Refugee Resettlement Program: Requirements for the Public/Private Partnership Program for Refugee Cash Assistance; and Refugee Medical Assistance

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of Refugee Resettlement

45 CFR Parts 400 and 401

RIN 0970-AB83

Refugee Resettlement Program: Requirements for the Public/Private

Partnership Program for Refugee Cash Assistance; and Refugee Medical

Assistance

AGENCY: Office of Refugee Resettlement, Administration for Children and

Families (ACF), HHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed rule would amend current requirements governing

refugee cash assistance and refugee medical assistance and would

establish the refugee cash assistance program as a public/private

partnership between States and local resettlement agencies.

DATES: Comments must be received by March 9, 1999.

ADDRESSES: Comments should be addressed to Toyo A. Biddle, Director,

Division of Refugee Self-Sufficiency, Office of Refugee Resettlement,

Administration for Children and Families, 370 L'Enfant Promenade SW.,

6th Floor, Washington, DC 20447.

Agencies and organizations are requested to submit comments in

duplicate. While we are soliciting comments on all aspects of the

proposed rule, we would particularly appreciate your feedback on the

time periods allowed for implementation.

Comments will be available for public inspection, beginning

approximately one month after publication, at the above address on

Monday through Friday of each week from 9:30 a.m. to 4 p.m., except

Federal holidays. Although we will not be able to acknowledge or

respond to comments individually, in preparing the final rule, we will

respond to comments in the preamble to the final rule.

FOR FURTHER INFORMATION CONTACT: Toyo Biddle, (202) 401-9250, or

Barbara Chesnik, (202) 401-4558.

SUPPLEMENTARY INFORMATION:

Background

onday through Friday of each week from 9:30 a.m. to 4 p.m., except

Federal holidays. Although we will not be able to acknowledge or

respond to comments individually, in preparing the final rule, we will

respond to comments in the preamble to the final rule.

FOR FURTHER INFORMATION CONTACT: Toyo Biddle, (202) 401-9250, or

Barbara Chesnik, (202) 401-4558.

SUPPLEMENTARY INFORMATION:

Background

The Refugee Act of 1980 amended the Immigration and Nationality Act

(INA) to create a domestic refugee resettlement program to provide

assistance and services to refugees resettling in the United States.

With the enactment of this legislation, the Office of Refugee

Resettlement (ORR) issued a series of regulations, at 45 CFR part 400,

to establish comprehensive requirements for a State-administered

Refugee Resettlement Program (RRP), beginning with the publication on

September 9, 1980 (45 FR 59318) of a regulation governing State plan

and reporting requirements. Subsequent regulations covered cash and

medical assistance and Federal funding, published March 12, 1982 (47 FR

10841); grants to States, child welfare services (including services to

unaccompanied minors), and Federal funding for State expenditures,

published January 30, 1986 (51 FR 3904); cash and medical assistance,

requirements for employability services, job search, and employment,

and refugee social services published February 3, 1989 (54 FR 5463);

and requirements for employability services, job search, employment,

refugee medical assistance, refugee social services, targeted

assistance services, and Federal funding for administrative costs,

published June 28, 1995 (60 FR 33584).

Description of the Regulation

ts for employability services, job search, and employment,

and refugee social services published February 3, 1989 (54 FR 5463);

and requirements for employability services, job search, employment,

refugee medical assistance, refugee social services, targeted

assistance services, and Federal funding for administrative costs,

published June 28, 1995 (60 FR 33584).

Description of the Regulation

This proposed regulation establishes a new system for providing

refugee cash assistance (RCA) to those refugees not eligible for

Temporary Assistance for Needy Families (TANF) or Supplemental Security

Income (SSI), changes the procedure for determining the financial

eligibility of refugees for receipt of refugee medical assistance, and

amends other policies.

During the period following World War II until the passage of the

Refugee Act of l980, a variety of programs were funded by Congress and/

or the private sector to assist newly arriving refugee groups. In

authorizing and funding these programs for refugees, Congress

continually demonstrated its recognition that special programs were

needed to help refugees restart their lives in the U.S.

It is important to note that resettlement in the U.S. is the last

stage of a much larger, world-wide humanitarian effort to aid victims

of oppression and war. The U.S. participates and exercises its

leadership in this effort by contributing to international relief and

protection efforts, and also by offering resettlement to some refugees

who have no other durable solution and who qualify for admission to the

U.S. These refugees arrive from diverse backgrounds and parts of the

world. However, what they all have in common, in addition to having had

to seek refuge, is that they arrive with virtually no worldly

possessions.

With the passage of the Refugee Act, Congress further underscored

its belief that refugees need special assistance by authorizing an on-

going program for providing assistance and services to all refugees

after their arrival in the U.S

arts of the

world. However, what they all have in common, in addition to having had

to seek refuge, is that they arrive with virtually no worldly

possessions.

With the passage of the Refugee Act, Congress further underscored

its belief that refugees need special assistance by authorizing an on-

going program for providing assistance and services to all refugees

after their arrival in the U.S. However, unlike U.S. welfare programs

which assist the needy, the Refugee Act does not require that an income

standard be met in order to receive this special refugee cash

assistance, only that refugees register for and participate in programs

to help them find employment. Congress provided the Office of Refugee

Resettlement the latitude to structure the refugee program in

accordance with the refugee situation at that time.

After passage of the Refugee Act of 1980, ORR chose to establish

direct ties to the State-administered Aid to Families with Dependent

Children (AFDC) program in order to ensure that cash assistance was

available to newly-arrived refugees not categorically eligible for that

program. ORR established the refugee cash assistance program (RCA) and

required States to use the AFDC need and payment standards for the

provision of RCA. The AFDC welfare system provided a nationally

accessible structure which ensured that cash assistance was available

to all refugees in a timely and equitable manner. ORR also established

the refugee medical assistance program (RMA) modeled on the Medicaid

program.

At that time, ORR received sufficient appropriations to allow

States to provide needy refugees with refugee cash assistance and

refugee medical assistance during a refugee's first 36 months in the

U.S. In addition, some portion of the refugee population received

assistance under the mainstream AFDC and Medicaid programs. ORR also

reimbursed the State share of AFDC and Medicaid costs during a

refugee's first 36 months

sufficient appropriations to allow

States to provide needy refugees with refugee cash assistance and

refugee medical assistance during a refugee's first 36 months in the

U.S. In addition, some portion of the refugee population received

assistance under the mainstream AFDC and Medicaid programs. ORR also

reimbursed the State share of AFDC and Medicaid costs during a

refugee's first 36 months.

In the intervening years, due to declining appropriations, ORR

reduced the period of availability of RCA and RMA to refugees. At the

present time, ORR reimburses States for 100 percent of their RCA and

RMA costs during a refugee's first eight months. Refugees eligible for

the TANF and Medicaid programs receive assistance under those programs;

the costs of refugee TANF and Medicaid recipients are not included in

the refugee appropriation.

With the passage of welfare reform legislation in 1996, two things

have occurred which caused ORR to review the current system for

providing RCA: (1) More refugee families have qualified for assistance

through the TANF program than had previously qualified under the AFDC

program, resulting in a smaller RCA program; and (2) States have

expressed concerns about the administrative difficulties of maintaining

a separate system based upon former AFDC rules to provide cash

assistance for only 8 months to a small population of refugees.

With these two considerations in mind, ORR conducted eight

consultations around the country and two teleconferences to discuss

whether and how States, voluntary agencies, service providers, and

refugee organizations would like to see the regulations changed. The

consultations were useful in helping us to identify certain issues and

to gauge whether there was a general willingness and a suitable climate

across the country in which to change the program

onsultations around the country and two teleconferences to discuss

whether and how States, voluntary agencies, service providers, and

refugee organizations would like to see the regulations changed. The

consultations were useful in helping us to identify certain issues and

to gauge whether there was a general willingness and a suitable climate

across the country in which to change the program.

We have concluded, based upon the consultations, that it is an

opportune time to separate the link between the RCA program and the

welfare/TANF system for the following reasons: (1) The current period

of time for provision of cash assistance is shorter, requiring a

simple, more integrated and direct approach to resettlement; and (2)

the RCA population, comprised almost entirely of singles and couples

without children or with adult children, is a smaller, more distinct

population to serve.

The Refugee Act acknowledged the roles of both States and private

voluntary agencies in resettlement and authorized the Director of ORR

``to provide assistance, reimbursement to States, and grants to, and

contracts with, public or private nonprofit agencies for 100 per centum

of the cash assistance and medical assistance provided to any refugee *

* *.'' This language provided ORR with statutory flexibility to deliver

assistance through public or private means. We believe that the public/

private program we propose more closely follows what Congress intended

in passing the Refugee Act. The addition of a public/private program

also provides States increased flexibility by offering another option

for administering the RCA program.

The proposed regulation would establish the refugee cash assistance

program as a public/private partnership between States and local

resettlement agencies responsible for the initial

losely follows what Congress intended

in passing the Refugee Act. The addition of a public/private program

also provides States increased flexibility by offering another option

for administering the RCA program.

The proposed regulation would establish the refugee cash assistance

program as a public/private partnership between States and local

resettlement agencies responsible for the initial

resettlement of refugees. Under the proposed program, States would

enter into a public/private partnership by contracting with local

resettlement agencies to administer both the provision of cash

assistance and the services needed to help RCA recipients become

employed and self-sufficient within the RCA eligibility period. The RMA

program would continue to be administered by the States and would not

be included in the public/private partnership program. In addition,

assistance and services to refugees eligible for TANF would not be

affected by the new public/private RCA program.

We believe a combined assistance and services program, administered

outside the welfare system, makes programmatic sense for the RCA

population. Placing responsibility for cash assistance and services

with the resettlement agencies will result in a continuity of

assistance to RCA-eligible refugees from initial resettlement to self-

sufficiency. Currently, resettlement agencies are responsible, under

contract with the Department of State, for providing refugees with

initial housing, food, clothes, and shelter for the first 30 days after

arrival in the U.S. However, in order to receive cash assistance after

that initial period, refugees must apply to the local welfare office

where they become engaged in a service delivery system which, in many

States, may not include their local resettlement agency.

We believe the new program will more firmly unite the two key

players--States and resettlement agencies--into a partnership that will

best utilize their respective strengths

ve cash assistance after

that initial period, refugees must apply to the local welfare office

where they become engaged in a service delivery system which, in many

States, may not include their local resettlement agency.

We believe the new program will more firmly unite the two key

players--States and resettlement agencies--into a partnership that will

best utilize their respective strengths. States would maintain the

important role of administering the program and providing financial

management and policy oversight, while the resettlement agencies would

have an enhanced role in the longer-term resettlement of refugees they

place in the State.

Under the public/private RCA program, States and voluntary agencies

will have the flexibility to design programs to deliver refugee cash

assistance in a manner that more fully integrates and supports

resettlement. In order to accommodate resettlement in communities

across the U.S. with different cost-of-living conditions, ORR is

establishing payment ceilings which may be provided to refugees. Within

these ceilings, a State and the resettlement agencies in that State

will have the opportunity to develop a resettlement plan which

incorporates the features, such as sliding scale payments or

incentives, that they believe are best suited to achieving early self-

sufficiency and to enriching the quality of life for refugees placed in

their State. In addition, States and resettlement agencies will have

the flexibility to establish the income-eligibility standard for RCA

that they believe would best enable most newly arriving refugees to

qualify for RCA.

States and resettlement agencies administering the public/private

RCA program will be responsible for moving refugees to economic self-

sufficiency within the RCA eligibility period by placing them in full-

time employment

agencies will have

the flexibility to establish the income-eligibility standard for RCA

that they believe would best enable most newly arriving refugees to

qualify for RCA.

States and resettlement agencies administering the public/private

RCA program will be responsible for moving refugees to economic self-

sufficiency within the RCA eligibility period by placing them in full-

time employment. They will also be responsible for assisting refugees

in their social self-sufficiency by giving refugees adequate

preparation to be able to carry out basic activities, such as handling

a bank account or using public transportation, that are essential to

living in American society. With full responsibility for refugees

during this period, States and resettlement agencies will be held

accountable for both employment and resettlement results by the end of

this 8-month period.

The proposed regulation would allow States under Sec. 400.207 to

claim reasonable and necessary administrative costs incurred by

resettlement agencies in the administration of the public/private RCA

program. Because of the potential for increased administrative costs

due to the public/private administration of the RCA program, ORR is

soliciting comments on mechanisms to ensure that changes in

administrative costs do not result in a reduction of benefits to

refugees.

We would expect States, when developing their annual social

services plan, to factor into their fiscal planning social services

funding for the public/private RCA program. We would also expect States

to link the new RCA program with the existing State refugee social

services system in order to enhance the coordination of services. We

recognize that there may be additional service costs to fully implement

the service component of the new RCA program while maintaining the

State's regular refugee social services program for non-RCA refugees

who have been in the U.S. for less than 5 years

es

to link the new RCA program with the existing State refugee social

services system in order to enhance the coordination of services. We

recognize that there may be additional service costs to fully implement

the service component of the new RCA program while maintaining the

State's regular refugee social services program for non-RCA refugees

who have been in the U.S. for less than 5 years. For this reason,

subject to the availability of funds, ORR proposes to supplement

States' social services formula allocations with a portion of the non-

formula social services funds that are reserved for the Director's

discretionary use each year. These non-formula funds would be used as a

supplement during the initial start-up years to enable States to

establish a viable public/private RCA program without compromising

their regular social services program. At the end of this initial

period, States would be expected to cover the costs of services in the

new RCA program within their regular social services budget.

States would be required to engage in a planning and consultation

process with the resettlement agencies and with other agencies, such as

mutual assistance associations (MAAs), that serve refugees in the State

to design the public/private RCA program. From that process, States and

resettlement agencies would develop a public/private RCA plan for

submission to ORR no later than 6 months after publication of the final

rule.

While a public/private RCA program is ORR's preferred approach, we

fully recognize that this approach may not be the best choice in all

States. Therefore, under the proposed regulation, States would have the

flexibility to request an exception to the public/private program if an

agreement cannot be reached with the local resettlement agencies or if

the State has reason to believe that a public/private RCA program would

not serve the best interests of refugees in that State

that this approach may not be the best choice in all

States. Therefore, under the proposed regulation, States would have the

flexibility to request an exception to the public/private program if an

agreement cannot be reached with the local resettlement agencies or if

the State has reason to believe that a public/private RCA program would

not serve the best interests of refugees in that State. Certain

criteria would have to be met for ORR to approve a State's request to

operate an excepted RCA program. These criteria are discussed later in

the preamble under a description of Exceptions to the Public/Private

RCA Program, Sec. 400.66. States that address these criteria would be

able to operate a State-run excepted RCA program mirrored after their

TANF program in regard to determination of eligibility, treatment of

income and resources, benefit levels, and budgeting methods. States

that believe that neither the public/private RCA program nor the RCA

excepted program are the best programs to serve refugees in their State

would have the flexibility to pursue a third option--an alternative

program funded under the standing Wilson/Fish announcement. The Wilson/

Fish program provides States and public and private non-profit agencies

the opportunity to develop innovative approaches to providing cash

assistance, social services, and case management as an alternative to

the regular State-administered refugee program.

The proposed regulation contains a number of provisions to ensure

that refugee rights and protections are safeguarded in the transfer of

eligibility and cash assistance payment responsibilities from a State-

administered to a public/private partnership program. While we have no

interest in having resettlement agencies become mini-welfare

bureaucracies, it is essential to have adequate client protections in

place to ensure due process and equitable treatment.

We have added three changes to the refugee medical assistance

program to

gibility and cash assistance payment responsibilities from a State-

administered to a public/private partnership program. While we have no

interest in having resettlement agencies become mini-welfare

bureaucracies, it is essential to have adequate client protections in

place to ensure due process and equitable treatment.

We have added three changes to the refugee medical assistance

program to

enable certain groups of refugees currently without medical coverage,

such as newly arrived refugees who become employed within the first few

weeks of arrival, to be eligible for RMA. First, States would be

required to determine RMA eligibility on the basis of a refugee

applicant's income and resources on the date of application, rather

than averaging income over the application processing period. Second,

States would be given the option of using a higher need standard of up

to 200% of the national poverty level for determination of RMA

eligibility. Third, refugees residing in the U.S. less than 8 months,

who lose their eligibility for Medicaid because of earnings from

employment, would be able to be transferred to RMA without an

eligibility redetermination. We believe these changes in RMA

eligibility are important to ensure that most newly arriving refugees,

many of whom arrive with medical problems resulting from war-related

trauma, have medical coverage during their first 8 months in the U.S.

Consistent with the preceding actions, 45 CFR 400.2, 400.5, 400.11,

400.13, 400.23, 400.27, 400.43, 400.44, Subpart E, 400.70, 400.71,

400.72, 400.75, 400.76, 400.77, 400.78, 400.79, 400.80, 400.81, 400.82,

400.83, 400.100, 400.101, 400.102, 400.104, 400.154, 400.155, 400.203,

400.207, 400.208, 400.209, 400.210, 400.211, 400.301, and 401.12 are

being amended or removed. Some of these changes are technical in nature

and are not discussed in the preamble.

Subpart A--Introduction

.27, 400.43, 400.44, Subpart E, 400.70, 400.71,

400.72, 400.75, 400.76, 400.77, 400.78, 400.79, 400.80, 400.81, 400.82,

400.83, 400.100, 400.101, 400.102, 400.104, 400.154, 400.155, 400.203,

400.207, 400.208, 400.209, 400.210, 400.211, 400.301, and 401.12 are

being amended or removed. Some of these changes are technical in nature

and are not discussed in the preamble.

Subpart A--Introduction

Section 400.2 is amended by replacing all references to the AFDC

program with references to the TANF program and by adding a definition

of an RCA Plan.

Subpart B--Grants to States for Refugee Resettlement

Section 400.5 is amended by reinserting paragraph (i) which was

inadvertently removed when 45 CFR Part 400 was last codified in 1995.

Section 400.13(d) is amended by allowing the costs of case

management to be charged to the CMA grant only in cases where the case

management activities are targeted to time-eligible RCA recipients for

the purpose of assisting such recipients to obtain employment and to

become economically and socially self-sufficient.

Section 400.13 is amended by adding a new paragraph (e) which would

allow States to charge administrative costs incurred by local

resettlement agencies in the administration of the public/private RCA

program (i.e., administrative costs of providing cash assistance) to

the CMA grant. Administrative costs of managing the services component

of the RCA program must be charged to the social services grant.

Administrative costs of providing cash assistance may include: (1)

The salary costs of staff responsible for eligibility determinations

and other administrative functions associated with the provision of

cash payments; and (2) the portion of the local resettlement agency

Director's time spent on managing the cash assistance component.

Subpart C--General Administration

social services grant.

Administrative costs of providing cash assistance may include: (1)

The salary costs of staff responsible for eligibility determinations

and other administrative functions associated with the provision of

cash payments; and (2) the portion of the local resettlement agency

Director's time spent on managing the cash assistance component.

Subpart C--General Administration

Section 400.23 (Hearings) is amended by removing a reference to

AFDC regulations and establishing that the hearing procedures to be

followed in the public/private RCA program will be the procedures

described in the public/private RCA plan and the hearing procedures to

be followed in an RCA-excepted program and the RMA program will be

those used in the State TANF program.

Section 400.27 (Safeguarding and sharing of information) is amended

by removing paragraph (c) which references an AFDC regulation. It

should be noted that Sec. 400.58 requires that a State's public/private

RCA plan contain a description of the procedures to be used to

safeguard the disclosure of information on refugee clients.

Subpart D--Immigration Status and Identification of Refugees

Section 400.43 is amended by removing the following obsolete alien

statuses for purposes of the refugee program: ``Admitted as a

conditional entrant under section 203(a)(7) of the Act'' and ``Admitted

with an immigration status that entitled the individual to refugee

assistance prior to enactment of the Refugee Act of 1980, as specified

by the Director'' and by adding Cuban and Haitian entrants; and

Amerasian immigrants to this section.

Section 400.44 is amended by clarifying that applicants for asylum

are not eligible for assistance under the refugee program unless

otherwise provided by Federal law, as is the case with Cuban and

Haitian asylum applicants under section 501 of the Refugee Education

Assistance Act of 1980.

Subpart E--Refugee Cash Assistance

uban and Haitian entrants; and

Amerasian immigrants to this section.

Section 400.44 is amended by clarifying that applicants for asylum

are not eligible for assistance under the refugee program unless

otherwise provided by Federal law, as is the case with Cuban and

Haitian asylum applicants under section 501 of the Refugee Education

Assistance Act of 1980.

Subpart E--Refugee Cash Assistance

Subpart E is revised by replacing the current RCA program with a

new public/private partnership program in which States would contract

with local resettlement agencies to provide transitional cash

assistance and services to RCA-eligible refugees as described below.

General

The following general sections apply to both the public/private RCA

program and State exceptions to the public/private RCA program.

Section 400.50 (Basis and scope) is retained without changes.

Section 400.51 (Definitions) is removed.

Section 400.52 (Recovery of overpayments and correction of

underpayments) is removed.

Section 400.55 (Opportunity to apply for cash assistance) is

redesignated as Sec. 400.51 and amended by removing (b)(1), which

references AFDC requirements, and by removing (b)(3), (b)(4), and (c),

which require States to contact sponsoring resettlement agencies

regarding financial assistance and offers of employment to refugees.

Section 400.56 (Determination of eligibility under other programs)

is redesignated as Sec. 400.52 and is amended by removing paragraphs

as Sec. 400.51 and amended by removing (b)(1), which

references AFDC requirements, and by removing (b)(3), (b)(4), and (c),

which require States to contact sponsoring resettlement agencies

regarding financial assistance and offers of employment to refugees.

Section 400.56 (Determination of eligibility under other programs)

is redesignated as Sec. 400.52 and is amended by removing paragraphs

(a)(1) and (a)(2) and redesignating paragraph (a)(3) as (a).

Section 400.57 (Emergency cash assistance to refugees) is

redesignated as Sec. 400.53.

Section 400.54 (General eligibility requirements) replaces

Sec. 400.60 and establishes the following eligibility requirements for

the RCA program. To be eligible for the RCA program, a refugee must:

(1) Be a new arrival who has resided in the U.S. less than the RCA

eligibility period determined by the ORR Director in accordance with

Sec. 400.211; (2) be ineligible for TANF and SSI; (3) have the proper

immigration status and documentation for eligibility for benefits under

the refugee program; (4) not be a full-time student in an institution

of higher education; and (5) meet the income eligibility standard

jointly established by the State and local resettlement agencies in the

State.

Section 400.55 (Eligibility redeterminations in States with

residency requirements) establishes that in States in which refugee

families normally eligible for the TANF program are temporarily placed

in the RCA program due to a TANF residency requirement, States are

required to conduct an immediate redetermination of eligibility for

TANF, once the

nd local resettlement agencies in the

State.

Section 400.55 (Eligibility redeterminations in States with

residency requirements) establishes that in States in which refugee

families normally eligible for the TANF program are temporarily placed

in the RCA program due to a TANF residency requirement, States are

required to conduct an immediate redetermination of eligibility for

TANF, once the

residency period is completed. This requirement applies regardless of

whether the State is operating a local resettlement agency RCA program

or, under an exception, a State agency-administered RCA program. Our

intent is to ensure that RCA recipients eligible for TANF are

transferred to that program in a timely manner, upon fulfilling the

residency period, in order to limit the costs claimed against the RCA

program for refugees eligible for TANF.

Public/Private Partnership RCA Program

Section 400.56 (Structure) establishes the structure for the

provision of cash assistance through the proposed public/private RCA

program. This section requires that States enter into a public/private

partnership by administering the RCA program through contracts with the

local resettlement agencies that resettle refugees in the State, unless

the State meets the excepted criteria specified in section 400.66. We

define local resettlement agencies as those agencies which provide

initial reception and placement services to refugees under a

cooperative agreement with the Department of State.

We believe that giving the local resettlement agencies that are

responsible for the initial placement of refugees the additional

responsibility of providing cash assistance to those refugees will

result in more effective and better quality resettlement. At the same

time, we fully recognize the policy and administrative oversight

capacity that States are able to contribute to the resettlement

process. We are proposing this structure to more firmly unite the two

sectors into a partnership to help refugees

the additional

responsibility of providing cash assistance to those refugees will

result in more effective and better quality resettlement. At the same

time, we fully recognize the policy and administrative oversight

capacity that States are able to contribute to the resettlement

process. We are proposing this structure to more firmly unite the two

sectors into a partnership to help refugees.

We expect States to implement a public/private RCA program

statewide. It is intended that all resettlement agencies placing

refugees in a State will participate in the public/private RCA program

to the extent possible.

However, if it is not feasible to operate a statewide public/

private RCA program, States may propose a geographically split program

for the delivery of RCA. We recognize that in some places the statewide

public/private model may not be a reasonable approach. For example, in

a State with a major urban area that receives 75% of the State's newly

arriving refugees, the State and resettlement agencies may wish to

operate a public/private RCA program in the urban area only, while

choosing to operate an excepted RCA program through the State welfare

agency in the balance of the State where the geographic dispersion of

refugees may hinder resettlement agency delivery of benefits.

ORR will not consider a plan where the State proposes having both a

public/private RCA program and an excepted RCA program in the same

location. Such an arrangement would not be programmatically wise

because it would cause confusion for refugees and would create

unnecessary duplication.

We recognize that some local resettlement agencies sponsor refugees

in States other than where they have an office, e.g., in States

bordering and in close proximity to their local office such as occurs

in Kansas/Missouri and in the District of Columbia/Maryland/Virginia

metropolitan area

bility functions

including the determination of eligibility, authorization of the RCA

payment amount, the cutting of the checks, and the provision of

payments to refugees; (2) a lead agency approach in which one

resettlement agency assumes responsibility for managing the cash

assistance component of the program for all the resettlement agencies;

or (3) a model where the State acts as the fiscal agent, cutting

benefit checks and managing cash flow, while the local resettlement

agency determines eligibility, calculates the payment amount, and

provides payments to refugees.

Regarding the provision of services in the public/private RCA

program, a State that lacks the staff capacity to manage numerous local

agency contracts may wish to consider contracting with a lead

resettlement agency, with subcontracts to the other local resettlement

agencies for the provision of services. Our interest in having each

resettlement agency retain responsibility for services through

subcontracts is to maintain the link between initial resettlement of

refugees in a State and accountability for outcomes for these refugees

through the provision of services. States would be responsible for

overseeing and managing these contracts in the same manner as their

regular social services contracts.

States and resettlement agencies will have one year from the date

of publication of the final rule to implement the new public/private

RCA program.

Section 400.57 (Planning and consultation) requires a process for

planning and consultation for the proposed public/private RCA program.

This section requires that the State and the local agencies that

resettle refugees in the State engage in a process to develop a public/

private RCA plan, the content of which is described in Sec. 400.58.

Primary participants in the planning process must include

representatives of the State and each local agency that resettles

refugees in the State

for the proposed public/private RCA program.

This section requires that the State and the local agencies that

resettle refugees in the State engage in a process to develop a public/

private RCA plan, the content of which is described in Sec. 400.58.

Primary participants in the planning process must include

representatives of the State and each local agency that resettles

refugees in the State. In addition, representatives of refugee mutual

assistance associations (MAAs), local community services agencies, and

other agencies that serve refugees must be given the opportunity to

participate in the discussion during the development period. We believe

that full participation by MAAs and other community agencies throughout

the planning process is essential to the development of a workable

public/private RCA program. To facilitate this participation, it is

permissible for States to charge to their CMA grant reasonable travel

and per diem costs for MAAs and other agencies, as needed, to enable

these agencies to more easily participate in the consultation process.

This section requires that the public be given the opportunity to

submit written comments on the plan before it is transmitted to ORR.

This section also requires local resettlement agencies to keep

their respective national voluntary resettlement agencies fully

informed of the details of the public/private RCA program as the

program is developed. Local resettlement agencies will be responsible

for obtaining a letter of agreement from their national agencies

stating that they will continue to place

it is transmitted to ORR.

This section also requires local resettlement agencies to keep

their respective national voluntary resettlement agencies fully

informed of the details of the public/private RCA program as the

program is developed. Local resettlement agencies will be responsible

for obtaining a letter of agreement from their national agencies

stating that they will continue to place

refugees in the State under the new public/private program.

Section 400.58 (Development of a public/private RCA plan)

establishes the requirements for the development of a public/private

partnership plan which describes how the State and local resettlement

agencies will administer and deliver RCA to eligible refugees. The plan

must describe the agreed-upon public/private RCA system including: (1)

The proposed income standards for RCA eligibility; (2) proposed payment

levels to be used to provide cash assistance to eligible refugees; (3)

assurance that the payment levels established are not lower than the

State TANF amount; (4) a detailed description of how benefit payments

will be structured, including the employment incentives and/or income

disregards to be used, if any; (5) a description of how all refugees

residing in the State will have easy access to cash assistance and

services; (6) a description of the procedures to be used to ensure

appropriate protections and due process for refugees, such as the

correction of underpayments, notice of adverse action and the right to

mediation, a pre-termination hearing, and an appeal to an independent

entity; (7) a description of proposed exemptions from participation in

employability services; (8) a description of the employment and self-

sufficiency services that the local resettlement agencies will be

contracted to provide to RCA recipients; (9) procedures for providing

RCA to eligible secondary migrants who move to the State, including

secondary migrants who were sponsored by a resettlement agency that

does not have a presence in the receiving State;

in

employability services; (8) a description of the employment and self-

sufficiency services that the local resettlement agencies will be

contracted to provide to RCA recipients; (9) procedures for providing

RCA to eligible secondary migrants who move to the State, including

secondary migrants who were sponsored by a resettlement agency that

does not have a presence in the receiving State; (10) if applicable,

provisions for providing assistance to refugees resettling in the State

who are sponsored by a resettlement agency in a bordering State which

does not have an office in the State of resettlement; (11) a

description of the procedures to be used to safeguard the disclosure of

information on refugee clients; (12) letters of agreement from the

national voluntary resettlement agencies that refugee placements in the

State will continue under the public/private RCA program; and (13) a

breakdown of the proposed program and administrative costs of both the

cash assistance and service components of the public/private RCA

program, including per capita caps on administrative costs.

The plan must be signed by the Governor or his or her designee and

must be submitted to the ORR Director for review and approval no later

than 6 months after the date of publication of the final rule.

RCA plan amendments must be developed in consultation with the

local resettlement agencies to reflect any changes in policy and

submitted to ORR in accordance with Sec. 400.8.

Section 400.59 (Eligibility for the public/private RCA program)

establishes that to be eligible for the public/private RCA program, a

refugee must meet the income eligibility standard jointly established

by the State and local resettlement agencies in the State

nsultation with the

local resettlement agencies to reflect any changes in policy and

submitted to ORR in accordance with Sec. 400.8.

Section 400.59 (Eligibility for the public/private RCA program)

establishes that to be eligible for the public/private RCA program, a

refugee must meet the income eligibility standard jointly established

by the State and local resettlement agencies in the State.

In establishing an income eligibility standard for the public/

private RCA program, States and resettlement agencies may wish to set a

standard, for example, at 150% of the poverty level, that will allow

refugees who are employed part-time in a low wage job to also be

eligible for some level of cash assistance. States may wish to consider

such a need standard in order to provide a more solid economic

foundation for refugees during their first 8 months in the U.S. to

better ensure continued self-sufficiency.

Section 400.60 (Cash payment levels) establishes allowable cash

payment levels under the proposed public/private RCA program. This

section requires monthly cash assistance payments to be made to

eligible refugees using a payment level that does not exceed the

following payment ceilings:

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

Monthly

Size of family unit payment

ceiling

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

1 person..................................................... $335

2 persons.................................................... 450

3 persons.................................................... 570

4 persons.................................................... 685

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

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

1 person..................................................... $335

2 persons.................................................... 450

3 persons.................................................... 570

4 persons.................................................... 685

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

The ceiling payment levels are based on 50% of the 1998 HHS Poverty

Guidelines for each family size, divided by 12 months, except as noted

below.

For family units greater than 4 persons, the payment ceiling may be

increased by $70 for each additional person.

If the ORR Director determines that the payment ceilings need to be

adjusted for inflation, ORR will issue revised payment ceilings through

a notice in the Federal Register.

We expect that most refugees eligible for RCA will be one-person or

two-person family units, singles and childless couples. We expect that

most refugee families with dependent children will be eligible for TANF

and, therefore, will not need to access the RCA program.

Payments to refugees may not be lower than the State TANF payment

for the same sized family unit. States, therefore, that have TANF

payment levels that are higher than the ceilings indicated above, must

provide payment levels under the new public/private RCA program that

are comparable to the State TANF payment levels.

We encourage States and local resettlement agencies to use the

flexibility provided in the payment ceilings to include income

disregards or other incentives such as employment bonuses, that will

encourage early employment and self-sufficiency. States and

resettlement agencies may design whatever combination of assistance

payments and incentives they believe would be effective, as long as the

total in any given month does not exceed the monthly ceiling amounts

bility provided in the payment ceilings to include income

disregards or other incentives such as employment bonuses, that will

encourage early employment and self-sufficiency. States and

resettlement agencies may design whatever combination of assistance

payments and incentives they believe would be effective, as long as the

total in any given month does not exceed the monthly ceiling amounts.

This flexibility would allow States and local resettlement agencies to

provide continued cash support while moving refugees into early

employment.

We encourage States and local resettlement agencies to look at

different approaches and to be creative in designing a program that

will help refugees to establish a good economic foundation during the

8-month RCA period. We encourage States and local resettlement agencies

to design an RCA program that takes into account that refugees arrive

in the U.S. with little or no financial resources and that 8 months of

cash assistance provides a limited period of time to gain a degree of

financial stability.

One approach might be to permit the total of earned income and cash

assistance of refugees who become employed full-time to exceed the cash

assistance only payments made to refugees who are not employed. Another

approach, currently being used in one State, provides an incentive to

employed refugees through monthly reimbursements for work-related

expenses such as tools, uniforms, work-related transportation expenses,

medical insurance co-payments, or the cost of additional work-related

training. The State has found this to be an effective incentive for

early employment.

Section 400.61 (Services in the public/private RCA program)

establishes that services provided to recipients of refugee cash

assistance in the public/private program must be provided under

contracts with the State by the local resettlement agencies that

administer the public/private RCA program or their subcontractors

he State has found this to be an effective incentive for

early employment.

Section 400.61 (Services in the public/private RCA program)

establishes that services provided to recipients of refugee cash

assistance in the public/private program must be provided under

contracts with the State by the local resettlement agencies that

administer the public/private RCA program or their subcontractors. We

believe it makes for good resettlement to have continuity between the

placement of refugees in a State and accountability for the achievement

of resettlement and self-sufficiency outcomes for these refugees by

providing local resettlement agencies with the responsibility for these

refugees during their first 8 months in the U.S. We will be looking to

the

resettlement agencies to not only place refugees in employment at wages

that will enable self-support, but to ensure that refugees receive the

skills, such as English language acquisition and basic living skills,

needed to live successfully in this country. We plan to work with

States and local resettlement agencies to develop appropriate social

self-sufficiency and English acquisition outcome measures to add to the

employment and economic self-sufficiency client outcome measures that

ORR currently uses in measuring results.

This section also establishes that States and local resettlement

agencies must maintain ongoing coordination with refugee mutual

assistance associations and other ethnic representatives that represent

or serve the ethnic populations that are being resettled in the U.S. to

ensure that the services provided under the public/private RCA program:

es that

ORR currently uses in measuring results.

This section also establishes that States and local resettlement

agencies must maintain ongoing coordination with refugee mutual

assistance associations and other ethnic representatives that represent

or serve the ethnic populations that are being resettled in the U.S. to

ensure that the services provided under the public/private RCA program:

(1) Are appropriate to the linguistic and cultural needs of the

incoming populations; and (2) are coordinated with the longer-term

resettlement services frequently provided by ethnic community

organizations after the 8-month RCA period.

Allowable services under the public/private program are limited to

those services described under Secs. 400.154 and 400.155.

Section 400.62 (Coverage of secondary migrants, asylees, and Cuban/

Haitian entrants) provides that the State and local resettlement

agencies must ensure that there is a system in place which is

accessible to eligible secondary migrant refugees, asylees, and Cuban/

Haitian entrants who want to apply for assistance. In developing these

procedures, consideration must be given to how to ensure coverage of

eligible secondary migrants and other eligible applicants who were

sponsored by a resettlement agency which does not have a presence in

the State or who were not sponsored by any agency.

Section 400.63 (Availability of agency policies) requires States to

ensure that each participating local resettlement agency makes

available to refugees the written policies of the public/private RCA

program, including agency policies regarding eligibility standards, the

duration and amount of cash assistance payments, the requirements for

participation in services, the penalties for non-cooperation, and

client rights and responsibilities to ensure that refugees understand

what they are eligible for, what is expected of them, and what

protections are available to them

public/private RCA

program, including agency policies regarding eligibility standards, the

duration and amount of cash assistance payments, the requirements for

participation in services, the penalties for non-cooperation, and

client rights and responsibilities to ensure that refugees understand

what they are eligible for, what is expected of them, and what

protections are available to them. States must ensure that agency

policy materials are made available to refugee clients in English and

in their own language.

Section 400.64 (Preparation of local resettlement agencies)

requires national voluntary agencies to be responsible, in concert with

the States, in preparing local resettlement agencies for their new

responsibilities under the public/private RCA program during a period

of transition. In light of the ongoing relationship of the national

voluntary agencies with their local affiliates under the Department of

State cooperative agreements for initial Reception and Placement (R &

P) services, we believe the national agencies should share in the

responsibility with the States for ensuring that their affiliate

agencies have the capacity and structure to effectively handle the cash

assistance and service needs of refugees over an 8-month period.

The States and national voluntary agencies will be responsible for:

(1) Determining the training needed to enable local resettlement

agencies to achieve a smooth transition into their expanded role; and

lity with the States for ensuring that their affiliate

agencies have the capacity and structure to effectively handle the cash

assistance and service needs of refugees over an 8-month period.

The States and national voluntary agencies will be responsible for:

(1) Determining the training needed to enable local resettlement

agencies to achieve a smooth transition into their expanded role; and

(2) providing the training in a uniform way to ensure that all local

resettlement agencies in the State will implement the new program in a

consistent manner. Part of this training should involve helping the

local resettlement agencies to change how they view their role--from a

short-term initial resettlement role to a longer-term commitment to the

economic self-sufficiency and social integration of the refugees they

resettle. The national voluntary agencies should also be instrumental

in helping the local resettlement agencies to establish a smooth

linkage between Reception and Placement services and services under the

RCA program and in facilitating the development of consortia among

affiliates. States may also wish to call upon the national voluntary

agencies to assist in providing remedial assistance and training to

poorly performing affiliate agencies before contract sanctions are

applied.

ORR proposes to use a portion of its non-formula social services

funding, subject to the availability of appropriated funds, to support

the national voluntary agencies in these training activities during a

transition period of two years after publication of the final rule.

Section 400.65 (Monitoring) requires that ORR, States, and national

voluntary agencies conduct joint monitoring of the new RCA program,

beginning one year after the new program has been implemented, to

ensure that the program is being carried out in a manner that produces

positive self-sufficiency and resettlement outcomes

a

transition period of two years after publication of the final rule.

Section 400.65 (Monitoring) requires that ORR, States, and national

voluntary agencies conduct joint monitoring of the new RCA program,

beginning one year after the new program has been implemented, to

ensure that the program is being carried out in a manner that produces

positive self-sufficiency and resettlement outcomes. Subject to the

availability of appropriated funds, ORR intends to use ORR non-formula

social services dollars to support a portion of the monitoring costs of

the national voluntary agencies, in conjunction with the Department of

State, in the monitoring of the public/private RCA program and the DOS-

funded Reception & Placement grants.

This section also requires States to conduct compliance monitoring

to ensure that local resettlement agencies are complying with the

approved RCA plan and with ORR requirements regarding the RCA program.

It will be particularly important to make sure that refugees are

receiving timely monthly cash payments at the levels prescribed and are

provided proper due process protections.

Exceptions to the Public/Private RCA Program

Section 400.66 (Exceptions to the public/private RCA program)

establishes that States that have good reason to believe that a public/

private refugee cash assistance program is not workable in the State

and would not be in the best interests of refugees resettled in the

State, may request an exception to the public/private RCA program.

While we consider the public/private RCA program to be the preferred

approach to providing transitional assistance and services to refugees,

we recognize that the public/private approach may not be the best

approach for all States or for all areas in a State for a variety of

reasons

best interests of refugees resettled in the

State, may request an exception to the public/private RCA program.

While we consider the public/private RCA program to be the preferred

approach to providing transitional assistance and services to refugees,

we recognize that the public/private approach may not be the best

approach for all States or for all areas in a State for a variety of

reasons. For example, the local resettlement agency(ies) in a given

State may not wish to assume responsibility for the refugee cash

assistance program, or may not have the capacity to provide adequate

geographic access to refugee cash assistance and services to refugees

eligible for the program. Or, the Governor may conclude, after State

consultations with the State's resettlement partners, that the best

interests of newly-arriving RCA refugees will be more effectively

served through the existing system. Further, the Governor could

conclude that the existing system would better serve newly-arriving RCA

refugees if the State determines that there would not be sufficient

administrative funding to enter into a public/private partnership and

administer the remaining components of the program.

When differences surface among the resettlement partners during the

planning process, every effort must be made to address these

differences and reach a compromise, using the best interests of

refugees as the guiding principle in all discussions and negotiations.

fficient

administrative funding to enter into a public/private partnership and

administer the remaining components of the program.

When differences surface among the resettlement partners during the

planning process, every effort must be made to address these

differences and reach a compromise, using the best interests of

refugees as the guiding principle in all discussions and negotiations.

If the differences are irreconcilable, the State may determine,

after having negotiated in good faith with all resettlement partners,

that the best interests of refugees will be served by retaining the

provision of refugee cash assistance as a component of the State-

administered program through the State's TANF agency.

To qualify for an RCA exception, a State: (1) Must demonstrate that

it made a good faith effort to reach agreement on a public/private RCA

program through a planning and consultation process; and (2) must meet

one of the following criteria: (a) resettlement agencies operating in

the State declined to accept responsibility for the provision of cash

assistance; (b) the contemplated provision of cash assistance by

resettlement agencies would not provide adequate access to cash

assistance for newly-arrived RCA refugees; (c) the Governor concluded

that a public/private RCA program would not be in the best interests of

refugees; or (d) the Governor determined that administrative funding

would not be sufficient to enter into a public/private partnership and

administer the remaining components of the program.

If a State wishes to request an exception to the public/private RCA

program, a State must submit a written request signed by the Governor

or his or her designee which: (1) Provides documentation that the State

made a good faith effort to reach agreement on a public/private RCA

program through a planning and consultation process; and (2) addresses

one of the criteria for an exception described in (a)-(d) above

to request an exception to the public/private RCA

program, a State must submit a written request signed by the Governor

or his or her designee which: (1) Provides documentation that the State

made a good faith effort to reach agreement on a public/private RCA

program through a planning and consultation process; and (2) addresses

one of the criteria for an exception described in (a)-(d) above.

A request for an exception must be submitted to the ORR Director

for review and approval no later than 6 months after the date of

publication of the final rule.

If the Director determines that a State's request for an exception

meets the required criteria outlined above, the Director will approve

the request. If a request for an exception is based on a Governor's

decision that a public/private RCA program would not be in the best

interests of refugees in the State, ORR does not intend to review or

question the substance of the Governor's decision. An approved RCA

exception must be implemented no later than one year after publication

of the final rule.

Section 400.67 (Eligibility and payment levels in an excepted RCA

program) establishes that in administering an ORR-approved excepted RCA

program, the State agency must operate its refugee cash assistance

program consistent with the provisions of its TANF program in regard

to: (1) The determination of initial and on-going eligibility

(treatment of income and resources, budgeting methods, need standard);

67 (Eligibility and payment levels in an excepted RCA

program) establishes that in administering an ORR-approved excepted RCA

program, the State agency must operate its refugee cash assistance

program consistent with the provisions of its TANF program in regard

to: (1) The determination of initial and on-going eligibility

(treatment of income and resources, budgeting methods, need standard);

(2) the determination of benefit amounts (payment levels based on size

of the assistance unit, income disregards); (3) proration of shelter,

utilities, and similar needs; (4) the date that refugee cash assistance

(RCA) begins, in relation to the date of application; and (5) any other

State TANF rules relating to eligibility and payments.

Section 400.68 (Non-applicable TANF requirements) establishes that

States that are granted an RCA exception may not apply certain TANF

requirements to refugee cash assistance applicants or recipients as

follows: (1) A State's durational residency requirement imposed on

applicants for TANF may not apply to applicants for RCA; and (2)

instead of TANF work requirements (hours of participation and allowable

work activities), States must apply the requirements in Sec. 400.75

which requires RCA recipients, as a condition of receipt of assistance,

to participate in employment services within 30 days of receipt of aid,

and Subpart I of 45 CFR Part 400 with respect to the provision of

services for RCA recipients. The requirements and expectations for

employment and participation in employment services in the refugee

program are no less serious than the requirements in the TANF program.

The requirements in the refugee program are simply different from TANF

requirements in that the types of activities allowed in the refugee

program are designed for the needs of newly-arrived refugees who

typically arrive with little or no English language skills

yment and participation in employment services in the refugee

program are no less serious than the requirements in the TANF program.

The requirements in the refugee program are simply different from TANF

requirements in that the types of activities allowed in the refugee

program are designed for the needs of newly-arrived refugees who

typically arrive with little or no English language skills. Thus, in

the refugee program, refugees participate extensively in English

language training, assisted job search, and other employment-related

activities that are designed to help limited-English speaking refugees

to become self-sufficient within 8 months.

Section 400.69 (Notification of resettlement agencies) requires

States to notify the local agency that was responsible for the initial

resettlement of a refugee whenever the refugee applies for refugee cash

assistance under an RCA excepted program.

Subpart F--Requirements for Employability Services and Employment

Section 400.70 (Basis and scope) is amended to clarify that Subpart

F applies to applicants and recipients of both the public/private RCA

program and State-administered RCA exceptions.

Section 400.71 is amended to remove an incorrect reference to

Sec. 400.72(a) in the definition of the term, Designee.

Section 400.72 (Arrangements for employability services) is amended

to clarify that the requirements in paragraphs (a) and (b) of this

section apply equally to States that operate a public/private RCA

program through contracts with local resettlement agencies and to

States that have been approved by ORR to operate an RCA excepted

program, while paragraph (c) applies only to an RCA excepted program.

Section 400.76 (Exemptions) is revised by removing the list of

individuals who may be exempt from participation in employment

services. States and/or local resettlement agencies may determine what

specific exemptions, if any, are appropriate for recipients of a time-

limited RCA program in their State

perate an RCA excepted

program, while paragraph (c) applies only to an RCA excepted program.

Section 400.76 (Exemptions) is revised by removing the list of

individuals who may be exempt from participation in employment

services. States and/or local resettlement agencies may determine what

specific exemptions, if any, are appropriate for recipients of a time-

limited RCA program in their State. Given the short duration of the RCA

program, however, and the need for refugees to become self-sufficient

within this limited time frame, we would expect States and local

resettlement agencies to require most RCA recipients to participate in

employment services, with few exceptions.

Section 400.78 (Service requirements for employed recipients of

refugee cash assistance), which requires an RCA recipient who is

employed less than 30 hours a week to participate in part-time

employment services, as a condition of continued receipt of refugee

cash assistance, is removed and reserved. We leave it to States and

local resettlement agencies to determine how best to design a program

that moves refugees to full-time employment in a reasonable period of

time.

Section 400.80 (Job search requirements), which requires job search

where appropriate, is removed and reserved. Again, we leave it to the

judgement of States and local resettlement agencies to decide the types

of employment services that are the most effective in placing refugees

in jobs.

Section 400.81(a) (Criteria for appropriate employability services

and employment) is amended by replacing the reference to AFDC with a

reference to TANF.

Section 400.81(b) is amended by limiting professional refresher

training and other recertification services only to individuals who are

working.

Section 400.82 (Failure or refusal to accept employability services

or employment) is revised to specify requirements for timely and

adequate notice of intended termination under the public/private RCA

program and to

AFDC with a

reference to TANF.

Section 400.81(b) is amended by limiting professional refresher

training and other recertification services only to individuals who are

working.

Section 400.82 (Failure or refusal to accept employability services

or employment) is revised to specify requirements for timely and

adequate notice of intended termination under the public/private RCA

program and to

specify that under an RCA-excepted program, States must follow the

procedures for notice of intended termination that are used in the

State's TANF program.

Section 400.83 (Conciliation and fair hearings) is revised by

establishing requirements for mediation and fair hearings in the

public/private RCA program and requiring that States follow the

procedures used for conciliation and fair hearings in the State TANF

program in cases where a State operates an RCA-excepted program. Under

this requirement, hearings must meet the due process standards set

forth in the U.S. Supreme Court decision in Goldberg v. Kelly, 397 U.S.

254 (1970).

Subpart G--Refugee Medical Assistance

Section 400.101(a) (Financial eligibility standards) is amended by

giving States that operate a medically needy program the option of

increasing the medically needy financial eligibility standard for RMA

eligibility determination to up to 200% of the national poverty level

by family size. Our intent in allowing States this new option is to

ensure that States have the flexibility to broaden financial

eligibility for refugee medical assistance, while receiving 100%

Federal reimbursement of costs, in order to extend coverage to certain

groups of new arrivals who are currently not covered under RMA.

Refugees currently without medical coverage who would be affected by

this provision include: (1) Refugees on TANF who obtain a job and

terminate assistance before they have been on TANF for 3 months, who

are then ineligible for transitional Medicaid; and (2) refugee spouses

who arrive in the U.S

der to extend coverage to certain

groups of new arrivals who are currently not covered under RMA.

Refugees currently without medical coverage who would be affected by

this provision include: (1) Refugees on TANF who obtain a job and

terminate assistance before they have been on TANF for 3 months, who

are then ineligible for transitional Medicaid; and (2) refugee spouses

who arrive in the U.S. a number of months after their spouse who

preceded them, and are not eligible for RMA because their employed

spouse's income renders them ineligible for RMA.

Section 400.101(b) is amended with respect to States without a

medically needy program by clarifying that references to AFDC refer to

the AFDC need standard in effect as of July 16, 1996, including any

modifications elected by the State under section 1931(b)(2) of the

Social Security Act (SSA). This is in keeping with the amendments made

by section 114 of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 (PRWORA) to section 1931 of the SSA.

Section 400.102 is revised to clarify that determination of

eligibility for refugee medical assistance (RMA) must be based on the

applicant's income and resources on the date of application, rather

than on a refugee's income averaged prospectively over the RMA

application processing period.

The purpose of this revision is to ensure that refugees who enter

employment within the first few weeks after arrival in the U.S. are not

penalized for accepting early employment by denial of refugee medical

assistance. Refugees arrive in the U.S. with no income, and generally

apply for refugee medical assistance very soon after arrival. With this

revision, a newly arrived refugee who applies for refugee medical

assistance soon after arrival and becomes employed within the first 30

days in the U.S. subsequent to filing the RMA application, would not

lose RMA eligibility

denial of refugee medical

assistance. Refugees arrive in the U.S. with no income, and generally

apply for refugee medical assistance very soon after arrival. With this

revision, a newly arrived refugee who applies for refugee medical

assistance soon after arrival and becomes employed within the first 30

days in the U.S. subsequent to filing the RMA application, would not

lose RMA eligibility.

Section 400.102 is amended to remove references to AFDC regulations

which no longer apply due to changes in Medicaid eligibility

determination contained in PRWORA as described above.

Section 400.104 is amended to permit refugees residing in the U.S.

less than 8 months, who lose their eligibility for Medicaid because of

earnings from employment, to be transferred to refugee medical

assistance without an eligibility redetermination. This amendment would

allow refugees who lose Medicaid eligibility because they obtain early

employment to maintain medical coverage under RMA during their first 8

months in the U.S. The purpose of this amendment is to encourage early

economic self-sufficiency by ensuring that refugees receive continued

medical assistance after employment and by ensuring that refugees are

not discouraged from early employment by the potential loss of medical

coverage.

Subpart I--Refugee Social Services

Section 400.155 is amended by adding citizenship and naturalization

services as allowable services under the social services and targeted

assistance formula programs. Citizenship and naturalization services

may include such services as English language training and civics

instruction to prepare refugees for citizenship, application

assistance, and the provision of interpreter services for the

citizenship interview, as needed.

Subpart J--Federal Funding

tion

services as allowable services under the social services and targeted

assistance formula programs. Citizenship and naturalization services

may include such services as English language training and civics

instruction to prepare refugees for citizenship, application

assistance, and the provision of interpreter services for the

citizenship interview, as needed.

Subpart J--Federal Funding

Section 400.207 (Federal funding for administrative costs) is

amended by clarifying that a State may claim reasonable and necessary

administrative costs incurred by local resettlement agencies in the

administration of a public/private RCA program.

Section 400.210 (Time limits for obligating and expending funds and

for filing State claims) is amended by revising Sec. 400.210(b)(2) to

extend the due date for a State's final financial report of

expenditures of social services and targeted assistance formula grants

to no later than 90 days after the end of the two-year expenditure

period. This section clarifies that States must expend their social

services and targeted assistance funds no later than two years after

the end of the Federal fiscal year in which the Department awarded the

grant. Thus, under the proposed revision, States must have expended

social services and targeted assistance funds awarded to them in FY

1999, for example, by no later than September 30, 2001, and a State's

final financial report must be received no later than December 31,

2001. If, at that time, a State's final financial report has not been

received, the Department will deobligate any unexpended funds,

including any unliquidated obligations, on the basis of a State's last

submitted financial report.

This proposed revision is in response to requests from several

States needing a full 2-year period to expend social services and

targeted assistance funds from the end of the Federal fiscal year in

which the funds are awarded

been

received, the Department will deobligate any unexpended funds,

including any unliquidated obligations, on the basis of a State's last

submitted financial report.

This proposed revision is in response to requests from several

States needing a full 2-year period to expend social services and

targeted assistance funds from the end of the Federal fiscal year in

which the funds are awarded.

Section 211(a) (Methodology to be used to determine time-

eligibility of refugees) is amended to clarify that after making a

determination of the RCA/RMA eligibility period as soon as possible

after funds are appropriated for the refugee program, the Director will

make redeterminations at subsequent points during the year only if a

reduction in the eligibility period appears indicated.

Subpart K--Waivers and Withdrawals

Section 400.301 (Withdrawal from the refugee program) is amended by

removing the words ``only under extraordinary circumstances and'' in

Sec. 400.301(b). This would allow the ORR Director greater discretion

to approve cases in which a State wishes to retain responsibility for

only part of the refugee program if it is in the best interest of the

Government, without requiring extraordinary circumstances. For example,

when a State with a small refugee population wishes to drop out of the

refugee program, but is willing to retain responsibility for

administering just the RMA program, it would be in the best interest of

the Government to approve such an arrangement without other

constraints.

Section 400.301(c) is amended by clarifying that a replacement

designee

must adhere to the regulations regarding the targeted assistance

formula program under Subpart L if the State wishing to drop out of the

refugee program authorizes the replacement designee appointed by the

ORR Director to act as the State's agent in applying for and receiving

targeted assistance funds.

Regulatory Impact Analyses

A. Executive Order 12866

arifying that a replacement

designee

must adhere to the regulations regarding the targeted assistance

formula program under Subpart L if the State wishing to drop out of the

refugee program authorizes the replacement designee appointed by the

ORR Director to act as the State's agent in applying for and receiving

targeted assistance funds.

Regulatory Impact Analyses

A. Executive Order 12866

Executive Order 12866 requires that regulations be drafted to

ensure that they are consistent with the priorities and principles set

forth in the Executive Order. The Department has determined that this

proposed rule is consistent with these priorities and principles. This

proposed rulemaking implements statutory authority based on broad

consultation and coordination.

The Executive Order encourages agencies, as appropriate, to provide

the public with meaningful participation in the regulatory process. As

described elsewhere in the preamble, ORR conducted eight consultations

around the country and two teleconferences to discuss whether and how

States, voluntary agencies, service providers, and refugee

organizations would like to see the regulations changed. These meetings

were attended by close to 500 participants representing the broad

resettlement network. We also consulted with representatives of States,

Washington-based interest groups, refugee mutual assistance

associations, and national voluntary agencies in follow-up sessions in

Washington, D.C. to discuss what we learned from the initial round of

consultations and to obtain feedback on our possible regulatory

changes. We received additional feedback after group representatives

consulted more broadly within their networks following the last round

of meetings. The input we received is reflected in these proposed

regulations to a considerable degree.

These proposed rules represent a renewed, more flexible stage in

the refugee program State/Federal partnership

tain feedback on our possible regulatory

changes. We received additional feedback after group representatives

consulted more broadly within their networks following the last round

of meetings. The input we received is reflected in these proposed

regulations to a considerable degree.

These proposed rules represent a renewed, more flexible stage in

the refugee program State/Federal partnership. Rather than requiring

that one national program fit all local situations, ORR has allowed the

States the option to request implementation of an excepted RCA program

if they determine that the public/private RCA model we have proposed is

not feasible in their State, if the Governor determines that the new

program is not in the best interests of refugees, or if the Governor

determines that administrative funding is not sufficient to enter into

a public/private partnership and administer the remaining components of

the program. Likewise, the State may determine that the public/private

RCA partnership would work well in only one community, and propose to

implement a geographically split model.

Within the proposed public/private RCA program, we have also given

States and local resettlement agencies broad flexibility to design a

program which they believe will best serve refugees in their community.

Rather than prescribing certain elements, we have given States and

resettlement agencies the flexibility to determine: The income standard

for receipt of RCA in their State; the benefit level within a broad

range of benefit levels; whether employment incentives should be

provided, and if so, how those incentives should be provided; the

services to be provided; and the procedures States and local

resettlement agencies will put in place to ensure due process and

protections for refugees. States are also given the option, but not

required, to set a higher need standard for refugee medical assistance

ange of benefit levels; whether employment incentives should be

provided, and if so, how those incentives should be provided; the

services to be provided; and the procedures States and local

resettlement agencies will put in place to ensure due process and

protections for refugees. States are also given the option, but not

required, to set a higher need standard for refugee medical assistance.

And within the proposed public/private RCA plan structure, there are

several administrative models which may be considered by States and

resettlement agencies.

One of our key goals in drafting the regulations was to recognize,

encourage, and enhance the partnerships that Congress intended with the

passage of the Refugee Act. Although we have drafted regulations for a

Federally-funded program, the proposed rules are intended to reflect

our recognition that resettlement takes place at the local level and

works best when all parties work together. In our proposed rules, we

have tried to support the different, but equally important,

contributions that the public and private sectors are able to bring to

the refugee resettlement process. We hope that the proposed rules will

serve to foster better and stronger partnerships at all levels,

including those among local resettlement agencies and service

providers, which will result in good resettlement.

We are concerned that the proposed revisions could increase the

cost of the program, particularly during implementation. We expect the

administrative costs to decrease substantially after the first year of

implementation.

B. Regulatory Flexibility Analysis

nerships at all levels,

including those among local resettlement agencies and service

providers, which will result in good resettlement.

We are concerned that the proposed revisions could increase the

cost of the program, particularly during implementation. We expect the

administrative costs to decrease substantially after the first year of

implementation.

B. Regulatory Flexibility Analysis

The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the

Federal government to anticipate and reduce the impact of rules and

paperwork requirements on small businesses and other small entities.

Small entities are defined in the Act to include small businesses,

small non-profit organizations, and small governmental entities. This

rule will affect 46 participating States and the District of Columbia,

and local resettlement agencies that agree to assume responsibility for

providing cash assistance and services to newly arrived refugees in

States that elect to establish the new public/private RCA program.

Local resettlement agencies are non-profit private organizations that

are responsible for the initial resettlement of refugees in the U.S.

under cooperative agreements with the Department of State.

Participation of these local agencies in the public/private RCA program

to be established by this regulation will be strictly voluntary. In

addition, local resettlement agencies that choose to assume

responsibility for the new RCA program will be fully funded with

Federal refugee program funds. These rules will only have an impact on

those small entities (local resettlement agencies) that voluntarily

elect to participate in the public/private RCA program. Thus, a

regulatory flexibility analysis is not required.

C. Paperwork Reduction Act of 1995

esettlement agencies that choose to assume

responsibility for the new RCA program will be fully funded with

Federal refugee program funds. These rules will only have an impact on

those small entities (local resettlement agencies) that voluntarily

elect to participate in the public/private RCA program. Thus, a

regulatory flexibility analysis is not required.

C. Paperwork Reduction Act of 1995

The following sections contain information collection, third party

reporting, or recordkeeping requirements that are subject to review and

approval by the Office of Management and Budget (OMB) under the

Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)): Secs. 400.43,

400.5, 400.51(c), 400.57(c), 400.58, 400.63, 400.66, and 400.82(b). The

Administration for Children and Families has submitted a copy of these

sections to the Office of Management and Budget (OMB) for its review.

Section 400.43 requires applicants to provide proof of alien status

for eligibility to the refugee program. Section 400.5 requires that

States submit a State plan in order to receive refugee program funding.

Section 400.51(c) requires that States or their designees provide

notice to applicants or recipients to indicate that assistance has been

authorized, denied, or terminated and the program under which that

determination was made. Section 400.57(c) requires that each local

voluntary agency resettling in a State inform its national resettlement

agency of the proposed public/private RCA program and obtain a letter

of agreement from the national agency. Section 400.58 requires that

States submit a public/private RCA plan for ORR review and approval

before the State implements the plan. Section 400.63 requires that

States ensure that

57(c) requires that each local

voluntary agency resettling in a State inform its national resettlement

agency of the proposed public/private RCA program and obtain a letter

of agreement from the national agency. Section 400.58 requires that

States submit a public/private RCA plan for ORR review and approval

before the State implements the plan. Section 400.63 requires that

States ensure that

each participating local resettlement agency mades available to

refugees the written policies of the public/private RCA program.

Section 400.66 requires States that wish to request an exception to the

public/private RCA program to submit a written request that addresses

certain criteria before a State implements an excepted program. Section

400.82(b) requires that States provide a notice of intended termination

to clients who have failed to meet certain work related requirements.

The information in these plans is needed to carry out ORR's

oversight responsibilities under section 412 of the Immigration and

Nationality Act. Additionally, certain information is typically

necessary to respond to Congressional and other inquiries about the

program.

The effect of these information collection, reporting, or third-

party notification requirements will be limited to the 46 States and

the District of Columbia that participate in the refugee program, and

2-3 non-profit agencies that administer the program in States that no

longer participate in the refugee program. We do not anticipate that

all States will elect to operate a public/private RCA program; those

States that choose not to operate such a program will not have to

submit a public/private RCA plan. Those States that choose to implement

a public/private RCA program will have to submit a public/private RCA

plan only once. Additional submissions will only be necessary if the

plan is modified in the future. The average burden per response for the

preparation of an RCA plan is estimated to be 24 hours

hat choose not to operate such a program will not have to

submit a public/private RCA plan. Those States that choose to implement

a public/private RCA program will have to submit a public/private RCA

plan only once. Additional submissions will only be necessary if the

plan is modified in the future. The average burden per response for the

preparation of an RCA plan is estimated to be 24 hours. The total

maximum annual reporting and recordkeeping burden that will result from

this collection of information is an estimated 1,176 hours if all

States elect to implement a public/private RCA program. States that

request an exception to the public/private RCA program will have to

submit a written request once. The average burden per response for the

preparation of a written request for an excepted RCA program is

estimated to be 3 hours. The total maximum annual reporting and

recordkeeping burden that will result from this collection of

information is an estimated 147 hours if all States elect to request an

exception to a public/private RCA program. Other requirements, such as

the State plan (Sec. 400.5), are not changed. States receiving refugee

program funds have a plan on file at ORR. We estimate the number of

hours required to amend the plan to be a maximum of 1 hour annually.

The total maximum annual reporting and recordkeeping burden that will

result from this collection of information is estimated to be no more

than 47 hours if all States amend their plan in a given year. We

estimate the average burden for other sections as follows: Sec. 400.43

will be 500 hours annually; Sec. 400.51(c) will be 850 hours annually;

Sec. 400.57(c) will be 200 hours annually; Sec. 400.63 will be 9 hours

annually; and Sec. 400.82(b) will be 850 hours annually

rom this collection of information is estimated to be no more

than 47 hours if all States amend their plan in a given year. We

estimate the average burden for other sections as follows: Sec. 400.43

will be 500 hours annually; Sec. 400.51(c) will be 850 hours annually;

Sec. 400.57(c) will be 200 hours annually; Sec. 400.63 will be 9 hours

annually; and Sec. 400.82(b) will be 850 hours annually.

The Office of Refugee Resettlement will consider comments by the

public on these proposed collections of information in: (1) Evaluating

whether the proposed collections are necessary for the proper

performance of the functions of ORR, including whether the information

will have practical utility; (2) evaluating the accuracy of ORR'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 this proposed regulation 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

regulation. Written comments to OMB for the proposed information

collection should be sent directly to the following: Office of

Management and Budget, Paperwork Reduction Project, 725 17th Street,

N.W., Washington D.C. 20503, Attn: Ms. Wendy Taylor.

D. Unfunded Mandates Reform Act of 1995

blication. This does not affect the

deadline for the public to comment to the Department on the proposed

regulation. Written comments to OMB for the proposed information

collection should be sent directly to the following: Office of

Management and Budget, Paperwork Reduction Project, 725 17th Street,

N.W., Washington D.C. 20503, Attn: Ms. Wendy Taylor.

D. Unfunded Mandates Reform Act of 1995

Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.

1532) 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 $100

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

205 requires a plan for informing and advising any small government

that may be significantly or uniquely impacted by the proposed rule.

We have determined that this proposed rule 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. Accordingly, we have not prepared a

budgetary impact statement, specifically addressed the regulatory

alternatives considered, or prepared a plan for informing and advising

any significantly or uniquely impacted small government.

E. Congressional Review of Rulemaking

This rule is not a ``major'' rule as defined in Chapter 8 of 5

U.S.C.

Statutory Authority

Section 412(a)(9) of the Immigration and Nationality Act, 8 U.S.C.

1522(a)(9), authorizes the Secretary of HHS to issue regulations needed

to carry out the program.

epared a plan for informing and advising

any significantly or uniquely impacted small government.

E. Congressional Review of Rulemaking

This rule is not a ``major'' rule as defined in Chapter 8 of 5

U.S.C.

Statutory Authority

Section 412(a)(9) of the Immigration and Nationality Act, 8 U.S.C.

1522(a)(9), authorizes the Secretary of HHS to issue regulations needed

to carry out the program.

Catalogue of Federal Domestic Programs: 93.566, Refugee and

Entrant Assistance--State-Administered Programs.

List of Subjects

45 CFR Part 400

Grant programs--social programs, Health care, Public assistance

programs, Refugees, Reporting and Record keeping requirements.

45 CFR Part 401

Cuba, Grant programs--social programs, Haiti, Public assistance

programs, Refugees.

Dated: July 23, 1998.

Olivia A. Golden,

Assistant Secretary for Children and Families.

Approved: August 22, 1998.

Donna E. Shalala,

Secretary, Department of Health and Human Services.

For reasons set forth in the preamble, 45 CFR Parts 400 and 401 are

proposed to be amended as follows:

PART 400--REFUGEE RESETTLEMENT PROGRAM

1. The authority citation for part 400 continues to read as

follows:

Authority: Section 412(a)(9), Immigration and Nationality Act (8

U.S.C. 1522(a)(9)).

Sec. 400.2 [Amended]

2. Section 400.2 is amended by removing the definition of AFDC and

adding a definition of TANF to read as

set forth below and by removing the word ``AFDC'' wherever it appears

in this section and adding in its place the word ``TANF''.

Sec. 400.2 Definitions.

* * * * *

TANF means temporary assistance for needy families.

* * * * *

3. Section 400.2 is further amended by removing the word ``to''

after the word ``refer'' in the definition of Case management services.

4. Section 400.2 is further amended by adding a definition of RCA

Plan to read as follows:

* * * * *

RCA Plan means a written description of the public/private RCA

program administered by local resettlement agencies under contract with

a State.

Sec. 400.5 [Amended]

on 400.2 is further amended by removing the word ``to''

after the word ``refer'' in the definition of Case management services.

4. Section 400.2 is further amended by adding a definition of RCA

Plan to read as follows:

* * * * *

RCA Plan means a written description of the public/private RCA

program administered by local resettlement agencies under contract with

a State.

Sec. 400.5 [Amended]

5. Section 400.5 is amended by adding paragraph (i) to read as

follows:

Sec. 400.5 Content of the plan.

* * * * *

(i) Provide that the State will:

(1) Comply with the provisions of title IV of the Act and official

issuances of the Director;

(2) Meet the requirements in this part;

(3) Comply with all other applicable Federal statutes and

regulations in effect during the time that it is receiving grant

funding; and

(4) Amend the plan as needed to comply with standards, goals, and

priorities established by the Director.

Sec. 400.11 [Amended]

6. Section 400.11(b) is amended by revising the word ``then'' to

read ``than''.

Sec. 400.13 [Amended]

7. Section 400.13(d) is revised to read as follows:

Sec. 400.13 Cost allocation.

* * * * *

(d) Costs of case management services, as defined in Sec. 400.2,

may not be charged to the CMA grant except where the case management

activities are targeted to time-eligible RCA recipients for the purpose

of assisting such recipients to obtain employment and to become

economically and socially self-sufficient.

8. Section 400.13 is further amended by adding a new paragraph (e)

that reads as follows:

Sec. 400.13 Cost allocation.

* * * * *

in Sec. 400.2,

may not be charged to the CMA grant except where the case management

activities are targeted to time-eligible RCA recipients for the purpose

of assisting such recipients to obtain employment and to become

economically and socially self-sufficient.

8. Section 400.13 is further amended by adding a new paragraph (e)

that reads as follows:

Sec. 400.13 Cost allocation.

* * * * *

(e) Administrative costs incurred by local resettlement agencies in

the administration of the public/private RCA program (i.e.,

administrative costs of providing cash assistance) may be charged to

the CMA grant. Administrative costs of managing the services component

of the RCA program must be charged to the social services grant.

Sec. 400.23 [Amended]

9. Section 400.23(a) is amended by removing the words ``in

Sec. 205.10(a) of this title for public assistance programs'' and

adding in their place the words ``in the RCA plan in the case of the

public/private RCA program and by the State's TANF program in the case

of an RCA-excepted program and for the RMA program.''

10. Section 400.23(b) is amended by adding the words ``or its

designee'' after the word ``State''.

Sec. 400.27 [Amended]

11. Section 400.27 is amended by removing paragraph (c).

Sec. 400.43 [Amended]

12.-13. Section 400.43 is amended by removing paragraphs (a)(2) and

(5); by redesignating paragraphs (a)(3) and (4) as paragraphs (a)(2)

and (3) respectively; and by adding new paragraphs (a)(4) and (5) that

read as follows:

Sec. 400.43 Requirements for documentation of refugee status.

'.

Sec. 400.27 [Amended]

11. Section 400.27 is amended by removing paragraph (c).

Sec. 400.43 [Amended]

12.-13. Section 400.43 is amended by removing paragraphs (a)(2) and

(5); by redesignating paragraphs (a)(3) and (4) as paragraphs (a)(2)

and (3) respectively; and by adding new paragraphs (a)(4) and (5) that

read as follows:

Sec. 400.43 Requirements for documentation of refugee status.

(a) * * *

(4) Cuban and Haitian entrants, as described in 45 CFR part 401;

(5) Certain Amerasians from Vietnam who are admitted to the U.S. as

immigrants pursuant to section 584 of the Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1988 (as contained

in section 101(e) of Public Law 100-202 and amended by the 9th proviso

under Migration and Refugee Assistance in title II of the Foreign

Operations, Export Financing, and Related Programs Appropriations Acts,

1989 (Public Law 100-461 as amended); or

* * * * *

Sec. 400.44 [Amended]

14. Section 400.44 is amended by adding the words ``unless

otherwise provided by Federal law'' after the word ``Act'' at the end

of the sentence.

Subpart E--[Revised]

15. Subpart E is revised to read as follows:

Subpart E--Refugee Cash Assistance

General

Sec. 400.50 Basis and scope.

This subpart sets forth requirements concerning grants to States

under section 412(e) of the Act for refugee cash assistance (RCA).

Sec. 400.51 Opportunity to apply for cash assistance.

(a) A State or its designee agency(s) must provide any individual

wishing to do so, an opportunity to apply for cash assistance and must

determine the eligibility of each applicant.

(b) In determining eligibility for cash assistance, the State or

its designee agency(s) must refer elderly or disabled refugees and

refugees with dependent children to other cash assistance programs to

apply for assistance in accordance with Sec. 400.52.

provide any individual

wishing to do so, an opportunity to apply for cash assistance and must

determine the eligibility of each applicant.

(b) In determining eligibility for cash assistance, the State or

its designee agency(s) must refer elderly or disabled refugees and

refugees with dependent children to other cash assistance programs to

apply for assistance in accordance with Sec. 400.52.

(c) In providing notice to an applicant or recipient to indicate

that assistance has been authorized or that it has been denied or

terminated, the State or its designee agency(s) must specify the

program(s) to which the notice applies. For example, in the case of the

public/private RCA program, if a refugee is determined ineligible for

RCA, the local resettlement agency must provide notice of this

determination to the refugee. In the case of an excepted RCA program,

if a refugee applies for assistance and is determined ineligible for

TANF but eligible for refugee cash assistance, the notice to the

applicant must specify clearly the determinations with respect both to

TANF and to refugee cash assistance. Similarly, if a recipient of

refugee cash assistance is notified of termination because of reaching

the time limit on such assistance, and the State or its designee

reviews the case file to determine possible eligibility for TANF or GA

due to changed circumstances, the notice to the recipient must indicate

the result of that determination as well as the termination of refugee

cash assistance.

Sec. 400.52 Determination of eligibility under other programs.

(a) TANF. For refugees determined ineligible for cash assistance

under the TANF program, the State or its designee must determine

eligibility for refugee cash assistance in accordance with Secs. 400.54

and 400.59 in the case of the public/private RCA program or

Secs. 400.54 and 400.67 in the case of an RCA excepted program.

nce.

Sec. 400.52 Determination of eligibility under other programs.

(a) TANF. For refugees determined ineligible for cash assistance

under the TANF program, the State or its designee must determine

eligibility for refugee cash assistance in accordance with Secs. 400.54

and 400.59 in the case of the public/private RCA program or

Secs. 400.54 and 400.67 in the case of an RCA excepted program.

(b) Cash assistance to the aged, blind, and disabled--(1) SSI. (i)

The State agency or its designee must refer refugees who are 65 years

of age or older, or who are blind or disabled,

promptly to the Social Security Administration to apply for cash

assistance under the SSI program.

(ii) If the State agency or its designee determines that a refugee

who is 65 years of age or older, or blind or disabled, is eligible for

refugee cash assistance, it must furnish such assistance until

eligibility for cash assistance under the SSI program is determined,

provided the conditions of eligibility for refugee cash assistance

continue to be met.

(2) OAA, AB, APTD, or AABD. In Guam, Puerto Rico, and the Virgin

Islands--(i) Eligibility for cash assistance under the OAA, AB, APTD,

or AABD program must be determined for refugees who are 65 years or

older, or who are blind or disabled; and

(ii) If a refugee who is 65 years of age or older, or blind or

disabled, is determined to be eligible for refugee cash assistance,

such assistance must be furnished until eligibility for cash assistance

under the OAA, AB, APTD, or AABD program is determined, provided the

conditions of eligibility for refugee cash assistance continue to be

met.

Sec. 400.53 Emergency cash assistance to refugees.

If the State agency or its designee determines that a refugee has

an urgent need for cash assistance, it should process the application

for cash assistance as quickly as possible and issue the initial

payment to the refugee on an emergency basis.

Sec. 400.54 General eligibility requirements.

for refugee cash assistance continue to be

met.

Sec. 400.53 Emergency cash assistance to refugees.

If the State agency or its designee determines that a refugee has

an urgent need for cash assistance, it should process the application

for cash assistance as quickly as possible and issue the initial

payment to the refugee on an emergency basis.

Sec. 400.54 General eligibility requirements.

(a) Eligibility for refugee cash assistance is limited to those

who--

(1) Are new arrivals who have resided in the U.S. less than the RCA

eligibility period determined by the ORR Director in accordance with

Sec. 400.211;

(2) Are ineligible for TANF, SSI, OAA, AB, APTD, and AABD programs;

(3) Meet immigration status and identification requirements in

subpart D of this part or are the dependent children of, and part of

the same family unit as, individuals who meet the requirements in

subpart D, subject to the limitation in Sec. 400.208 with respect to

nonrefugee children; and

(4) Are not full-time students in institutions of higher education,

as defined by the Director.

(b) A refugee may be eligible for refugee cash assistance under

this subpart during a period to be determined by the Director in

accordance with Sec. 400.211.

Sec. 400.55 Eligibility redeterminations in States with TANF residency

requirements.

In cases where refugee families with dependent children, normally

eligible for TANF, are placed in the RCA program due to a State TANF

residency requirement, a State must conduct a redetermination of

eligibility for TANF within one month of the refugee family completing

the TANF residency period. If eligible, the refugee family must be

transferred from the RCA program to the TANF program at that time.

Public/Private RCA Program

Sec. 400.56 Structure.

(a) States must enter into a partnership agreement with local

resettlement agencies for the operation of a public/private RCA

program, unless they meet the excepted criteria specified in

Sec. 400.66.

pleting

the TANF residency period. If eligible, the refugee family must be

transferred from the RCA program to the TANF program at that time.

Public/Private RCA Program

Sec. 400.56 Structure.

(a) States must enter into a partnership agreement with local

resettlement agencies for the operation of a public/private RCA

program, unless they meet the excepted criteria specified in

Sec. 400.66.

(b) The public/private RCA program must be administered by the

State through contracts with local resettlement agencies or a lead

resettlement agency that provides initial resettlement services under

the terms of the Department of State Cooperative Agreement for

Reception and Placement.

(c) The public/private RCA program must be Statewide, unless the

State and local resettlement agencies agree that it is not in the best

interests of refugees to provide a public/private RCA program in a

particular area of the State.

(d) Local resettlement agencies must be responsible for determining

eligibility, and authorizing and providing payments to eligible

refugees.

(e) States and local resettlement agencies may not propose to

operate a public/private RCA program and an excepted RCA program in the

same geographic location.

(f) States must ensure the provision of RCA assistance to eligible

refugees in the State who are sponsored by resettlement agencies in

bordering states, where applicable.

Sec. 400.57 Planning and consultation process.

The State and the local agencies that resettle refugees in the

State must engage in a joint planning and consultation process to

develop a public/private RCA plan in accordance with the requirements

under Sec. 400.58.

assistance to eligible

refugees in the State who are sponsored by resettlement agencies in

bordering states, where applicable.

Sec. 400.57 Planning and consultation process.

The State and the local agencies that resettle refugees in the

State must engage in a joint planning and consultation process to

develop a public/private RCA plan in accordance with the requirements

under Sec. 400.58.

(a) Primary participants in the planning process must include

representatives of the State and each local agency that resettles

refugees in the State. During the planning process, the State must

fully consult with representatives of refugee mutual assistance

associations (MAAs), local community services agencies, and other

agencies that serve refugees.

(b) The public must be given the opportunity to comment on the plan

in writing before it is transmitted to the Director of ORR.

(c) Each local resettlement agency that resettles refugees in the

State must inform its national resettlement agency of the proposed

public/private RCA program and must obtain a letter of agreement from

the national agency that the national agency will continue to place

refugees in the State under the public/private RCA program.

Sec. 400.58 Content and submission of public/private RCA plan.

(a) States and local resettlement agencies must develop a public/

private RCA plan which describes how the State and local resettlement

agencies will administer and provide refugee cash assistance to

eligible refugees. The plan must describe the agreed-upon public/

private RCA program including:

(1) The proposed income standard to be used to determine RCA

eligibility;

(2) The proposed payment levels to be used to provide cash

assistance to eligible refugees;

(3) Assurance that the payment levels established are not lower

than the comparable State TANF amounts;

(4) A detailed description of how benefit payments will be

structured, including a description of employment incentives and/or

income disregards to be used, if any;

d to determine RCA

eligibility;

(2) The proposed payment levels to be used to provide cash

assistance to eligible refugees;

(3) Assurance that the payment levels established are not lower

than the comparable State TANF amounts;

(4) A detailed description of how benefit payments will be

structured, including a description of employment incentives and/or

income disregards to be used, if any;

(5) A description of how all RCA eligible refugees residing in the

State will have easy access to cash assistance and services;

(6) A description of the procedures to be used to ensure

appropriate protections and due process for refugees, such as notice of

adverse action and the right to mediation, a pre-termination hearing,

and an appeal to an independent entity;

(7) A description of proposed exemptions from participation in

employability services;

(8) A description of the employment and self-sufficiency services

that the local resettlement agencies will be contracted to provide to

RCA recipients;

(9) Procedures for providing RCA to eligible secondary migrants who

move to the State, including secondary migrants who were sponsored by a

resettlement agency that does not have a presence in the receiving

State.

(10) If applicable, provisions for providing assistance to refugees

resettling in the State who are sponsored by a resettlement agency in a

bordering State which does not have an office in the State of

resettlement;

(11) A description of the procedures to be used to safeguard the

disclosure of information on refugee clients;

(12) Letters of agreement from the national voluntary resettlement

agencies that refugee placements in the State will continue under the

public/private RCA program; and

(13) A breakdown of the proposed program and administrative costs

of both the cash assistance and service components of the public/

private RCA program, including per capita caps on administrative costs.

on on refugee clients;

(12) Letters of agreement from the national voluntary resettlement

agencies that refugee placements in the State will continue under the

public/private RCA program; and

(13) A breakdown of the proposed program and administrative costs

of both the cash assistance and service components of the public/

private RCA program, including per capita caps on administrative costs.

(b) In cases where the State, after consultation with the local

resettlement agencies in the State, determines that a public/private

RCA program is not feasible statewide and proposes to implement a

public/private RCA program in only a portion of the State and to

operate an excepted RCA program in the balance of the State, the

State's RCA plan must include the information required in Sec. 400.66.

(c) The plan must be signed by the Governor or his or her designee.

(d) The Director of ORR will follow the procedures in Sec. 400.8

for the approval of public/private RCA plans.

(e) Any amendments to the public/private RCA plan must be developed

in consultation with the local resettlement agencies and must be

submitted to ORR in accordance with Sec. 400.8. The Director of ORR

will follow the procedures in Sec. 400.8 for approval of amendments to

public/private RCA plans.

Sec. 400.59 Eligibility for the public/private RCA program.

Eligibility for refugee cash assistance under the public/private

program is limited to those who meet the income eligibility standard

jointly established by the State and local resettlement agencies in the

State.

Sec. 400.60 Payment levels.

follow the procedures in Sec. 400.8 for approval of amendments to

public/private RCA plans.

Sec. 400.59 Eligibility for the public/private RCA program.

Eligibility for refugee cash assistance under the public/private

program is limited to those who meet the income eligibility standard

jointly established by the State and local resettlement agencies in the

State.

Sec. 400.60 Payment levels.

(a)(1) Under the public/private RCA program, States and the local

resettlement agencies contracted to administer the RCA program must

make monthly cash assistance payments to eligible refugees that do not

exceed the following payment ceilings, according to the number of

persons in the assistance unit, except as noted in paragraph (b):

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

Monthly

Size of family unit payment

ceiling

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

1 person..................................................... $335

2 persons.................................................... 450

3 persons.................................................... 570

4 persons.................................................... 685

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

(2) For family units greater than 4 persons, the payment ceiling

may be increased by $70 for each additional person.

(b) States and local resettlement agencies may not make payments to

refugees that are lower than the State's TANF payment for the same

sized family unit. In States that have TANF payment levels that are

higher than the ceilings established in this section, States and local

resettlement agencies must provide payment levels under the public/

private RCA program that are comparable to the State's TANF payment

levels.

esettlement agencies may not make payments to

refugees that are lower than the State's TANF payment for the same

sized family unit. In States that have TANF payment levels that are

higher than the ceilings established in this section, States and local

resettlement agencies must provide payment levels under the public/

private RCA program that are comparable to the State's TANF payment

levels.

(c) States and local resettlement agencies may design an assistance

program that combines RCA payments with income disregards or other

incentives such as employment bonuses, or graduated payments in order

to encourage early employment and self-sufficiency, as long as the

total combined payment in any given month does not exceed the monthly

ceilings established in this section.

(d) If the Director determines that the payment ceilings need to be

adjusted for inflation, the Director will publish a final notice in the

Federal Register announcing the new payment ceilings.

Sec. 400.61 Services to public/private RCA recipients.

(a) Services provided to recipients of refugee cash assistance in

the public/private RCA program must be provided by the local

resettlement agencies that administer the public/private RCA program or

their subcontractors.

(b) Allowable services under the public/private program are limited

to those services described in Secs. 400.154 and 400.155 and are to be

funded in accordance with Sec. 400.206.

ervices provided to recipients of refugee cash assistance in

the public/private RCA program must be provided by the local

resettlement agencies that administer the public/private RCA program or

their subcontractors.

(b) Allowable services under the public/private program are limited

to those services described in Secs. 400.154 and 400.155 and are to be

funded in accordance with Sec. 400.206.

(c) States and local resettlement agencies must coordinate on a

regular basis with refugee mutual assistance associations and other

ethnic representatives that represent or serve the ethnic populations

that are being resettled in the U.S. to ensure that the services

provided under the public/private RCA program:

(1) Are appropriate to the linguistic and cultural needs of the

incoming populations; and

(2) Are coordinated with the longer-term resettlement services

frequently provided by ethnic community organizations after the end of

the time-limited RCA eligibility period.

Sec. 400.62 Treatment of eligible secondary migrants, asylees, and

Cuban/Haitian entrants.

The State and local resettlement agencies must establish procedures

to ensure that eligible secondary migrant refugees, asylees, and Cuban/

Haitian entrants have access to public/private RCA assistance if they

wish to apply. In developing these procedures, consideration must be

given to ensuring coverage of eligible secondary migrants and other

eligible applicants who were sponsored by a resettlement agency which

does not have a presence in the State or who were not sponsored by any

agency.

Sec. 400.63 Availability of agency policies.

n entrants have access to public/private RCA assistance if they

wish to apply. In developing these procedures, consideration must be

given to ensuring coverage of eligible secondary migrants and other

eligible applicants who were sponsored by a resettlement agency which

does not have a presence in the State or who were not sponsored by any

agency.

Sec. 400.63 Availability of agency policies.

The State must ensure that each participating local resettlement

agency makes available to refugees the written policies of the public/

private RCA program, including agency policies regarding eligibility

standards, the duration and amount of cash assistance payments, the

requirements for participation in services, the penalties for non-

cooperation, and client rights and responsibilities to ensure that

refugees understand what they are eligible for, what is expected of

them, and what protections are available to them. States must ensure

that agency policy materials are made available to refugee clients in

English and in their own language.

Sec. 400.64 Preparation of local resettlement agencies.

The State and the national voluntary agencies whose affiliate

agencies will be responsible for implementing the public/private RCA

program:

(a) Must determine the training needed to enable local resettlement

agencies to achieve a smooth implementation of the RCA program; and

(b) Must provide the training in a uniform way to ensure that all

local resettlement agencies in the State will implement the public/

private RCA program in a consistent manner.

Sec. 400.65 Monitoring.

onsible for implementing the public/private RCA

program:

(a) Must determine the training needed to enable local resettlement

agencies to achieve a smooth implementation of the RCA program; and

(b) Must provide the training in a uniform way to ensure that all

local resettlement agencies in the State will implement the public/

private RCA program in a consistent manner.

Sec. 400.65 Monitoring.

(a) Joint monitoring. (1) The Director of ORR, or his or her

designee, and the State must conduct joint monitoring of the public/

private RCA program, beginning no later than one year after the new

program has been implemented to ensure that the program is being

carried out in a manner that produces positive self-sufficiency and

resettlement outcomes.

(2) Subject to the availability of appropriated funds, the national

voluntary agencies must also participate in this joint monitoring in

locations where their local affiliates participate in a public/private

RCA program.

(b) The State must conduct compliance monitoring to ensure that

local resettlement agencies are complying with the terms of the

approved public/private RCA plan and with ORR regulations in regard to

the RCA program.

Exceptions to the Public/Private Program

Sec. 400.66 Criteria and procedure for granting an exception.

(a) A State that has good reason to believe that a public/private

refugee cash assistance program is not workable in the State or would

not be in the best interests of refugees resettled in the State may

request an exception to the public/private RCA program.

(1) To qualify for an RCA exception, a State:

he Public/Private Program

Sec. 400.66 Criteria and procedure for granting an exception.

(a) A State that has good reason to believe that a public/private

refugee cash assistance program is not workable in the State or would

not be in the best interests of refugees resettled in the State may

request an exception to the public/private RCA program.

(1) To qualify for an RCA exception, a State:

(i) Must demonstrate that it made a good faith effort to reach

agreement on a public/private RCA program through a planning and

consultation process; and

(ii) Must meet one of the following criteria:

(A) Local resettlement agencies operating in the State declined to

accept responsibility for the provision of cash assistance;

(B) The contemplated provision of cash assistance by local

resettlement agencies would not provide adequate access to cash

assistance for newly-arrived RCA refugees;

(C) The Governor concluded that a public/private RCA program would

not be in the best interests of refugees; or

(D) The Governor determined that administrative funding is not

sufficient to enter into a public/private partnership and administer

the remaining components of the program.

(2) To request an exception to the public/private RCA program, a

State must submit a written request signed by the Governor or his or

her designee which:

(i) Provides documentation that the State made a good faith effort

to reach agreement on a public/private RCA program through a planning

and consultation process; and

(ii) Addresses one of the four criteria for an exception described

in paragraph (a)(1)(ii) of this section.

(3) If a State's request for an exception meets the required

criteria outlined in paragraph (a)(1), the Director will approve the

request.

tation that the State made a good faith effort

to reach agreement on a public/private RCA program through a planning

and consultation process; and

(ii) Addresses one of the four criteria for an exception described

in paragraph (a)(1)(ii) of this section.

(3) If a State's request for an exception meets the required

criteria outlined in paragraph (a)(1), the Director will approve the

request.

(b) States that determine that a public/private RCA program or an

RCA excepted program are not the best approach for their State may

choose instead to establish an alternative approach under the Wilson/

Fish program.

Sec. 400.67 Eligibility and payment levels in an excepted RCA program.

In administering an approved excepted RCA program, the State agency

must operate its refugee cash assistance program consistent with the

provisions of its TANF program in regard to:

(a) The determination of initial and on-going eligibility

(treatment of income and resources, budgeting methods, need standard);

(b) The determination of benefit amounts (payment levels based on

size of the assistance unit, income disregards);

(c) Proration of shelter, utilities, and similar needs;

(d) The date that refugee cash assistance (RCA) begins, in relation

to the date of application; and

(e) Any other State TANF rules relating to eligibility and

payments.

Sec. 400.68 Non-applicable TANF requirements.

States that are granted an RCA exception may not apply certain TANF

requirements to refugee cash assistance applicants or recipients as

follows:

(a) A State's durational residency requirement imposed on

applicants for TANF may not apply to applicants for RCA; and

ication; and

(e) Any other State TANF rules relating to eligibility and

payments.

Sec. 400.68 Non-applicable TANF requirements.

States that are granted an RCA exception may not apply certain TANF

requirements to refugee cash assistance applicants or recipients as

follows:

(a) A State's durational residency requirement imposed on

applicants for TANF may not apply to applicants for RCA; and

(b) TANF work requirements (hours of participation and allowable

work activities) may not apply to RCA applicants or recipients. States

must meet the requirements in subpart I of 45 CFR part 400 with respect

to the provision of services for RCA recipients.

Sec. 400.69 Notification to local resettlement agency.

The State must notify promptly the agency (or local affiliate)

which provided for the initial resettlement of a refugee whenever the

refugee applies for refugee cash assistance under an RCA excepted

program.

Sec. 400.70 [Amended]

16. Section 400.70 is amended by adding the words ``under both the

public/private RCA program and State-administered RCA exceptions''

after the word ``assistance'' and before the word ``concerning''.

Sec. 400.71 [Amended]

17. Section 400.71 is amended by removing the words

``Sec. 400.72(a) of'' from the definition of the term Designee.

Sec. 400.72 [Amended]

18. Section 400.72 is amended by adding introductory text to read

as follows:

Sec. 400.72 Arrangements for employability services. Paragraphs

(a) and (b) of this section apply equally to States that operate a

public/private RCA program and to States that operate an ORR-approved

RCA excepted program. Paragraph (c) applies only to RCA excepted

programs.

term Designee.

Sec. 400.72 [Amended]

18. Section 400.72 is amended by adding introductory text to read

as follows:

Sec. 400.72 Arrangements for employability services. Paragraphs

(a) and (b) of this section apply equally to States that operate a

public/private RCA program and to States that operate an ORR-approved

RCA excepted program. Paragraph (c) applies only to RCA excepted

programs.

(a) * * *

* * * * *

Sec. 400.75 [Amended]

19. Section 400.75(b) is amended by adding the words ``or its

designee'' after the words ``State agency''.

Sec. 400.76 [Revised]

20. Section 400.76 is revised to read as follows:

Sec. 400.76 Criteria for exemption from registration for

employment services, participation in employability service programs,

and acceptance of appropriate offers of employment.

States and local resettlement agencies operating a public/private

RCA program, as well as States operating an RCA excepted program, may

determine what specific exemptions, if any, are appropriate for

recipients of a time-limited RCA program in their State.

Sec. 400.77 [Amended]

21. Section 400.77(a) is amended by removing the

words``Sec. 400.82(b)(3)(ii)'' and adding in their place the words

``Sec. 400.82(c)(2).''

Sec. 400.78 [Removed]

22. Section 400.78 is removed.

Sec. 400.79 [Amended]

23. Section 400.79(a) is amended by removing the word ``filing''

and adding in its place the word ``family'' before the word ``unit''.

24. Section 400.79 is further amended by adding the word ``and'' at

the end of the paragraph (c)(1) and by removing the semicolon and the

word ``and'' at the end of paragraph (c)(2) and adding in their place a

period.

Sec. 400.80 [Removed]

25. Section 400.80 and the undesignated centerhead immediately

preceding it are removed.

Sec. 400.81 [Amended]

ord ``family'' before the word ``unit''.

24. Section 400.79 is further amended by adding the word ``and'' at

the end of the paragraph (c)(1) and by removing the semicolon and the

word ``and'' at the end of paragraph (c)(2) and adding in their place a

period.

Sec. 400.80 [Removed]

25. Section 400.80 and the undesignated centerhead immediately

preceding it are removed.

Sec. 400.81 [Amended]

26. Section 400.81 is amended by removing the word ``AFDC'' and

adding in its place the word ``TANF'' in paragraphs (a) introductory

text and (a)(4).

27. Section 400.81(b) is further amended by adding a sentence at

the end of paragraph (b) that reads: ``This training may only be made

available to individuals who are employed.''

Sec. 400.82 [Amended]

28. Section 400.82 is amended by redesignating paragraph (b)(3) as

(c) and by redesignating paragraphs (b)(3)(i) and (ii) as (1) and (2)

respectively.

29. Section 400.82 is further amended by revising paragraphs (a)

and (b) to read as follows:

Sec. 400.82 Failure or refusal to accept employability services or

employment.

(a) Termination of assistance. When, without good cause, an

employable non-exempt recipient of refugee cash assistance under the

public/private RCA program or under an approved RCA excepted program

has failed or refused to meet the requirements of Sec. 400.75(a) or has

voluntarily quit a job, the State, or the agency responsible for the

provision of RCA, must terminate assistance in accordance with

paragraphs (b) and (c) of this section.

(b) Notice of intended termination--(1) Public/private RCA program.

ce under the

public/private RCA program or under an approved RCA excepted program

has failed or refused to meet the requirements of Sec. 400.75(a) or has

voluntarily quit a job, the State, or the agency responsible for the

provision of RCA, must terminate assistance in accordance with

paragraphs (b) and (c) of this section.

(b) Notice of intended termination--(1) Public/private RCA program.

(i) In cases of proposed action to terminate, discontinue, suspend, or

reduce assistance, the local resettlement agency responsible for the

provision of RCA, must give timely and adequate notice, in accordance

with adverse action procedures the State has established under the

public/private RCA program to ensure due process.

(ii) Local resettlement agencies must provide written procedures in

English and in the refugee's own language, for good cause determination

and sanctioning of refugees who do not comply with the requirements of

the program and for refugees to file appeals.

(iii) The written notice must include--

(A) An explanation of the reason for the action and the

consequences of such failure or refusal; and

(B) Notice of the recipient's right to a hearing under Sec. 400.83.

(2) RCA-excepted program. In cases of proposed action to terminate,

discontinue, suspend, or reduce assistance, the State agency must give

timely and adequate notice following the same procedures as those used

in its TANF program.

* * * * *

30. Section 400.83 is revised to read as follows:

Sec. 400.83 Mediation and fair hearings.

otice of the recipient's right to a hearing under Sec. 400.83.

(2) RCA-excepted program. In cases of proposed action to terminate,

discontinue, suspend, or reduce assistance, the State agency must give

timely and adequate notice following the same procedures as those used

in its TANF program.

* * * * *

30. Section 400.83 is revised to read as follows:

Sec. 400.83 Mediation and fair hearings.

(a) Mediation--(1) Public/private RCA program. The State must

ensure that a mediation period prior to imposition of sanctions is

provided to refugees by local resettlement agencies under the public/

private RCA program. The State and local resettlement agencies must

determine the length of the mediation period and must include a

description of the mediation period in the public/private RCA plan

required in Sec. 400.58.

(2) RCA-excepted program. Under an RCA-excepted program, the State

must use the same procedures for mediation/conciliation as those used

in its TANF program.

(b) Hearings--(1) Public/private RCA program. (i) The State must

ensure that local resettlement agencies provide an applicant for or

recipient of refugee cash assistance an opportunity for an oral pre-

termination hearing to contest adverse determinations, including a

determination concerning employability or failure or refusal to

participate in employment services or to accept an appropriate offer of

employment, resulting in denial or termination of assistance.

(A) Hearings must be conducted by an impartial official or designee

of the local resettlement agency who has not been involved directly in

the initial determination of the action in question.

(B) A hearing need not be granted when Federal law requires

automatic grant adjustments for classes of recipients unless the reason

for an individual appeal is incorrect grant computation.

(ii) The State must ensure that local resettlement agencies provide

timely and adequate notice in the refugee's language of any

determination.

ectly in

the initial determination of the action in question.

(B) A hearing need not be granted when Federal law requires

automatic grant adjustments for classes of recipients unless the reason

for an individual appeal is incorrect grant computation.

(ii) The State must ensure that local resettlement agencies provide

timely and adequate notice in the refugee's language of any

determination.

(iii) The State must ensure that procedures are established to

provide refugees a right of final appeal for an in-person hearing

provided by an impartial, independent entity outside of the local

resettlement agency.

(2) RCA-excepted program. The State must provide an applicant for

or recipient of refugee cash assistance an opportunity for a hearing,

using the same procedures and standards used in the State's TANF

program to contest a determination of employability, or failure or

refusal to participate in employment services or accept an appropriate

offer of employment, resulting in denial or termination of assistance.

Sec. 400.100 [Amended]

31. Section 400.100(a)(2) is amended by removing the word

``filing'' and adding in its place the word ``family'' before the word

``unit''.

Sec. 400.101 [Amended]

32. Section 400.101(a) is revised to read as follows:

Sec. 400.101 Financial eligibility standards.

* * * * *

(a) In States with medically needy programs under 42 CFR part 435,

subpart D:

(1) The State's medically needy financial eligibility standards

established under 42 CFR part 435, subpart I, and as reflected in the

State's approved title XIX State Medicaid plan; or

400.101 [Amended]

32. Section 400.101(a) is revised to read as follows:

Sec. 400.101 Financial eligibility standards.

* * * * *

(a) In States with medically needy programs under 42 CFR part 435,

subpart D:

(1) The State's medically needy financial eligibility standards

established under 42 CFR part 435, subpart I, and as reflected in the

State's approved title XIX State Medicaid plan; or

(2) A financial eligibility standard established at up to 200% of

the national poverty level; and

* * * * *

33. Section 400.101(b) is amended by removing the words

``established under Sec. 233.20(a)(2) of this title'' and adding in

their place the words ``in effect as of July 16, 1996, including any

modifications elected by the State under section 1931(b)(2) of the

Social Security Act.''

Sec. 400.102 [Revised]

34. Section 400.102 is revised to read as follows:

Sec. 400.102 Consideration of income and resources.

(a) Except as specified in paragraphs (b) and (c) of this section,

in considering financial eligibility of applicants for refugee medical

assistance, the State agency must--

(1) In States with medically needy programs, use the standards

governing determination of income eligibility in 42 CFR 435.831, and as

reflected in the State's approved title XIX State Medicaid plan.

(2) In States without medically needy programs, use the standards

governing consideration of income and resources of AFDC applicants in

effect as of July 16, 1996.

(b) The State may not consider in-kind services and shelter

provided to an applicant by a sponsor or resettlement agency in

determining eligibility for and receipt of refugee medical assistance.

oved title XIX State Medicaid plan.

(2) In States without medically needy programs, use the standards

governing consideration of income and resources of AFDC applicants in

effect as of July 16, 1996.

(b) The State may not consider in-kind services and shelter

provided to an applicant by a sponsor or resettlement agency in

determining eligibility for and receipt of refugee medical assistance.

(c) The State must base eligibility for refugee medical assistance

on the applicant's income and resources on the date of application. The

State agency may not use the practice of averaging income prospectively

over the application processing period in determining income

eligibility for refugee medical assistance.

35. Section 400.104 is revised to read as follows:

Sec. 400.104 Continued coverage of recipients who receive increased

earnings from employment.

(a) If a refugee who is receiving refugee medical assistance

receives earnings from employment, the earnings shall not affect the

refugee's continued medical assistance eligibility.

(b) If a refugee, who is receiving Medicaid and has been residing

in the U.S. less than the time-eligibility period for refugee medical

assistance, becomes ineligible for Medicaid because of earnings from

employment, the refugee may be transferred to refugee medical

assistance without an eligibility redetermination.

(c) Under paragraphs (a) and (b) of this section, a refugee shall

continue to receive refugee medical assistance until he/she reaches the

end of his or her time-eligibility period for refugee

medical assistance, in accordance with Sec. 400.100(b).

Medicaid because of earnings from

employment, the refugee may be transferred to refugee medical

assistance without an eligibility redetermination.

(c) Under paragraphs (a) and (b) of this section, a refugee shall

continue to receive refugee medical assistance until he/she reaches the

end of his or her time-eligibility period for refugee

medical assistance, in accordance with Sec. 400.100(b).

(d) In cases where a refugee is covered by employer-provided health

insurance, any payment of RMA for that individual must be reduced by

the amount of the third party payment.

Sec. 400.154 [Amended]

36. Section 400.154(j) is amended by removing the word ``AFDC'' and

adding in its place the word ``TANF''.

37. Section 400.155 is amended by adding a new paragraph (i) that

reads as follows:

Sec. 400.155 Other services.

* * * * *

(i) Citizenship and naturalization preparation services including

English language training and civics instruction to prepare refugees

for citizenship, application assistance, and the provision of

interpreter services for the citizenship interview.

Sec. 400.203 [Amended]

38. Section 400.203(a)(1) is amended by removing the word ``AFDC''

and adding in its place the word ``TANF''.

Sec. 400.207 [Amended]

39. Section 400.207 is amended by adding a sentence after the word

``Families'' that reads: ``Such costs may include reasonable and

necessary administrative costs incurred by local resettlement agencies

in providing assistance and services under a public/private RCA

program.'' and by removing the word ``Such'' in the last sentence and

adding in its place the word ``Administrative''.

Sec. 400.208 [Amended]

40. Section 400.208 is amended by removing the word ``filing''

whenever it appears and adding in its place the word ``family''.

Sec. 400.209 [Amended]

rred by local resettlement agencies

in providing assistance and services under a public/private RCA

program.'' and by removing the word ``Such'' in the last sentence and

adding in its place the word ``Administrative''.

Sec. 400.208 [Amended]

40. Section 400.208 is amended by removing the word ``filing''

whenever it appears and adding in its place the word ``family''.

Sec. 400.209 [Amended]

41. Section 400.209 is amended by removing the word ``filing''

whenever it appears and adding in its place the word ``family'' and by

removing the word ``AFDC'' in paragraph (a) and adding in its place the

word ``TANF''.

42. Section 400.210 is amended by revising paragraph (b)(2) to read

as follows:

Sec. 400.210 Time limits for obligating and expending funds and for

filing State claims.

* * * * *

(b) * * *

(2) A State must expend its social service and targeted assistance

grants no later than two years after the end of the FFY in which the

Department awards the grant. A State's final financial report on

expenditures of social services and targeted assistance grants must be

received no later than 90 days after the end of the two-year

expenditure period. At that time, if a State's final financial

expenditure report has not been received, the Department will

deobligate any unexpended funds, including any unliquidated

obligations, based on a State's last submitted financial report.

Sec. 400.211 [Amended]

43. Section 400.211(a) is amended by removing the word

``necessary'' and adding in its place the words ``a reduction in the

eligibility period is indicated'' after the word ``if''.

44. Section 400.211(a)(2) is amended by removing the word

``member'' and adding in its place the word ``number'' after the word

``annual''.

45. Section 400.211(b) is amended by removing the word

``impleting'' and adding in its place the word ``implementing''.

Sec. 400.301 [Amended]

nd adding in its place the words ``a reduction in the

eligibility period is indicated'' after the word ``if''.

44. Section 400.211(a)(2) is amended by removing the word

``member'' and adding in its place the word ``number'' after the word

``annual''.

45. Section 400.211(b) is amended by removing the word

``impleting'' and adding in its place the word ``implementing''.

Sec. 400.301 [Amended]

46. Section 400.301(b) is amended by removing the words ``only

under extraordinary circumstances and'' after the word ``granted''.

47. Section 400.301(c) is amended by adding the following sentence

after the words ``subpart L'': ``Replacement designees must also adhere

to the subpart L regulations regarding formula allocation grants for

targeted assistance, if the State authorized the replacement designee

appointed by the Director to act as its agent in applying for and

receiving targeted assistance funds''.

48. Section 400.301(c) is further amended by removing the words

``400.55(b)(2), 400.56(a)(1), 400.56(a)(2), 400.56(b)(2)(i)'' and

adding in their place the words ``400.52(b)(2)(i), 400.55, 400.58(c)''.

PART 401--CUBAN/HAITIAN ENTRANT PROGRAM

1. The authority citation for Part 401 continues to read as

follows:

Authority: Section 501(a), Pub. L. 96-422, 94 Stat. 1810 (8

U.S.C. 1522 note); Executive Order 12341 (January 21, 1982).

Sec. 401.12 [Amended]

l. Section 401.12(a) is amended by removing the word

``Sec. 400.62'' and adding in its place the words ``subparts E and G of

part 400 of this title''.

[FR Doc. 99-202 Filed 1-7-99; 8:45 am]

BILLING CODE 4184-01-P