[Federal Register Volume 63, Number 92 (Wednesday, May 13, 1998)]
[Proposed Rules]
[Page 26561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12691]



[[Page 26561]]

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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 208


Management of Agency Disbursements

AGENCY: Financial Management Service, Fiscal Service, Treasury.

ACTION: Notice of public meetings.

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SUMMARY: On September 16, 1997, the Department of the Treasury 
(``Treasury'') published a Notice of Proposed Rulemaking in which 
Treasury proposed making available to Federal payment recipients an 
account to access their Federal payments. The account, commonly 
referred to as the Electronic Transfer Account or ``ETA 
SM,'' will be offered through a Federally-insured financial 
institution and will be available at a reasonable cost and with the 
same consumer protections afforded other account holders at the same 
financial institution. Treasury is hosting two meetings, open to the 
public, to discuss the advantages and disadvantages of two approaches 
to offering this account. One meeting will be for the purpose of 
obtaining comments from representatives of community-based and consumer 
organizations; the other meeting will be for the purpose of obtaining 
comments from representatives of financial institutions.

DATES: May 21, 1998. 9:30 a.m. to 11:30 a.m. (community-based and 
consumer organization meeting); 2:00 p.m. to 4:00 p.m. (financial 
institution meeting).

ADDRESSES: Marriott Hotel at Metro Center, 775 12th Street, NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT:
Persons wishing to attend and observe either meeting are requested to 
contact Martha Thomas-Mitchell at (202) 874-6757 or Diana Shevlin at 
(202) 874-7032, or send an Internet e-mail to Martha.Thomas-
M[email protected] or Diana.S[email protected], by 12:00 noon 
Eastern time on May 19, 1998, to make arrangements for attendance. 
Seating will be available on a first come, first served basis.

SUPPLEMENTARY INFORMATION: On September 16, 1997, Treasury issued a 
Notice of Proposed Rulemaking (62 FR 48714) (``208 NPRM'') implementing 
the electronic payment requirement of the Debt Collection Improvement 
Act of 1996 (the ``Act''). The Act requires that, subject to the 
authority of the Secretary of the Treasury to grant waivers, all 
Federal payments (other than payments under the Internal Revenue Code 
of 1986) made after January 1, 1999, must be made by electronic funds 
transfer (``EFT''). The Act further requires that Treasury ensure that 
individuals who are required to have an account because of the EFT 
mandate have access to an account at a financial institution at a 
reasonable cost and with the same consumer protections afforded other 
account holders at the same financial institution. In the 208 NPRM, 
Treasury proposed that such an account would be provided by one or more 
financial institutions designated as Treasury's Financial Agents for 
the provision of these accounts.

    In addition to reviewing comments received on the 208 NPRM and its 
own analysis of alternative approaches to offering the account, 
Treasury will hold two meetings, both of which will include a 
discussion of two alternative approaches to providing the ETA 
SM. One meeting will focus on comments from community-based 
and consumer organizations. The other meeting will focus on comments 
from financial institutions.
    Treasury has invited certain commenters and other interested 
parties to take part in the meetings. These participants will comment 
on questions posed by the Treasury and take part in a discussion. 
Members of the public are invited to observe.
    After these meetings, Treasury intends to publish a notice in the 
Federal Register describing proposed features of ETA SM. As 
indicated in the 208 NPRM, this notice will be published for public 
comment.

Possible Approaches

    Treasury is currently considering two approaches to offering the 
ETA SM to recipients through financial institutions. The 
first approach would involve selecting a small number of financial 
institutions to Act as Treasury's Financial Agents in providing ETAs 
SM within certain geographic areas. Financial Agents would 
be selected on a competitive basis through an Invitation for 
Expressions of Interest. Terms and conditions for providing the 
accounts, including account attributes, would be stipulated 
contractually in financial agency agreements with the selected 
financial institutions. The account would be electronically accessed by 
debit cards issued by the Financial Agent. These Financial Agents would 
work to sign-up local financial institutions who would market and 
originate ETAs SM in their communities. The cost to the 
recipient to access funds would be determined by the market as a result 
of the competitive process.
    Under the second approach, Treasury would publish standards for 
providing the ETA SM, including account attributes, and 
would allow any Federally-insured financial institution to provide the 
ETA SM in accordance with these standards. Treasury would 
monitor and make available to the public a list of financial 
institutions offering the ETA SM. Under this approach, a 
financial institution would have the option of offering recipients 
either electronic access to their accounts or over-the-counter 
transactions or both. Treasury would establish a price cap for fees 
imposed on recipients to access their funds.

Questions

    Treasury is interested in responses to the following questions:
    (1) Which approach will most likely provide recipients with 
convenient local access at a low cost?
    (2) Which approach will make an ETA SM available to the 
largest number of recipients?

    Dated: May 8, 1998.
Richard L. Gregg,
Commissioner.
[FR Doc. 98-12691 Filed 5-12-98; 8:45 am]
BILLING CODE 4810-35-M