Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Rules and Regulations 49437

This rule will result in a reduction of

reporting-hour burden requirements

under provisions of the Paperwork

Reduction Act of 1995, Public Law 104–

13.

List of Subjects in 15 CFR Part 30

Economic statistics, Foreign trade,

Exports, Reporting and recordkeeping

requirements.

For the reasons set out in the

preamble, Part 30 is amended as

follows:

PART 30—FOREIGN TRADE

STATISTICS REGULATIONS

1. The authority citation for 15 CFR

Part 30 continues to read as follows:

Authority: 5 U.S.C. 301; 13 U.S.C. 301–

307; Reorganization Plan No. 5 of 1950 (3

CFR 1949–1953 Comp., p. 1004); Department

of Commerce Organization Order No. 35–2A.

August 4, 1975, 40 CFR 42765.

Subpart D—Exemptions from the

Requirements for the Filing of

Shipper’s Export Declarations

2. Section 30.56 (b) is revised to read

as follows:

§ 30.56 Conditional exemptions.

* * * * *

(b) Tools of trade are usual and

reasonable kinds and quantities of

commodities and software, and their

containers, that are intended for use by

individual exporters or by employees or

representatives of the exporting

company in furthering the enterprises

and undertakings of the exporter abroad.

Commodities and software eligible for

this exemption are those that do not

normally require an export license or

that are exported without a license as

specified in 15 CFR 740.9 of the EAR

(15 CFR chapter VII, subchapter C) and

are subject to the following provisions:

(1) Are owned by the individual

exporter or exporting company;

(2) Accompany the individual

exporter, employee or representative of

the exporting company;

(3) Are necessary and appropriate and

intended for the personal and/or

business use of the individual exporter,

employee or representative of the

company or business;

(4) Are not for sale; and

(5) Are returned to the United States

no later than one year from the date of

export.

* * * * *

Dated: September 5, 1997.

Martha Farnsworth Riche,

Director, Bureau of the Census.

[FR Doc. 97–25021 Filed 9–19–97; 8:45 am]

BILLING CODE 3510–07–P

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 416

RIN 0960–AE67

Supplementary Security Income;

Overpayment Recovery by Offset of

Federal Income Tax Refund

AGENCY: Social Security Administration

ACTION: Final rules.

SUMMARY: These final regulations govern

use of the Federal income tax refund

offset program established under section

2653 of the Deficit Reduction Act of

1984, Pub. L. No. 98–369. They permit

the recovery of supplemental security

income (SSI) overpayments through the

withholding of amounts due to former

SSI recipients as Federal income tax

refunds. In these rules, we reflect the

provisions of the statute and explain the

procedures that we will follow in

referring SSI overpayments to the

Department of the Treasury for income

tax refund offset (TRO).

EFFECTIVE DATE: These final rules are

effective September 22, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert J. Augustine, Legal Assistant,

Division of Regulations and Rulings,

Social Security Administration, 6401

Security Boulevard, Baltimore, MD

21235, (410) 966–5121. For information

on eligibility or claiming benefits, call

our national toll-free number, 1–800–

772–1213.

SUPPLEMENTARY INFORMATION: Section

2653 of the Deficit Reduction Act of

1984, codified at 31 U.S.C. § 3720A and

26 U.S.C. § 6402(d), authorized the

Secretary of the Treasury, upon

receiving notice from a Federal agency

that a named individual owes the

agency a past-due, legally enforceable

debt, to withhold all or a part of any

income tax refund that is due to the

debtor and pay the amount withheld to

the agency. Section 2653 specifically

precluded the use of these procedures to

recover overpayments of Social Security

benefits paid under title II of the Social

Security Act (the Act). Under 31 U.S.C.

§ 3720A, a Federal agency that is owed

a past-due, legally enforceable debt by

an individual shall notify the Secretary

of the Treasury of the debt in

accordance with regulations issued by

the Department of the Treasury. The

applicable Treasury regulations are

codified at 31 CFR Part 285 (62 FR

34175). Before an agency may refer a

debt to Treasury, it must, under 31

U.S.C. § 3720A, take the following

actions: (1) notify the debtor that the

agency proposes to refer the debt for tax

refund offset; (2) give the debtor at least

60 days to present evidence that all or

part of the debt is not past-due or not

legally enforceable; (3) consider all

evidence the debtor presents in

determining that all or a part of the debt

is past-due and legally enforceable; and

(4) satisfy any other conditions that the

Secretary of the Treasury may prescribe

to ensure that the agency’s findings are

valid and that the agency has made

reasonable efforts to obtain the payment

of the debt.

Although section 2653 gave us the

authority to use the TRO provisions to

recover overpayments made to

recipients of SSI payments under title

XVI of the Act, we elected not to do so

at that time because we did not think it

appropriate to use a procedure we were

precluded from using to recover title II

overpayments to recover overpayments

made under the needs-based title XVI

program.

Section 5129 of the Omnibus Budget

Reconciliation Act of 1990 (OBRA 90)

removed the restriction on using the

TRO provisions to recover title II

overpayments. Section 5129 added

several additional conditions to the

referral of title II overpayments for

offset. These included: (1) the overpaid

individual may not be currently entitled

to Social Security benefits under title II

of the Act; (2) the notice that we send

to the overpaid individual concerning

our intent to seek the offset must

describe the conditions under which we

are required to waive recovery of an

overpayment under section 204(b) of the

Act; and (3) if the overpaid individual

requests that we waive recovery of the

overpayment within the 60-day period

allowed under the program for

presenting evidence that the debt is not

past due or not legally enforceable, we

may not certify the overpayment to

Treasury without first issuing a

determination on the waiver request.

We issued final regulations on October

21, 1991 (56 FR 52466) implementing

these statutory changes.

Since that time, we have been

modifying our computer systems to

extend the TRO provisions to various

subgroups of former title II program

beneficiaries. We now have the

necessary systems modifications in

place to permit us to extend the TRO

provisions to the title XVI program, as

well. These title XVI rules closely

follow the existing rules for the title II

program, including the same conditions

that the OBRA 90 legislation required

for the title II program. That is, these

rules provide that: (1) the overpaid

individual may not currently be eligible

to receive SSI payments under title XVI

of the Act; (2) the notice we send to the

overpaid individual concerning our
49438 Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Rules and Regulations

intent to seek offset must describe the

conditions under which we are required

to waive recovery of an overpayment

under section 1631(b)(1)(B) of the Act;

and (3) if the overpaid individual

requests that we waive recovery of the

overpayment within the 60-day period

allowed under the program for

presenting evidence that the debt is not

past due or legally enforceable, we may

not certify the overpayment to Treasury

without first issuing a determination on

the waiver request.

On June 23, 1997, we published

proposed rules in the Federal Register

at 62 FR 33778 and provided a 30-day

period for interested individuals to

comment. We received no comments.

We are, therefore, publishing these rules

essentially unchanged.

Explanation of Changes to Regulations

We are adding new §§ 416.580

through 416.586 to our regulations to

explain our rules on recovery of title

XVI overpayments through the

withholding of amounts due to former

SSI recipients as Federal income tax

refunds. Section 416.580 provides

general information about the tax refund

offset program and explains that we may

pursue collection of an overpayment

through this program if the overpaid

individual is not eligible for benefits.

This new regulatory section also

explains that we will not initiate the tax

refund offset to collect an overpayment

more than 10 years after our right to

collect the overpayment first accrued,

thereby making this section consistent

with proposed TRO regulations for title

II (62 FR 42439) and the applicable

Department of the Treasury regulations

(31 CFR Part 285).

Section 416.581 explains that, before

we refer an overpayment to the Treasury

Department, we will notify the overpaid

individual of our intention to do so.

This notice will advise the individual of

the amount of the overpayment and the

conditions under which we will waive

recovery of an overpayment under

section 1631(b)(1)(B) of the Act. The

notice will also explain that unless,

within 60 days from the date of our

notice, the overpaid individual repays

the overpayment, presents evidence that

the overpayment is not past due or not

legally enforceable, or requests a waiver

of the overpayment, we will refer the

overpayment to the Department of the

Treasury to offset any tax refund

payable to the overpaid individual. The

notice additionally will advise the

individual of the right to inspect and

copy our records related to the

overpayment.

Sections 416.582 and 416.583 explain

our procedures for reviewing and

making findings when an overpaid

individual submits evidence that an

overpayment is not past due or not

legally enforceable.

Section 416.584 explains our

procedures for the overpaid individual

who wishes to review our records

related to the overpayment.

Section 416.585 explains that if,

within 60 days after the date of our

notice of intent to seek an offset, an

individual presents evidence that the

overpayment is not past due or not

legally enforceable or asks us to waive

collection of the overpayment, we will

suspend our referral of the overpayment

to the Department of the Treasury for

offset until we issue written findings

that affirm that all or a part of the

overpayment is past due and legally

enforceable and, where appropriate,

determine that waiver of the

overpayment is unwarranted.

Section 416.586 sets out our

intention, in cases where a tax refund is

insufficient in a tax year to satisfy the

amount of the overpayment, to continue

to offset in succeeding years any amount

of the overpayment that remains, as long

as the remainder of the overpayment

continues to meet the criteria for referral

under the tax refund offset program in

succeeding years. This differs from our

title II rules on TRO which provide that,

where a tax refund is insufficient to

recover an overpayment in a given year,

we will recertify the remainder for offset

in the following year. This proposed

section reflects the fact that the

Department of the Treasury now has the

systems capability to retain the overpaid

amount in their records for offset against

future tax refunds the individual may be

due. On August 7, 1997, we published

separate proposed rules dealing with

title II overpayments that would make

this same change in the title II TRO

rules (62 FR 42439).

We are also adding to § 416.1403(a) a

new paragraph (17) that includes in the

list of administrative actions that are not

initial determinations findings on

whether we can collect an SSI

overpayment by using the Federal

income tax refund offset procedure.

Administrative actions that are not

initial determinations may be reviewed

by us, but they are not subject to the

administrative review process provided

by subpart N of our regulations, and

they are not subject to judicial review.

Regulatory Procedures

Pursuant to section 702(a)(5) of the

Act, 42 U.S.C. 902(a)(5), as amended by

section 102 of Pub. L. 103–296, the

Social Security Administration follows

the Administrative Procedure Act (APA)

rulemaking procedures specified in 5

U.S.C. 553 in the development of its

regulations. The APA provides in 5

U.S.C. 553(d)(3) for an exception to the

requirement of publication of a

substantive rule 30 days before its

effective date for good cause. In order to

use the TRO provisions to recover title

XVI overpayments from income tax

refunds payable in 1998, these final

rules must be effective in early October

1997, so that we can begin notifying

individuals that we propose to refer

their overpayments to the Department of

the Treasury for offset. Any delay in

sending the notices and referring these

debts to Treasury will result in lost

program savings of up to $6 million.

These final rules benefit the public by

allowing for substantial program

savings, while adequately safeguarding

the rights of former SSI recipients by

giving overpaid individuals the right to

repay the amount, present evidence that

the overpayment is not past due or not

legally enforceable, or request us to

waive collection of the overpayment,

before referral to the Department of the

Treasury is made. We will issue written

findings affirming that all or part of the

overpayment is past due and legally

enforceable and, where appropriate,

determine that waiver of the

overpayment is unwarranted before

making such a referral. In light of these

considerations, we find that it is in the

public interest to make these rules

effective upon publication.

Executive Order 12866

We have consulted with the Office of

Management and Budget (OMB) and

determined that these final rules do not

meet the criteria for a significant

regulatory action under Executive Order

12866. Thus, they were not subject to

OMB review.

Regulatory Flexibility Act

We certify that these final regulations

will not have a significant economic

impact on a substantial number of small

entities because they affect only

individuals. Thus, a regulatory

flexibility analysis as provided in the

Regulatory Flexibility Act, as amended,

is not required.

Paperwork Reduction Act

These final regulations will impose no

additional reporting or recordkeeping

requirements requiring OMB clearance.

(Catalog of Federal Domestic Assistance

Programs: No. 96.006 Supplemental Security

Income)

List of Subjects in 20 CFR Part 416

Administrative practice and

procedure, Aged, Blind, Disability

benefits, Public assistance programs,
Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Rules and Regulations 49439

Reporting and recordkeeping

requirements, Supplemental Security

Income (SSI).

Dated: September 12, 1997.

John J. Callahan,

Acting Commissioner of Social Security.

For the reasons set out in the

preamble, subparts E and N of part 416

of chapter III of title 20 of the Code of

Federal Regulations are amended to

read as follows:

1. The authority citation for subpart E

is revised to read as follows:

Authority: Secs. 702(a)(5), 1601, 1602,

1611(c) and (e), and 1631(a)–(d) and (g) of the

Social Security Act (42 U.S.C. 902(a)(5),

1381, 1381a, 1382 (c) and (e), and 1383(a)–

(d) and (g)); 31 U.S.C. 3720A.

2. Sections 416.580, 416.581, 416.582,

416.583, 416.584, 416.585, and 416.586

are added to subpart E to read as

follows:

§ 416.580 Referral of overpayments to the

Department of the Treasury for tax refund

offset—General.

(a) The standards we will apply and

the procedures we will follow before

requesting the Department of the

Treasury to offset income tax refunds

due taxpayers who have an outstanding

overpayment are set forth in §§ 416.580

through 416.586 of this subpart. These

standards and procedures are

authorized by the Deficit Reduction Act

of 1984 [31 U.S.C. § 3720A], as

implemented through Department of the

Treasury regulations at 31 CFR 285.2.

(b) We will use the Department of the

Treasury tax refund offset procedure to

collect overpayments that are certain in

amount, past due and legally

enforceable, and eligible for tax refund

offset under regulations issued by the

Secretary of the Treasury. We will use

these procedures to collect

overpayments only from individuals

who are not currently entitled to

monthly supplemental security income

benefits under title XVI of the Act. We

will refer an overpayment to the

Secretary of the Treasury for offset

against tax refunds no later than 10

years after our right to collect the

overpayment first accrued.

§ 416.581 Notice to overpaid individual.

A request for reduction of a Federal

income tax refund will be made only

after we determine that an amount is

owed and past due and provide the

overpaid individual with 60 calendar

days written notice. Our notice of intent

to collect an overpayment through

Federal income tax refund offset will

state:

(a) The amount of the overpayment;

(b) That unless, within 60 calendar

days from the date of our notice, the

overpaid individual repays the

overpayment, sends evidence to us at

the address given in our notice that the

overpayment is not past due or not

legally enforceable, or asks us to waive

collection of the overpayment under

section 1631(b)(1)(B) of the Act, we

intend to seek collection of the

overpayment by requesting that the

Department of the Treasury reduce any

amounts payable to the overpaid

individual as refunds of Federal income

taxes by an amount equal to the amount

of the overpayment;

(c) The conditions under which we

will waive recovery of an overpayment

under section 1631(b)(1)(B) of the Act;

(d) That we will review any evidence

presented that the overpayment is not

past due or not legally enforceable;

(e) That the overpaid individual has

the right to inspect and copy our records

related to the overpayment as

determined by us and will be informed

as to where and when the inspection

and copying can be done after we

receive notice from the overpaid

individual that inspection and copying

are requested.

§ 416.582 Review within SSA that an

overpayment is past due and legally

enforceable.

(a) Notification by overpaid

individual.—An overpaid individual

who receives a notice as described in

§ 416.581 of this subpart has the right to

present evidence that all or part of the

overpayment is not past due or not

legally enforceable. To exercise this

right, the individual must notify us and

present evidence regarding the

overpayment within 60 calendar days

from the date of our notice.

(b) Submission of evidence. The

overpaid individual may submit

evidence showing that all or part of the

debt is not past due or not legally

enforceable as provided in paragraph (a)

of this section. Failure to submit the

notification and evidence within 60

calendar days will result in referral of

the overpayment to the Department of

the Treasury, unless the overpaid

individual, within this 60-day time

period, has asked us to waive collection

of the overpayment under section

1631(b)(1)(B) of the Act and we have not

yet determined whether we can grant

the waiver request. If the overpaid

individual asks us to waive collection of

the overpayment, we may ask that

evidence to support the request be

submitted to us.

(c) Review of the evidence. After a

timely submission of evidence by the

overpaid individual, we will consider

all available evidence related to the

overpayment. We will make findings

based on a review of the written record,

unless we determine that the question of

indebtedness cannot be resolved by a

review of the documentary evidence.

§ 416.583 Findings by SSA.

(a) Following the review of the record,

we will issue written findings which

include supporting rationale for the

findings. Issuance of these findings

concerning whether the overpayment or

part of the overpayment is past due and

legally enforceable is the final Agency

action with respect to the past-due

status and enforceability of the

overpayment. If we make a

determination that a waiver request

cannot be granted, we will issue a

written notice of this determination in

accordance with the regulations in

subpart E of this part. Our referral of the

overpayment to the Department of the

Treasury will not be suspended under

§ 416.585 of this subpart pending any

further administrative review of the

waiver request that the individual may

seek.

(b) Copies of the findings described in

paragraph (a) of this section will be

distributed to the overpaid individual

and the overpaid individual’s attorney

or other representative, if any.

(c) If the findings referred to in

paragraph (a) of this section affirm that

all or part of the overpayment is past

due and legally enforceable and, if

waiver is requested and we determine

that the request cannot be granted, we

will refer the overpayment to the

Department of the Treasury. However,

no referral will be made if, based on our

review of the overpayment, we reverse

our prior finding that the overpayment

is past due and legally enforceable or,

upon consideration of a waiver request,

we determine that waiver of our

collection of the overpayment is

appropriate.

§ 416.584 Review of our records related to

the overpayment.

(a) Notification by the overpaid

individual. An overpaid individual who

intends to inspect or copy our records

related to the overpayment as

determined by us must notify us stating

his or her intention to inspect or copy.

(b) Our response. In response to a

notification by the overpaid individual

as described in paragraph (a) of this

section, we will notify the overpaid

individual of the location and time

when the overpaid individual may

inspect or copy our records related to

the overpayment. We may also, at our

discretion, mail copies of the
49440 Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Rules and Regulations

overpayment-related records to the

overpaid individual.

§ 416.585 Suspension of offset.

If, within 60 days of the date of the

notice described in § 416.581 of this

subpart, the overpaid individual notifies

us that he or she is exercising a right

described in § 416.582(a) of this subpart

and submits evidence pursuant to

§ 416.582(b) of this subpart or requests

a waiver under § 416.550 of this subpart,

we will suspend any notice to the

Department of the Treasury until we

have issued written findings that affirm

that an overpayment is past due and

legally enforceable and, if applicable,

make a determination that a waiver

request cannot be granted.

§ 416.586 Tax refund insufficient to cover

amount of overpayment.

If a tax refund is insufficient to

recover an overpayment in a given year,

the case will remain with the

Department of the Treasury for

succeeding years, assuming that all

criteria for certification are met at that

time.

3. The authority citation for subpart N

is revised to read as follows:

Authority: Secs. 702(a)(5), 1631, and 1633

of the Social Security Act (42 U.S.C.

902(a)(5), 1383, and 1383b); 31 U.S.C. 3720A.

4. Section 416.1403 is amended by

deleting the word ‘‘and’’ at the end of

paragraph (a)(15), replacing the period

at the end of paragraph (a)(16) with ‘‘;

and’’, and adding paragraph (a)(17) to

read as follows:

§ 416.1403 Administrative actions that are

not initial determinations.

(a) * * *

(17) Findings on whether we can

collect an overpayment by using the

Federal income tax refund offset

procedure. (See § 416.583).

* * * * *

[FR Doc. 97–25023 Filed 9–19–97; 8:45 am]

BILLING CODE 4190–29–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[OH108–1a; FRL–5894–3]

Approval and Promulgation of

Implementation Plans; Ohio

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: The EPA approves a State

implementation plan (SIP) revision

submitted by the State of Ohio on

January 3, 1997, which changed the

sulfur dioxide limits for the Procter and

Gamble Company, Hamilton County, in

Ohio Administrative Code (OAC) 3745–

18–37. The revised limits provide an

actual heat input cap of 922 million

British thermal units (BTU) per hour on

the combination of all of the Procter and

Gamble Company boilers identified in

OAC 3745–18–37(GG), to allow for

simultaneous operation.

DATES: The direct final approval is

effective on November 21, 1997 unless

significant adverse or critical comments

which have not been previously

addressed are received by October 22,

1997. If the effective date is delayed,

timely notice will be published in the

Federal Register.

ADDRESSES: Copies of the revision

request are available for inspection at

the following address: U.S.

Environmental Protection Agency,

Region 5, Air and Radiation Division, 77

West Jackson Boulevard, Chicago,

Illinois 60604. (It is recommended that

you telephone John Paskevicz at (312)

886–6084 before visiting the Region 5

office.)

Written comments should be sent to:

J. Elmer Bortzer, Chief, Regulation

Development Section, Air Programs

Branch (AR–18J), U.S. Environmental

Protection Agency, 77 West Jackson

Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: John

Paskevicz at (312) 886–6084.

SUPPLEMENTARY INFORMATION:

I. Background

On May 15, 1996, the EPA published

a SIP revision completing the approval

of the Hamilton County, Ohio sulfur

dioxide (SO2) implementation plan.

This plan was approved because it was

demonstrated to provide for attainment

and maintenance of the SO2 national

ambient air quality standard in

Hamilton County. The plan included all

major SO2 sources in the County and

listed out each of the appropriate

operating parameters in OAC 3745–18–

37, as needed to assure attainment and

maintenance of the NAAQS as

estimated using a rough terrain

dispersion model.

On January 3, 1997, Ohio EPA

submitted for approval a revision to the

Hamilton County SO2 SIP requesting

changes to OAC 3745–18–37(GG), for

the air emission sources owned and

operated by Procter and Gamble

Company. This revision was requested

because the original SIP for Procter and

Gamble did not provide for the

simultaneous operation of the main

power boilers while backup boilers are

brought on line. The original SIP did not

allow for flexibility in operation in the

event the main power boilers need to be

shut down for maintenance, repaired or

operated simultaneously.

The four Procter and Gamble boilers

are listed in the documentation to the

SIP submittal as having a total

maximum heat input capacity of 1098

million BTU/hour. Boiler numbers 1

and 2 are limited to emissions of a

maximum of 1.1 pounds of SO2 per

million BTU from each boiler. Boiler

number 3 is limited to emissions of a

maximum of 1.50 pounds of SO2 per

million BTU actual heat input and

average operating rate of 277 million

BTU per hour for any calendar day. And

boiler number 4 is limited to emissions

of a maximum of 2.0 pounds of SO2 per

million BTU using an average operating

rate of 450 million BTU per hour for any

calendar day.

II. Review of State Submittal

In this submittal, Ohio requests a

revision to OAC 3745–18–37(GG)

Procter and Gamble sulfur dioxide

limits. The revision changes the limits

to allow for simultaneous operation of

all of the boilers. The submittal provides

technical support and includes some of

the same material provided for the

Hamilton County SIP review submitted

in 1993.

In the previous review of the

Hamilton County SO2 SIP, Ohio looked

at each of the four boilers at Procter and

Gamble individually and made

judgments regarding impact at full load

of fuel sulfur content on air quality

concentrations. Ohio concluded that the

two backup boilers could not operate on

oil when the main power boilers, using

coal, were in operation. Therefore, the

backup boilers were not allowed to emit

SO2 and were given a 0.0 pounds of SO2

per million BTU limit when the main

boilers were operating, as presumed, at

full load.

In developing this new revision, the

approach was to develop a limit for

boiler operation in a worst case

situation by operating all boilers at the

maximum level. The backup boilers

with short stacks were operated fully on

and then the main boilers, with taller

stacks, were brought on. From the

State’s analysis, Ohio established an

allowable cap for all four boilers, based

on a concentration to capacity ratio to

an operating rate of 922 million BTU per

hour daily average. Thus, when in

operation, boilers number 1 and 2 are to

be limited to a maximum of 1.1 pounds

of SO2 per million BTU actual heat

input from each boiler; Boiler number 3

is to be limited to a maximum of 1.50

pounds of SO2 per million BTU actual

heat input at an average operating rate