[Federal Register Volume 59, Number 166 (Monday, August 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21186]
[[Page Unknown]]
[Federal Register: August 29, 1994]
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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
Food Stamp Program; Food Stamp Recipient Claims Collection; Test
of Federal Salary Offset Procedures
AGENCY: Food and Nutrition Service, USDA.
ACTION: General Notice.
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SUMMARY: The Department hereby gives notice that it intends to test
Federal salary offset (salary offset) procedures as a means of
collecting debts which Federal and U.S. Postal Service (USPS) employees
owe the Department for overissued food stamp benefits. This General
Notice describes the types of debts to be collected and the salary
offset procedures, including the method by which Federal and USPS
employees who owe food stamp recipient claims will be identified, and
how they will be notified about the collection action and about their
rights and responsibilities with respect to that action.
DATES: This notice will be effective September 28, 1994. Comments will
be accepted until November 28, 1994. Implementation of this test will
begin September 28, 1994.
ADDRESSES: Comments should be addressed to James I. Porter, Supervisor,
Issuance and Accountability Section, State Administration Branch,
Program Accountability Division, Food Stamp Program, 3101 Park Center
Drive, Room 905, Alexandria, Virginia 22302. Comments can be reviewed
at that address during normal business hours.
FOR FURTHER INFORMATION CONTACT: James I. Porter, Supervisor, Issuance
and Accountability Section, State Administration Branch, Program
Accountability Division, Food Stamp Program, 3101 Park Center Drive,
Room 905, Alexandria, Virginia 22302, telephone (703) 305-2385.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This General Notice is issued in conformance with Executive Order
12886.
Executive Order 12372
The FSP is listed in the Catalog of Federal Domestic Assistance
under No. 10.551. For the reasons set forth in the final rule and
related notice to 7 CFR 3015, Subpart V (48 FR 29115), this Program is
excluded from the scope of Executive Order 12372 which requires
intergovernmental consultation with State and local officials.
Regulatory Flexibility Act
This action has been reviewed with regard to the requirements of
the Regulatory Flexibility Act of 1980 (Pub. L. 96-354, 94 Stat. 1164,
September 19, 1980). William E. Ludwig, Administrator of the Food and
Nutrition Service, has certified that this notice does not have a
significant economic impact on a substantial number of small entities.
This notice will affect the State and local agencies which administer
the Food Stamp Program and individuals who have received excess food
stamp benefits.
Paperwork Reduction Act
This notice does not contain reporting or recordkeeping
requirements subject to approval by the Office of Management and Budget
under the Paperwork Reduction Act of 1980.
Background
1. General
a. The need for salary offset procedures for the FSP. Individuals
currently owe the Department about $800 million for food stamp benefits
which they have received in excess of the amounts to which they were
entitled. A substantial portion of the $800 million is not being
repaid. The Department is concerned about this situation and is
augmenting its policies and procedures to improve collections of this
debt.
A major initiative in this effort is the Federal income tax refund
offset program (FTROP). Through FTROP the Department is collecting
debts for overissued food stamp benefits (recipient claims) from
individual debtors' Federal income tax refunds. In brief, FTROP
operates by matching information about recipient claims against
Internal Revenue Service (IRS) data on taxpayers, and before any refund
otherwise payable is made, by deducting the recipient claim from the
refund. Only those recipient claims due to inadvertent household errors
(IHE's) and intentional Program violations (IPV's) are collected
through FTROP, and those types of claims are collected only when liable
individuals are not participating in the FSP. Recipient claims due to
errors by State agencies are not collected through FTROP. The FTROP
procedures are contained in a General Notice published August 20, 1991
at 56 FR 41325.
The IRS requires that Federal agencies participating in FTROP use
all reasonable collection efforts before referring a debt for
collection from Federal income tax refunds. The IRS views salary offset
as such an effort and therefore requires participation in salary offset
or at a minimum, deletion of claims which are eligible for salary
offset from lists of claims submitted to the IRS for collection through
FTROP. (See 26 CFR 301.6402-6(b)(1)(iii) and (c)(2) of the IRS
regulations.) As under FTROP, the salary offset procedures for the FSP
will be used for IHE and IPV claims only and only when the individuals
liable for the claims are not currently participating in the FSP.
b. Authorities for Salary Offset. The Debt Collection Act of 1982,
(Public Law 97-365), amended 5 U.S.C 5514 to authorize Federal agencies
to offset the salaries of Federal employees who are delinquent on debts
owed to the Federal government. The Office of Personnel Management
(OPM) implemented 5 U.S.C 5514 by promulgating regulations at 5 CFR
550.1101-1108 (Collection by Offset from Indebted Government
Employees). Pursuant to 5 U.S.C 5514(b)(1), the Department promulgated
regulations at 7 CFR 3.51 through 3.68 implementing salary offset.
Departmental regulations at 7 CFR 3.68 delegate to individual USDA
agencies the authority to act for the Secretary under those regulations
and to issue regulations or policies not inconsistent with the
Departmental regulations and with the OPM regulations. Section 13941 of
the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66,
signed August 10, 1993) authorizes disclosure of food stamp casefile
information to Federal agencies for purposes of collecting recipient
claims (except those caused by State agency errors) from Federal
salaries. Finally, Section 17(b)(1) of the Food Stamp Act of 1977, as
amended, (the Act) (7 U.S.C. 2026(b)(1)), authorizes the Secretary to
conduct pilot projects to test program changes that might increase the
efficiency of the FSP. This General Notice is being published under
those authorities.
Pursuant to Section 13 of the Act (7 U.S.C. 2022), and subject to
the standards of FSP regulations at 7 CFR 273.18, the authority to
settle claims against households has been delegated to State agencies
at 7 CFR 271.4(b). Food stamp coupons issued pursuant to the Act are
deemed to be obligations of the United States (7 U.S.C. 2024(d)). Under
these statutes and regulations, State agencies, establish, collect and
maintain records of FSP recipient claims. State agencies return amounts
collected to the Federal government, less a statutory ``retention
amount'' established to encourage collection of recipient claims (7
U.S.C. 2025(a)).
The provisions of this Notice incorporate Departmental regulations
on salary offset (7 U.S.C. 3.51 et seq.), and supplement and modify
these procedures to the extent necessary to accommodate the position of
State agencies as primarily responsible for establishing, collecting
and maintaining records on recipient claims. These additions and
modifications are consistent with OPM regulations on salary offset.
c. Overview of Salary Offset Procedures for the FSP. Salary offset
has three phases and is operated on an annual cycle. In the first
phase, FSP recipient claims are matched against records of all active
Federal civilian and military employees, including USPS employees. The
recipient claims used for the salary offset match are consolidated from
lists of recipient claims provided by State agencies as part of FTROP
procedures. The Federal employee records are maintained by the
Department of Defense (DoD) and the USPS. The match identifies Federal
employees (including USPS employees) and their employing agencies, and
provides employee and employing agency addresses to FNS. This match
will be conducted in accordance with the Computer Matching and Privacy
Act of 1988. As required by that statute, the public has been advised
of this matching program by the publication of three General Notices. A
General Notice was published September 17, 1993 at 58 FR 48633 advising
the public of the systems of records involved. A second General Notice
was published March 1, 1994 at 59 FR 9733 advising the public of the
match with DoD. A third General Notice was published August 17, 1994 at
59 FR 42205 advising the public about the match with the USPS.
Recipient claims which these matches identify as obligations of Federal
employees are deleted from files of recipient claims to be referred to
the IRS for collection through the FTROP.
During the second phase of food stamp salary offset procedures,
recipient claims identified in the match are referred to State
agencies. After a review of their records to determine if the recipient
claim is still owed and the accuracy of the amount of the claim, State
agencies send Federal employees an advance notice of salary offset
(advance notice). The advance notice provides these individuals 30 days
to voluntarily repay the claim or provide documentation that all or
part of the claim is not legally collectible. Claims for which
responses are not received, or for which replies are late or do not
provide adequate documentation, are referred to the FNS National Office
for collection by salary offset.
In the third phase of salary offset, by means of a notice of
intent, FNS notifies Federal employees owing recipient claims referred
by State agencies that FNS intends to collect the debt from the
employee's salaries. This notice of intent includes information about
appeal rights, pertinent time frames and other information which is
required for that notice by Departmental regulations on salary offset.
Subject to the responses to notices of intent, FNS proceeds with action
to collect the debts. As mentioned above, FNS follows Departmental
procedures on salary offset as modified in this Notice.
The Department plans to conduct the initial cycle of salary offset
procedures (matching/deletion, voluntary repayment and salary offset)
during calendar year 1994.
2. Discussion of the General Notice
a. Claims Subject to Salary Offset. All claims submitted by State
agencies participating in FTROP are subject to the matching procedures
specified in this General Notice. The General Notice also provides that
recipient claims identified by the match will be subject to the salary
offset procedures specified in this Notice.
b. Identification of Recipient Claims Owed by Federal Employees. As
already mentioned, one of the preliminary steps of salary offset is
matching food stamp recipient claim files provided by State agencies
participating in FTROP to certain records of Federal employment
maintained by DoD and USPS. This match identifies recipient claims owed
by Federal employees.
The Department wants to ensure that State agencies protect
information they receive from DoD and USPS from the time they receive
it. Consequently, this Notice provides that when FNS receives Federal
employment information for a particular State agency, it will first
notify the State agency of that matter in writing accompanied by a data
security and confidentiality agreement for the State agency to sign and
return. When that agreement is returned, FNS will then provide the
information to the State agency. Concurrently with publication of this
General Notice, FNS is providing State agencies a sample notification
letter with the language of the data security and confidentiality
agreement.
The matching of State agency recipient claims with DoD and USPS
data files will be conducted under the terms of Memorandums of
Agreement (Agreement) between USDA and DoD, and between USDA and the
USPS. The Agreements require that if the records obtained from DoD and
the USPS are disclosed to a State or local agency, those entities must
agree in writing to abide by the data security and confidentiality
protection measures specified in the Agreements. This Notice specifies
those protection measures and requires that State agencies extend them
to any contractors or other non-State agency entities to which the
records may be disclosed. The requirements are typical data security
and usage controls, and should require minimal additional resources
from State agencies.
This Notice requires that, prior to taking additional action to
collect claims matched against Federal employment records, State
agencies review those claims to verify the amount owed, and to remove
any claims which have been paid, are being paid or which for other
reasons are not collectible. The Notice requires this review so that no
salary offset action will be taken unless that individual owes an FSP
recipient claim.
c. State Agency Advance Notice of Salary Offset. This Notice
requires that, following the review just described, State agencies
provide each Federal employee verified as owing a recipient claim
(debtor) with an advance notice of salary offset (advance notice). This
advance notice will provide the debtor certain information about the
recipient claim and will offer the debtor an opportunity to repay the
claim voluntarily. Although it is not required, the Department is
providing a voluntary repayment opportunity for several reasons. It
offers debtors a way to repay the recipient claim without involving
their employing agency. It provides State agencies a way of collecting
some recipient claims without the delay which salary offset entails.
Furthermore, recipient claims collected by State agencies avoid the
administrative cost to the Federal government involved with actual
salary offset.
The Department wants State agency collection efforts to proceed
promptly but in such a way that they can be integrated into State
agency operations without disrupting other operations. Consequently,
this Notice requires that advance notices be mailed or otherwise
provided to debtors at the addresses provided by FNS within 60 days of
State agency receipt from FNS of the list discussed just above. The
addresses will be those which DoD and USPS provided through the
matching program.
Recipient claims owed by Federal employees who do not voluntarily
pay them directly to the State agency in response to the advance notice
will be collected through salary offset. Consequently, FNS is requiring
that within 90 days of the date of the advance notice, the State agency
must refer to FNS all claims for which the State agency does not
receive timely and adequate response as discussed below. The advance
notice allows debtors 30 days to respond to State agencies. The 90-day
period will give State agencies 60 days beyond that time frame to refer
claims to FNS. This Notice specifies that such referral will consist of
a copy of the advance notice and copies of records relating to the
claim. This Notice specifies that records relating to the claim consist
of copies of all written actions relating to the claim. Such records
include copies of demand letters, results of fair hearings, advance
notices of disqualification hearings, the results of such hearings, any
legal actions, records of payments, and correspondence from the debtor
subsequent to the advance notice.
This Notice specifies the required content of the advance notice.
(Concurrently with publication of this Notice, FNS is providing State
agencies a sample format for the advance notice.) First, the advance
notice must state that, according to State agency records, the debtor
is liable for a recipient claim for a specified dollar amount due to
receiving excess food stamp benefits. State agencies are encouraged to
include as much other information about the claim as possible,
including such things as whether the claim was caused by household
error or intentional Program violation, the date of the initial demand
letter, any hearings or court actions which relate to the claim, and
what, if any, payments have reduced the amount of the original claim.
The advance notice must also state that the debtor was found
through a computer match to be employed by a Federal agency, and it
must state the name and address of the employing agency. The advance
notice must state that the computer match was conducted according to
procedures required by the Privacy Act of 1974, as amended. This
information is required so that debtors know the source of the
information about their employment and that it was obtained under
authority of law.
The advance notice must further advise debtors that the authority
to collect debts such as food stamp recipient claims from Federal
salaries is the Debt Collection Act of 1982. The advance notice must
also state that the subject claim will be referred to FNS for such
collection action unless, within 30 days of the date of the advance
notice, the State agency receives payment in full or an acceptable
installment payment on the claim. With respect to payments, the advance
notice must state several things. Claims of $50 or less must be paid in
full within 30 days or they will be referred for collection from the
debtor's Federal salary. Claims of more than $50, if not paid in full
within 30 days, must be paid in installments of at least $50 a month.
Debtors may pay more than $50 in any installment payment. The advance
notice must state the monthly due date of installment payments for the
claim and that if a monthly installment payment of at least $50 is not
received by the monthly due date, the claim will be referred to FNS for
salary offset with no further opportunity to enter a voluntary
repayment agreement.
The advance notice must also provide the name, address and phone
number of a State agency contact (an individual or unit) for repayment
and/or discussion of the claim. The advance notice must also advise
that debtors may submit documentation to State agencies showing such
things as payment of all or part of the claim, or that the claim is not
legally collectible. Second, unless such documentation clearly shows
that the claim has been paid or is not legally collectible, the State
agency will refer the claim to FNS for collection from the debtor's
salary. Third, State agencies will notify debtors in writing when
claims will not be referred for collection from salaries. Fourth,
debtors have the right to a formal appeal to FNS, and notice to debtors
about how to make such an appeal is required before any collection
action from salaries is taken.
d. State agency retention and reporting of collections. For
purposes of calculating amounts of collections which State agencies
retain, all claims collected under the provisions of this Notice will
be treated as if they were collected by the State agency. Specifically,
this Notice provides that, for recipient claims paid voluntarily and
through salary offsets, State agencies will retain collections at the
rates specified at 7 CFR 273.18(h) for the appropriate reporting period
for Form FNS-209, Status of Claims Against Households. From time to
time as volume warrants, FNS will provide reports and transfer amounts
collected from salaries to State agencies.
State agencies will report all collections on the FNS-209.
Annually, along with the referral to FNS of claims without the prompt
and adequate response required in this Notice, State agencies are
required to report to FNS the number and dollar amount of claims paid
and being paid by installments and the dollar amount of collections in
response to notices of intent. If a debtor fails to make an installment
payment, within 90 days of that default State agencies are required to
refer the claim to FNS, reporting the default, the dollar amount
collected and the balance due.
e. FNS Actions on Claims Referred by State Agencies. This Notice
states that, subject to certain modifications described below, the
procedures at 7 CFR 3.51-3.68 will apply to claims referred by State
agencies to FNS for salary offset.
Three additions will be made to the definitions set forth at 7 CFR
3.52. The term ``debts'' is further defined to include recipient claims
established according to 7 CFR 273.18, and the terms ``State agency''
and ``FNS'' are defined as set forth in 7 CFR 271.2.
The Departmental rules require that, using the Notice of Intent to
Offset Salary (notice of intent) set forth at 7 CFR 3.55, the
Department provide notice to the debtor 30 days prior to offsetting the
debtor's salary. This procedure and the notice of intent specified at 7
CFR 3.55 will be used for FSP recipient claims as described below.
The provisions of the notice of intent are largely self-
explanatory. The notice of intent sets forth the amount of the debt and
the facts which gave rise to it, and describes how the actual offset
will be conducted, including frequency and amount of the salary
deductions. The notice of intent advises the debtor about the method
and time period for requesting a hearing and that a timely hearing
request will stay the collection proceedings. The notice of intent also
advises how the hearing will be conducted, and the time frame for
issuance of decisions. It also advises the debtor of the penalties for
making or submitting any knowingly false or frivolous statements,
representations or evidence.
Three sections of the notice of intent require some additonal
explanation as applied to FSP recipient claims. First, 7 CFR 3.55(d)
requires that the notice of intent explain the Department's
requirements regarding payments of interest, penalties and
administrative costs, unless such payments are waived in accordance
with 31 U.S.C. 3717 and 7 CFR 3.34. These charges are being waived as
explained in detail below. Accordingly, the notice of intent for FSP
recipient claims will not include an explanation of these charges.
Second, 7 CFR 3.55(e) requires that the notice of intent explain the
debtor's right to inspect and copy Department records relating to the
debt. As explained below, for FSP recipient claims, the notice of
intent will also include an explanation of the right to request and
receive copies of the records from the Department, and a statement of
the time for making such a request, which is established under 7 CFR
3.60(a). Third, 7 CFR 3.55(f) requires that the Department's notice of
intent advise the debtor of the procedures for proposing a repayment
agreement in lieu of salary offset. As explained below, this
explanation and procedure will not be included in the FSP notice of
intent.
Departmental regulations at 7 CFR 3.65 and 3.55(d) set forth the
procedures for charging interest, penalties, and administrative costs
for salary offset. Current FSP regulations do not authorize collection
of interest, penalties or administrative costs for FSP recipient
claims. Accordingly, there are no administrative mechanisms in place
for the assessment and notice of such charges. The Department believes
that it would not be administratively cost effective or feasible to
establish such mechanisms for the purposes of this test of salary
offset. Therefore, pursuant to 7 CFR 3.34(c)(4), the Secretary has
determined that collection of such charges is not in the best interests
of the United States and hereby waives collection of such charges.
Accordingly, as noted above, the FSP notice of intent will not include
an explanation of interest and related charges.
Departmental regulations at 7 CFR 3.60 set forth procedures for the
review of Departmental records relating to debts to be collected by
salary offset, and provide that, upon a timely request, the Department
will permit debtors to inspect and copy those records. For purposes of
FSP salary offset, upon a debtor's request, the Department will also
provide copies of the records. The Department believes that this offer
is appropriate because the records will be located at the FNS National
Office while debtors are located throughout the country. For their
requests to be considered timely, as provided in 7 CFR 3.60(a), debtors
must submit a letter requesting copies of the records (or requesting an
opportunity to inspect or copy the records) within 30 calendar days of
the date of the FSP notice of intent. As stated above, the notice of
intent will advise debtors of these procedures and deadlines.
Departmental salary offset regulations at 7 CFR 3.61 provide
debtors the opportunity to propose a written repayment agreement in
lieu of salary offset, subject to approval by the Secretary. OPM
regulations at 5 CFR 550.1104(d)(6) provide that this opportunity is
not required if the debtor was previously provided such an opportunity.
Current FSP regulations at 7 CFR 273.18(g)(2) provide that opportunity
at the time of the initial demand letter on the recipient claim. The
State agency advance notice of salary offset offers a second such
opportunity. Accordingly, the FSP notice of intent will not offer
debtors an opportunity to enter into a written agreement to repay the
debt.
The remaining FSP salary offset procedures relate primarily to
hearings which debtors may request and to the procedures for the actual
offsets from salaries. These procedures shall operate as set forth in
the Departmental regulations, and they are briefly described below.
The Departmental regulation at 7 CFR 3.56 provides that debtors
have 30 days to request a hearing on the existence or amount of the
claim, or on the proposed offset schedule (rate and frequency of
offset), advises what information the debtor should include in the
request, and states the basis for accepting a late request. Section
3.57 provides that a hearing will not be granted if the employee fails
to request one as prescribed or fails to appear at the hearing. Section
3.58 describes how hearings will be conducted, and Section 3.59
specifies the format of written hearing decisions.
The Departmental regulation at 7 CFR 3.62 provides that deductions
will begin either: (1) as stated in the notice of intent; (2) after a
hearing in favor of the Secretary; or (3) through administrative offset
upon the employees retirement or resignation, as provided by 7 CFR 3.21
through 3.36. Section 3.63 provides that collections will be made in a
lump sum or installments, and will be by installments if the debtor
cannot repay the debt in one payment or the debt exceeds 15 percent of
disposable pay for a pay period. Section 3.64 provides that
installments will be at established pay intervals, bear a reasonable
relationship to the size of the debt, up to a maximum of 15 percent of
disposable pay, and specifies the types of pay which can be offset.
Section 3.66 provides that payment by salary offset will not be
interpreted as a waiver of any right the debtor may have under 5 U.S.C.
5514. Section 3.67 provides for the refund of amounts erroneously
offset from salaries under certain conditions such as an administrative
or judicial order.
General Notice
Recipient Claims Collection: Test of Federal Salary Offset Procedures
a. Claims subject to salary offset. All recipient claims submitted
by State agencies participating in the Federal income tax refund offset
program (FTROP) shall be subject to the matching procedures specified
in this Notice. Recipient claims identified by the match shall be
subject to the salary offset procedures specified in this Notice.
b. Identification of recipient claims owed by Federal employees.
(1) The Food and Nutrition Service (FNS) will match all recipient
claims submitted by State agencies participating in FTROP against
Federal employment records maintained by the Department of Defense
(DoD) and the U.S. Postal Service (USPS). FNS will remove recipient
claims matched during this procedure from the list of recipient claims
to be referred to the Internal Revenue Service (IRS) for collection
through FTROP.
(2) When FNS receives a list of Federal employees matched against
recipient claims for a particular State agency, it will notify the
State agency in writing accompanied by a data security and
confidentiality agreement containing the requirements specified in
paragraph b.(3) of this Notice for the State agency to sign and return.
When that agreement is returned, signed by an appropriate official of
the State agency, FNS will provide the list of matched Federal
employees to the State agency.
(3) State agencies which receive lists of matched Federal employees
shall take the actions specified in this paragraph to ensure the
security and confidentiality of information about those employees and
their apparent debts, and shall ensure that any contractors or other
non-State agency entities to which the records may be disclosed also
take these actions:
(i) By such means as card keys, identification badges and security
personnel, limit access to computer facilities handling the data to
persons who need to perform official duties related to the salary
offset procedures. By means of a security package, limit access to the
computer system itself to such persons;
(ii) During off-duty hours, keep magnetic tapes and other hard copy
records of data in locked cabinets in locked rooms. During on-duty
hours, maintain those records under conditions that restrict access to
persons who need them in connection with official duties related to
salary offset procedures;
(iii) Use the data solely for salary offset purposes as specified
in this Notice, including not extracting, duplicating or disseminating
the data except for salary offset purposes;
(iv) Retain the data only as long as needed for salary offset
purposes as specified in this Notice, or as otherwise required by FNS;
(v) Destroy the data by shredding, burning or electronic erasure;
(vi) Advise all personnel having access to the data about the
confidential nature of the data and their responsibility to abide by
the security and confidentiality provisions of this Notice.
(4) Prior to taking any action to collect recipient claims as
specified in this Notice, State agencies shall review the lists of
matched Federal employees to verify the amount owed, and to remove
recipient claims which have been paid, which are being paid according
to an agreed to schedule, or which for other reasons are not
collectible.
c. State agency advance notice of salary offset. (1) Following the
review specified in paragraph b.(4) of this Notice, State agencies
shall provide each Federal employee verified as owing a recipient claim
(debtor) with an advance notice of salary offset (advance notice). The
advance notice shall be mailed to the debtor at the address provided by
FNS, or shall be otherwise provided, within 60 days of State agency
receipt of the list specified in paragraph b.(2) of this Notice.
(2) Within 90 days of the date of the advance notice, the State
agency shall refer to FNS all claims for which the State agency does
not receive timely and adequate response as specified in the advance
notice. Such referral to FNS shall consist of a copy of the advance
notice sent to the debtor and copies of records relating to the
recipient claim. The records relating to the recipient claim shall
consist of all written records of actions relating to the claim. Such
records shall include demand letters, results of fair hearings, advance
notices of disqualification hearings, the results of such hearings, any
legal actions, records of payments and correspondence subsequent to the
advance notice.
(3) The advance notice shall state that:
(i) According to State agency records the debtor is liable for a
claim for a specified dollar amount due to receiving excess food stamp
benefits. State agencies are encouraged to include as much other
information about the claim as possible, including such things as
whether it was caused by household error or intentional Program
violation, the date of the initial demand letter, any hearings or court
actions which relate to the claim, and what if any payments have
reduced the amount of the original claim;
(ii) Through a computer match the debtor was found to be employed
by [the name and address of the employing agency of the debtor]. The
computer match was conducted under the authority of and according to
procedures required by the Privacy Act of 1974, as amended;
(iii) Collection from the wages of Federal and USPS employees for
debts such as food stamp recipient claims is authorized by the Debt
Collection Act of 1982. The claim will be referred to FNS for such
collection action unless within 30 days of the date of the advance
notice the State agency receives:
(A) Payment of the claim in full. Claims of $50 or less shall be
paid in full within 30 days or they will be referred for collection
from the debtor's Federal salary; or
(B) The first installment payment for the claim. Claims of more
than $50, if not paid in full within 30 days, must be paid in
installments of at least $50 a month. Debtors may pay more than $50 on
any installment payment. The advance notice shall state the monthly due
date of installment payments and that if any monthly installment
payment of at least $50 is not received by the due date, the claim will
be referred to FNS for offset from the individual's Federal salary with
no further right to enter a voluntary repayment agreement;
(iv) The name, address and phone number of a State agency contact
(an individual or unit) for payment and/or discussion of the claim; and
(v) Debtors may submit documentation to State agencies showing such
things as payments of claims or legal bars to collection of claims.
Unless such documentation clearly shows that the claim has been paid or
is not legally collectible, the State agency shall refer the claim to
FNS for collection from the debtor's salary. The State agencies shall
notify debtors in writing when claims for which an advance notice will
not be referred for collection from salaries. Debtors have the right to
a formal appeal to FNS, and notice to debtors about how to make such
appeals is required before any collection action from salaries is made.
d. State agency retention and reporting of collections. (1) State
agencies shall retain collections of recipient claims paid voluntarily
to State agencies and collected by FNS through salary offset at the
rates specified at 7 CFR 273.18(h) for the appropriate reporting period
for Form FNS-209, Status of Claims Against Households. From time to
time as volume warrants, FNS will provide reports and will transfer
amounts collected from salaries to State agencies. State agencies shall
report these collections on the FNS-209.
(2) Annually, along with referral to FNS of claims without response
as required in paragraph c.(2) of this Notice, State agencies shall
report to FNS the number of claims paid and being paid by installments
and the dollar amounts of collections in response to advance notices.
If a debtor fails to make an installment payment, within 90 days of
that default State agencies are required to refer the claim to FNS,
reporting the default, the dollar amount collected and the balance due.
e. FNS actions on claims referred by State agencies. Departmental
procedures at 7 CFR 3.51-3.68 shall apply to claims referred by State
agencies to FNS as required by paragraphs c.(2) and d.(2) of this
Notice subject to the following modifications:
(1) In addition to the definitions set forth at 7 CFR 3.52, the
term ``debts'' shall further be defined to include recipient claims
established according to 7 CFR 273.18; and the terms ``State agency''
and ``FNS'' shall be defined as set forth in 7 CFR 271.2;
(2) Pursuant to 7 CFR 3.34(c)(4) and 7 CFR 3.55(d), the Secretary
has determined that collection of interest, penalties and
administrative costs provided at 7 CFR 3.65 is not in the best
interests of the United States and hereby waives collection of such
charges;
(3) In addition to providing the right to inspect and copy
Departmental records as specified at 7 CFR 3.60(a), the Secretary shall
provide copies of records relating to the debt in response to timely
requests. For a request to be timely, FNS must receive it within 30
calendar days of the date of the notice of intent;
(4) Pursuant to 5 CFR 550.1104(d)(6), an opportunity to establish a
written repayment agreement as set forth at 7 CFR 3.61 will not be
provided; and
(5) The notice of intent for FSP salary offset shall comply with
the requirements of the Departmental notice of intent which are set
forth at 7 CFR 3.55, subject to the following modifications:
(i) In addition to the statement that the debtor has the right to
inspect and copy Departmental records relating to the debt, the notice
of intent shall state that the Secretary shall, if timely requested by
the debtor, provide copies of such records. It shall further advise, as
required by 7 CFR 3.60(a), that to be timely such requests must be
received within 30 days of the date of the notice of intent; and
(ii) The statement of the right to enter a written repayment
agreement provided by 7 CFR 3.55(f) shall not be included.
Dated: August 21, 1994.
Ellen Haas,
Assistant Secretary for Food and Consumer Services.
[FR Doc. 94-21186 Filed 8-26-94; 8:45 am]
BILLING CODE 3410-30-P
