27432 Federal Register / Vol. 74, No. 110 / Wednesday, June 10, 2009 / Rules and Regulations 

net outflow of cash and cash equivalents 

should be used for the test. 

* * * * * 

[FR Doc. E9–13511 Filed 6–9–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 285 

RIN 1510–AB22 

Disbursing Official Offset 

AGENCY: Financial Management Service, 

Fiscal Service, Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Department of the 

Treasury, Financial Management 

Service, is amending its regulations 

governing the offset of Federal payments 

to collect nontax debts owed to the 

United States and States through the 

Treasury Offset Program. This 

amendment changes the priorities for 

collecting debt when a debtor owes 

more than one debt which has been 

referred to the Treasury Offset Program 

for collection by offset, consistent with 

a change in the statute on which the 

priority is based. The statutory change, 

enacted as part of the Deficit Reduction 

Act of 2005, amends the priority given 

to the collection of certain past-due 

support debts. 

DATES: This final rule is effective June 

10, 2009. 

ADDRESSES: The Financial Management 

Service participates in the U.S. 

government’s eRulemaking Initiative by 

publishing rulemaking information on 

www.regulations.gov. Regulations.gov 

offers the public the ability to comment 

on, search, and view publicly available 

rulemaking materials, including 

comments received on rules. 

Comments on this rule, identified by 

docket FISCAL–FMS–2008–0005, 

should only be submitted using the 

following methods: 

• Federal eRulemaking Portal: 

www.regulations.gov. Follow the 

instructions on the Web site for 

submitting comments. 

• Mail: Thomas Dungan, Policy 

Analyst, Financial Management Service, 

401 14th Street, SW., Washington, DC 

20227. 

The fax and e-mail methods of 

submitting comments on rules to FMS 

have been retired. 

Instructions: All submissions received 

must include the agency name 

(‘‘Financial Management Service’’) and 

docket number FISCAL–FMS–2008– 

0005 for this rulemaking. In general, 

comments will be published on 

Regulations.gov without change, 

including any business or personal 

information provided. Comments 

received, including attachments and 

other supporting materials, are part of 

the public record and subject to public 

disclosure. Do not enclose any 

information in your comment or 

supporting materials that you consider 

confidential or inappropriate for public 

disclosure. 

You may also inspect and copy this 

rule at: Treasury Department Library, 

Freedom of Information Act (FOIA) 

Collection, Room 1428, Main Treasury 

Building, 1500 Pennsylvania Avenue, 

NW., Washington, DC 20220. Before 

visiting, you must call (202) 622–0990 

for an appointment. 

FOR FURTHER INFORMATION CONTACT: 

Thomas Dungan, Policy Analyst, at 

(202) 874–6660 or Tricia Long, Senior 

Attorney, at (202) 874–6680. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Deficit Reduction Act of 2005 

(Pub. L. 109–171) amended section 6402 

of the Internal Revenue Code (26 U.S.C. 

6402) by changing the order of priority 

for collecting debt when a debtor owes 

more than one debt which is subject to 

collection by tax refund offset. Prior to 

this change, the order of priority was as 

follows: (1) Past-due support debts 

which had been assigned to a State 

under section 402(a)(26) or 471(a)(17) of 

the Social Security Act; (2) nontax debt 

owed to Federal agencies; (3) other pastdue support debts; and (4) other 

reductions allowed by law. Effective 

October 1, 2008, the order of priority is: 

(1) All past-due support debts; (2) 

nontax debt owed to Federal agencies 

and (3) other reductions allowed by law. 

The changes to this rule conform to 

the statutory change by reordering the 

order of priority for collecting debt 

through the Treasury Offset Program. 

Although the statutory change is 

directed to the offset of tax refund 

payments, the portions of this rule that 

govern offset of nontax payments are 

also being changed to conform to the 

new priority order. This is necessary for 

operational consistency and to create 

uniformity in how offsets are 

conducted. 

II. Procedural Analyses 

Administrative Procedures Act 

This rule is being issued without prior 

public notice and comment as to tax 

refund payments, because the changes 

to the rule are being made to conform 

to statutory requirements. As to other 

payments, the change does not 

adversely affect the rights of the public. 

Under 5 U.S.C. 553(b) and (d)(3), good 

cause exists to determine that notice 

and comment rulemaking is 

unnecessary and contrary to the public 

interest. The amendments made by this 

rule regarding the offset of tax refund 

payments are required due to 

amendments enacted into law. The 

amendments made by this rule 

regarding the offset of nontax payments 

mirror those statutory amendments and 

are necessary to achieve consistency in 

how non-judicial offsets are conducted. 

These changes relate to procedures 

between and among agencies that are 

owed delinquent debt; therefore, public 

comment is not necessary. Further delay 

in making these amendments is contrary 

to the public interest because it would 

create an inconsistency both between 

the law and the regulations and between 

the regulations themselves, and would 

cause confusion. 

Request for Comment on Plain Language 

Executive Order 12866 requires each 

agency in the Executive branch to write 

regulations that are simple and easy to 

understand. We invite comment on how 

to make the proposed rule clearer. For 

example, you may wish to discuss: (1) 

Whether we have organized the material 

to suit your needs; (2) whether the 

requirements of the rules are clear; or (3) 

whether there is something else we 

could do to make these rules easier to 

understand. 

Regulatory Planning and Review 

The final rule does not meet the 

criteria for a ‘‘significant regulatory 

action’’ as defined in Executive Order 

12866. Therefore, the regulatory review 

procedures contained therein do not 

apply. 

Regulatory Flexibility Act Analysis 

Because no notice of rulemaking is 

required, the provisions of the 

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

seq.) do not apply. 

List of Subjects in 31 CFR Part 285 

Administrative practice and 

procedure, Child support, Child welfare, 

Claims, Credits, Debts, Disability 

benefits, Federal employees, 

Garnishment of wages, Hearing and 

appeal procedures, Loan programs, 

Privacy, Railroad retirement, Railroad 

unemployment insurance, Salaries, 

Social Security benefits, Supplemental 

Security Income (SSI), Taxes, Veteran’s 

benefits, Wages. 

■ For the reasons set forth in the 

preamble, we are amending 31 CFR part 

285 as follows: 

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Federal Register / Vol. 74, No. 110 / Wednesday, June 10, 2009 / Rules and Regulations 27433 

PART 285—DEBT COLLECTION 

AUTHORITIES UNDER THE DEBT 

COLLECTION IMPROVEMENT ACT OF 

1996 

■ 1. The authority citation for part 285 

continues to read as follows: 

Authority: 5 U.S.C. 5514; 26 U.S.C. 6402; 

31 U.S.C. 321, 3701, 3711, 3716, 3719, 

3720A, 3720B, 3720D; 42 U.S.C. 664; E.O. 

13019, 61 FR 51763, 3 CFR, 1996 Comp., p. 

216. 

■ 2. In § 285.1, revise paragraph (n) to 

read as follows: 

§ 285.1 Collection of past-due support by 

administrative offset. 

* * * * * 

(n) Administrative offset priorities. (1) 

A levy pursuant to the Internal Revenue 

Code of 1986 shall take precedence over 

deductions under this section. 

(2) Offsets will be applied first to pastdue support being enforced by the State 

before any other offsets under this part. 

* * * * * 

§ 285.2 [Amended] 

■ 3. Amend § 285.2 as follows: 

■ a. Remove paragraph (e); 

■ b. Redesignate paragraphs (f) through 

(l) as (e) through (k). 

■ c. In newly redesignated paragraph 

(e)(1)(ii), revise the reference to 

‘‘paragraph (f)(1)(i)’’ to read ‘‘paragraph 

(e)(1)(i)’’ and revise the reference to 

‘‘paragraph (g)’’ to read ‘‘paragraph (f)’’; 

and 

■ d. In newly redesignated paragraph 

(g), revise the reference to ‘‘paragraph 

(i)’’ to read ‘‘paragraph (h)’’. 

■ 4. In § 285.3, revise paragraph (d)(1) to 

read as follows: 

§ 285.3 Offset of tax refund payments to 

collect past-due support. 

* * * * * 

(d) Priorities for offset. (1) As 

provided in 26 U.S.C. 6402, a tax refund 

payment shall be reduced in the 

following order of priority: 

(i) First, by the amount of any pastdue support which is to be offset under 

26 U.S.C. 6402(c) and 42 U.S.C. 464; 

(ii) Second, by the amount of any 

past-due, legally enforceable debt owed 

to a Federal agency which is to be offset 

under 26 U.S.C. 6402(d), 31 U.S.C. 

3720A and § 285.2 of this part; and 

(iii) Third, by the amount of any pastdue, legally enforceable debt owed to 

States (other than past-due support) 

which is to be offset under 26 U.S.C. 

6402(e) or 26 U.S.C. 6402(f). 

* * * * * 

■ 5. In § 285.5, revise paragraph (f)(3) to 

read as follows: 

§ 285.5 Centralized offset of Federal 

payments to collect nontax debts owed to 

the United States. 

* * * * * 

(f) * * * 

(3) Priorities for collecting multiple 

debts owed by the payee. (i) A levy 

pursuant to the Internal Revenue Code 

of 1986 shall take precedence over 

deductions under this section. 

(ii) When a payment may be offset to 

collect more than one debt, amounts 

offset will be applied: 

(A) First, to satisfy any past-due 

support that that the State is collecting 

under section 464 of the Social Security 

Act (see 285.1 and 285.3 of this part); 

(B) Second, to satisfy any debts owed 

to Federal agencies, as described in this 

§ 285.5; and 

(C) Third, to any debts owed to States 

for debts other than past-due support 

(see §§ 285.6 and 285.8 of this part). 

* * * * * 

■ 6. In § 285.7, revise paragraph (h)(2) to 

read as follows: 

§ 285.7 Salary offset. 

* * * * * 

(h) * * * 

(2) When a salary payment may be 

reduced to collect more than one debt, 

amounts offset under this section will 

be applied to a debt only after amounts 

have been applied to satisfy past-due 

support debts being collected by the 

State pursuant to Section 464 of the 

Social Security Act. 

* * * * * 

■ 7. In § 285.8, revise paragraph (d)(1) to 

read as follows: 

§ 285.8 Offset of tax refund payments to 

collect state income tax obligations. 

* * * * * 

(d) * * * 

(1) As provided in 26 U.S.C. 6402, a 

tax refund payment shall be reduced 

first by the amount of any past-due 

support being enforced under section 

464 of the Social Security Act which is 

to be offset under 26 U.S.C. 6402(c); 

second by the amount of any past-due, 

legally enforceable debt owed to a 

Federal agency which is to be offset 

under 26 U.S.C. 6402(d); and third by 

any past-due, legally enforceable debt 

owed to a State (other than past-due 

support) which is to be offset under 26 

U.S.C. 6402(e) or 26 U.S.C. 6402(f). 

* * * * * 

Dated: May 29, 2009. 

Gary Grippo, 

Acting Fiscal Assistant Secretary. 

[FR Doc. E9–13613 Filed 6–9–09; 8:45 am] 

BILLING CODE 4810–35–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 538 

Sudanese Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Office of Foreign Assets 

Control of the U.S. Department of the 

Treasury (‘‘OFAC’’) is amending the 

Sudanese Sanctions Regulations to 

expand the scope of an existing 

authorization of certain imports for 

diplomatic or official personnel to 

include the provision of goods or 

services in the United States to the 

diplomatic missions of the Government 

of Sudan to the United States and the 

United Nations, and to the employees of 

such missions, subject to certain 

conditions. The amended section also 

authorizes the importation of goods or 

services into the United States by the 

regional Government of Southern Sudan 

and its employees that involve the 

transit or transshipment of goods 

through areas of Sudan other than the 

Specified Areas of Sudan, subject to 

certain conditions. 

DATES: Effective Date: June 10, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance 

Outreach & Implementation, tel.: 202– 

622–2490, Assistant Director for 

Licensing, tel.: 202–622–2480, Assistant 

Director for Policy, tel.: 202–622–4855, 

Office of Foreign Assets Control, or 

Chief Counsel (Foreign Assets Control), 

tel.: 202–622–2410, Office of the 

General Counsel, Department of the 

Treasury (not toll free numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(http://www.treas.gov/ofac) or via 

facsimile through a 24-hour fax-on 

demand service, tel.: (202) 622–0077. 

Background 

The Sudanese Sanctions Regulations, 

31 CFR part 538 (the ‘‘SSR’’), were 

promulgated to implement Executive 

Order 13067 of November 3, 1997 (‘‘E.O. 

13067’’), in which the President 

declared a national emergency with 

respect to the policies and actions of the 

Government of Sudan. To deal with that 

emergency, E.O. 13067 imposed 

comprehensive trade sanctions with 

respect to Sudan and blocked all 

property and interests in property of the 

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