Offset of Federal Benefit Payments to Collect Past-due, Legally Enforceable Nontax Debt

SUMMARY: The Debt Collection Improvement Act of 1996 requires the

Federal Government to withhold or reduce certain Federal payments for

the purpose of collecting delinquent nontax debts owed to the United

States by the payee. This process is known as ``administrative offset''

or ``offset.'' This final rule governs the offset of Federal benefit

payments issued under the Social Security Act (other than Supplemental

Security Income), part B of the Black Lung Benefits Act, and any law

administered by the Railroad Retirement Board (other than tier 2

benefit payments). A notice of proposed rulemaking was published in the

Federal Register on August 21, 1998, by cross-reference to an interim

rule published in the Federal Register on the same day. This final rule

adopts the interim rule without change.

DATES: This rule is effective January 22, 1999.

FOR FURTHER INFORMATION CONTACT: Gerry Isenberg, Financial Program

Specialist, at (202) 874-6660; Martin Mills, Treasury Offset Program,

at (202) 874-8700; Ellen Neubauer or Ronda Kent, Senior Attorneys, at

(202) 874-6680. A copy of this final rule is being made available for

downloading from the Financial Management Service web site at the

following address: http://www.fms.treas.gov/debt.

SUPPLEMENTARY INFORMATION:

Background

The Debt Collection Improvement Act of 1996, Pub. L. 104-134, 110

Stat. 1321-358 (April 26, 1996), requires the Federal Government to

withhold or reduce certain Federal payments for the purpose of

collecting delinquent nontax debts owed to the United States by the

payee. This process is known as ``administrative offset'' or

``offset.'' On August 21, 1998, the Financial Management Service (FMS)

published in the Federal Register, 63 FR 44991, a notice of proposed

rulemaking (NPRM) concerning the offset of Federal benefit payments

issued under the Social Security Act (other than Supplemental Security

Income), part B of the Black Lung Benefits Act, and any law

administered by the Railroad Retirement Board (other than tier 2

benefit payments). An interim rule with request for comments, published

in the Federal Register on the same day, 63 FR 44986, served as the

text for the NPRM. The closing date for the submission of comments

regarding the proposed and interim rules was September 21, 1998.

Comments on the Proposed and Interim Rules

FMS did not receive any comments on the proposed rule by the close

of the comment period. Likewise, FMS did not receive any comments on

the interim rule which served as the text for the proposed rule.

Therefore, the interim rule is adopted, without change, as a final

rule.

Regulatory Analysis

This final rule is not a significant regulatory action as defined

in Executive Order 12866. It is hereby certified that this rule will

not have a significant economic impact on a substantial number of small

entities. The basis for this certification is that this rule only

impacts individuals who owe delinquent debt to the United States and

receive the benefit payments discussed above. Therefore a regulatory

flexibility analysis is not required.

Adoption as Final Rule

Accordingly, the interim rule adding Sec. 285.4 to 31 CFR part 285,

subpart A, which was published at 63 FR 44986 on August 21, 1998, is

adopted as a final rule without change.

Dated: December 16, 1998.

Richard L. Gregg,

Commissioner.

[FR Doc. 98-33874 Filed 12-22-98; 8:45 am]

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