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U.S. Department of Labor
Employment and Training Administration 
Washington, D.C. 20210
CLASSIFICATION
UI
CORRESPONDENCE SYMBOL
TEUMI
DATE
February 24, 1989
RESCISSIONS EXPIRATION DATE
January 31, 1991
DIRECTIVE: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 19-89
TO: ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM: DONALD J. KULICK
Administrator
for Regional Management
SUBJECT: Memorandum of Understanding Between the Department of Labor and the Department of Health and Human Services Under Section 453(e)(3) of the Social Security Act (SSA)

1.  Purpose.  To transmit a copy of the above-referenced Memorandum of Understanding (MOU) and provide information pertaining to the required agreements between the State Employment Security Agencies (SESAs) and the Office of Child Support Enforcement (GCSE).

2. Reference.  Section 124 of P.L. 100-485, the Family Support Act of 1988; Sections 303(h) and 453(e)(3), SSA; UIPL No. 11-89, dated January 5, 1989.

3.  Background.  UIPL No. 11-89 transmitted to all SESAs the text, explanation and interpretation of the amendments made to the SSA by Section 124 of P.L. 100-485.

The pertinent provisions of the Family Support Act require SESAs to take such actions as may be necessary to enable the Secretary of Health and Human Services to obtain prompt access to any wage and unemployment compensation claims information available to the SESA for purposes of locating absent parents or such parents' employers in carrying out the child support enforcement program under Title IV, SSA. This requirement is effective January 1, 1990.

In addition, the provisions of the Family Support Act require the Secretary of Labor to enter into an agreement with the Secretary of Health and Human Services to give the OCSE, Federal Parent Locator Service (FPLS) prompt access to the above mentioned information for the purpose of locating absent parents or such parents' employers for purposes of child support enforcement activities under Title IV of the SSA.  This agreement is to govern the implementation of Section 303 (h), SSA.

Section 124(a), P.L. 100-485, amended Section 453(e), SSA, by adding the following new paragraph:

                "(3) The Secretary of Labor shall enter into an agreement with the Secretary [of Health and Human Services] to
            provide prompt access for the Secretary (in accordance with this subsection) to the wage and unemployment
            compensation claims information and data maintained by or for the Department of Labor or State employment security
            agencies."

Section 124(b)(1) of P.L.100-485 amended Section 303, SSA by adding the following new subsection:

                "(h)(1) The State agency charged with the administration of the State law shall take such actions (in such manner as
            may be provided in the agreement between the Secretary of Health and Human Services and the Secretary of Labor
            under section 453(e)(3)) as may be necessary to enable the Secretary of Health and Human Services to obtain prompt
            access to any wage and unemployment compensation claims information (including any information that might be useful
            in locating an absent parent or such parent's employer) for use by the Secretary of Health and Human Services, for
            purposes of section 453, in carrying out the child support enforcement program under Title IV."

                "(2) Whenever the Secretary of Labor, after reasonable notice and opportunity for hearing to the State Agency
            charged with the administration of the State law, finds that there is a failure to comply substantially with the requirement
            of paragraph (1), the Secretary of Labor shall notify such State agency that further payments will not be made to the
            State until such Secretary is satisfied that there is no longer any such failure.  Until the Secretary of Labor is so
            satisfied, such Secretary shall make no further certification to the Secretary of the Treasury with respect to such State."

The MOU between the Departments of Labor and Health and Human Services under Section 453(e)(3), SSA, establishes the framework and requirements under which SESAs will implement Section 303(h)(1), SSA, in providing the FPLS (within the GCSE) with the required information.

4.  Discussion.  There has been considerable discussion over the past several years between staffs of the Employment and Training Administration (ETA), OCSE, and the Interstate Conference of Employment Security Agencies' (ICESA) Interstate Benefit Committee (IB) regarding access by the FPLS to wage and unemployment compensation data maintained by the SESAs and the participation of FPLS in the SESAs' quarterly Interstate Crossmatch/Claimant Locator process.

Amendments were proposed (53 FR 34120, September 2, 1988) to the State Income and Eligibility Verification System
(SIEVS) regulations (20 CFR 603) to provide FPLS with access to SESAs' wage and unemployment compensation claims information.  However, the need for these amendments was eliminated by the enactment of Section 124 of the Family Support
Act of 1988 providing for the creation of a mechanism for the disclosure of wage and unemployment compensation claims information to FPLS.  Therefore, ETA will withdraw the proposed amendments to the SIEVS regulations.

The Secretaries MOU establishes a separate FPLS Locator process which parallels the Interstate Crossmatch/Locator process.  This process will satisfy the SESAs'desires to use an existing data format and not include the FPLS as a participant in the SESAs' voluntary quarterly Interstate Crossmatch/Claimant Locator process.

Individual agreements between OCSE and each SESA will be required which will address reimbursement, volume, and other items outlined in Article III.  B of the MOU.  In addition, OCSE will enter into a written agreement with a SESA to act as its agent in establishing an arrangement with a contractor for the purpose of facilitating the exchange of data between FPLS and the SESAs.

Participation by each SESA in the established access system is required under Section 303(h), SSA, as a condition for receiving administrative grants.  Additionally, under Article III. F of the MOU, the OCSE is required to notify the Department of Labor of any SESA's failure to participate.

5.  Procedures.  The first request for information under the requirements of the SSA and the MOU will be scheduled to occur during the first quarter of calendar year 1990 and participation by the SESAs will be mandatory.

SESAs should review the requirements of the attached MOU together with UIPL 11-89, to determine whether existing provisions of State law provide sufficient authority to implement the requirements of Section 303(h)(1), SSA, as set forth in the MOU, and the State's required agreement with OCSE or whether an amendment to State law is needed.  A model agreement
is currently being prepared and will be provided to the SESAs shortly.  The agreement will address items required under Item III.  B of the MOU and provide for each State to: (1) individually negotiate costs and volume (in excess of the 50,000 requests per quarter agreed to by DOL); and (2) include any other State requirements.  Additionally, the OCSE may request that the SESA agreement address a test match prior to required implementation.  Each SESA should prepare to address the terms and.conditions of agreement in negotiations with the OCSE.

SESAs are cautioned that Title III Grants must not be used for any administrative cost appropriately chargeable to the OCSE. Cost provisions of the SESA agreement should provide for the full cost of all activities associated with providing wage and unemployment compensation claims information to the OCSE.  In determining whether an administrative cast is appropriately chargeable to the OCSE, the cost principles of OMB circular A-87, "Cost Principles for State and Local Governments," apply.

6.  Action Required.  SESAs are requested to: (a) make copies of this letter and furnish to appropriate staff; and, (b) identify a contact person who will be responsible for negotiating the State agreement and the person who will sign the agreement with the GCSE, and provide the name and title of each and the telephone number of the contact person to the National Office (copy to Regional Office), Attn: TEUMI, by C.O.B. March 10, 1989.

7.  Inquiries.  Any question's should be addressed to the appropriate Regional Office.

8.  Attachment.  Copy of Memorandum of Understanding between the Department of Labor and the Department of Health and Human Services.

DISTRIBUTION
 

Attachment to UIPL No. 19-89


 


MEMORANDUM OF UNDERSTANDING
BETWEEN
THE DEPARTMENT OF LABOR
AND
THE DEPARTMENT OF HEALTH AND HUMAN SERVICES


I.  PURPOSE

    To record the agreement and understanding between the Secretary of Labor and the Secretary of Health and Human
    Services to implement Section 453(e)(3) of the Social Security Act (the Act), and assist with implementing the requirements
    of Section 303(h) of such Act (as amended by Section 124 of the Family Support Act of 1988, Public Law 100-485).

II.  BACKGROUND

    A.  Section 453 of the Social Security Act established the Federal Parent Locator Service (FPLS), within the Office of
          Child Support Enforcement (OCSE), to obtain and transmit information to authorized persons (as defined in the Act)
          concerning the whereabouts of any absent parent, to be used to locate such parent for the purpose of enforcing support
          obligations.

    B.  Section 124(a) of the Family Support Act of 1988 amended Section 453(e) by adding a new paragraph (3), which
          requires the Secretary of Labor and the Secretary of Health and Human Services to enter into an agreement to provide
          the FPLS with prompt access to wage and unemployment compensation claims information maintained for or by the
          Department of Labor (DOL) or the State Employment Security Agencies (SESAs).

    C.  Section 124(b) of the Family Support Act of 1988 amended Section 303 of the Social Security Act by adding a new
          subsection (h)(1), which reads as follows:

                    . . ."The State agency charged with the administration of the State law shall take such actions (in such manner as
                    may be provided in the agreement between the Secretary of Health and Human Services and the Secretary of
                    Labor under section 453(e)(3)) as may be necessary to enable the Secretary of Health and Human Services to
                    obtain prompt access to any wage and unemployment compensation claims information (including any information
                    that might be useful in locating an absent parent or such parent's employer) for use by the Secretary of Health and
                    Human Services, for purposes of Section 453, in carrying out the child support enforcement program under title
                    IV."

    D.  The amendments made by Section 124 become effective on the first day of the first calendar quarter which begins l year
          or more after the date of enactment of the Family Support Act of 1988, except that the Secretaries of Labor and Health
          and Human Services are directed to enter into the agreement required by Section 453(e)(3) not later than 90 days after
          date of enactment.

    E.  This Memorandum of Understanding constitutes the formal agreement required by Section 453(e)(3), and sets forth the
          responsibilities of both Departments and the SESAs under Section 303(h)(1).

III.  UNDERSTANDINGS

A.  The Secretaries agree that, pursuant to Section 303(h)(1), the only information that may be requested under this agreement
      and the agreement with any SESA is wage and unemployment compensation claims information in the records of the
      SESA and any other information in the records of the SESA that might be useful in locating an absent parent or such
      parent's employer.

B.  The Secretaries agree that the OCSE, with the assistance of DOL, will enter into specific written agreements with each
      SESA.  Such agreements will include provisions:

      (1) The purpose for which the information is requested;

      (2) The specific information requested;

      (3) How the information will be requested, including the request and response formats;

      (4) The maximum number of records to be included in each request;

      (5) Request and response schedules;

      (6) Provisions for reprocessing requests;

      (7) Cost of responding to requests;

      (8) Reimbursement procedures;

      (9) Provisions for safeguarding and protecting confidentiality of requests and responses, and limiting use or redisclosure of
            information to purposes authorized by law; and

      (10) Provisions far notification by OCSE for appropriate action by DOL of any SESA's failure to provide prompt access
              to wage and unemployment compensation claims information.

    C.  The Secretaries agree that the OCSE will protect the confidentiality of the information obtained under the terms of this
          agreement against unauthorized access or redisclosure while under the control of OCSE.  The OCSE will require each
          State to submit an annual certification that the information obtained pursuant to this agreement will only be used for child
          support enforcement purposes and that such information will be safeguarded.

    D.  The Secretaries agree that the OCSE will enter into a written agreement with a SESA to act as OCSE's agent in
          establishing an arrangement with a contractor coordinating the data exchange between SESAs for the purpose of
          facilitating the exchange of data between the FPLS and the SESAs.

    E.  The Secretaries agree that the OCSE will make a reasonable effort to ensure that requests for information pertain to
          absent parents who no longer work or reside in the State requesting locate information through FPLS.

    F.  The Secretaries agree that OCSE will notify DOL in writing of any SESAs failure to provide prompt access to wage and
          unemployment compensation claims information as required under this agreement and the agreement between the SESA
          and OCSE, and DOL will take appropriate action pursuant to Section 303(h)(2) of the Act.

    G.  The Secretaries agree that the Department of Health and Human Services (DHHS) will implement procedures that
          provide for the timely payment by the DHHS to each SESA of all costs incurred in providing wage and unemployment
          compensation claims information in accordance with this agreement and the agreement between the GCSE and the
          SESA.

    H.  The Secretaries agree that OCSE will reimburse the appropriate SESA for any costs incurred by the SESA in
          implementing an agreement with OCSE.

This agreement was effective as of January 11, 1989.
 

DEPARTMENT OF LABOR

By: ____________________________                                                    Date:___________________
       ROBERTS T. JONES
       Assistant Secretary of Labor

DEPARTMENT HEALTH AND HUMAN SERVICES

By: ___________________________                                                      Date:____________________
     WAYNE A. STANTON
     Director, Child Support Enforcement
     Administrator, Family Support Administration