36670 Federal Register / Vol. 85, No. 117 / Wednesday, June 17, 2020 / Rules and Regulations DEPARTMENT OF AGRICULTURE FOR FURTHER INFORMATION CONTACT: For been in 7 CFR part 792. In addition, information, contact Iris Roseboro; regulations in 7 CFR parts 1951 and Office of the Secretary telephone: (202) 720–6257; email: 1956 have been used by FSA in the [email protected]. Persons with settlement and adjustments of FSA farm 7 CFR Part 3 disabilities who require alternative loans made under the Consolidated means for communication should Farm and Rural Development Act Federal Crop Insurance Corporation contact the USDA Target Center at (202) (ConAct) and debts related to those 720–2600 (voice). loans. This rule removes 7 CFR part 792 7 CFR Part 400 SUPPLEMENTARY INFORMATION: and 7 CFR part 1951, subpart C. Since 7 CFR part 1956 is also used by the Background Farm Service Agency Rural Development of USDA (RD), those The regulations in 7 CFR part 3 (part regulations are not deleted but are 7 CFR Parts 761, 765, 766, 772, and 792 3) specify the general regulations amended to state affirmatively that they applicable to debt collection activities of do not apply to loans made by FSA and Commodity Credit Corporation USDA agencies and specify the amount debts relating to such loans. In those of civil penalties that USDA agencies limited instances where provisions of 7 7 CFR Part 1403 levy as authorized by law. Federal CFR parts 792, 1951, and 1956 will agencies are required by several laws to continue to be used because of their Farm Service Agency collect debts owed to the United States, specific application to FSA debts, the principally DCIA. Several USDA provision has been included in part 3; Rural Housing Service agencies issued debt collection for the provisions that will continue to regulations prior to the enactment of only be used for Farm Loan Programs, Rural Business-Cooperative Service DCIA and the provisions of 7 CFR 3.1(b) the provisions have been included in 7 allow individual USDA agencies to CFR part 761 as subpart F. Rural Utilities Service issue regulations to supplement part 3. RD also has debt settlement authority The Office of the Chief Financial under the ConAct and The Housing Act 7 CFR Parts 1951 and 1956 Officer (OCFO), USDA, is reviewing the of 1949 (Housing Act). The following individual agency regulations and list of RD’s implementing debt [Docket ID USDA–2019–0007] procedures in order to ensure that all settlement regulations authorized by the agencies’ individual debt collection ConAct and the Housing Act that are RIN 0560–AA16 policies align with government-wide excepted from part 3 are: policies, as well as the specific policies • 7 CFR part 1717, subpart Y; Debt Management of the Secretary. For purposes of this • 7 CFR part 1752; review, a ‘‘debt’’ is a delinquent amount • AGENCY: Office of the Secretary, 7 CFR 1782.20; owed to the United States and does not • 7 CFR 1951.213; Commodity Credit Corporation, Farm include the entire outstanding amount • 7 CFR part 1956; Service Agency, Federal Crop Insurance of a loan made by an agency when the • 7 CFR part 3550, subpart F; Corporation, Rural Housing Service, borrower is making scheduled loan • 7 CFR 3560.457; and Rural Business-Cooperative Service, and payments as required by the loan • 7 CFR 3565.56. Rural Utilities Service, USDA. agreement. If a USDA agency Additionally, 7 CFR part 1951, ACTION: Final rule. determines that a borrower is subpart C, RD regulations that delinquent on a loan payment, the previously implemented the Debt SUMMARY: The general debt management delinquent amount will be considered Collection Improvement Act are being regulations of the Department of to be a ‘‘debt’’ for purposes of part 3 and replaced by part 3 and therefore are Agriculture (USDA) provide that the agency will be required to give all being removed, as stated above. individual USDA agencies may issue due process notices prior to proceeding Exceptions are included in the regulations for their own specific debt with debt collection actions, including regulation for CCC and FCIC. CCC and collection activities principally in administrative offset or salary offset and FCIC are wholly-owned government recognition that the agencies conducted referral to the Department of Treasury corporations and each have debt collection activities prior to the for centralized offset. The intent of this independent settlement authority under enactment of the Debt Collection review is to consolidate the debt their respective authorizing laws. Improvement Act of 1996 (DCIA). Many collection and settlement regulations of Accordingly, while the debt collection of the provisions of individual agencies USDA in one location to ensure regulations for these entities have been are redundant to part 3. This rule will consistency and uniformity in deleted, provisions have been included eliminate the debt collection regulations operations of USDA agencies. This in part 3 to recognize the ability of these of the following USDA agencies, and action is not intended to make any corporations to settle and adjust claims part 3 will be revised to include specific substantive changes in USDA policy or without referral to the Department of provisions used by these agencies: the procedure or to impose any additional Justice. In addition, this rule revises part Commodity Credit Corporation (CCC); burden on a person who is indebted to 3 to make clear that, in those instances the Federal Crop Insurance Corporation the United States. where a debt has been incurred by a (FCIC), and the Farm Service Agency The amendments made by this final foreign obligor and is potentially (FSA). In addition, as required by the rule incorporate the results of this susceptible to the bankruptcy or Federal Civil Penalties Inflation review by CCC, FSA, the Foreign insolvency laws of a foreign Adjustment Improvements Act of 2015 Agricultural Service (FAS), FCIC, the jurisdiction, the provisions of part 3 are (the 2015 Civil Penalties Act), this rule Natural Resources Conservation Service not applicable. Principally, these updates the size of civil monetary (NRCS), and the Risk Management instances of foreign debt collection arise penalties to reflect inflationary Agency (RMA). under CCC programs which authorize adjustments for 2020. FSA’s principal debt settlement CCC to make payments to entities who DATES: Effective: June 17, 2020. regulations that supplement part 3 have have financed exports of US agricultural VerDate Sep<11>2014 16:58 Jun 16, 2020 Jkt 250001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\17JNR2.SGM 17JNR2 khammond on DSKJM1Z7X2PROD with RULES2 Federal Register / Vol. 85, No. 117 / Wednesday, June 17, 2020 / Rules and Regulations 36671 products and the foreign obligor does net benefits (including potential regulations and to consolidate current not make full payment to the exporter economic, environmental, public health debt collection regulations of three or the exporter’s assignee. In these and safety effects, distributive impacts, UDSA agencies at one USDA-wide programs, CCC retains the right to and equity). Executive Order 13563 regulation. Accordingly, this action does pursue collection from the obligor, and emphasized the importance of not require an analysis under the often these matters fall within the quantifying both costs and benefits, of National Environmental Policy Act jurisdiction of a foreign court. reducing costs, of harmonizing rules, (NEPA). NRCS, FAS, and RMA do not have and of promoting flexibility. The Executive Order 12372 agency specific debt collection requirements in Executive Orders 12866 regulations and currently follow part 3. and 13573 for the analysis of costs and Executive Order 12372, Accordingly, no action was necessary to benefits apply to rules that are ‘‘Intergovernmental Review of Federal delete existing regulations or revise part determined to be significant. Executive Programs,’’ requires consultation with 3. Order 13777, ‘‘Enforcing the Regulatory State and local officials that would be This rule also revises subpart I of part Reform Agenda,’’ established a federal directly affected by proposed Federal 3 to update the amount of civil policy to alleviate unnecessary financial assistance. The objectives of monetary penalties that may be levied regulatory burdens on the American the Executive Order are to foster an by USDA agencies to reflect inflationary people. intergovernmental partnership and a adjustments for 2020 as required by the The Office of Management and Budget strengthened federalism, by relying on 2015 Civil Penalties Act. As required by (OMB) designated this rule as not State and local processes for State and the 2015 Civil Penalties Act, the annual significant under Executive Order local government coordination and adjustment was made for inflation based 12866, and therefore, OMB has not review of proposed Federal financial on the Consumer Price Index for the reviewed this rule and an analysis of assistance and direct Federal month of October 2019 and rounded to costs and benefits is not required under development. For reasons specified in the nearest dollar after an initial either Executives Orders 12866 or the final rule related notice regarding 7 adjustment. The civil monetary 13563. CFR part 3015, subpart V (48 FR 29115, penalties are listed according to the Executive Order 13771, ‘‘Reducing June 24, 1983), the programs and applicable administering agency. Regulation and Controlling Regulatory activities within this rule are excluded Costs,’’ requires that, in order to manage from the scope of Executive Order Effective Date and Notice and Comment the private costs required to comply 12372. The action taken by this rule: with Federal regulations, for every new Consolidates at 7 CFR part 3 existing significant or economically significant Executive Order 12988 debt collection regulations used by regulation issued, the new costs must be This rule has been reviewed under certain USDA agencies; eliminates offset by the elimination of at least two Executive Order 12988, ‘‘Civil Justice obsolete debt collection regulations; and prior regulations.