# § 629m. Data exchange standards for improved interoperability
**(a)** **Designation** The Secretary shall, in consultation with an interagency work group established by the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, under this part and part E—
**(1)** necessary categories of information that State agencies operating programs under State plans approved under this part are required under applicable Federal law to electronically exchange with another State agency; and
**(2)** Federal reporting and data exchange required under applicable Federal law.
**(b)** **Requirements** The data exchange standards required by paragraph (1) shall, to the extent practicable—
**(1)** incorporate a widely accepted, non-proprietary, searchable, computer-readable format, such as the Extensible Markup Language;
**(2)** contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model;
**(3)** incorporate interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance;
**(4)** be consistent with and implement applicable accounting principles;
**(5)** be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and
**(6)** be capable of being continually upgraded as necessary.
**1** **Rule of construction** [^1]
Nothing in this subsection shall be construed to require a change to existing data exchange standards found to be effective and efficient.
So in original.
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**Source Credit**: (Aug. 14, 1935, ch. 531, title IV, § 443, formerly § 440, as added Pub. L. 112–34, title I, § 105(a), Sept. 30, 2011, 125 Stat. 376; amended Pub. L. 115–123, div. E, title VII, § 50771(a), Feb. 9, 2018, 132 Stat. 267; renumbered § 443, Pub. L. 118–258, title I, § 106(f)(1), Jan. 4, 2025, 138 Stat. 2952.)
## Editorial Notes
### Prior Provisions
A prior section 440 of act , was classified to prior to repeal by .
### Amendments
2018— amended section generally. Prior to amendment, section required Secretary of Health and Human Services to designate standard data elements for any category of information required to be reported under this part and designate data reporting standards to govern the reporting required under this part.
## Statutory Notes and Related Subsidiaries
### Effective Date
> “The amendment made by subsection (a) [enacting this section] shall take effect on
>
> , and shall apply with respect to information required to be reported on or after such date.”
, , , provided that:
### Regulation
> **“(1)** identifies federally required data exchanges, include [sic] specification and timing of exchanges to be standardized, and address [sic] the factors used in determining whether and when to standardize data exchanges; and
>
> **“(2)** specifies State implementation options and describes future milestones.”
, , , provided that: