21–

U4). E-mail address: rsargis@acf.hhs.gov 

Regulatory Flexibility Analysis 

The Secretary certifies that, under 5 

U.S.C. 605(b), as enacted by the 

Regulatory Flexibility Act (Pub. L. 96–

354), this rule will not result in a 

significant impact on a substantial 

number of small entities. The primary 

impact is on State governments. State 

governments are not considered small 

entities under the Act. 

Regulatory Impact Analysis 

Executive Order 12866 requires that 

regulations be reviewed to ensure that 

they are consistent with the priorities 

and principles set forth in the Executive 

Order. The Department has determined 

that these proposed rules are consistent 

with these priorities and principles and 

is an economically significant rule as 

defined by the Executive Order because 

it will have an estimated $500 million 

impact on the economy over a 5 year 

period and, potentially, a $100 million 

impact on the economy in any given 

year. Specifically, we estimate that the 

requirement for review and adjustment 

of child support orders in TANF cases 

every three years will cost the Federal 

government approximately $15 million 

in FY 2008 but result in approximately 

$40 million in savings over four years. 

Similarly, this provision will cost State 

governments approximately $10 million 

in FY 2008 but save States almost $40 

million over four years with a net 

government impact of approximately 

$25 million in costs in FY 2008 and 

approximately $80 million in savings by 

FY 2011. These costs reflect the upfront 

increased administrative costs involved 

in reviewing these cases and as 

appropriate updating the orders every 

three years and the savings that will 

result overtime in the way of increased 

revenues (Federal and State shares of 

the larger collections amounts). This 

provision also is beneficial to families in 

terms of ensuring that support order 

remain fair and equitable over time and 

reflect the noncustodial parent’s current 

ability to pay support. 

The provision on imposition of a $25 

annual collection fee for never-TANF 

cases with at least $500 in collections 

will save the Federal government a little 

less than $50 million in FY 2007 (when 

the provision is effective) and result in 

approximately $270 in Federal savings 

over five years. The provision will save 

State governments approximately $25 

million in FY 2007 and approximately 

$140 million over five years. These fees 

will partially offset the government’s 

costs of providing services and are 

representative of Federal and State cost 

sharing in the program (66 and 34 

percent respectively). 

Finally, the provision eliminating 

enhanced Federal funding for the cost of 

paternity testing will save the Federal 

government almost $8 million in FY 

2007 and approximately $40 million 

over five years and will result in a dollar 

for dollar increase in State costs. In 

other words, for each dollar saved by 

the Federal government because of the 

decrease in federal financial 

participation will result in a dollar in 

State costs. Enhanced federal funding 

for paternity testing is no longer 

necessary because the cost of these tests 

has decreased significantly over time. 

All together these provisions save the 

Federal and State governments 

approximately $66 million in FY 2007 

and approximately $495 million over 

five years. As each of these provisions 

was mandated under the Deficit 

Reduction Act of 2005, alternatives to 

this rulemaking are limited. We could 

have chosen not to update program 

regulations to reflect these statutory 

changes but that would be confusing to 

the public and would ultimately have 

no budgetary impact since these 

provisions are effective without regard 

to the issuance of regulations. 

In the end, the proposed rule remains 

consistent with the statute and the 

underlying budget implications. 

Unfunded Mandates Reform Act of 1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 requires 

that a covered agency prepare a 

budgetary impact statement before 

promulgating a rule that includes any 

Federal mandate that may result in the 

expenditure by State, local, and Tribal 

governments, in the aggregate, or by the 

private sector, of $120 million or more 

in any one year. 

If a covered agency must prepare a 

budgetary impact statement, section 205 

further requires that it select the most 

cost-effective and least burdensome 

alternative that achieves the objectives 

of the rule and is consistent with the 

statutory requirements. In addition, 

section 203 requires a plan for 

informing and advising any small 

governments that may be significantly 

or uniquely impacted by the rule. 

The Department has determined that 

this proposed rule, in implementing the 

new statutory requirements of the 

Deficit Reduction Act, would not 

impose a mandate that will result in the 

expenditure by State, local, and Tribal 

governments, in the aggregate, or by the 

private sector, of more than $100 

million in any one year. Rather, we 

estimate that combined the proposed 

provisions will result in savings to 

States. Over five years, the Federal 

government will save approximately 

$315 million as a result of the review 

and adjustment and collection fee 

provisions of the regulation and States 

will save almost $180 million. States 

will receive approximately $40 million 

less in federal reimbursement for 

laboratory costs associated with 

paternity establishment over five years. 

Thus, the net impact of the regulation 

on States is a savings of almost $140 

million over five years. 

Congressional Review 

This notice of proposed rule making 

is not a major rule as defined in 5 U.S.C. 

chapter 8. 

Assessment of Federal Regulations and 

Policies on Families 

Section 654 of the Treasury and 

General Government Appropriations 

Act of 1999 requires Federal agencies to 

determine whether a proposed policy or 

regulation may negatively affect family 

well-being. If the agency’s 

determination is affirmative, then the 

agency must prepare an impact 

assessment addressing seven criteria 

specified in the law. The required 

review of the regulations and policies to 

determine their effect on family wellbeing has been completed and these 

regulations will have a positive impact 

on family well-being as defined in the 

legislation because expanded access to 

the Federal income tax refund offset, 

mandatory three-year reviews of support 

orders in TANF cases, and State options 

to pay more collections to families will 

ensure more child support is paid to 

families. 

Executive Order 13132 

Executive Order 13132 prohibits an 

agency from publishing any rule that 

has federalism implications if the rule 

either imposes substantial direct 

compliance costs on State and local 

governments or is not required by 

statute, or the rule preempts State law, 

unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. We 

do not believe the regulation has 

federalism impact as defined in the 

Executive order. However, consistent 

with Executive Order 13132, the 

Department specifically solicits 

comments from State and local 


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government officials on this proposed 

rule. 

List of Subjects 

45 CFR Part 301 

Child support, Grants programs/social 

programs. 

45 CFR Part 302 

Child support, Grants programs/social 

programs. 

45 CFR Part 303 

Child support, Grant programs/social 

programs. 

45 CFR Part 304 

Child support, Grants programs/social 

programs. 

(Catalog of Federal Domestic Assistance 

Programs No. 93.563, Child Support 

Enforcement Program.) 

Wade F. Horn, 

Assistant Secretary for Children and Families. 

Approved: October 23, 2006. 

Michael O. Leavitt, 

Secretary of Health and Human Services. 

For the reasons discussed above, we 

propose to amend title 45 chapter III of 

the Code of Federal Regulations as 

follows: 

PART 301—STATE PLAN APPROVAL 

AND GRANT PROCEDURES 

1. The authority citation for part 301 

continues to read as follows: 

Authority: 42 U.S.C. 651 through 658, 660, 

664, 666, 667, 1301, and 1302. 

2. In § 301.1, revise the definitions of 

‘‘Past-due support’’ and ‘‘Qualified 

child’’ to read as follows: 

§ 301.1 General definitions. 

* * * * * 

Past due support means the amount of 

support determined under a court order 

or an order of an administrative process 

established under State law for support 

and maintenance of a child, or of a child 

and the parent with whom the child is 

living, which has not been paid. 

Through September 30, 2007, for 

purposes of referral for Federal income 

tax refund offset of support due an 

individual who is receiving services 

under § 302.33 of this chapter, past-due 

support means support owed to or on 

behalf of a qualified child, or a qualified 

child and the parent with whom the 

child is living if the same support order 

includes support for the child and the 

parent. 

* * * * * 

Qualified child, through September 

30, 2007, means a child who is a minor 

or who, while a minor, was determined 

to be disabled under title II or XVI of the 

Act, and for whom a support order is in 

effect. 

* * * * * 

PART 302—STATE PLAN APPROVAL 

REQUIREMENTS 

1. The authority citation for part 302 

continues to read as follows: 

Authority: 42 U.S.C. 651 through 658, 660, 

664, 666, 667, 1302, 1396a(a)(25), 

1396b(d)(2), 1396b(o), 1396b(p), and 1396k. 

2. In § 302.32, revise paragraphs (b) 

introductory text, (b)(2) introductory 

text, (b)(2)(iv), and (b)(3)(ii) to read as 

follows: 

§ 302.32 Collection and disbursement of 

support payments by the title IV–D Agency. 

* * * * * 

(b) Timeframes for disbursement of 

support payments by the State 

disbursement unit (SDU) under section 

454B of the Act. 

(1) * * * 

(2) Amounts collected by the title IV–

D agency on behalf of recipients of aid 

under the State’s title IV–A or title IV–

E plan for whom an assignment under 

section 408(a)(3) or 471(a)(17) of the Act 

is effective shall be disbursed by the 

SDU within the following timeframes: 

(i) * * * 

(ii) * * * 

(iii) * * * 

(iv) Collections as a result of Federal 

income tax refund offset paid to the 

family or distributed in title IV–E foster 

care cases under § 302.52(b)(4) of this 

part, must be sent to the title IV–A 

family or title IV–E agency, as 

appropriate, within 30 calendar days of 

the date of initial receipt by the title IV–

D agency, unless State law requires a 

post-offset appeal process and an appeal 

is filed timely, in which case the SDU 

must send any payment to the title IV–

A family or title IV–E agency within 15 

calendar days of the date the appeal is 

resolved. 

(3)(i) * * * 

(ii) Collections due the family as a 

result of Federal income tax refund 

offset must be sent to the family within 

30 calendar days of the date of initial 

receipt in the title IV–D agency, except: 

(A) If State law requires a post-offset 

appeal process and an appeal is timely 

filed, in which case the SDU must send 

any payment to the family within 15 

calendar days of the date the appeal is 

resolved; or 

(B) As provided in § 303.72(h)(5) of 

this chapter. 

3. In § 302.33, revise the section 

heading and add new paragraph (e) to 

read as follows: 

§ 302.33 Services to individuals not 

receiving title IV–A assistance. 

* * * * * 

(e) Annual $25 fee. (1) In the case of 

an individual who has never received 

assistance under a State or Tribal title 

IV–A program, and for whom the State 

has disbursed to the family at least $500 

of support in the Federal fiscal year, the 

State must impose in, and report for, 

that year an annual fee of $25 for each 

case in which services are provided. 

(2) The State must impose the annual 

$25 fee in international cases under 

section 454(32) of the Act in which the 

criteria for imposition of the annual $25 

fee under paragraph (e)(1) of this section 

are met. 

(3) For each Federal fiscal year, after 

the first $500 of support is disbursed to 

the family, the fee must be collected by 

one or more of the following methods: 

(i) Retained by the State from support 

collected in cases subject to the fee 

except in international cases receiving 

services under section 454(32) of the 

Act; 

(ii) Paid by the individual applying 

for services under section 454(4)(A)(ii) 

of the Act and implementing regulations 

in this section; 

(iii) Recovered from the noncustodial 

parent; or 

(iv) Paid by the State out of its own 

funds. 

(4) The State must report, in 

accordance with § 302.15 of this part 

and instructions issued by the Secretary, 

the total amount of annual $25 fees 

imposed under this section for each 

Federal fiscal year as program income, 

regardless of which method or methods 

are used under paragraph (e)(3) of this 

section. 

(5) State funds used to pay the annual 

$25 fee shall not be considered 

administrative costs of the State for the 

operation of the title IV–D plan, and all 

annual $25 fees imposed during a 

Federal fiscal year must be considered 

income to the program, in accordance 

with § 304.50 of this chapter. 

4. In § 302.51, revise paragraphs (a)(1) 

and (a)(3) and add paragraph (a)(5) to 

read as follows: 

§ 302.51 Distribution of support 

collections. 

* * * * * 

(a)(1) For purposes of distribution in 

a IV–D case, amounts collected, except 

as provided under paragraphs (a)(3) and 

(5) of this section, shall be treated first 

as payment on the required support 

obligation for the month in which the 

support was collected and if any 

amounts are collected which are in 

excess of such amount, these excess 

amounts shall be treated as amounts 


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3102 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Proposed Rules 

which represent payment on the 

required support obligation for previous 

months. 

(2) * * * 

(3)(i) Except as provided in 

subparagraph (ii) of this paragraph, 

amounts collected through Federal 

income tax refund offset must be 

distributed as arrearages in accordance 

with § 303.72 of this chapter, and 

section 457 of the Act; 

(ii) Effective October 1, 2009, or up to 

a year earlier at State option, amounts 

collected through Federal income tax 

refund offset shall be distributed in 

accordance with § 303.72 of this chapter 

and the option selected under section 

454(34) of the Act. 

(4) * * * 

(5) The State must pay to a family that 

has never received assistance under a 

state program funded or approved under 

title IV–A or foster care under title IV–

E of the Act the portion of the amount 

collected that remains after withholding 

any annual $25 fee that the State 

imposes under § 302.33(e) of this part. 

* * * * * 

5. In § 302.70, revise paragraph (a)(10) 

in its entirety to read as follows: 

§ 302.70 Required State laws. 

(a) * * * 

(10) Procedures for the review and 

adjustment of child support orders in 

accordance with § 303.8(b) of this 

chapter. 

* * * * * 

PART 303—STANDARDS FOR 

PROGRAM OPERATIONS 

1. The authority citation for part 303 

is revised to read as follows: 

Authority: 42 U.S.C. 651 through 658, 659, 

659A, 660, 663, 664, 666, 667, 1302, 

1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 

and 1396k. 

2. In § 303.7, add new paragraph (e) 

to read as follows: 

§ 303.7 Provision of services in interstate 

cases. 

* * * * * 

(e) Imposition and reporting of annual 

$25 fee in interstate cases. The title IV–

D agency in the initiating State must 

impose and report the annual $25 fee in 

accordance with § 302.33(e) of this 

chapter. 

* * * * * 

3. In § 303.8, revise paragraphs (b) 

introductory text and (b)(1) introductory 

text to read as follows: 

§ 303.8 Review and adjustment of child 

support orders. 

(a) * * * 

(b) Required procedures. Pursuant to 

section 466(a)(10) of the Act, effective 

October 1, 2007, when providing 

services under this chapter: 

(1) The State must have procedures 

under which, every three years (or such 

shorter cycle as the State may 

determine), if there is an assignment 

under part A, or upon the request of 

either parent, the State shall, with 

respect to a support order being 

enforced under this part, taking into 

account the best interests of the child 

involved: 

* * * * * 

4. In § 303.72 revise paragraphs (a)(3) 

introductory text, (a)(3)(i), and (h)(1) 

and (h)(3) to read as follows: 

§ 303.72 Requests for collection of pastdue support by Federal tax refund offset. 

(a) * * * 

(1) * * * 

(2) * * * 

(3) For support owed in cases where 

the title IV–D agency is providing title 

IV–D services under § 302.33 of this 

chapter: 

(i) The support is owed to or on behalf 

of a child, or a child and the parent with 

whom the child is living if the same 

support order includes support for the 

child and the parent. 

* * * * * 

(h) Distribution of collections. 

(1) Collections received by the IV–D 

agency as a result of refund offset to 

satisfy title IV–A or non-IV–A past-due 

support shall be distributed as required 

in accordance with section 457 and, 

effective October 1, 2009, or up to a year 

earlier at State option, in accordance 

with the option selected under section 

454(34) of the Act. 

* * * * * 

(3)(i) Through September 30, 2009, or 

up to a year earlier at State option, the 

IV–D agency must inform individuals 

receiving services under § 302.33 of this 

chapter in advance that amounts offset 

will be applied to satisfy any past-due 

support which has been assigned to the 

State and submitted for Federal tax 

refund offset. 

(ii) Effective October 1, 2009, or up to 

a year earlier at State option, the IV–D 

agency must inform individuals 

receiving services under § 302.33 of this 

chapter in advance when the State has 

opted, under section 454(34) of the Act, 

to continue to apply amounts offset first 

to satisfy any past-due support which 

has been assigned to the State and 

submitted for Federal tax refund offset. 

* * * * * 

PART 304—FEDERAL FINANCIAL 

PARTICIPATION 

1. The authority citation for part 304 

continues to read as follows: 

Authority: 42 U.S.C. 651 through 655, 657, 

1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 

1396b(p), and 1396k. 

§ 304.20 [Amended] 

2. In § 304.20, revise paragraph (d) to 

read as follows: 

§ 304.20 Availability and rate of Federal 

financial participation. 

* * * * * 

(d) Federal financial participation at 

the 90 percent rate is available for 

laboratory costs incurred in determining 

paternity on or after October 1, 1988, 

and until September 30, 2006, including 

the costs of obtaining and transporting 

blood and other samples of genetic 

material, repeated testing when 

necessary, analysis of test results, and 

the costs for expert witnesses in a 

paternity determination proceeding, but 

only if the expert witness costs are 

included as part of the genetic testing 

contract. 

[FR Doc. E7–953 Filed 1–23–07; 8:45 am] 

BILLING CODE 4184–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 25 

[IB Docket 06–160; DA 07–25] 

Processing Applications in the Direct 

Broadcast Satellite Service; Feasibility 

of Reduced Orbital Spacing for 

Provision of Direct Broadcast Satellite 

Service in the United States 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule; extension of 

reply comment period. 

SUMMARY: On August 18, 2006, the 

Commission released a Notice of 

Proposed Rulemaking (71 FR 56923, 

September 28, 2006) (NPRM) in the 

proceeding captioned above. The NPRM 

seeks comment from the public on 

proposed licensing procedures and 

service rules for satellites providing 

Direct Broadcast Satellite (DBS) service. 

The NPRM also seeks comment on 

licensing non-nine-degree-spaced DBS 

applications. 

On December 22, 2006, SES 

Americom, Inc. filed a Motion for 

Extension of Time, requesting the 

Commission to extend the reply 

comment filing deadline in this 

proceeding. SES Americom, Inc. stated 

that an extension would enable the 

parties to the proceeding to provide a 

more complete record for review, 

considering the important policy and 


rmajette on PROD1PC67 with PROPOSALS