Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

In the matter of the amendment of ARM 37.62.501, 37.62.705, 37.62.945, 37.62.1101, 37.62.1103, 37.62.1115, 37.62.1117, 37.62.1301, 37.62.1317, 37.62.1501, 37.62.1503, 37.62.1505, 37.62.1701, 37.62.1705, 37.62.1707, 37.62.2103, and 37.62.2119, and the repeal of ARM 37.62.1107, 37.62.1119, 37.62.1905, and 37.62.1907 pertaining to updating child support enforcement rules

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT AND

REPEAL

TO: All Concerned Persons

1. On December 15, 2016, at 1:30 p.m., the Department of Public Health and Human Services will hold a public hearing in the auditorium of the Department of Public Health and Human Services Building, 111 North Sanders, Helena, Montana, to consider the proposed amendment and repeal of the above-stated rules.

2. The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Health and Human Services no later than 5:00 p.m. on December 7, 2016, to advise us of the nature of the accommodation that you need. Please contact Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-4094; fax (406) 444-9744; or e-mail dphhslegal@mt.gov.

3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

37.62.501 TERMS AND CONDITIONS (1) and (2) remain the same.

(3) To receive and to continue to receive CSED services under 40-5-205, MCA, a customer must:

(a) through (h) remain the same.

(i) except for the information available through the CSED's voice response unit (VRU) or the CSED's ~~customer services unit~~ online payment lookup web site, submit all requests for specific case information in writing to the CSED. In making any request for information, the customer must provide sufficient information to identify the customer as the person or entity entitled to receive the information.

(4) through (6) remain the same.

(7) ~~Except as provided in (9) of this rule, a~~ A customer cannot specify which of the CSED services that customer may want to receive. The CSED will determine which services are appropriate and the timing and duration of those services in accordance with Title IV-D of the Social Security Act, and the regulations promulgated thereunder.

(8) and (9) remain the same.

(10) Unless the customer is an obligee whose child is receiving medicaid benefits or is covered by the medicaid program, the CSED shall, upon receipt of a written request from the customer, refrain from the establishment or enforcement of health insurance orders.

(11) through (13) remain the same, but are renumbered (10) through (12).

AUTH: 40-5-202, MCA

IMP: 40-5-203, MCA

37.62.705 FEE SCHEDULE (1) As authorized by 40-5-210, MCA, the CSED adopts the following schedule:

(a) for each person, including the child, submitted or resubmitted for paternity blood testing, ~~a standardized fee of $81.00~~ at the contract rate;

(b) for mileage, each way and for each mile, when using a personal or state owned automobile to travel for in-person appearances at judicial or administrative hearings or trials as witness, hearing officer, CSED attorney or other CSED representative, a mileage allowance at a rate equal to the mileage allotment allowed by the United States internal revenue service for the preceding year;

(c) for meals and lodging associated with travel for in-person appearances at judicial or administrative hearings or trials as witness, hearing officer, CSED attorney or other case prosecutor, a meal and lodging allowance as provided in 2-18-501, MCA;

~~(d) for time, effort and expenses in responding to petitions for judicial review including making typed transcriptions of hearing record and preparing briefs, a standardized fee of $250.00;~~

(e) for deposing or taking the deposition, including stenographic recording, and the taking of audio visual depositions, of a witness who resides more than 100 miles from the place of administrative hearing or who is unable to personally attend an administrative hearing because of age, illness, infirmity or imprisonment, a fee equal to actual cost incurred;

(f) for subpoena of a witness to personally appear at an administrative hearing, a fee equal to the actual amount paid to the witness as provided in 2-4-104, MCA, and recoverable under 25-10-201, MCA;

(g) for each hour in taking a responsive or corrective action in an existing judicial proceeding or in commencing an independent judicial action to set aside, declare void or vacate any order, decree or judgment in which the CSED is not a party or is not joined as a party to the action as provided by the rules of civil procedure and which purports to affect, expressly or implicitly, any right or interest of the CSED, a standardized fee of $75.00 for each CSED attorney and a standardized fee of $50.00 for each CSED investigator; and

~~(h)~~ (b) for other actual costs and actual expenses incurred by the CSED. in a judicial proceeding, as awarded by the court; and

(i) for each payment of support distributed to an obligee, whether by warrant, electronic funds transfer, direct deposit in a financial institution or by any other means a fee may be assessed. For each distribution, the fee shall be no greater than $7.00, or 10% of the distribution, whichever is less. This fee may be assessed against the individual or entity receiving CSED services. If the obligee or another state is receiving CSED services, the fee may be deducted from the support collection, before distribution. The total fee incurred against an individual or entity for payment distribution alone shall not exceed $364.00 per year, per case. The payment distribution fee may be assessed over and above any other fee permitted by this rule. However, the payment distribution fee only applies to distributions made in cases being enforced by the CSED under Title IV-D of the Federal Social Security Act.

~~(j)~~ (c) a fee of $25.00 for each application for non-assistance related services. This fee shall be collected from the applicant at the time of application in the form of a cashier's check or money order. If the appropriate fee is not included with the application, the CSED will not open or reopen the case until such fee is paid. The fee shall be $25.00 for an individual whose annual household income is at least $20,000. The fee shall be $15.00 for an individual whose annual household income is at least $10,000, but less than $20,000. The fee shall be $5.00 for an individual whose annual household income is less than $10,000. If the applicant misrepresents or errs in reporting annual household income, the CSED may assess an additional application fee against the applicant at any time. The additional fee shall be the difference between the amount which was paid at the time of application, and the amount that would have paid for the application if there had been no misrepresentation or error of annual household income.

(2) remains the same.

(3) Whenever the CSED is the prevailing party in an action or whenever the CSED is not a party to an action but incurs expenses and costs related to an action maintained by any other party, the fees in (1)(b) through (h) shall be assessed to the party whose act, failure to act, negligence or omission caused the CSED to incur the costs and expenses which are the basis for these fees.

~~(4) In addition to the fees charged in (1), the CSED will charge fees to review and modify child support orders as follows:~~

~~(a) for a determination that a review is not appropriate or modification consent order entered prior to a review hearing, no fee; or~~

~~(b) for entry of a modification order resulting from a stipulated agreement obtained during review hearing, a fee of $200.00 assessed to the party or parties requesting the review hearing; or~~

(c) if the parties are unable to agree following a review hearing and the matter is submitted for arbitration, for entry of a modification order based on the arbitrator's recommendation, a fee of $550.00 assessed to the party or parties who failed to stipulate to a negotiated support order during the review hearing; or

(d) if the arbitrator's recommendation is disputed and a modification hearing is requested, for entry of a modification order subsequent to the modification hearing, a fee of $750.00 to be assessed against the party or parties requesting the hearing; and

~~(e) if a fee under (4)(b) through (d) is assessed to more than one party, the fee shall be apportioned equally between those parties; and~~

(f) for each party who requests a review hearing, arbitration or modification hearing and then withdraws from the requested proceeding after the CSED has prepared documents necessary to initiate the proceeding, a handling fee of $50.00.

(5) Under some circumstances, fees assessed to a party with low income under (4)(b) through (e) may be reduced. To determine if a reduction is appropriate, the CSED will refer to the child support determination worksheet (form CS-404A) prepared as part of the review and modification process. The CSED will then divide the figure shown on the worksheet for income available for children by the personal allowance. If the resultant number is greater or equal to 50%, no reduction of the fee is appropriate. If the resultant number is less than 50%, it shall be doubled and multiplied by the amount of the fee. The number determined by this process is the reduced fee amount to be assessed to the low income party.

(6) remains the same, but is renumbered (3).

~~(7)~~ (4) In no case may a fee authorized under this rule be charged to or collected from a person while that person is a recipient of public assistance in Montana unless federal regulations pertaining to operation of the Title IV-D program allow the charging or collection of that fee. Fees will not be charged to individuals receiving a ~~FAIM~~ financial assistance cash grant under the federal TANF (Temporary Assistance to Needy Families) Block Grant in Montana.

(8) and (9) remain the same, but are renumbered (5) and (6).

AUTH: 40-5-202, 40-5-210, MCA

IMP: 40-5-210, MCA

37.62.945 PROCEDURE AT HEARING (1) through (9) remain the same.

(10) The ALJ shall cause the hearing to be recorded ~~on audio tape~~ at the CSED's expense. The CSED is not required to prepare a transcript at its own expense. Any interested person, at the person's expense, may request a typed transcription of the ~~tape~~ recording or may cause additional audio, video, or stenographic recordings to be made during the hearing if the making of additional recordings does not cause distraction or disruption.

(11) remains the same.

AUTH: 17-4-105, 40-5-202, 40-5-262, 40-5-272, 40-5-273, 40-5-405, 40-5-713, 40-5-825, 40-5-906, MCA

IMP: 17-4-105, 40-5-157, 40-5-202, 40-5-208, 40-5-226, 40-5-233, 40-5-261, 40-5-271, 40-5-273, 40-5-414, 40-5-431, 40-5-703, 40-5-710, 40-5-821, 40-5-822, 40-5-823, 40-5-824, 40-5-906, MCA

37.62.1101 DEFINITIONS For the purposes of this subchapter, the following definitions apply:

(1) and (2) remain the same.

(3) "Notice" means a notice of ~~intent to withhold income~~ withholding issued pursuant to 40-5-413, MCA.

(4) remains the same.

AUTH: 40-5-405, MCA

IMP: 40-5-401, 40-5-402, 40-5-403, 40-5-404, 40-5-405, 40-5-411, 40-5-412, 40-5-413, 40-5-414, 40-5-415, 40-5-416, 40-5-417, 40-5-418, 40-5-421, 40-5-422, 40-5-423, 40-5-424, 40-5-431, 40-5-432, 40-5-433, 40-5-434, MCA

37.62.1103 WITHHOLDING ENTITY (1) The CSED is hereby designated the "~~income withholding entity~~ state disbursement unit" pursuant to 42 USC 666(b)(5).

AUTH: 40-5-405, MCA

37.62.1115 EFFECT OF HARDSHIP DETERMINATION (1) through (3) remain the same.

(4) Whenever the CSED has determined that a hardship adjustment is appropriate, it shall issue an a withholding order, or a modification of an existing withholding order, which reflects the hardship adjustment. No order may be issued for the withholding of less than:

(a) the amount of current support plus ~~$25.00 per month~~ the monthly hardship payment determined by the CSED if the obligor owes an ongoing current support obligation; or

(b) ~~$25.00 per month~~ the monthly hardship payment determined by the CSED if the obligor's current support obligation has terminated.

(5) remains the same.

AUTH: 40-5-405, MCA

IMP: 40-5-416, MCA

37.62.1117 PROCEDURES FOR DETERMINING HARDSHIP ADJUSTMENTS (1) The CSED will use the following procedures as a guideline for the exercise of its discretion in determining hardship adjustments:

(a) ~~The obligor must request a review of the case in writing. Such~~ The review will determine if the obligor is eligible for a reduction of the amount which would normally be withheld to defray the support delinquency and interest, if any.

(b) The review will be conducted ex parte by the CSED's regional office based solely upon the financial affidavit and supporting documents, if any, provided by the obligor. Since financial hardship may affect all members of the obligor's current household, the financial affidavit must include information pertaining to everyone residing with the obligor on financial information provided by the obligor or obtained from other sources.

(c) The standard for review will be the application of a formula developed by the CSED. , which takes into consideration the total net income and assets of the obligor and his current household, the United States poverty index promulgated each year by the United States Department of Health and Human Services, the actual amount of allowable special expenses described in ARM 37.62.1113, and other support obligations actually being paid by the obligor. The CSED will, upon request, provide copies of the formula to any interested person.

(d) The CSED will determine the length of time the hardship adjustment will continue~~, based on the information provided by the obligor~~. The hardship adjustment will terminate at the end of the determined period, or cessation of the hardship condition, whichever occurs first. In the event the hardship condition continues after the end of such period, it shall be the obligor's duty to request further review at that time.

(e) remains the same.

(f) If a request for further review is received, the division administrator or designee will review the previous determination and make an independent determination based on ~~the documents and affidavits provided by the obligor, and~~ ~~upon~~ all ~~other~~ relevant considerations. The decision of the division administrator or designee will be final for all purposes.

(g) remains the same.

AUTH: 40-5-405, MCA

IMP: 40-5-416, MCA

37.62.1301 PURPOSE STATEMENT (1) The purpose of this subchapter is to facilitate the implementation of the process to suspend licenses for nonsupport as provided in 40-5-701, et seq., MCA, or failure to comply with a subpoena or warrant, and establishing criteria for claiming hardship and requesting an immediate stay of suspension.

AUTH: 40-5-713, MCA

IMP: 40-5-713, MCA

37.62.1317 CONTESTED CASE HEARING PROCEDURES (1) Except as otherwise provided in these rules or the authorizing statutes, administrative hearings shall be requested and conducted as provided in ARM Title 46 37, chapter 30 62, subchapter 6 9.

AUTH: 40-5-713, MCA

IMP: 40-5-703, 40-5-713, MCA

37.62.1501 OFFSET OF STATE TAX REFUNDS AND OTHER PAYMENTS FOR ~~CHILD SUPPORT~~ DEBTS COLLECTED BY CHILD SUPPORT AGENCY

(1) The CSED will notify the ~~state auditor~~ Department of Revenue as provided for by 17-4-105, MCA, of any past due debt resulting from or relating to a child support obligation owing to or collected by the state under Title IV-D of the Social Security Act. The debt must have accrued through a written contract, court judgment, or administrative order, or a distribution the recipient was not entitled to retain as described in 40-5-910, MCA, and shall be for a definite amount of money due and owing ~~for support of a child, or for the repayment of support monies retained contrary to an assignment under 53-2-613, MCA, or for the costs or fees due under any contract, judgment or administrative order~~ to or collected by the state under Title IV-D of the Social Security Act.

(2) remains the same.

(3) All cases which have a past due debt resulting from or relating to a child support obligation owing to or collected by the state under Title IV-D of the Social Security Act will be referred to the ~~state auditor~~ Department of Revenue for ~~tax~~ debt offset except when there is a court order, administrative order, or written agreement of record which sets a payment schedule for the payment of the past due debt with which the taxpayer is in compliance and the order or agreement must also exclude tax offset, either expressly or implicitly.

AUTH: 17-4-105, MCA

IMP: 17-4-105, MCA

37.62.1503 NOTICE OF STATE TAX REFUNDS AND OTHER PAYMENTS OFFSET FOR ~~CHILD SUPPORT~~ DEBTS COLLECTED BY CHILD SUPPORT AGENCY (1) After the dDepartment of rRevenue gives written notice of a pending offset as provided by 17-4-105(2), MCA, and the taxpayer desires to contest the proposed offset, the taxpayer must request a hearing in accord with 17-4-105(4), MCA, and ARM ~~46.30.601~~ 42.10.506 and 42.10.507 following the day the notice was mailed to the taxpayer.

AUTH: 17-4-105, MCA

IMP: 17-4-105, MCA

37.62.1505 ~~CHILD SUPPORT~~ OFFSET OF JOINT RETURN (1) If the refund or other payment to be offset is a joint return, the spouse who does not owe the ~~child support~~ obligation to be collected by the Title IV-D agency ~~("injured spouse")~~ may object pursuant to the procedures set forth in ARM ~~42.16.107~~ 42.15.326 through ~~42.16.109~~ 42.15.329 to having his or her share of the refund applied against the child support obligation. Under those procedures, an adjustment will be made to the joint tax return reflecting that portion of the return by the Department of Revenue that is attributable to the taxpayer who owes the ~~child support arrearages~~ obligation and only that portion will be offset.

(2) remains the same.

AUTH: 17-4-105, MCA

IMP: 17-4-105, MCA

37.62.1701 NOTICE ON INTENT TO REPORT (1) The notice of intent to report a support debt to a consumer reporting agency required by 40-5-261, MCA, may be given by incorporating a statement of such intent in the notices generally served on ~~obligers~~ obligors under 17-4-103, 40-5-208, 40-5-222, ~~40-5-223,~~ 40-5-225, 40-5-232, 40-5-413, 40-5-702, MCA, and 45 CFR 303.72 as amended.

AUTH: 40-5-262, MCA

IMP: 40-5-261, MCA

37.62.1705 AMOUNTS TO BE REPORTED (1) The CSED will report to the consumer reporting agency only those support debts when:

(a) the amount of the debt retainable by the CSED for the reimbursement of ~~AFDC~~ assigned public assistance expenditures is ~~a sum of~~ ~~$150.00 or greater~~ an amount equal to at least seven times the monthly current support; or

(b) the amount of the debt owing to an obligee is ~~the sum of $500.00 or greater~~ an amount equal to at least seven times the monthly current support.

(2) remains the same.

AUTH: 40-5-262, MCA

IMP: 40-5-261, MCA

37.62.1707 CONTESTING ACCURACY OF REPORTED INFORMATION

(1) After service of notice specified in ARM ~~46.30.501~~ 37.62.1701 which contains a statement of intent to report a support debt to a consumer reporting agency, the obligor may contest the accuracy of the intended report during a hearing conducted pursuant to the notice.

(2) Except as provided in (3) ~~of this rule~~, at any time after a reinvestigation conducted by ~~support debt is reported to~~ a consumer reporting agency, an obligor dissatisfied with the results of the reinvestigation may request an administrative hearing to contest the accuracy of the support debt. Except as provided in (3) no hearing shall be denied for lack of timely request.

(3) An obligor may not be granted a hearing to contest the accuracy of a support debt whenever the amount of the debt:

(a) remains the same.

(b) was at issue under a notice served upon the obligor under 40-5-222, 40-5-223, 40-5-225, 40-5-232, ~~and~~ 40-5-413, and 40-5-702, MCA, and the obligor either failed to timely request a hearing or failed to appear at a scheduled hearing.

AUTH: 40-5-262, MCA

IMP: 40-5-261, MCA

37.62.2103 AVAILABILITY OF REVIEW (1) For purposes of 40-5-272(4)(a), MCA, a substantial change in circumstances includes, but is not limited to:

(a) an increase or decrease of at least 30% in a parent's income for child support, as defined by the Montana child support guidelines, ARM ~~37.62.106(1)~~ 37.62.105(1);

(b) through (e) remain the same.

(2) The CSED will deny a request for review of a support order if any of the following conditions exist:

(a) less than 36 months have elapsed from the date that the existing support order was entered, an administrative hearing was granted under 40-5-277, MCA, or an ~~administrative~~ order was issued which denied a modification because of the applicant's failure to meet one of the criteria described in 40-5-208(2)(b) or 40-5-272, MCA, and no substantial change of circumstances has occurred;

(b) through (g) remain the same.

AUTH: 40-5-202, MCA

IMP: 40-5-202, MCA

37.62.2119 MODIFICATION HEARING (1) through (4) remain the same.

(5) The order shall be effective the first day of the month following the issuance of the Notice of Proposed Modification, or as determined by a district court. If the modification result is a lowered child support obligation, all payments received during the pendency of the modification action shall be credited against the new obligation, and amounts exceeding the modified obligation shall be applied first to outstanding arrearages, fees, and fines. Any amount remaining after such credits shall be applied to future child support by reducing the amount of child support collected under the new order for no more than six months, or before the order terminates, whichever comes first. Parties may agree to an alternate schedule. No refunds shall be available from the CSED.

AUTH: 40-5-202, MCA

IMP: 40-5-202, 40-5-272, 40-5-273, MCA

4. The department proposes to repeal the following rules:

37.62.1107 EFFECT OF DELAY OR CONTINUANCE Found on page 37-13843 of the Administrative Rules of Montana.

AUTH: 40-5-405, MCA

37.62.1119 UNCLAIMED COLLECTIONS Found on page 37-13855 of the Administrative Rules of Montana.

AUTH: 40-5-405, MCA

37.62.1905 REQUEST FOR HEARING Found on page 37-14005 of the Administrative Rules of Montana.

AUTH: 40-5-202, MCA

IMP: 40-5-208, MCA

37.62.1907 AMOUNT OF MONETARY SANCTION Found on page 37-14007 of the Administrative Rules of Montana.

AUTH: 40-5-202, MCA

IMP: 40-5-208, MCA

5. STATEMENT OF REASONABLE NECESSITY

The Department of Public Health and Human Services (department) proposes to amend ARM 37.62.501, 37.62.705, 37.62.945, 37.62.1101, 37.62.1103, 37.62.1115, 37.62.1117, 37.62.1301, 37.62.1317, 37.62.1501, 37.62.1503, 37.62.1505, 37.62.1701, 37.62.1705, 37.62.1707, 37.62.2103, and 37.62.2119; and repeal ARM 37.62.1107, 37.62.1119, 37.62.1905, and 37.62.1907. These rules were reviewed as a part of the department's periodic review of Chapter 62. The department subsequently determined that several existing rules contain obsolete references to statutes, rules, and technology (such as references to tape recordation), document references, and procedures. Except as described in greater detail below, the proposed rule amendments are necessary for the department to meet its statutory responsibility to state clear and specific administrative rule authority through which the department administers its child support enforcement services.

ARM 37.62.1115 and 37.62.1117

The department proposes amending ARM 37.62.1115 and 37.62.1117 regarding hardship relief, after the department received feedback and analyzed its procedures. The amendments are necessary because it is a responsibility of the department, where possible, to simplify procedures for both caseworkers and obligated parents.

ARM 37.62.1705 and 37.62.1707

The department also proposes amendments to ARM 37.62.1705 and 37.62.1707, which are necessary to be consistent with the holding of the Montana Supreme Court in its decision of Kenck v. State, 373 Mont. 168, 315 P.3d 957 (2013) regarding credit reporting and the distinction between acknowledged child support arrearages and bad debt owed to the CSED.

ARM 37.62.2103 and 37.62.2119

The department proposes amending ARM 37.62.2103 and 37.62.2119 regarding child support order modification procedures. The department finds through its experiences in modification hearings and judicial review of its administrative proceedings, that flexibility in these administrative rules is necessary to accommodate child support modification directives from a district court, which may differ from the results currently described in the rules. These rule amendments, if adopted, give the necessary deference, and flexibility, to a district court's authority to rule in these matters.

ARM 37.62.705

The department proposes amending ARM 37.62.705, which is the department's fee schedule rule for child support. The rule requires amendment to eliminate most fees because the department originally adopted an extensive fee schedule to address the payment of various costs related to child support enforcement matters, many of which have never been utilized. The resulting amendments will simplify the schedule. Further, the fee department proposes amending the fee for nonpublic assistance application to a single flat fee instead of the sliding-scale fee. The department contends the flat fee is more equitable to all and is less cumbersome to administer than the current fee schedule calculation methodology.

ARM 37.62.1107

The department proposes to repeal ARM 37.62.1107. The necessity for the rule's repeal lies in that the rule conflicts with 40-5-414(6), MCA. The purpose of the rule was to allow additional time for the ALJ to issue a decision if a continuance was requested and was based on a prior version of 40-5-414, MCA, which required a hearing decision within 45 days of the date the notice was served. The statute was amended to provide for a decision within 60 days "…after a hearing is held, any post-hearing briefs are received, and all evidence has been provided..." unless good cause is shown. The statutory change cured the problem by requiring an ALJ decision within 60 days after hearing and obviates the need for the rule.

ARM 37.62.1119

The department proposes to repeal ARM 37.62.1119, concerning unclaimed collections, which is necessary because the rule reflects outdated technology and processes. This rule was adopted to implement statutory changes in 40-4-204(5) and 40-6-116(8), MCA, to handle the influx of income withholding funds before the CSED received an application for Title IV-D services. When the statutory provisions were amended out of the law as being unworkable, the rule became moot and its repeal necessary.

ARM 37.62.1905

The department proposes to repeal ARM 37.62.1905. The rule conflicts with 40-5-821, MCA, which requires a hearing before any penalty can be assessed, as a show cause procedure. The rule currently also requires the obligated parent to request a hearing, which is not necessary, because a hearing is set as a part of the show cause. Thus, the rule proposes a remedy that is unnecessary and redundant.

ARM 37.62.1907

The department proposes to repeal ARM 37.62.1907, regarding sanctions for lack of medical insurance support, which is necessary as the sanctions of $25 per day are provided in 40-5-821, MCA, and the rule provides a conflicting amount. The rule's conflict with existing law necessitates its repeal.

FISCAL IMPACT

The only proposed rule amendments with anticipated fiscal impact are the proposed changes to the fee schedule in ARM 37.62.705. The proposed change collapses the graduated application fee schedule into a single rate for all applicants. It is expected that this would result in an extremely modest increase in program income.

Based on program history, the increase would affect approximately 470 applicants, and would increase income approximately $6,600.

6. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Kenneth Mordan, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail dphhslegal@mt.gov, and must be received no later than 5:00 p.m., December 23, 2016.

7. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

9. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

11. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses.

/s/ Caroline Warne /s/ Richard H. Opper

Caroline Warne, Attorney Richard H. Opper, Director

Rule Reviewer Public Health and Human Services

Certified to the Secretary of State November 14, 2016.