[Federal Register Volume 62, Number 25 (Thursday, February 6, 1997)]
[Rules and Regulations]
[Pages 5519-5520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2942]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 62, No. 25 / Thursday, February 6, 1997 / 
Rules and Regulations

[[Page 5519]]



DEPARTMENT OF AGRICULTURE

Food and Consumer Service

7 CFR Parts 210 and 226

RIN 0584-AC42


Child and Adult Care Food Program, Improved Targeting of Day Care 
Home Reimbursements; Correction and Extension of Comment Period

AGENCY: Food and Consumer Service, USDA.

ACTION: Interim rule; correction and extension of comment period.

-----------------------------------------------------------------------

SUMMARY: This document contains corrections to the preamble, regulatory 
text, and economic impact analysis (appendix) of the interim rule 
published on January 7, 1997 (62 FR 889). The interim rule contained 
changes required by the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 relating to the implementation of a two-
tiered reimbursement structure for day care homes participating in the 
Child and Adult Care Food Program. The comment period is also being 
extended to provide the public sufficient opportunity to comment on the 
interim rule in light of these corrections.

DATES: Effective July 1, 1997, except for Secs. 210.9(b)(20), 
210.19(f), 226.6(f)(2) and 226.6(f)(9), which are effective March 10, 
1997. To be assured of consideration, comments on the interim rule must 
be postmarked on or before May 7, 1997, except for comments on the 
information collection which must be received by March 10, 1997.

FOR FURTHER INFORMATION CONTACT: Robert M. Eadie, Chief, Policy and 
Program Development Branch, Child Nutrition Division, Food and Consumer 
Service, Department of Agriculture, 3101 Park Center Drive, Room 1007, 
Alexandria, Virginia 22302 or telephone 703-305-2620.

SUPPLEMENTARY INFORMATION:

Background

    On January 7, 1997, the Department published an interim rule 
incorporating provisions from the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Pub. L. 104-193) concerning 
implementation of a two-tiered reimbursement structure for day care 
homes participating in the Child and Adult Care Food Program (CACFP). 
Under this structure, the level of reimbursement for meals served to 
enrolled children will be determined by economic need based on: the 
location of the day care home; the income of the day care provider; or 
the income of individual children's households.
    However, the interim rule as published contains errors in the 
preamble, regulatory text, and economic impact analysis (appendix) that 
need correction.

Correction of Publication

    Accordingly, the publication on January 7, 1997 at 62 FR 889 is 
corrected as follows:
    1. On page 898, first column, the preamble is corrected by removing 
the second full paragraph and by adding three new paragraphs in its 
place to read as follows:

    The claiming percentages/blended rates alternative set forth in 
section 708(e)(1) of the Act indicates that the claiming percentage 
or blended rate be established based on the percentage of identified 
income-eligible children enrolled in a home ``in a specified month 
or other period.'' This interim regulation prescribes that the 
claiming percentage or blended rate be based on one month's data 
concerning the children enrolled in a particular day care home. The 
Department will allow sponsors to use either of two approaches to 
making this calculation, and is interested in receiving comments on 
whether both of these alternative methods should continue to be 
permitted.
    The first alternative would involve the day care home submitting 
an attendance list for the specified month to the sponsor. The 
sponsor would then use the attendance list to determine the claiming 
percentage or blended rate for the home based on a weighted average 
of each enrolled child's level of participation during the month. 
The second alternative would involve a sponsor calculating the 
claiming percentage or blended rate based on a home's enrollment for 
an entire month using a list of enrolled children submitted by the 
day care home. The sponsor would assess the income eligibility 
status of each of the children enrolled in the home during the month 
and, using the enrollment list, derive the appropriate claiming 
percentage or blended rate. For example, if a home's enrollment list 
for the month of January indicates that 10 children were enrolled 
during the month, the home's claiming percentage or blended rate 
would be based on the number of identified income-eligible children, 
divided by 10.
    The Department believes that either of these methods will 
achieve greater accuracy in reimbursement payments than basing the 
six-month calculation on a single point in time (that is, one day's 
data, which could misrepresent typical enrollment or attendance in 
that home). Although the attendance list may impose an additional 
burden on the sponsor and day care homes, it would certainly provide 
a higher level of accuracy than using an enrollment list.

    2. On page 899, third column, in the second full paragraph, line 
10, the preamble is corrected by removing the word ``submit'' and 
replacing it with the word ``collect''.
    3. On page 903, in line 1 of the second column, 
Sec. 226.13(d)(3)(ii) is corrected by adding the words ``one month's 
data concerning'' after the words ``basis of''.
    4. On page 904, third column, Sec. 226.23(h)(6) is corrected by 
italicizing the paragraph heading ``Verification procedures for 
sponsoring organizations of day care homes.''.
    5. The appendix to the preamble which appears on pages 905-915 is 
corrected as follows:
    a. On page 905, second column, in line 13 of the second full 
paragraph:
    1. the words ``, and supplements'' are added after the word 
``breakfasts'' in the parentheses;
    2. the comma after the right parentheses is removed and replaced 
with a period; and
    3. the words ``and such'' before the word ``changes'' are removed 
and the word ``These'' is added in their place.
    b. On page 905, Table 1, in footnote a, in the first sentence, the 
first word ``Percentage'' is removed and the word ``Percentages'' is 
added in its place; and the word ``hoseholds'' is removed and the word 
``households'' is added in its place.
    c. On page 905, Table 1, in footnote a, in the second sentence, the 
word ``to'' is added after the word ``propensities''; and the word 
``benefirts'' is removed and the word ``benefits'' is added in its 
place.
    d. On page 905, first column, in line 3, the first paragraph after 
Table 1, the words ``Associates, Inc.'' are added after the word 
``Abt''.

[[Page 5520]]

    e. On page 906, Table 2, in the column labeled ``Difference,'' a 
negative sign (-) is added before all of the numbers in the column.
    f. On page 906, third column, the fourth line of text after Table 
3, the word ``ing'' is removed and the words ``the costs resulting'' 
are added after the words ``most of''.
    g. On page 907, Table 4, in the column labeled ``Dollars,'' the 
number ``-332,324'' is removed and the number ``-332,334'' is added in 
its place.
    h. On page 907, first column, after Table 4, in the third 
paragraph, on line 6, a period is added after the first occurrence of 
the word ``DCHs''.
    i. On page 907, first column, after Table 4, in the third 
paragraph, on line 6, the words ``Virtually all'' are added after the 
newly added period.
    j. On page 907, second column, after Table 4, in the last 
paragraph, in line 3, the footnote ``3'' is removed and a footnote 
``5'' is added in its place.
    k. On page 908, first column, in the last paragraph, on the third-
to-last line, the word ``er'' is removed and the words ``impact of $133 
per'' are added.
    l. On page 908, second column, in the second paragraph under the 
``Costs to Families'' heading, on line 15, the word ``recent'' is 
removed and the words ``represent a 10 percent'' are added in its 
place.
    m. On page 909, second column, in the first paragraph under the 
``Intended Effect of Tiering'' heading, on line 5, a period is added 
after the words ``P.L. 104-193''.
    n. On page 909, second column, in the first paragraph under the 
``Tiering Determination Burden'' heading, line 13, the word ``sponsor'' 
is removed and the words ``the DCH provider'' are added in its place.
    o. On page 909, third column, in the first full paragraph, line 23, 
the word ``93-35'' is removed and the word ``97-35'' is added in its 
place.
    p. On page 909, third column, in the first full paragraph, line 32, 
the word ``enrollment'' is removed and the words ``two types of 
income'' are added in its place.
    q. On page 910, first column, in the first full paragraph, line 13, 
the words ``percent of'' are added after the word ``6'', and the words 
``DCHs that are only area-eligible implies that 16 percent of all DCHs 
will be approved for tier I'' are added after the words ``6 percent of 
tier I''.
    r. On page 910, third column, in the paragraph under the heading 
``Data Collection and Reporting Burden for Sponsors,'' 4th from last 
line, the words ``CACFP State'' are added after the words ``submits to 
its''.
    s. On page 912, second column, after Table 7, in the first 
paragraph, the words ``The assumption that 40 percent of children in 
mixed tier II DCHs are income eligible. There is a clear financial 
incentive for providers to encourage their low-income families to 
submit income information to sponsors. This incentive and providers' 
close relationships with parents suggest that providers will attempt to 
persuade parents to provide the income information and will thereby 
achieve a response rate greater than the NSLP's 80 percent; ninety 
percent was chosen.'' are removed.
    t. On page 912, third column, after Table 7, in the first full 
paragraph, line 20, the word ``DC'' is removed and the words ``DCHs 
will be about'' are added in its place.
    u. On page 913, first column, after Table 8, in the first paragraph 
under the heading ``Costs to CACFP State Agencies,'' line 19, the word 
``hof'' is removed and the words ``household income of'' are added in 
its place.
    v. On page 914, third column, in the footnote at the bottom of the 
column, the letter ``m'' is added to the beginning of the footnote.

    Dated: January 30, 1997.
William E. Ludwig,
Administrator.
[FR Doc. 97-2942 Filed 2-5-97; 8:45 am]
BILLING CODE 3410-30-U