2774 Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules

These risks are posed to the animal

populations living at or near the site

who may wade or swim in the streams,

or walk, lay, or burrow in the landfilled

materials. These risks will not be

significant if exposure is infrequent.

Frequent exposure, however, may result

in the bioaccumulation of

trichloroethene, PCBs, and metals

including arsenic, cadmium, chromium,

lead, mercury, manganese, and nickel.

• Based on the findings of the RI, U.S.

EPA conducted a Feasibility Study (FS)

to evaluate remedial alternatives to

address the contaminated landfilled

materials. The FS was completed in

consultation with the MDNR in mid1990, and U.S. EPA’s Proposed Plan was

issued in consultation with the MDNR

in March 1991. Following the close and

evaluation of the public comment

period, U.S. EPA signed the Record of

Decision (ROD) in June 1991. The State

of Michigan concured with the ROD.

The major components of the selected

remedy for the Folkertsma Refuse site

include:

• Excavation of contaminated

sediments from the two on-site ditches

and Indian Mill Creek for consolidation

with the landfilled materials;

• Conversion of the two on-site

ditches into permeable underground

drains to provide for continued site

drainage;

• Construction of a cap over

contaminated sediments and landfilled

materials in accordance with the

requirements of the Resource

Conservation and Recovery Act Subtitle

D and Michigan Solid Waste

Management Act 641;

• Installation of passive gas vents to

prevent the buildup of volatile organic

compounds and methane, if necessary;

• Placement of a layer of topsoil and

a vegetative covering over the clay cap

and landfilled materials;

• Site fencing and institutional

controls such as deed restrictions to

prevent the installation of drinking

water wells within the landfilled

portion of the site and future

disturbance of the cap and landfilled

materials;

• Implementation of long-term

groundwater and drainage water

monitoring programs to ensure the

effectiveness of the remedial action. In

addition to monitoring the effectiveness

of the source control portion of the

remedial action, the long-term

groundwater monitoring will also

ensure the effectiveness of the

groundwater remedy, which are various

institutional controls. If contamination

is detected beyond the area where the

institutional controls are established, it

may be necessary to modify these

controls.

The remedy selected for the

Folkertsma Refuse site eliminates or

reduces the risks posed by the site

through the use of engineering and

institutional controls.

The selected remedy provides for the

containment of the large volume of low

level organic and inorganic waste

material present in the landfill, the

black earth with decaying matter or

muck which is deposited beneath the

landfill, and the contaminated

sediments of the two on-site ditches and

Indian Mill Creek; reduces the potential

for contaminant migration into the

groundwater; and reduces the potential

for contaminated groundwater to move

out from beneath the landfill.

Community involvement activities for

the Folkertsma Refuse site began in

October 1988, shortly before the RI was

scheduled to begin. EPA conducted

interviews with state and local officials,

a local environmental organization, and

Walker residents to determine the level

of interest and concern over the site. A

Community Involvement Plan (formerly

CRP) was finalized in February, 1989.

The RI/FS for the Folkertsma Refuse

site was released to the public in mid

1990 and was made available at the

information repository. The

Administrative Record is also

maintained at the library and the Region

V office in Chicago.

Remedial Action construction

activities began in March 1994.

Construction activities included: site

clearing and regrading, including the

relocation of an on-site pallet company

operation; sediment excavation,

solidification and consolidation with

the landfilled materials; conversion of

two on-site ditches into permeable

underground drains and replacing the

Indian Mill Creek drain pipe with an

open channel; monitoring well

abandonment, replacement and

construction; installation of probes for

landfill gas monitoring; and

construction of a cap consisting of 2 feet

of clay followed by a 6 inch sand

drainage layer, 1 foot rooting zone layer

and 6 inch topsoil layer.

The construction completion report

dated February 1995 certifies

completion of all remedial action and

documents that the objectives of the

remedial action have been met. This

report certifies that all major

components of the remedy are complete

with the exception of environmental

monitoring and maintenance, which is a

long-term ongoing part of the operation

and maintenance. However, the

equipment to conduct the long-term

monitoring was installed as part of this

project.

The institutional controls for the site

include restrictions to prohibit

development of the Site, (including, but

not limited to, excavation, construction

and drilling), and the installation of

groundwater drinking water wells at the

Site. The institutional controls regarding

future development of the Folkertsma

Refuse Site and the future installation of

groundwater drinking water wells have

been implemented and shall be

permanent.

EPA, with concurrence from the State

of Michigan, has determined that

Responsible Parties have implemented

all appropriate response actions

required. Therefore, EPA proposes to

delete the site from the NPL.

Dated: October 19, 1995.

Michelle D. Jordan,

Acting Regional Administrator, U.S. EPA,

Region V.

[FR Doc. 96–1542 Filed 1–26–96; 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, 304, 306

and 307

RIN 0970–AB57

Child Support Enforcement Program;

State Plan Approval and Grant

Procedures, State Plan Requirements,

Standards for Program Operations,

Federal Financial Participation and

Optional Cooperative Agreements for

Medical Support Enforcement

Computerized Support Enforcement

Systems

AGENCY: Office of Child Support

Enforcement (OCSE).

ACTION: Notice of proposed rulemaking.

SUMMARY: This proposed rule would

amend Federal regulations governing

procedures for making information

available to consumer reporting

agencies (CRAs). These provisions

implement the requirements of section

212 of the Social Security Act

Amendments of 1994 (Pub. L. 103–432)

which require States to adopt

procedures for periodic reporting of

information to CRAs, effective October

1, 1995. This proposed rule would

implement Public Law 104–35 which

was enacted on October 12, 1995 which

revises section 454(24) of the Social

Security Act.
Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules 2775

In addition, it would revise or remove

regulations, in part or whole, in

response to the President’s

Memorandum of March 4, 1995 to heads

of Departments and Agencies which

announced a government-wide

Regulatory Reinvention Initiative to

reduce or eliminate burdens on States,

other governmental agencies or the

private sector.

DATES: Consideration will be given to

comments received by March 29, 1996.

ADDRESSES: Send comments to Director,

Office of Child Support Enforcement,

Administration for Children and

Families, 370 L’Enfant Promenade, SW.,

4th floor, Washington, DC 20447.

Attention: Director, Policy and Planning

Division, Mail Stop: OCSE/DPP.

Comments will be available for public

inspection Monday through Friday, 8:30

a.m. to 5:00 p.m. on the 4th floor of the

Department’s offices at the above

address.

FOR FURTHER INFORMATION CONTACT:

Policy Branch, OCSE, specifically:

Tom Killmurray (202) 401–4677

regarding mandatary reporting of child

support information to consumer

reporting agencies;

Marilyn R. Cohen (202) 401–5366

regarding all other regulatory revisions.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The information collection

requirement regarding submittal of the

State plan preprint page was approved

by the Office of Management and

Budget under OMB control number

0960–0385. State plan preprint page

revisions necessitated by this proposed

rule will be submitted to OMB for

approval. Otherwise, this rule does not

require information collection activities

and, therefore, no additional approvals

are necessary under the Paperwork

Reduction Act of 1980 (Pub. L. 96–511).

Statutory Authority

These proposed regulations are

published under the authority of section

466(a) of the Social Security Act (the

Act), as amended by the Social Security

Act Amendments of 1994. Section

466(a)(7), as amended, requires States to

have procedures which establish

periodic reporting of child support

arrearage information to CRAs. The

statutory effective date for required

reporting of child support information

in certain cases to consumer reporting

agencies is October 1, 1995. The name

of any parent who owes overdue

support and is at least two months

delinquent in the payment of support

and the amount of such delinquency

must be reported to CRAs.

Section 466(a)(7) contains three

exceptions to the periodic reporting

requirement. First, if the amount of the

overdue support involved in any case is

less than $1,000, information regarding

such amount shall be made available

only at the option of the State.

Secondly, any information with respect

to an absent parent shall be made

available under such procedures, only

after notice has been sent to such absent

parent of the proposed action, and such

absent parent has been given a

reasonable opportunity to contest the

accuracy of such information (and after

full compliance with all procedural due

process requirements of the State).

Finally, such information shall not be

made available to a CRA which the State

determines does not have sufficient

capability to make systematic and

timely use of such information, or an

entity which has not furnished evidence

satisfactory to the State that the entity

is a CRA.

This regulation is also proposed

under the authority granted to the

Secretary by section 1102 of the Act.

Section 1102 of the Act requires the

Secretary to publish regulations that

may be necessary for the efficient

administration of the functions for

which she is responsible under the Act.

In accordance with the Presidential

directive to executive branch regulatory

agencies to identify existing regulations

that are redundant or obsolete, OCSE

has examined Part 300 of Title 45, Code

of Federal Regulations to evaluate those

areas where regulations should be

removed.

Background

The Child Support Enforcement

Amendments of 1984 (Pub. L. 98–378)

featured provisions that required critical

improvements in State and local child

support enforcement programs. Making

child support delinquency information

available to credit bureaus upon their

request was one of the statutorily

prescribed procedures required of States

by the 1984 amendments.

Reporting overdue child support

owed by obligors to consumer reporting

agencies (CRAs) is an effective

enforcement technique that has several

benefits. It creates an incentive for

obligors to make prompt and consistent

payments, because delinquent payment

information could negatively impact

their credit history, thus endangering

their purchasing power. Credit reporting

may be particularly effective in cases

involving self-employed obligors, which

can be among the most challenging

cases to work. Because many selfemployed obligors are highly dependent

on credit to operate their businesses,

impeding their credit or purchasing

power may deter noncompliance.

The addition of information about

unpaid child support on individual

credit records may make it less likely for

obligors to incur other debts which

could interfere with their ability to pay

child support. Finally, reporting of child

support delinquencies may help child

support recipients obtain credit. Child

support information is often used to

substantiate income by custodial

parents attempting to obtain credit.

CRAs may use the information reported

by IV–D agencies to verify overdue child

support and subsequent payment

information.

Much of the expansion of credit

reporting was due to enactment of the

Child Support Enforcement

Amendments of 1984, which mandated

that States respond to CRA requests for

information on obligors who are $1,000

or more in arrears and reside in the

State. Most States have gone beyond the

legal requirement and are routinely

reporting information to CRAs.

In addition, the Ted Weiss Act of

1992 (Pub. L. 102–537) amended the

Fair Credit Reporting Act (15 U.S.C.

1681a[f]) to require consumer credit

reporting agencies to include in

consumer reports information, no more

than seven years old, on overdue child

support when provided by child

support enforcement agencies, or

received otherwise and verified by any

local, State or Federal agency.

Currently, approximately 40 States

operate routine periodic credit reporting

processes, without the necessity of a

request from the credit bureau. Most of

the States report information to CRAs if

arrearages reach or exceed $1,000;

several report arrearages of lesser

accruals. California has no minimum

amount, and in fact, reports all ordered

child support to credit bureaus

irrespective of a delinquency. Under the

proposed rule, States will have the

flexibility to decide what ‘‘periodic’’

reporting is; some States may report

monthly, others may report quarterly.

The majority of States report

information to CRAs on a monthly basis,

a few others on a bimonthly or annual

basis. The method of reporting varies.

Thirty-six States report in an automated

manner, using, for example, tape

matches; nine States provide

information manually; several States

employ a combination of both reporting

methods.

The President and Congress decided

to improve this enforcement tool with

the Social Security Act Amendments of

1994 (Pub. L. 103–432). These reforms

are based on successful State practices

as well as a recommendation by the U.S.
2776 Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules

Commission on Interstate Child Support

in its comprehensive report to the

Congress, ‘‘Supporting our Children: A

Blueprint for Reform.’’ Because

Congress added the mandate to section

466(a) of the Act, reporting to credit

bureaus is a requirement which States

must meet as a condition of State plan

approval under section 454 of the Act.

This proposed rule is also in response

to the President’s Memorandum of

March 4, 1995 to heads of Departments

and Agencies which announced a

government-wide Regulatory

Reinvention Initiative to reduce or

eliminate mandated burdens on States,

other governmental agencies or the

private sector.

The Presidential Memorandum

required agencies, by June 1, 1995, to

conduct a page-by-page review of all

regulations to eliminate or revise those

that are outdated or otherwise in need

of reform. OCSE conducted such a

review, resulting in the proposed

revisions, set forth in this document.

Both substantive and technical changes

are proposed including recodification

such as renumbering and terminology

revisions.

In our analysis of existing regulations,

we took a cautionary approach

recognizing that significant legislation

to overhaul the welfare system,

including major reform to the child

support enforcement program, is

actively pending before the 104th

Congress. Accordingly, numerous

existing rules will potentially be

affected. We have deferred

recommending any changes in existing

rules which may be impacted by

enactment of an incipient legislative

change. However, we consider the

changes in this proposed rule as only

the first part of our response to the

President’s Regulation Reinvention

Initiative. We will work with our

partners to identify additional

regulations which should be reevaluated

given the new direction of regulatory

reinvention.

Description of Regulatory Provisions

We propose to make technical

revisions, including recodification, to

the following regulations, in addition to

amending section 303.105, ‘‘Procedures

for making information available to

consumer reporting agencies’’.

Section 301.1 General Definitions

We propose that the specified years

for Applicable matching rate of ‘‘1983

through 1987, 70 percent, FY 1988 and

FY 1989, 68%,’’ referenced in section

301.1 be removed as such dates have

passed.

Section 301.15 Grants

We propose two technical revisions in

this section. Part of the mailing address

in paragraph (a)(1) should be updated

by replacing, ‘‘Social and Rehabilitation

Service, Attention: Finance Division,

Washington, DC 20201’’ with

‘‘Administration for Children and

Families, Office of Program Support,

Division of Formula, Entitlement and

Block Grants, 370 L’Enfant Promenade,

SW., Washington, DC 20447.’’ In

addition, we propose to replace the

phrase, ‘‘Subpart G Matching and Cost

Sharing’’ with ‘‘45 CFR 74.23 Cost

Sharing or Matching’’ and replace the

phrase ‘‘Subpart I Financial Reporting

Requirements’’ with ‘‘45 CFR 74.52

Financial Reporting’’ in paragraph (e).

We propose this latter revision to

coincide with substantial revisions of 45

CFR Part 74 by DHHS August 25, 1994

(59 FR 43760).

Section 302.15 Reports and

Maintenance of Records

This rule implements section 454(10)

of the Act which does not specify use

of microfilm for record retention. We

propose that paragraph (b) ‘‘Conditions

for Optional Use of Microfilm Copies,’’

be removed as microfilm use is obsolete

due to automatic case tracking and

electronic filing capability. The

proposed change will result in the

following: Paragraph (a) will be without

designation, paragraphs (a)(1) and (a)(2)

will be redesignated (a) and (b), and

roman numerals (i) through (vii) will be

redesignated as arabic numbers (1)

through (7), respectively. Removal of the

microfilm reference does not preclude

States from continuing to use microfilm

as an information storage medium.

Section 302.33 Services to Individuals

Not Receiving AFDC or Title IV–E

Foster Care Assistance

We propose to remove paragraph

(c)(1), Application Fee, as it refers to

requirements in effect prior to October

1, 1985, which date has passed. Thus,

paragraph (2) will be renumbered as

paragraph (1) and paragraph (3) will be

renumbered as paragraph (2). In

addition, we propose to remove

paragraph (e) Assignment. Because a

State is not required to take an

assignment but has discretion to do so,

this section is being removed as a ‘‘nonmandatory’’ aspect of existing rules.

Removal of this subsection does not

preclude a State from taking an

assignment of rights from a non-AFDC

recipient of IV–D services if necessary

under State law or practice in order to

deliver program service.

Section 302.34 Cooperative

Arrangements

The authorities for this rule are

sections 1102 and 454(7) of the Act. We

propose to remove paragraph (b). As the

result of the passage of time, cooperative

agreements should meet § 303.107

criteria at this time. This revision would

leave paragraph (a) without designation.

We further propose to revise the first

sentence of the remaining paragraph by

adding ‘‘under § 303.107’’ after

‘‘cooperative arrangements.’’

Section 302.36 Provision of Services in

Interstate IV–D Cases

The authorities for this rule are

section 454(9) of the Act which

addresses standards prescribed by the

Secretary and section 1102 of the Act

which addresses the Secretarial

authority to issue regulations necessary

for program administration. These

requirements were placed in regulation

to clarify that States are required to

provide all necessary IV-D services in

interstate cases. However, we propose to

remove paragraphs (a)(1) through (a)(5),

to eliminate repeating § 303.7(c)(7),

explicit provisions which specify the

various functional responsibilities by

the responding State. This does not alter

the requirement for provision of

services; it merely removes unnecessary

text referenced elsewhere. This

proposed revision would remove ‘‘for:’’

at the end of paragraph (a) and

subparagraphs (a)(1) through (a)(5), thus

ending the paragraph with the word,

‘‘chapter.’’

Section 302.37 Distribution of Support

Payments

This rule implements section 454(11)

of the Act. We propose to remove it

because it references §§ 302.32 and

302.51 which duplicate this section.

Section 302.54 Notice of Collection of

Assigned Support

This rule implements section 454(5)

of the Act which does not specify dates.

Therefore, we propose to remove

paragraph (a) which is obsolete as it

specifies requirements in effect until

December 31, 1992, which event has

now passed.

Thus, paragraph (b) would be

redesignated paragraph (a) and

paragraph (c) would be redesignated

paragraph (b), respectively.

We also propose to revise paragraph

(b)(2) by adding the word, ‘‘collected’’

after the second mention of ‘‘support’’ to

read as follows: ‘‘The monthly notice

must list separately payments collected

from each absent parent when more

than one absent parent owes support to

the family and must indicate the
Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules 2777

amount of current support collected, the

amount of arrearages collected and the

amount of support collected which was

paid to the family.’’ This addition is

made to clarify that it is the amount

actually collected, not the amount owed

that must be included in the notice, and

will be consistent with the statutory

language at section 454(5)(A) of the Act.

Section 302.54(c)(1)(i) specifies one of

the grounds upon which a State may be

granted a waiver to permit the issuance

of quarterly, rather than monthly,

notices of the amount of support

collected. Waivers granted under this

criterion were based upon the State’s

lack of a computerized support

enforcement system consistent with

Federal requirements or the lack of an

automated system that is able to

generate monthly notices. Such waivers

were valid through September 30, 1995.

On October 12, 1995, Public Law 104–

35 was signed into law, which revised

Section 454(24) of the Social Security

Act. The revised statute extends the date

by which States will have in effect, and

approved by the Secretary, a operational

automated data processing and

information retrieval system meeting all

requirements of Federal law from

October 1, 1995 to October 1, 1997.

Because waivers available under

§ 302.54(c)(1)(i) are linked to the

deadline by which States must have

operational automated systems, we

propose to revise the date clause to read

‘‘Until September 30, 1997,’’. Any

automated system developed to meet

the Federal requirements for a certified

comprehensive Statewide system must

produce mandated monthly notices of

collections. States with previous

waivers that expired September 30,

1995 can apply for extension of the

waiver if the State does not have a

computerized support enforcement

system consistent with Federal

requirements or lacks an automated

system that is able to generate monthly

notices. Extension of waivers will be

granted as part of the State plan

approval process.

Section 302.70 Required State Laws

Section 466(a) of the Act requires a

State to enact laws providing for these

new requirements. Consistent with

implementation of the Family Support

Act requirements, however, States may

implement provisions using regulation,

procedure, or court rule, instead of law,

if such regulation, procedure, or rule

has the same force and effect under

State law on the parties to whom they

apply.

We propose to revise section

302.70(a)(7) to reflect the statutory

amendment which mandates reporting

of certain child support arrearage

information to credit reporting agencies.

Each IV-D State plan requirement

remains effective on the date indicated

by the statute or implementing

regulation.

Section 302.85 Mandatory

Computerized Support Enforcement

System

On October 12, 1995, Public Law 104–

35 was signed into law, which revises

Section 454(24) of the Social Security

Act. The revised statute extends the date

by which States will have in effect, and

approved by the Secretary, an

operational automated data processing

and information retrieval system

meeting all requirements of Federal law

from October 1, 1995 to October 1, 1997.

Because the deadline by which States

must have operational automated

systems has been changed, we propose

to remove the date in paragraph (a)(2)

‘‘October 1, 1995’’ and replace it with

‘‘October 1, 1997.’’

Section 303.10 Procedures for Case

Assessment and Prioritization

This rule was issued under authority

of section 1102 of the Act, as part of

implementation of the Child Support

Enforcement Amendments of 1984 (Pub.

L. 98–378). We propose to remove this

section because case assessment and

prioritization procedures are permissive

and standards for an effective program

at 45 CFR Part 303 require the State to

provide necessary IV–D services in all

cases in an efficient and effective

manner. Therefore, it is not necessary to

place this information in regulation.

Section 303.31 Securing and Enforcing

Medical Support Obligations

This rule implements section 452(f) of

the Act. We propose to replace

references to ‘‘§ 306.50(a)’’ with

‘‘§ 303.30’’ in paragraphs (b)(6) and

(b)(7). This technical change is required

to correct a clerical error. Revisions to

§§ 303.30 and 303.31 set forth in the

final rule issued March 8, 1991 did not

make these technical changes.

Section 303.73 Applications to Use

The Courts of the United States to

Enforce Court Orders

This regulation is based on sections

452(a)(8) and 460 of the Act. An Action

Transmittal (AT) issued February 6,

1976 (OCSE–AT–76–1) and revised May

12, 1976 (OCSE–AT–76–8) covers

paragraphs (a) and (b) of the regulation.

Since the requirements in this

regulation are infrequently used, it is

sufficient for users to follow guidance in

the AT. The AT gives express

instructions for submitting cases for

consideration for referral to Federal

court. Paragraph (c) is unnecessary to be

placed in regulation as it merely

specifies internal instructions to the

Regional Office.

Therefore, we propose to revise the

end of the introductory portion of

paragraph (a) by removing, ‘‘to

demonstrate that’’ and completing the

paragraph by adding, ‘‘in accordance

with instructions issued by the Office,’’

thus removing paragraphs (a)(1) through

(c).

Section 303.100 Procedures for Wage

or Income Withholding

In the administration of wage or

income withholding, § 303.100(g)(3)

requires that effective October 1, 1995,

States must be capable of receiving

withheld amounts and accounting

information which are electronically

transmitted by the employer to the

State. This effective date for electronic

funds transfer capability was directly

linked to the date by which States are

required to have operational automated

child support enforcement systems. On

October 12, 1995, Public Law 104–35

was signed into law, which revises

Section 454(24) of the Social Security

Act. The revised statute extends the date

by which States will have in effect, and

approved by the Secretary, an

operational automated data processing

and information retrieval system

meeting all requirements of Federal law

from October 1, 1995 to October 1, 1997.

Because the deadline by which States

must have operational automated

systems has been changed, we propose

to revise the introductory clause in

paragraph (g)(3) to remove the phrase

‘‘Effective October 1, 1995,’’ and replace

it with ‘‘Effective October 1, 1997,’’.

Section 303.105 Procedures for

Making Information Available to

Consumer Reporting Agencies

We propose to implement the

requirements of amended section

466(a)(7) by revising the heading of 45

CFR 303.105, Procedures for making

information available to consumer

reporting agencies, to read: ‘‘Procedures

for periodic reporting of information to

consumer reporting agencies.’’

Under § 303.105(a), the definition of

‘‘consumer reporting agency’’ remains

the same. The definition, which mirrors

the language in the Fair Credit

Reporting Act (15 U.S.C. 1681a[f]), has

not been changed.

We propose to revise paragraph (b), to

specify that States must use this

procedure when a non-custodial absent

parent owes overdue support exceeding

$1,000 and is at least two months in

arrears. The provision of information by
2778 Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules

IV–D agencies is no longer triggered by

the request of a CRA, but is now

required to be reported under the above

criteria. The use of such procedures is

optional to the State in cases where the

absent parent owes less than $1,000 in

arrears. Allowing for optional reporting

in cases of less than $1,000 in arrears is

in keeping with the Federal/State

partnership in administering child

support enforcement and allowing for

maximum State flexibility.

States may wish to take advantage of

reporting when a non-custodial parent

owes overdue support less than $1,000

because many child support orders have

low monthly payment amounts.

Otherwise, several months arrearage

could result before triggering reporting

at the $1,000 threshold. Some States,

including California, have found it

beneficial to report all child support

accounts to CRAs for such reasons as

ease of administration and conformance

to the credit reporting industry standard

of reporting all debt and payment

information. In order to give States

maximum flexibility, there are no

further requirements regarding the

frequency or manner in which

delinquent support information is

shared with CRAs. This flexibility is

also intended to allow for uninterrupted

reporting in States where current

procedures may already meet the new

requirement.

The cases in which information is

sent to the CRA may be further limited

by the State through the use of State

guidelines (45 CFR 303.105(b)). Criteria

may be developed to determine which

cases are inappropriate for reporting to

CRAs. For example, State developed

guidelines might exclude the reporting

of cases where abuse or violence has

been threatened or has occurred.

In addition, we propose to revise

paragraph (b) by removing the second

sentence specifying that State guidelines

should be made generally available to

the public as to when use or application

of reporting child support arrearages to

credit reporting agencies would not

carry out the purposes of the program or

would be otherwise inappropriate in the

circumstances. We are proposing this

revision since the statute mandates

reporting of all cases which qualify

based on arrearages and expressly

specifies the bases for exceptions.

Guidelines for not submitting cases are

no longer appropriate.

We invite State comments on any

existing reporting criteria they may use.

Comments received on this subject will

be widely disseminated because

examples may be helpful to other States

in formulating their own guidelines.

In accordance with section

466(a)(7)(C) of the Act, under proposed

paragraph (c) of section 303.105, States

are required to withhold information

from a CRA which does not have

sufficient capability to make accurate

use of the information in a systematic

and timely manner. In order to

maximize flexibility, States will be free

to use their own criteria in determining

what constitutes a ‘‘systematic and

timely’’ use of the reported information

under amended section 466(a)(7)(C) of

the Act. States are also required to

withhold information from an entity

which has not furnished satisfactory

evidence to the State that it is a CRA.

Under amended section 466(a)(7) of

the Act, the provision which allowed for

a fee for furnishing such information to

be imposed on the requesting CRA by

the State has been deleted. Therefore,

we propose that the corresponding text

involving the optional fee under the

existing § 303.105(c) be removed.

In accordance with section

466(a)(7)(b) of the Act, paragraph (d)

requires the State to provide the

noncustodial parent an advance notice

and an opportunity to contest the

accuracy of this information. Paragraph

(e) requires the State to comply with all

applicable procedural due process

requirements of the State before

releasing the information. The

requirements imposed in paragraphs (d)

and (e) have been required by the statute

since it was enacted in 1984 and were

not amended. Therefore, paragraph (d)

and (e) remain unchanged by this

proposed rule.

To ensure that this proposed rule

maximizes State flexibility, we generally

have not proposed to add regulatory

requirements that go beyond statutory

requirements. However, there is one

area where we believe additional

Federal regulatory guidance is needed—

credit reporting in interstate cases.

Because interstate cases involve

interaction between one or more States,

there is a need for national standards to

ensure uniformity and clarity.

The statute does not address which

State (initiating or responding) should

report to credit bureaus in interstate

cases. Based on input that we have

received from several States, Federal

guidance is needed in this area to avoid

duplication, confusion, and doublereporting. For example, if both the

initiating and responding States report

arrears owed under a child support

order in a case, both reports may appear

on the obligor’s credit record. As a

result, the credit record would indicate

that the obligor owes two separate debts

to two different child support agencies,

when in fact the two reports are for the

same arrearage. Such misleading

double-reporting creates unnecessary

duplication of effort for child support

agencies, generates time-consuming

inquiries and complaints, and is unfair

to obligors.

To address these problems, we are

proposing new paragraph (f) in

§ 303.105 which provides: for cases

where an initiating State requests, in

accordance with § 303.7(b), a

responding State to enforce a support

order, the responding State will report

to consumer reporting agencies. The

initiating State will not report.

We are proposing that the responding

State be responsible for credit reporting

since it is usually the State that

implements enforcement remedies

(except for Federal income tax refund

offset which is implemented by the

initiating State). The responding State

can coordinate credit reporting with the

other enforcement techniques that it is

using. In addition, the responding State

may have the most up-to-date payment

and location information about the

obligor. Finally, since the obligor often

lives in the responding State, the

responding State is more likely to report

to credit reporting agencies which focus

on the area where the obligor lives.

Many credit reporting agencies only

maintain records for certain localities

and regions, and even a major credit

bureau may have more complete

information for individuals in a

particular region of the country.

Credit reporting in interstate cases

where there are multiple support orders

governing the same period of time can

be particularly complex. Under the

Uniform Reciprocal Enforcement of

Support Act (URESA), interstate

proceedings are considered ‘‘new’’

proceedings, even if a valid, enforceable

support order already exists. As a result,

multiple, yet valid, orders in varying

amounts in different States have been

entered for the same children. If

arrearages owed for the same period of

time under more than one order are

reported to credit agencies, the obligor

will appear to owe multiple debts even

though, under State law, an obligor

receives credit under all orders for any

payment made. Therefore, the reporting

of arrears under multiple orders

exaggerates the amount that the obligor

actually owes.

The Uniform Interstate Family

Support Act (UIFSA) and the Full Faith

and Credit for Child Support Orders Act

(Pub. L. 103–383) will eventually

alleviate the multiple order problem.

These laws, which together limit the

ability of a State to enter or modify an

order if a valid order already exists, will

replace multiple orders with a system
Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules 2779

under which only one support order is

effective at any one time. However, this

transition will take a matter of years—

until all of the children with multiple

orders emancipate. We welcome

comments concerning possible ways to

address this multiple order problem.

In addition, we welcome comments

regarding the general issue of credit

reporting in interstate cases, particularly

whether there is a need for Federal

regulation in this area and whether you

agree with our proposal.

Finally, in addition to reporting

information to CRAs, States routinely

obtain valuable location information

from CRAs. The requirements of this

section do not preclude a State from

obtaining information from CRAs. Many

States already reap the benefits of using

CRAs as a source of valuable

information. States may make requests

of consumer reporting agencies for such

purposes as location of non-custodial

parents, location of assets, and

determination of ability to pay support.

Section 304.10 General Administrative

Requirements

We propose to replace the

parenthetical phrase, ‘‘(with the

exception of Subpart G, Matching and

Cost Sharing and Subpart I, Financial

Reporting Requirements)’’ with ‘‘(with

the exception of 45 CFR 74.23, Cost

Sharing or Matching and 45 CFR 74.52,

Financial Reporting).’’ We are proposing

this revision to coincide with

substantial revisions of 45 CFR Part 74

by DHHS August 25, 1994 (59 FR

43760).

Section 304.20 Availability and Rate

of Federal Financial Participation

We propose to make several technical

revisions to update and correct this

section. In paragraph (b)(1)(iii), we

propose to replace the phrase ‘‘Subpart

P’’ with ‘‘* * * in accordance with the

Procurement Standards found in 45 CFR

74.40 et. seq..’’ We are proposing this

revision to coincide with substantial

revisions of 45 CFR Part 74 by DHHS

August 25, 1994 (59 FR 43760) because

the regulation is applicable to both

agencies. In paragraph (b)(1)(vi), we

propose to change the reference from

‘‘§ 302.16’’ to ‘‘§ 304.15.’’ We propose

this technical revision because § 304.15

is a cross-reference to the DHHS

regulations on cost allocation at 45 CFR

Part 95, Subpart E which replaced 45

CFR 302.16. In paragraph (b)(3)(iv), we

propose to replace ‘‘attachment’’ with

‘‘withholding’’, in order to make the

terminology consistent with the

enactment of the Child Support

Enforcement Amendments of 1984 (Pub.

L. 98–378) which created a new section

466 of the Act including paragraph

(a)(1) and (b) for ‘‘wage withholding’’

and implementing regulations at 45 CFR

303.100. In paragraph (b)(8), we propose

to correct a clerical error by replacing

‘‘§ 302.2’’ with ‘‘§ 303.2.’’ Finally, in

paragraph (b)(11), we propose to remove

‘‘Part 306, Subpart B, of this chapter’’

and replace with ‘‘sections 303.30 and

303.31’’. We are proposing this

technical fix to update this section to

reflect the revision made in 1990 to

redesignate Part 306 Subpart B as

sections 303.30 and 303.31.

Section 304.95 State Commissions on

Child Support

This rule was required by section 15

of Public Law 98–378 to be

implemented by December 1, 1984 with

a report of findings and

recommendations to the Governor by

October 1, 1985. We propose to remove

this section as the requirement for a

State to have a Commission on Child

Support as a condition of eligibility for

Federal funding expired on October 1,

1985. Although it is no longer

mandatory, nothing precludes a State

from having such a Commission.

Part 306 Optional Cooperative

Agreements for Medical Support

Enforcement; Section 306.0 Scope of

This Part, Section 306.2 Cooperative

Agreement, Section 306.10 Functions To

Be Performed under a Cooperative

Agreement, Section 306.11

Administrative Requirements of

Cooperative Agreements, Section 306.20

Prior Approval of Cooperative

Agreements, Section 306.21 Subsidiary

Cooperative Agreements With Courts

and Law Enforcement Officials, Section

306.22 Purchase of Service Agreements,

and Section 306.30 Source of Funds

Cooperative agreements for medical

support enforcement was first added to

the IV–D regulations (Part 306) in the

February 11, 1980 joint final rule by the

Health Care Financing Administration

(HCFA) and OCSE implementing

section 11 of Public Law 95–142 which

added a new section 1912 to the Social

Security Act. Section 1912 authorized

the Third Party Liability (TPL) program

in the Medicaid agency and required the

State to require Medicaid recipients, as

a condition of Medicaid eligibility, to

assign their support rights to any

medical support and to cooperate with

the State in establishing paternity and

obtaining third party payments. Section

1912 also required the State plan to

provide for the State Medicaid agency to

make cooperative agreements with the

State IV–D agency, and other

appropriate agencies, courts, and law

enforcement officials to assist in the

TPL program, with an incentive

payment to political subdivision, other

State, or other entity that makes the TPL

collection.

As a result of an increasing degree of

responsibility for IV–D agencies to

perform medical support functions, very

few of the functions listed in § 306.10

continue to be optional. Many of the

requirements listed as ‘‘optional’’ for

IV–D agencies to perform under

agreements with State Medicaid

agencies have become mandatory under

title IV–D (e.g., obtain sufficient health

insurance information, § 303.30; secure

health insurance coverage, § 303.31).

This leaves only two optional

procedures in § 306.10 ((f) file insurance

claims and (h) take direct action to

recover TPL).

We propose that Part 306 be removed

and reserved. This will give States

flexibility to enter into cooperative

agreements with Medicaid agencies to

perform activities which are beyond the

mandatory medical support activities of

the IV–D program. Cooperative

agreements for medical support

enforcement is a statutory requirement

mandated on the Health Care Financing

Administration (HCFA) which was

placed in regulation at 42 CFR 433.152

but optional for IV–D. This proposed

removal will not affect the continuation

of existing cooperative agreements or

formulation of future agreements

between State child support agencies

and State Medicaid agencies.

Section 307.5 Mandatory

Computerized Support Enforcement

Systems

On October 12, 1995, Public Law 104–

35 was signed into law, which revises

Section 454(24) of the Social Security

Act. The revised statute extends the date

by which States will have in effect, and

approved by the Secretary, an

operational automated data processing

and information retrieval system

meeting all requirements of Federal law

from October 1, 1995 to October 1, 1997.

Because the deadline by which States

must have operational automated

systems has been changed, we propose

to remove the date in paragraph (a)

‘‘October 1, 1995’’ and replace it with

‘‘October 1, 1997.’’

Section 307.15 Approval of Advance

Planning Documents for Computerized

Support Enforcement Systems

On October 12, 1995, Public Law 104–

35 was signed into law, which revises

Section 454(24) of the Social Security

Act. The revised statute extends the date

by which States will have in effect, and

approved by the Secretary, an

operational automated data processing
2780 Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules

and information retrieval system

meeting all requirements of Federal law

from October 1, 1995 to October 1, 1997.

Because the deadline by which States

must have operational automated

systems has been changed, we propose

to remove the date in paragraph (b)(2)

‘‘October 1, 1995’’ and replace it with

‘‘October 1, 1997.’’

Regulatory Flexibility Analysis

The Secretary certifies, under 5 U.S.C.

605(b), as enacted by the Regulatory

Flexibility Act (Pub. L. 96–354), that

this proposed regulation will not result

in a significant impact on a substantial

number of small entities. The primary

impact is on State governments and

individuals and results from restating

the provisions of the statute. 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 this rule is consistent with these

priorities and principles. No costs are

associated with this rule as it merely

ensures consistency between the statute

and regulations.

List of Subjects

45 CFR Part 301

Child support, Grant programs/social

programs.

45 CFR Part 302

Child support, Grant programs/social

programs, Reporting and recordkeeping

requirements.

45 CFR Parts 303 and 304

Child support, Grant programs/social

programs, Reporting and recordkeeping

requirements.

45 CFR Part 306

Child support, Grant programs/social

programs, Medicaid.

45 CFR Part 307

Child support, Grant programs/social

programs, Computerized support

enforcement systems.

(Catalog of Federal Domestic Assistance

Programs No. 93.563, Child Support

Enforcement Program)

Dated: December 1, 1995.

Mary Jo Bane,

Assistant Secretary for Children and Families.

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 set forth below:

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

664, 666, 667, 1301, and 1302.

2. Section 301.1 is amended by

revising the definition for ‘‘Applicable

matching rate’’ to read as follows:

§ 301.1 General definitions.

* * * * *

Applicable matching rate means the

rate of Federal funding of State IV-D

programs’ administrative costs for the

appropriate fiscal year. The applicable

matching rate for FY 1990 and thereafter

is 66 percent.

* * * * *

§ 301.15 [Amended]

3. In 301.15, paragraph (a)(1) is

amended by revising ‘‘Social and

Rehabilitation Service, Attention:

Finance Division, Washington, DC

20201’’ to read ‘‘Administration for

Children and Families, Office of

Program Support, Division of Formula,

Entitlement and Block Grants, 370

L’Enfant Promenade, S.W., Washington,

D.C. 20447’’ and paragraph (e) is

amended by revising, ‘‘Subpart G

Matching and Cost Sharing’’ to read ‘‘45

CFR 74.23 Cost Sharing or Matching’’

and revising ‘‘Subpart I Financial

Reporting Requirements’’ to read ‘‘45

CFR 74.52 Financial Reporting.’’

PART 302—STATE PLAN

REQUIREMENTS

4. The authority citation for Part 302

continues to read as follows:

Authority: 42 U.S.C. 651 through 658, 664,

666, 667, 1302, 1396a(a)(25), 1396b(d)(2),

1396b(o), 1396b(p), 1396(k).

§ 302.15 [Amended]

5. In section 302.15, paragraph (b) is

removed and paragraphs (a)

introductory text, (a)(1) introductory

text, (a)(1)(i) through (vii) and (2) are

redesignated as § 302.15 introductory

text, (a) introductory text, (a)(1) through

(7) and (b) respectively.

§ 302.33 [Amended]

6. In section 302.33, paragraph (c)(1)

is removed, paragraphs (c)(2) and (c)(3)

are redesignated as (c)(1) and (c)(2), and

paragraph (e) is removed.

§ 302.34 [Amended]

7. In section 302.34, paragraph (b) is

removed, paragraph (a) is amended by

removing the paragraph designation and

by adding ‘‘under § 303.107’’ after

‘‘cooperative arrangements’’ in the first

sentence.

§ 302.36 [Amended]

8. In section 302.36, paragraph (a)

introductory text is amended by

removing ‘‘for:’’ and inserting a period

in its place at the end of the paragraph

and removing paragraphs (a)(1) through

(a)(5).

§ 302.37 [Removed]

9. Section 302.37 is removed.

10. In section 302.54, paragraph (a) is

removed, paragraphs (b) and (c) are

redesignated (a) and (b), respectively,

the reference to ‘‘Until September 30,

1995’’ in new designated paragraph

(b)(1)(i) is revised to read ‘‘Until

September 30, 1997’’, and newly

designated paragraph (a)(2) is revised to

read as follows:

§ 302.54 Notice of collection of assigned

support.

* * * * *

(a) * * *

(2) The monthly notice must list

separately payments collected from each

absent parent when more than one

absent parent owes support to the

family and must indicate the amount of

current support collected, the amount of

arrearages collected and the amount of

support collected which was paid to the

family.

* * * * *

11. Section 302.70(a)(7) is revised to

read as follows:

§ 302.70 Required State laws.

(a) * * *

(7) Procedures which require the State

to periodically report information

regarding the amount of overdue

support owed by an absent parent to

consumer reporting agencies in

accordance with § 303.105 of this

chapter;

* * * * *

§ 302.85 [Amended]

12. In Section 302.85, reference to

‘‘October 1, 1995’’ in paragraph (a)(2) is

revised to read ‘‘October 1, 1997.’’

PART 303—STANDARDS FOR

PROGRAM OPERATIONS

13. The authority citation for Part 303

continues to read as follows:

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

663, 664, 666, 667, 1302, 1396a(a)(25),

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

§ 303.10 [Removed]

14. Section 303.10 is removed.

§ 303.31 [Amended]

15. In 303.31, reference to

‘‘§ 306.50(a)’’ is revised to read § 303.30

in paragraphs (b)(6) and (b)(7).

16. Section 303.73 is revised to read

as follows:
Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Proposed Rules 2781

§ 303.73 Applications to use the courts of

the United States to enforce court orders.

The IV–D agency may apply to the

Secretary for permission to use a United

States district court to enforce a support

order of a court of competent

jurisdiction against an absent parent

who is present in another State if the

IV–D agency can furnish evidence in

accordance with instructions issued by

the office.

§ 303.100 [Amended]

17. In section 303.100, reference to

‘‘October 1, 1995’’ in paragraph (g)(3) is

revised to read ‘‘October 1, 1997.’’

18–19. Section 303.105 is amended by

revising the section heading and

paragraphs (b) and (c) and adding new

paragraph (f) to read as follows:

§ 303.105 Procedures for periodic

reporting of information to consumer

reporting agencies.

* * * * *

(b) For cases in which the amount of

overdue support exceeds $1,000 and is

at least two months in arrears, the IV–

D agency must have in effect procedures

to periodically report the name of the

absent parent and the amount of arrears

to consumer reporting agencies.

(c) The information shall not be made

available to a consumer reporting

agency which:

(1) the State determines does not have

sufficient capability to make use of the

information in a systematic and timely

manner; or

(2) has not furnished satisfactory

evidence to the State that it is a

consumer reporting agency.

* * * * *

(f) Interstate. For cases where an

initiating State requests, in accordance

with § 303.7(b), a responding State to

enforce a support order, the responding

State will report to consumer reporting

agencies in accordance with this

section. The initiating State will not

report.

PART 304—FEDERAL FINANCIAL

PARTICIPATION

20. 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),

1396(p), and 1396(k).

§ 304.10 [Amended]

21. In section 304.10, the

parenthetical phrase ‘‘(with the

exception of Subpart G, Matching and

Cost Sharing and Subpart I, Financial

Reporting Requirements)’’ is revised to

read ‘‘(with the exception of 45 CFR

74.23, Cost Sharing or Matching and 45

CFR 74.52, Financial Reporting).’’

§ 304.20 [Amended]

22. In section 304.20, paragraph

(b)(1)(iii) introductory text is amended

by replacing ‘‘Subpart P’’ with ‘‘in

accordance with the Procurement

Standards found in 45 CFR 74.40 et

seq.’’, paragraph (b)(1)(vi) is amended

by revising the reference to ‘‘§ 302.16’’

to read ‘‘§ 304.15’’, paragraph (b)(3)(iv)

is amended by revising the term

‘‘attachment’’ to read ‘‘withholding;’’,

paragraph (b)(8) is amended by revising

the reference ‘‘§ 302.2’’ to read ‘‘§ 303.2’’

and, paragraph (b)(11) is amended by

revising ‘‘Part 306, Subpart B, of this

chapter’’ to read ‘‘sections 303.30 and

303.31’’.

§ 304.95 [Removed]

23. Section 304.95 is removed.

PART 306—OPTIONAL COOPERATIVE

AGREEMENTS FOR MEDICAL

SUPPORT ENFORCEMENT—

[REMOVED AND RESERVED]

24. Part 306 is removed and reserved.

PART 307—COMPUTERIZED

SUPPORT ENFORCEMENT SYSTEMS

25. The authority citation for part 307

continues to read as follows:

Authority: 42 U.S.C. 652 through 658, 664,

666, 667, and 1302.

§ 307.5 [Amended]

26. In section 307.5, reference to

‘‘October 1, 1995’’ in paragraph (a) is

revised to read ‘‘October 1, 1997.’’

§ 307.15 [Amended]

27. In section 307.15, reference to

‘‘October 1, 1995’’ in paragraph (b)(2) is

revised to read ‘‘October 1, 1997.’’

[FR Doc. 96–1254 Filed 1–26–96; 8:45 am]

BILLING CODE 4150–04–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 73 and 76

[MM Docket No. 95–176, DA 96–53]

Television Services; Cable Television

Services; Closed Captioning and Video

Description of Video Programming

AGENCY: Federal Communications

Commission.

ACTION: Notice of Inquiry; extension of

comment and reply comment period.

SUMMARY: This action extends the

deadline for filing comments and reply

comments to the Notice of Inquiry in the

above-cited docket. It is taken in

response to requests to extend the

comment and reply comment period

made by the National Association of

Broadcasters, the Association of

Independent Stations, Inc., Capital

Cities/ABC, Inc., CBS Inc., Fox

Broadcasting, and NBC, Inc., and by The

National Association of the Deaf. The

intended effect of this action is to allow

the parties to the proceeding to have

additional time in which to file

comments and reply comments.

DATES: Comments are due on or before

February 28, 1996, and reply comments

are due on or before March 15, 1996.

ADDRESSES: Federal Communications

Commission, Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT:

Robert Somers (202–418–2130) or

Charles Logan (202–418–2130), Mass

Media Bureau.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Order Granting

Extension of the Time for Filing

Comments in MM Docket No. 95–176,

DA 96–53, adopted January 22, 1996

and released January 22, 1996. The

complete text of this Order is available

for inspection and copying during

normal business hours in the FCC

Reference Center (Room 239), 1919 M

Street, N.W., Washington, D.C., and also

may be purchased from the

Commission’s copy contractor,

International Transcription Service,

(202) 857–3800, 2100 M Street NW.,

Suite 140, Washington, DC 20037.

Synopsis of Order Granting Extension

of Time for Filing Comments

1. On December 1, 1995, the

Commission adopted a Notice of Inquiry

in MM Docket No. 95–176 (NOI), FCC–

95–484, 60 FR 65052 (December 18,

1995), seeking comment on a wide

variety of issues relating to closed

captioning and video description

services. Comments were initially due

to be filed by January 29, 1996, and

reply comments by February 14, 1996.

2. On January 16, 1996, a Motion to

Extend the Comment Period was filed

by the National Association of

Broadcasters, the Association of

Independent Television Stations, Inc.,

Capital Cities/ABC, Inc., CBS Inc., Fox

Broadcasting Company, and the

National Broadcasting Company, Inc.

(collectively referred to as

‘‘Broadcasters’’). Broadcasters point out

that both the House and Senate have

passed versions of telecommunications

legislation that would require the

Commission to adopt new rules

requiring closed captioning of most

television programming. See NOI at

¶¶ 7–8, 25–31. They claim that the

information the Commission will need

to gather will vary significantly

depending on whether any such