14632 Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations

Regulatory Flexibility Act and

Executive Order 12866

Pursuant to the provisions of the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.), it is certified that the

amendments will not have a significant

economic impact on a substantial

number of small entities. Accordingly,

the amendments are not subject to the

regulatory analysis requirements of 5

U.S.C. 603 and 604. The document does

not meet the criteria for a ‘‘significant

regulatory action’’ as specified in

Executive Order 12866.

List of Subjects in 19 CFR Part 10

Articles conditionally free, Customs

duties and inspection, Exports,

temporary importations under bond.

Amendments

Part 10, Customs Regulations (19 CFR

part 10), is amended as set forth below.

PART 10—ARTICLES CONDITIONALLY

FREE, SUBJECT TO A REDUCED

RATE, ETC.

1. The general authority citation for

part 10 continues to read as follows:

Authority: 19 U.S.C. 66, 1202 (General

Note 17, Harmonized Tariff Schedule of the

United States), 1481, 1484, 1498, 1508, 1623,

1624;

* * * * *

2. Section 10.31 is amended by

revising the first two sentences of

paragraph (f) to read as follows:

§ 10.31 Entry; bond.

* * * * *

(f) With the exceptions stated herein,

a bond shall be given on Customs Form

301, containing the bond conditions set

forth in § 113.62 of this chapter, in an

amount equal to double the duties,

including fees, which it is estimated

would accrue (or such larger amount as

the district director shall state in writing

or by the electronic equivalent to the

entrant is necessary to protect the

revenue) had all the articles covered by

the entry been entered under an

ordinary consumption entry. In the case

of samples solely for use in taking

orders entered under subheading

9813.00.20, HTSUS, motion-picture

advertising films entered under

subheading 9813.00.25, HTSUS, and

professional equipment, tools of trade

and repair components for such

equipment or tools entered under

subheading 9813.00.50, HTSUS, the

bond required to be given shall be in an

amount equal to 110 percent of the

estimated duties, including fees,

determined at the time of entry. * * *

* * * * *

3. Section 10.39(d)(1) is amended by

removing the word ‘‘lower’’ in the first

sentence and by adding in its place the

word ‘‘different’’, and by adding a

sentence at the end of the paragraph to

read as follows:

§ 10.39 Cancellation of bond charges.

* * * * *

(d) (1) * * * For purposes of this

section, the term estimated duties shall

include any merchandise processing

fees applicable to such entry.

* * * * *

4. Section 10.39(e) is amended by

revising its first sentence to read as

follows:

§ 10.39 Cancellation of bond charges.

* * * * *

(e) If there has been a default with

respect to all the articles covered by the

bond and a written petition for relief has

been timely filed as provided in part

172 of this chapter, it shall be reviewed

by the district director if the full amount

of the claim does not exceed $100,000

and by the Director, International Trade

Compliance Division, Office of

Regulations and Rulings, Customs

Headquarters, if the full amount of the

claim exceeds $100,000.

* * * * *

§ 10.39 [Amended]

* * * * *

5. Section 10.39(f) is amended by

removing the figure ‘‘$50,000’’ in the

first sentence and by adding in its place

the figure ‘‘$100,000’’.

6. Section 10.39 is amended by

redesignating paragraph (g) as paragraph

(h) and by adding a new paragraph (g)

to read as follows:

* * * * *

§ 10.39 Cancellation of bond charges.

* * * * *

(g) Anticipatory breach. If an importer

anticipates that the merchandise entered

under a Temporary Importation Bond

will not be exported or destroyed in

accordance with the terms of the bond,

the importer may indicate to Customs in

writing before the bond period has

expired of the anticipatory breach. At

the time of written notification of the

breach, the importer shall pay to

Customs the full amount of liquidated

damages that would be assessed at the

time of breach of the bond, and the

entry will be closed. The importer shall

notify the surety in writing of the breach

and payment. By this payment, the

importer waives his right to receive a

notice of claim for liquidated damages

as required by § 172.1(a) of this chapter.

* * * * *

Approved: February 23, 1995.

Peter J. Baish,

Acting Commissioner of Customs.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 95–6759 Filed 3–17–95; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 200 and 760

[Docket No. R–95–1750; FR–3468–F–02]

RIN 2501–AB83

Participant’s Consent To Release of

Information

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

SUMMARY: This final rule implements

the amendments made to Section 904 of

the Stewart B. McKinney Homeless

Assistance Amendments Act of 1988

(the McKinney Act) by Section 903 of

the Housing and Community

Development Act of 1992, and Section

3003 of the Omnibus Budget

Reconciliation Act of 1993. Section 904

of the McKinney Act authorizes HUD to

require applicants or participants in any

HUD program involving review of an

applicant’s or participant’s income to

sign a consent form authorizing HUD,

the Housing Agency/Authority, or the

owner to verify income information by

requesting wage and claim data from

employers and the State agency

responsible for the administration of the

State unemployment laws.

EFFECTIVE DATE: April 19, 1995.

FOR FURTHER INFORMATION CONTACT:

Edward Whipple, Director, Occupancy

Division, Office of Assisted Housing,

Room 4206, concerning occupancy

matters; Barbara D. Hunter, Acting

Division Director, Planning and

Procedures Division, Office of

Multifamily Housing Management,

Room 6180 concerning housing

assistance programs administered by

this office; and David L. Decker,

Director, Computer Matching Activities,

Room 5156, concerning computer

matching/tenant income verification

matters. They may be contacted at the

Department of Housing and Urban

Development, 451 Seventh Street, S.W.,

Washington, D.C. 20410, telephone

(202) 708–0744, (202) 708–3944 and

(202) 708–0099, respectively. Hearing or

speech-impaired individuals may call
Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations 14633

1The preamble to the October 12, 1994 proposed

rule referred only to Public Housing Agencies

(PHAs). Section 903 of the 1992 Act required that

HUD develop a new consent form. This consent

form, applicable to Indian Housing Authorities

(IHAs) as well as PHAs, was released on June 13,

1994 (HUD Notice PIH–94–36 (HA)). IHAs were

made aware of this new consent form and have

utilized it since its issuance. Accordingly, the

language in the preamble to this final rule and in

the rule includes PHAs as well as IHAs (collectively

referred to as HAs).

HUD’s TDD number (202) 708–0850.

(These telephone numbers are not tollfree.)

SUPPLEMENTARY INFORMATION:

I. Background

A. October 12, 1994 Proposed Rule

On October 12, 1994 (59 FR 51519)

HUD published a rule which proposed

to implement the amendments made to

Section 904 of the Stewart B. McKinney

Homeless Assistance Amendments Act

of 1988 (42 U.S.C. 3544) (the McKinney

Act) by Section 903 of the Housing and

Community Development Act of 1992

(Pub. L. 102–550, approved October 28,

1992) (the 1992 Act) and Section 3003

of the Omnibus Budget Reconciliation

Act of 1993 (Pub. L. 103–66, approved

August 10, 1993).

Section 904 of the McKinney Act

authorizes HUD to require applicants

and participants and adult members of

their families in any HUD program

involving initial and periodic review of

an applicant’s or participant’s income to

sign a consent form authorizing: (1)

HUD, the Housing Authority/Agency

(HA),1 or the owner to verify employee

income information from current or

previous employers; and (2) HUD or the

HA to request wage and claim

information from the State agency

responsible for the administration of the

State unemployment laws. In

accordance with section 904(b) of the

McKinney Act, HUD regulations make

signing the consent form an explicit

condition of initial or continuing

eligibility for participation in the

covered programs.

Among other revisions, the statutory

amendments to Section 904 limited the

scope of the consent form by requiring

that it only cover information relevant

and necessary to meet the requirements

of Section 904. The amendments also

authorized the Secretary of HUD to

request that the Commissioner of Social

Security and the Secretary of the

Treasury release information pursuant

to Section 6103 (1)(7)(D)(ix) of the

Internal Revenue Code of 1986 (26

U.S.C. 6103).

The preamble to the proposed rule

listed the specific changes made to

Section 904 of the McKinney Act by

section 903 of the 1992 Act, section

3003 of the Omnibus Budget

Reconciliation Act of 1993, and the

regulatory amendments proposed to be

made as a result of the statutory changes

(see 59 FR 51519–51521). HUD solicited

public comments on the proposed

amendments to parts 200 and 760. By

the expiration of the public comment

period on December 12, 1994, four

comments had been received.

The following section of the preamble

presents a summary of the comments

raised by the commenters, and HUD’s

responses to these comments.

B. Comments on the October 12, 1994

Proposed Rule

Comment. One of the commenters

expressed concern over proposed

§§ 200.1203 and 200.1205, which permit

HUD to require consent to the release of

‘‘other information as provided in 24

CFR 813.109 and 24 CFR 913.109.’’ The

commenter interpreted the McKinney

Act as limiting the consent form to the

three categories of information listed in

Section 904: (1) Salary and wage

information from employers; (2) wage

and benefit information from State

unemployment insurance agencies; and

(3) income information from the Social

Security Administration and the

Department of the Treasury. The

commenter contended that Section

904’s requirement that HUD

independently verify information

provided by applicants and participants

is an insufficient basis for requiring

consent to release ‘‘other information.’’

Furthermore, the commenter stated that

it is indefensible for HUD to require

consent to release ‘‘other information’’

before there is any adverse information

to verify. Finally, the commenter

believed that 24 CFR 813.109 and 24

CFR 913.109 conflict with 42 U.S.C

3544(b) and should be ‘‘amended or

repealed accordingly.’’

HUD Response. HUD believes

proposed §§ 200.1203 and 200.1205 are

necessary to its compliance with

statutory mandates. The Omnibus

Budget Reconciliation Act of 1993 and

the McKinney Act require that HUD

verify information affecting eligibility

for, and the level of, assisted housing

benefits. Furthermore, the Privacy Act,

as amended by Public Law 100–503, the

Computer Matching and Privacy

Protection Act of 1988, requires that

agencies may not suspend, terminate,

reduce or make a final denial of

assistance or payment under a Federal

benefit program until information is

verified.

HUD notes that the language in

proposed §§ 200.1203 and 200.1205

only permits consent to the release of

‘‘other information’’ necessary to

determine eligibility or level of benefits.

HUD believes that the consent form it

has implemented, permitting HAs to

obtain ‘‘financial information’’, is

consistent with the ‘‘other information’’

language, since the information needed

to determine eligibility or the level of

benefits frequently is financial in

nature.

Congress intended that the computer

matching permitted by the consent form

result in savings. If an HA or owner

were prevented from obtaining an

applicant’s or participant’s consent until

after acquiring adverse information

through computer matching, its ability

to recoup funds or take other

administrative or legal action would be

seriously impaired. Many participants

who receive excessive housing

assistance will not sign the consent form

after the HA or owner has obtained

adverse information. By preventing the

verification of the adverse information,

these participants hinder the HA or

owner from taking action against the

participants and realizing program

savings.

Finally, HUD disagrees with the

commenter’s statement that 24 CFR

813.109 and 24 CFR 913.109 need to be

amended or repealed. Many recent and

past laws require verification of

information concerning applicants’ and

participants’ eligibility for, and levels

of, benefits.

Comment. One commenter questioned

the basis for the proposed rule’s

placement of a 15-month limit on the

effectiveness of the participant’s consent

for release of information. The

commenter felt that the time limit

would prove burdensome to local HAs,

which would be required to have the

consent form signed at each annual reexamination. The commenter suggested

that HUD issue a blanket authorization

which would permit the HA to verify

information for the duration of the

resident’s tenancy.

HUD Response. HUD agrees that

making the consent form effective for

only 15 months increases the paperwork

burden on HAs. However, Section

903(a) of the 1992 Act requires that the

consent to release of information be

limited with respect to time, and only

cover information relevant and

necessary to meet the requirements of

Section 904 of the McKinney Act.

Given tenant concerns that the

consent form might be used improperly

to obtain private information, Congress

required that HUD place a time limit on

the consent form’s effectiveness. A

blanket authorization that would be

valid for the duration of the resident’s

tenancy, like the one suggested by the
14634 Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations

commenter, would be inconsistent with

the explicit instructions given by

Congress.

Congress suggested that the consent

for release of information be effective for

12 months, the normal period for tenant

re-certification for continued

occupancy. However, the law allows

HUD discretion in choosing the effective

period for the consent form. In order to

provide leeway for unexpected delays in

re-certification, HUD has chosen to

make the consent form effective for 15

months from the date of execution.

Comment. Two commenters

recommended that HUD develop a new

regulation to accompany the issuance of

this final rule. Specifically, the

commenters urged the issuance of a

regulation that would ‘‘clearly and

unambiguously prohibit the release of

[Housing Assistance Program] contracts

or any other information which might

lead to the identity of a recipient of

Section 8 subsidy assistance, including

the addresses of properties in which

such recipients reside or the names of

their landlords.’’ Neither of the

commenters expressed any objection to

the proposed rule.

HUD Response. Although the rule

recommended by the commenters and

the proposed rule both have privacy

implications, a clear nexus does not

exist between them. Accordingly, HUD

views the issuance of this final rule and

the commenters’ recommendation as

independent issues.

C. Adoption of Proposed Rule

HUD adopts as its final rule the

proposed rule published on October 12,

1994, without change.

II. Other Matters

A. Executive Order 12866

This rule was reviewed by the Office

of Management and Budget under

Executive Order 12866, Regulatory

Planning and Review. Any changes

made to the rule as a result of that

review are clearly identified in the

docket file, which is available for public

inspection in the Office of the

Department’s Rules Docket Clerk, Room

10276, 451 Seventh St., SW.,

Washington, DC 20410.

B. Environmental Impact

In accordance with 40 CFR 1508.4 of

the regulations of the Council on

Environmental Quality and 24 CFR

50.20(k) of the HUD regulations, the

policies and procedures contained in

this final rule relate to internal

administrative procedures whose

content does not constitute a

development decision nor affect the

physical condition of project areas or

building sites and, therefore, are

categorically excluded from the

requirements of the National

Environmental Policy Act.

C. Executive Order 12612, Federalism

The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies contained

in this final rule will not have

substantial direct effects on States or

their political subdivisions, or the

relationship between the Federal

government and the States, or on the

distribution of power and

responsibilities among the various

levels of government. Specifically, the

requirements of this final rule are

directed toward applicants and

participants in federally assisted

housing programs. It effects no

significant changes in the current

relationships between the Federal

government, the States and their

political subdivisions in connection

with these programs.

D. Executive Order 12606, the Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that this final rule does not

have potential for significant impact on

family formation, maintenance, and

general well-being, and, thus, is not

subject to review under the Order.

Under this final rule, applicants and

participants, and adult members of their

families, are required to sign and submit

consent forms authorizing the

verification or collection of certain

information necessary for determining

eligibility for or level of assistance

under the covered programs. Consent

forms to permit verification of

information provided by the family are

already required. This rule change

prohibits the collection of information

which is not necessary to verify the

income of an applicant or participant,

and makes the consent form valid for 15

months. No significant change in

existing HUD policies or programs will

result from promulgation of this final

rule, as those policies and programs

relate to family concerns.

E. Regulatory Flexibility Act

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)) has reviewed and approved this

final rule, and in so doing certifies that

this final rule will not have a significant

economic impact on a substantial

number of small entities. This final rule

relates to applicants and participants in

federally assisted housing projects but

should not have a meaningful economic

impact on these entities.

F. Regulatory Agenda

This final rule was not listed in

HUD’s Semiannual Agenda of

Regulations published on November 14,

1994 (59 FR 57632) in accordance with

Executive Order 12866 and the

Regulatory Flexibility Act.

List of Subjects

24 CFR Part 200

Administrative practice and

procedure, Claims, Equal employment

opportunity, Fair housing, Home

improvement, Housing standards,

Incorporation by reference, Lead

poisoning, Loan programs—housing and

community development, Minimum

property standards, Mortgage insurance,

Organization and functions

(Government agencies), Penalties,

Reporting and recordkeeping

requirements, Social security,

Unemployment compensation, Wages.

24 CFR Part 760

Grant programs—housing and

community development, Income

verification procedures, Indians,

Intergovernmental relations, Loan

programs—housing and community

development, Penalties, Public housing,

Rent subsidies, Reporting and

recordkeeping requirements, Wages.

Accordingly, 24 CFR parts 200 and

760 are amended as follows:

PART 200—INTRODUCTION

1. The authority citation for 24 CFR

part 200 continues to read as follows:

Authority: 12 U.S.C. 1701–1715z-18,

1701s, and 1715z-11; 42 U.S.C. 3535(d),

3543, and 3544.

2. Section 200.1203 is amended by

revising paragraph (a), to read as

follows:

§ 200.1203 Applicability.

(a) Information to be covered by

consent forms. The information covered

by consent forms described in this part

involves: wage and claim information

from SWICAs; and wages, net earnings

from self-employment, payments of

retirement income and unearned

income as referenced at sections

6103(l)(7)(A) and 6103(l)(7)(B) of the

Internal Revenue Code (26 U.S.C. 6103).

In addition, the consent forms may

authorize the collection of other

information from applicants or

participants to determine eligibility or

level of benefits as provided in 24 CFR

813.109 and 24 CFR 913.109.

* * * * *
Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules and Regulations 14635

3. Section 200.1205 is amended by

revising the definition for ‘‘Consent

form’’, to read as follows:

§ 200.1205 Definitions.

* * * * *

Consent form means a consent form or

forms approved by HUD to be signed by

applicants and participants for the

purpose of obtaining employee income

information from employers; wage and

claim information from SWICAs; return

information from the Social Security

Administration (including wages, net

earnings from self-employment,

payments of retirement income as

referenced at section 6103(l)(7)(A) of the

Internal Revenue Code (26 U.S.C. 6103);

and return information for unearned

income (i.e., interest and dividends)

from the Internal Revenue Service as

referenced at section 6103(l)(7)(B) (26

U.S.C. 6103). Also, the consent forms

may authorize the collection of other

information from applicants or

participants to determine eligibility or

level of benefits as provided in 24 CFR

813.109 and 24 CFR 913.109. The

consent form expires after a limited

amount of time.

* * * * *

4. Section 200.1210 is amended by

revising paragraph (c), to read as

follows:

§ 200.1210 Consent by applicants and

participants.

* * * * *

(c) Consent form requirements. The

consent form required by this subpart V

shall contain, at a minimum, the

following:

(1) A provision authorizing HUD to

obtain from SWICAs any information or

materials necessary to complete or

verify the application for participation

and/or to maintain continued assistance

under a program referred to in

§ 200.1203;

(2) A provision authorizing HUD or

the owner (or mortgagee as applicable)

responsible for determining eligibility

for or level of assistance, to verify with

previous or current employers employee

income information pertinent to the

applicant’s or participant’s eligibility for

or level of assistance under a program

referred to in § 200.1203;

(3) A provision authorizing HUD to

request tax return information from the

Internal Revenue Service and the Social

Security Administration for the sole

purpose of verifying income information

pertinent to the applicant’s or

participant’s eligibility or level of

benefits; and

(4) A statement that the authorization

to release the information requested by

the consent form expires 15 months

after the consent form was signed.

(5) These requirements may be

contained in more than one consent

form.

PART 760—PROCEDURES FOR

OBTAINING WAGE AND CLAIM

INFORMATION ABOUT APPLICANTS

AND PARTICIPANTS IN HUD’S

SECTION 8 AND PUBLIC HOUSING

PROGRAMS FROM STATE WAGE

INFORMATION COLLECTION

AGENCIES (SWICAs)

5. The authority citation for part 760

is revised to read as follows:

Authority: 12 U.S.C. 1701q; 42 U.S.C.

1437a, 1437d, 1437ee, 1437f, 3535(d), and

3544.

6. Section 760.3 is amended by

revising paragraph (a), to read as

follows:

§ 760.3 Applicability.

(a) information to be covered by

consent forms. The information covered

by consent forms described in this part

involves wage and claim information

from SWICAs; and wages, net earnings

from self-employment, payments of

retirement income, and unearned

income as referenced at sections

6103(l)(7)(A) and 6103(l)(7)(B) of the

Internal Revenue Code (26 U.S.C. 6103).

In addition, consent forms may

authorize the collection of other

information as identified in 24 CFR

813.109(b) and 24 CFR 913.109(b) for

current verification procedures,

including requirements regarding

signing and submitting consent forms,

for the covered programs.

* * * * *

7. Section 760.5 is amended by

revising the definition for ‘‘Consent

form’’, to read as follows:

§ 760.5 Definitions.

* * * * *

Consent form means a consent form or

forms approved by HUD to be signed by

applicants and participants for the

purpose of obtaining employee income

information from employers; wage and

claim information from SWICAs; return

information from the Social Security

Administration (including wages, net

earnings from self-employment,

payments of retirement income as

referenced at section 6103(l)(7)(A) of the

Internal Revenue Code (26 U.S.C. 6103);

and return information for unearned

income (i.e., interest and dividends)

from the Internal Revenue Service as

referenced at section 6103(l)(7)(B) (26

U.S.C. 6103). Also, the consent forms

may authorize the collection of other

information from applicants or

participants to determine eligibility or

level of benefits as provided in 24 CFR

813.109 and 24 CFR 913.109. The

consent form expires after a limited

amount of time.

* * * * *

8. Section 760.10 is amended by

revising paragraph (c), to read as

follows:

§ 760.10 Consent by applicants and

participants.

* * * * *

(c) Consent form requirements. The

consent form required by this subpart B

shall, at a minimum, contain the

following:

(1) A provision authorizing HUD and

HAs to obtain from SWICAs any

information or materials necessary to

complete or verify the application for

participation or to maintain continued

assistance under a program referred to

in § 760.3;

(2) A provision authorizing HUD,

HAs, or the owner responsible for

determining eligibility for or level of

assistance, to verify with previous or

current employers income information

pertinent to the applicant’s or

participant’s eligibility for or level of

assistance under a program referred to

in §§ 200.1203, 813.109 and 913.109 of

this title;

(3) A provision authorizing HUD to

request income return information from

the Internal Revenue Service and the

Social Security Administration for the

sole purpose of verifying income

information pertinent to the applicant’s

or participant’s eligibility or level of

benefits; and

(4) A statement that the authorization

to release the information requested by

the consent form expires 15 months

after the consent form was signed.

Dated: March 3, 1995.

Henry G. Cisneros,

Secretary.

[FR Doc. 95–6715 Filed 3–17–95; 8:45 am]

BILLING CODE 4210–32–P

24 CFR Part 3500

[Docket No. R–95–1538; FR–2942–C–07]

RIN 2502–AG27

Office of the Assistant Secretary for

Housing-Federal Housing

Commissioner; Real Estate Settlement

Procedures Act, Section 6 Transfer of

Servicing of Mortgage Loans

(Regulation X): Corrections

AGENCY: Office of the Assistant

Secretary for Housing-Federal Housing

Commissioner, HUD.

ACTION: Final rule.