Elimination of Enhanced Funding for Family Assistance Management Information Systems

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Parts 95 and 205

Elimination of Enhanced Funding for Family Assistance Management

Information Systems

AGENCY: Administration for Children and Families, HHS.

ACTION: Final rule.

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SUMMARY: This final rule implements provisions of the Omnibus Budget

Reconciliation Act of 1993 (OBRA-93), which eliminate enhanced Federal

funding for Family Assistance Management Information Systems (FAMIS).

Technical changes are also made to update the list of automated systems

subject to enhanced funding and to provide the current title of the

agency.

DATES: Effective Date: April 1, 1994. For States whose legislatures

meet biennially and do not have a regular session scheduled in calendar

year 1994, this final rule applies no later than the first day of the

first calendar quarter beginning after the close of the first regular

session of the State legislature convening after August 10, 1993.

FOR FURTHER INFORMATION CONTACT:

Bill Davis, State Data Systems Staff, 370 L'Enfant Promenade SW.,

Washington, DC 20447, telephone (202) 401-6404.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

This final rule does not contain any information collection

activities and, therefore, no approvals are necessary under section

3504(h) of the Paperwork Reduction Act of 1980 (Pub. L. 96-511).

Statutory Authority

These regulations are published under the general authority of

section 1102 of the Social Security Act (the Act) which requires the

Secretary to publish such rules and regulations as may be necessary for

the efficient administration of the functions for which she is

responsible under the Act.

Justification for Dispensing With Notice of Proposed Rulemaking and 30-

Day Delayed Effective Date Requirement

The amendments to these regulations are being published in final

form. The Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B),

provides that if the Department has good cause for finding that a

Notice of Proposed Rulemaking is unnecessary, impracticable or contrary

to the public interest, it may dispense with such notice if it

incorporates a brief statement in the final regulation of the reasons

for doing so. Section 553(d)(3) of the APA permits the Department to

bypass a 30-day waiting period prior to a rule's effective date for

similar reasons.

The Department finds that there is good case to dispense with

Notice of Proposed Rulemaking and a 30-day waiting period with respect

to the current regulatory changes. A notice and comment period and a

30-day waiting period are unnecessary as the amendments simply

implement statutory provisions and do not involve administrative

discretion. Moreover, the States have previously been notified by the

Department (via ACF-AT-93-16 issued November 1, 1993) that OBRA-93 has

eliminated enhanced Federal funding for FAMIS, and that the lower

Federal funding rate is effective, in most cases, on April 1, 1994.

Background and Description of Regulatory Provisions

Section 13741 of OBRA-93 amended section 403 of the Social Security

Act by eliminating enhanced Federal financial funding for certain

categories of AFDC expenditures, including AFDC program expenditures

pertaining to the planning, design, and development or installation of

an approved Family Assistance Management Information System (FAMIS).

The current enhanced Federal matching rate for FAMIS is 90 percent.

This rate is reduced to 50 percent under OBRA-93. Accordingly, the

funding provisions at 45 CFR 205.38(a) are revised to stipulate that

the availability of 90 percent funding is terminated effective March

31, 1994, after which time the rate is reduced to 50 percent.

While 50 percent is the only Federal financial participation rate

available for FAMIS activities beginning April 1, 1994, those system

developments efforts already in progress and approved at the enhanced

rate continue to be subject to the requirements of Sec. 205.35 through

Sec. 205.38 until the system is completed and certified by the

Administration for Children and Families. The Department will continue

to recover pursuant to section 402(e)(2)(C) of the Social Security Act

the 40 percent incentive portion of Federal financial participation

expended should the state fail to meet the statewide implementation

date specified in its approved Advance Planning Document.

We have also made technical changes to reflect a 1991 agency

reorganization by replacing references to the ``Family Support

Administration (FSA)'' with ``the Administration for Children and

Families (ACF)'' each time they appear in Sec. 205.35 through

Sec. 205.38.

Conforming changes have also been made to 45 CFR part 95, subpart

F, Automatic Data Processing Equipment and Services--Conditions for

Federal Financial Participation, Sec. 95.605 (pertaining to

definitions) and Secs. 95.611 and 95.625 (pertaining to FFP) to remove

references to the availability of enhanced funding under title IV-A. At

the same time, we are adding references in Secs. 95.611 and 95.625 to

title IV-E relevant to the availability of enhanced funding since

section 13713 of OBRA-93 made such funding available for Statewide

Automated Child Welfare Information Systems from October 1, 1993

through September 30, 1996 (see 58 FR 67939, December 22, 1993).

Technical changes have also been made to this section to reflect

the current agency designation as explained above and to correct a

typographical error. The reference at 45 CFR 96.625(b), with respect to

regulations governing title XIX should be 42 CFR part 433, subpart C,

rather than 45 CFR part 433, subpart C.

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.

Regulatory Flexibility Act

Consistent with the Regulatory Flexibility Act (Pub. L. 96-354)

which requires the Federal government to anticipate and reduce the

impact of rules and paperwork requirements on small businesses and

other small entities, the Secretary certifies that this rule has no

significant effect on a substantial number of small entities.

Therefore, a regulatory flexibility analysis is not required.

List of Subjects

45 CFR Part 95

Claims, Computer technology, Grant programs--health, Grant

programs, Social programs, Social security.

45 CFR Part 205

Computer technology, Grant programs--social programs, Privacy,

Public assistance programs, Reporting and recordkeeping requirements,

Wages.

(Catalog of Federal Domestic Assistance Program Numbers 13.645 Child

Welfare Services--State Grants; Foster Care Maintenance; 13.659,

Adoption Assistance; 13.679, Child Support Enforcement Program;

13.174, Medical Assistance Program; 13.808, Assistance Payments--

Maintenance Assistance; 13.810, Assistance Payments--State and Local

Training)

Dated: April 1, 1994.

Mary Jo Bane,

Assistant Secretary for Children and Families.

Approved: June 5, 1994.

Donna E. Shalala,

Secretary.

PART 95--GENERAL ADMINISTRATION--GRANT PROGRAMS (PUBLIC ASSISTANCE

AND MEDICAL ASSISTANCE)

1. The authority citation for part 95 continues to read as follows:

Authority: Secs. 402(a)(5), 452(a)(1), 1102, and 1902(a)(4) of

the Social Security Act, 42 U.S.C. 602(a)(5), 652(a)(1), 1302,

1396a(a)(4); 5 U.S.C. 301 and 8 U.S.C. 1521.

2. Section 95.605 is amended by revising the definition of

``Enhanced matching rate'' to read as follows:

Sec. 95.605 Definitions.

* * * * *

Enhanced matching rate means the higher than regular rate of FFP

authorized by Title IV-D, IV-E, and XIX of the Social Security Act for

acquisition of services and equipment that conform to specific

requirements designed to improve administration of the Child Support

Enforcement, Foster Care and Adoption Assistance, and Medicaid

programs.

* * * * *

3. Section 95.611 is amended by revising paragraphs (a)(2) and

(a)(5) to read as follows:

Sec. 95.611 Prior approval conditions.

(a) * * *

(2) A State shall obtain prior written approval from the Department

as specified in paragraph (b) of this section, when the State plans to

acquire ADP equipment or services with proposed FFP at the enhanced

matching rate authorized by 45 CFR part 307, 45 CFR 1355.55 or 42 CFR

part 433, subpart C, regardless of the acquisition cost, except as

specified in paragraph (a)(3) of this section.

* * * * *

(5) Except as provided for in paragraph (a)(6) of this section, the

State shall submit requests for Department approval, signed by the

appropriate State official, to the Director, Administration for

Children and Families, Office of Information Management Systems. The

State shall send to ACF one copy of the request for each HHS component,

from which the State is requesting funding, and one for the State Data

Systems Staff, the coordinating staff for these requests. The State

must also send one copy of the request directly to each Regional

program component and one copy to the Regional Director.

* * * * *

4. Section 95.625 is revised to read as follows:

Sec. 96.625 Increased FFP for certain ADP systems.

(a) General. FFP is available at enhanced matching rates for the

development of individual or integrated systems and the associated

computer that support the administration of State plans for Titles IV-

D, IV-E and/or XIX provided the systems meet the specifically

applicable provisions referenced in paragraph (b) of this section.

(b) Specific reference to other regulations. The applicable

regulations for the Title IV-D program are contained in 45 CFR part

307. The applicable regulations for the Title IV-E program are

contained in 45 CFR 1355.55. The applicable regulations for the Title

XIX program are contained in 42 CFR part 433, subpart C.

PART 205--GENERAL ADMINISTRATION--PUBLIC ASSISTANCE PROGRAMS

1. The authority citation for part 205 continues to read as

follows:

Authority: 42 U.S.C. 602, 603, 606, 607, 611, 1302, 1306(a),

1320b-7.

Sec. 205.35 [Amended]

2. Section 205.35 is amended by removing in the introductory text

``Family Support Administration (FSA).'' and adding, in its place

``Administration for Children and Families (ACF).''

Sec. 205.37 [Amended]

3. Section 205.37 is amended by revising the heading of the section

to read: ``Responsibilities of the Administration for Children and

Families (ACF).'', and by removing the initials ``OFA'' in the third

sentence of paragraph (a)(5) and adding in its place, the initials

``ACF''.

4. Section 205.38 is amended by revising paragraph (a) to read as

follows:

Sec. 205.38 Federal financial participation (FFP) for establishing a

statewide mechanized system.

(a) Effective July 1, 1981 through March 31, 1994, FFP is available

at 90 percent of expenditures incurred for planning, design,

development or installation of a statewide automated application

processing and information retrieval system which are consistent with

an approved APD. (Beginning April 1, 1994 the match rate available for

development of Title IV-A automated systems is 50 percent.) The 90

percent FFP includes the purchase or rental of computer equipment and

software directly required for and used in the operation of this

system.

* * * * *

Secs. 205.37 and 205.38 [Amended]

5. In addition to the amendments set forth above, in 45 CFR part

205 remove the initials ``FSA'' and add, in its place, the initials

``ACF'' in the following places:

(a) Section 205.37(a), (b), (c), (d) and (e); and

(b) Section 205.38(b), (c) and (e).

[FR Doc. 94-14326 Filed 6-14-94; 8:45 am]

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