[Federal Register Volume 62, Number 217 (Monday, November 10, 1997)]
[Rules and Regulations]
[Page 60451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29415]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 217 / Monday, November 10, 1997 / 
Rules and Regulations  

[[Page 60451]]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 3


Debt Collection

AGENCY: Office of the Secretary, USDA.

ACTION: Final rule.

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SUMMARY: This document amends 7 CFR Part 3 to: permit specifically 
service of a Notice of Intent to Collect by Administrative Offset upon 
USDA debtors by first class mail, in addition to currently-authorized 
service by personal delivery and certified mail; and include 
specifically as subject to the provisions of the Part debts arising out 
of programs administered by Food and Consumer Service.

EFFECTIVE DATE: This rule is effective November 10, 1997.

FOR FURTHER INFORMATION CONTACT:
Reynaldo Gonzalez, (202) 720-1168.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Debt Collection Act of 1982 (DCA) is implemented, on a 
government-wide basis pursuant to the Federal Claims Collection 
Standards (Standards), set forth at 4 CFR Part 101, et seq. The 
Standards are implemented at USDA pursuant to 7 CFR Part 3.

II. Section 3.10

    Food and Consumer Service (FCS) participates in the Tax Refund 
Offset Program (TROP), operated by the Treasury Department, pursuant to 
26 U.S.C. 6402, as implemented by 31 U.S.C. 3720A and Treasury 
Department regulations. Under the Debt Collection Improvement Act of 
1996, the TROP has been incorporated into the Treasury Administrative 
Offset Program (TAOP). In order for FCS to continue its participation 
in the TROP, debt management and collection under its programs must be 
subject to 7 CFR Part 3. Section 3.10 sets forth USDA programs and 
authorities subject to the provisions of 7 CFR Part 3. The revision 
specifically includes FCS programs as those subject to 7 CFR Part 3.

III. Section 3.25(b)

    Currently, 7 CFR 3.25(b) requires that service of a Notice of 
Intent to Collect by Administrative Offset upon USDA debtors be made by 
either personal delivery or certified mail. This requirement is more 
restrictive than service requirements contained in 4 CFR 102.2(b), 
which contemplate either personal service or mailing. Further, under 7 
CFR 3.21(b), if the head of an agency of the Department adopts 
regulations separate from 7 CFR Part 3, Subpart B (Administrative 
Offset), those regulations are to be followed. 7 CFR Part 200 sets 
forth specific administrative offset procedures for food stamp-related 
debts that permit service of notice by first class mail. Since the 
current provisions of 7 CFR 3.25(b) are more restrictive than the 
Standards and because use of first class mail is permitted under a 
regulation having precedence over 7 CFR Part 3, Section 3.25(b) is 
revised to bring it into conformity with both authorities.

IV. Final Rule

    We have determined, under 5 U.S.C. 553(b)(3)(B), that prior notice 
and public comment are unnecessary and contrary to the public interest. 
Specifically, the departmental final rule promulgates a process which 
is mandated by law in the Debt Collection Improvement Act of 1996. 
Therefore, good cause is found that notice and public comment are 
unnecessary and contrary to the public interest and good cause exists 
for making this regulation effective upon publication in the Federal 
Register.

V. Matters of Regulatory Procedure

E.O. 12291, Federal Regulation

    As Secretary of Agriculture, I have determined that this is not a 
major rule as defined under section 1(b) of Executive Order 12291.

Paperwork Reduction Act

    As Secretary of Agriculture, I have determined that the Paperwork 
Reduction Act (44 U.S.C. Chapter 35) does not apply because this 
regulation does not contain any information collection requirements 
that require the approval of the Office of Management and Budget 
thereunder.

List of Subjects in 7 CFR Part 3

    Agriculture, Claims, Government employees, Income taxes, Loan 
programs-agriculture.

    Accordingly, for the reasons set forth in the preamble, the 
Secretary of Agriculture is revising Title 7, part 3 of the Code of 
Federal Regulations as follows:

PART 3--DEBT MANAGEMENT

Subpart A--Settlement of Small or Old Debts

    1. The authority citation for part 3, subpart A continues to read 
as follows:

    Authority: Section 1, 58 Stat. 836, 12 U.S.C. 1150.


Sec. 3.10  [Amended]

    2. Section 3.10 is amended by adding ``51. Any indebtedness of food 
stamp recipients. Food Stamp Act.''

Subpart B--Debt Collection

    1. The authority citation for part 3, subpart B continues to read 
as follows:

    Authority: 31 U.S.C. 3701, 3711, 3716-19, 3728; 4 CFR part 102; 
4 CFR 105.4.


Sec. 3.25  [Amended]

    2. Section 3.25(b) introductory text is amended by inserting a 
comma after ``delivery'', and adding ``first class mail,'' before 
``or''.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 97-29415 Filed 11-7-97; 8:45 am]
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