Unknown. Final rule

8,240 words·~37 min read·/register/2000/07/05/00-16944

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2000-07-05.xml --- 65 129 Wednesday, July 5, 2000 Contents Agency Agency for Toxic Substances and Disease Registry NOTICES Meetings: Hanford Health Projects Inter-tribal Council et al., 41468-41469 00-16845 Public Health Service Activities and Research at DOE Sites Citizens Advisory Committee, 41469 00-16848 Agriculture Agriculture Department See Commodity Credit Corporation See Food and Nutrition Service See Forest Service Army Army Department NOTICES Meetings: Reserve Officer's Training Corps

(ROTC)Program Subcommitte, 41448 00-17010 Bonneville Bonneville Power Administration NOTICES Floodplain and wetlands protection; environmental review determinations; availability, etc.: Condon Wind Project, OR, 41450-41451 00-16929 Broadcasting Broadcasting Board of Governors NOTICES Meetings; Sunshine Act, 41429 00-17103 Centers Centers for Disease Control and Prevention NOTICES Committees; establishment, renewal, termination, etc.: Diabetes Prevention and Control Programs Translation Advisory Committee, 41469 00-16847 Grants and cooperative agreements; availability, etc.: Human immunodeficiency virus (HIV)— HIV/AIDS Prevention Program; development and technical assistance collaboration with countries targeted by LIFE initiative, 41470-41471 00-16850 Meetings: Human immunodeficiency virus (HIV)— National HIV Prevention Plan, 41471 00-16846 National Institute for Occupational Safety and Health— Respiratory protective devices; quality assurance and administrative approval requirements, 41472 00-16849 Coast Guard Coast Guard RULES Ports and waterways safety: Hudson River, NY; safety zone, 41342-41344 00-16889 Commerce Commerce Department See Economics and Statistics Administration See Export Administration Bureau See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Commodity Credit Corporation NOTICES Agency information collection activities: Proposed collection; comment request, 41428 00-16891 Comptroller Comptroller of the Currency NOTICES Agency information collection activities: Submission for OMB review; comment request, 41520-41522 00-16843 00-16893 Copyright Copyright Office, Library of Congress NOTICES Copyright claims registration: Policy statement, 41508-41509 00-16888 Defense Defense Department See Army Department Economics Economics and Statistics Administration NOTICES Meetings: 2000 Census Advisory Committees, 41429 00-16806 Education Education Department NOTICES Grants and cooperative agreements; availability, etc.: Educational research and improvement— Foreign language proficiency program, 41535-41536 00-16907 Postsecondary education— Community scholarship mobilization program, 41448-41449 00-16906 Energy Energy Department See Bonneville Power Administration See Federal Energy Regulatory Commission NOTICES Electricity export and import authorizations, permits, etc.: Morgan Stanley Capital Group Inc., 41449-41450 00-16930 Split Rock Energy LLC, 41449 00-16807 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: Indiana, 41350-41355 00-16070 00-16361 Massachusetts, 41344-41346 00-15909 Oregon, 41346-41350 00-16068 Virginia; correction, 41525 C0-9535 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities: Bacillus subtillis strain QST 713, 41365-41369 00-16803 Methoxyfenozide etc., 41355-41365 00-16801 Superfund program: National oil and hazardous substances contingency plan— National priorities list update, 41369-41371 00-16513 Toxic substances: Preliminary assessment information and health and safety data reporting— Alkylphenols etc., 41371-41376 00-16802 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: Indiana, 41390-41391 00-16071 00-16362 Massachusetts, 41389-41390 00-15910 Oregon, 41390 00-16069 Superfund program: National oil and hazardous substances contingency plan- National priorities list update, 41392-41393 00-16514 Water pollution; effluent guidelines for point source categories: Centralized waste treatment and landfills, 41391-41392 00-16756 NOTICES Pesticides; tolerances in food, animal feeds, and raw agricultural commodities: Imidacloprid, 41455-41460 00-16765 Executive Executive Office of the President See Presidential Documents See Trade Representative, Office of United States Export Export Administration Bureau NOTICES Meetings: North Korea; easing of sanctions, 41429-41430 00-16886 Farm Farm Credit Administration NOTICES Privacy Act: Systems of records, 41460 00-16908 FAA Federal Aviation Administration RULES Airworthiness directives: Eurocopter Deutschland GmbH, 41326-41328 00-16781 Class E airspace, 41328-41329 00-16918 Jet routes; correction, 41329-41330 00-16915 VOR Federal airways; correction, 41330 00-16914 PROPOSED RULES Airworthiness directives: McDonnell Douglas, 41385-41387 00-16927 Raytheon, 41381-41384 00-16852 Class E airspace, 41387-41388 00-16919 Procedural rules: Flight Operational Quality Assurance Program; voluntary implementation, 41527-41534 00-16884 VOR Federal airways, 41388-41389 00-16916 NOTICES Advisory circulars; availability, etc.: Controls for general aviation reciprocating aircraft engines; installation, inspection and maintenance, 41517 00-16917 Passenger facility charges; applications, etc.: El Paso International Airport, TX, 41517 00-16921 Fayetteville Regional Airport, NC, 41517-41518 00-16920 FCC Federal Communications Commission RULES Radio stations; table of assignments: California, 41376 00-16867 Iowa, 41377-41378 00-16871 Louisiana, 41376-41377 00-16869 00-16870 Oregon, 41376 00-16866 PROPOSED RULES Radio and television broadcasting: Experimental broadcast stations; ownership prohibition, 41401-41404 00-16821 Major television networks; ownership prohibition, 41393-41401 00-16820 Radio stations; table of assignments: New York, 41401 00-16868 NOTICES Agency information collection activities: Reporting and recordkeeping requirements, 41461-41462 00-16818 Submission for OMB review; comment request, 41462, 00-16819 41463 00-16872 Common carrier services: 800 MHz Specialized Mobile Radio Service in the General Category band (851-854 MHz); licenses auctioned within economic area near Canadian and Mexican border, 41463-41464 00-16899 Meetings: North American Numbering Council, 41464-41465 00-16864 Rulemaking proceedings; petitions filed, granted, denied, etc., 41465 00-16822 FDIC Federal Deposit Insurance Corporation NOTICES Agency information collection activities: Submission for OMB review; comment request, 41520-41521 00-16843 Federal Emergency Federal Emergency Management Agency NOTICES Disaster and emergency areas: Tennessee, 41465-41466 00-16909 00-16910 Grants and cooperative agreements; availability, etc.: Public assistance program, 41466 00-16911 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings: Entergy Services, Inc., et al., 41452-41454 00-16837 Environmental statements; availability, etc.: Gross Reservoir Hydroelectric Project, CO, 41455 00-16839 *Applications, hearings, determinations, etc.:* Commonwealth Edison Co., 41451 00-16840 New England Power Co. et al., 41452 00-16841 Transcontinental Gas Pipe Line Corp., 41452 00-16838 Federal Highway Federal Highway Administration NOTICES Environmental statements; availability, etc.: Douglas County, CO, 41518-41519 00-16853 Federal Reserve Federal Reserve System NOTICES Agency information collection activities: Submission for OMB review; comment request, 41520-41521 00-16843 Banks and bank holding companies: Change in bank control, 41466-41467 00-16834 00-16835 Formations, acquisitions, and mergers, 41467 00-16832 00-16833 Permissible nonbanking activities, 41467-41468 00-16836 Meetings; Sunshine Act, 41468 00-17123 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Treasury Tax and Loan Program; enhancements, 41522-41523 00-16831 Fish Fish and Wildlife Service PROPOSED RULES Endangered and threatened species: Critical habitat designations— Spectacled eider and Steller's eider, 41404-41405 00-16923 Fishery conservation and management: Critical habitat designations— Peninsular bighorn sheep, 41405-41424 00-16925 Food Food and Drug Administration RULES Medical devices: Class III preamendments obstetrical and gynecological device; premarket approval; effective date approval, 41330-41332 00-16808 NOTICES Agency information collection activities: Proposed collection; comment request, 41472-41473 00-16812 Submission for OMB review; comment request, 41473-41474 00-16813 Meetings: Medical Devices Advisory Committee, 41474-41476 00-16809 00-16810 New product applications review process; interactive workshop, 41476 00-16963 Transmissible Spongiform Encephalopathies Advisory Committee, 41476 00-16811 Food Food and Nutrition Service RULES Food stamp program: Electronic benefit transfer system; adjustments, 41321-41326 00-16944 Foreign Foreign Assets Control Office RULES Foreign narcotics kingpin sanctions regulations, 41334-41342 00-16844 Foreign Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Colorado Quantum Corp.; data storage systems manufacturing facility, 41430-41431 00-16957 Forest Forest Service NOTICES Environmental statements; availability, etc.: Monongahela National Forest, WV, 41428-41429 00-16855 GSA General Services Administration RULES Federal Acquisition Regulation (FAR): Payment information; rewrite and clarification of provisions and clauses applicable to contract actions under Javits-Wagner-O’Day Act, 41378-41380 00-16766 Health Health and Human Services Department See Agency for Toxic Substances and Disease Registry See Centers for Disease Control and Prevention See Food and Drug Administration See Health Care Financing Administration See Indian Health Service See Substance Abuse and Mental Health Services Administration NOTICES Scientific misconduct findings; administrative actions: Qian, Jin, 41468 00-16876 Health Health Care Financing Administration NOTICES Meetings: Medicare— Drugs and biologicals that cannot be self-administered; coverage, 41477-41478 00-16887 Housing Housing and Urban Development Department PROPOSED RULES Mortgage and loan insurance programs: Multifamily projects; prohibited purchasers in foreclosure sales, 41537-41539 00-16804 NOTICES Agency information collection activities: Proposed collection; comment request, 41482-41483 00-16805 Submission for OMB review; comment request, 41483-41485 00-16958 00-16959 00-16960 Immigration Immigration and Naturalization Service NOTICES Agency information collection activities: Proposed collection; comment request, 41490 00-16928 Indian Indian Health Service NOTICES Grants and cooperative agreements; availability, etc.: Health Professions Educational Loans Repayment Program, 41478-41480 00-16875 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Minerals Management Service See Surface Mining Reclamation and Enforcement Office IRS Internal Revenue Service RULES Income taxes: Grantor; definition, 41332-41334 00-16931 NOTICES Agency information collection activities: Proposed collection; comment request, 00-16797 41523-41524 00-16798 Meetings: Citizen Advocacy Panels— Brooklyn District, 41524 00-16799 International International Trade Administration NOTICES Antidumping: Cased pencils from— China, 41431-41432 00-16955 Fresh garlic from— China, 41432-41433 00-16954 Grain-oriented electrical steel from— Italy and Japan, 41433-41434 00-16951 Internal combustion forklift trucks from— Japan, 41434 00-16950 Paper clips from— China, 41434-41435 00-16953 Pure magnesium from— Canada, 41436-41437 00-16946 Structural steel beams from— South Korea, 41437-41439 00-16952 Uranium from— Russia, 41439-41441 00-16948 Uzbekistan, 41441-41443 00-16949 Cheese quota; foreign government subsidies: Quarterly update, 41443-41444 00-16956 Countervailing duties: Pure magnesium and alloy magnesium from— Canada, 41444-41445 00-16947 International International Trade Commission NOTICES Import investigations: Ammonium nitrate from— Russia, 41489 00-17044 Meetings; Sunshine Act, 41489-41490 00-17041 Justice Justice Department See Immigration and Naturalization Service See Justice Programs Office Justice Justice Programs Office NOTICES Reports and guidance documents; availability, etc.: Defense Procurement Fraud Debarment Program Guide, 41490-41491 00-16829 Federal Benefits for Drug Offenders Program Guide, 41491 00-16830 Labor Labor Department See Occupational Safety and Health Administration See Veterans Employment and Training, Office of Assistant Secretary NOTICES Agency information collection activities: Submission for OMB review; comment request, 41491-41492 00-16863 Land Land Management Bureau NOTICES Closure of public lands: Utah, 41485-41486 00-16827 Meetings: Great Basin Restoration Initiative, 41486 00-16828 Realty actions; sales, leases, etc.: Nevada, 41486-41487 00-16826 Library Library of Congress See Copyright Office, Library of Congress Minerals Minerals Management Service NOTICES Agency information collection activities: Submission for OMB review; comment request, 41487-41488 00-16817 NASA National Aeronautics and Space Administration NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive: AVIR, LLC, 41509 00-16901 Cytec Industries, Inc., 41509 00-16902 Vehicle Enhancement Systems, Inc., 41509 00-16900 National Highway National Highway Traffic Safety Administration NOTICES Motor vehicle safety standards; exemption petitions, etc.: General Motors Corp., 41519-41520 00-16890 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Reporting and recordkeeping requirements; correction, 41380 00-16940 Caribbean, Gulf, and South Atlantic fisheries— Gulf of Mexico Shrimp, 41380 00-16942 PROPOSED RULES Fishery conservation and management: West Coast State and Western Pacific fisheries— Pacific Coast groundfish, 41426-41427 00-16934 West Coast States and Western Pacific fisheries— Western Pacific region pelagic species, 41424-41426 00-16939 NOTICES Agency information collection activities: Proposed collection; comment request, 41445 00-16941 Meetings: Illegal, unregulated and unreported fishing; international action plan, 41445-41446 00-16937 New England Fishery Management Council, 41446 00-16936 Science Advisory Board, 41446-41447 00-16943 Permits: Marine mammals, 00-16935 41447-41448 00-16938 National Transportation National Transportation Safety Board NOTICES Meetings; Sunshine Act, 41509-41510 00-17124 Nuclear Nuclear Regulatory Commission NOTICES Agency information collection activities: Submission for OMB review; comment request, 41510 00-16897 Committees; establishment, renewal, termination, etc.: Medical Uses of Isotopes Advisory Committee, 41510-41511 00-16896 Meetings: Mixed oxide fuel fabrication facility; licensing process, 41511 00-16898 Meetings; Sunshine Act, 41511 00-17067 Occupational Occupational Safety and Health Administration NOTICES Occupation safety and health of contractor employees at DOE site; jurisdiction and enforcement responsibilities; clarification, 41492-41493 00-16862 Office Office of the Special Counsel NOTICES Agency information collection activities: Submission for OMB review; comment request, 41512-41513 00-16945 Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Presidential Presidential Documents EXECUTIVE ORDERS Presidential Medal of Valor for Public Safety Officers; establishment (EO 13161), 41543 00-17174 PROCLAMATIONS Albania and Kyrgyzstan; extending normal trade relations status (Proc. 7326), 41547-41548 00-17184 Taliban; continuation of national emergency )Notice of June 30, 2000), 41549 00-17185 Public Public Debt Bureau See Fiscal Service Public Public Health Service See Agency for Toxic Substances and Disease Registry See Centers for Disease Control and Prevention See Food and Drug Administration See Indian Health Service See Substance Abuse and Mental Health Services Administration SBA Small Business Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 41511-41512 00-16800 Special Special Counsel Office See Office of the Special Counsel State State Department NOTICES Art objects; importation for exhibition: Drink and Be Merry: Wine and Beer in Ancient Times, 41513 00-16905 Grants and cooperative agreements; availability, etc.: Eastern Europe and Independent States of Former Soviet Union Research and Training Program, 41513-41514 00-16904 Meetings: Universal Postal Union— Reform initiatives; briefing, 41514 00-16903 Substance Substance Abuse and Mental Health Services Administration NOTICES Federal agency urine drug testing; certified laboratories meeting minimum standards, list, 41480-41482 00-16851 Surface Surface Mining Reclamation and Enforcement Office NOTICES Agency information collection activities: Proposed collection; comment request, 41488 00-16854 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.: West Texas & Lubbock Railroad Co., Inc., 41520 00-16856 Toxic Toxic Substances and Disease Registry Agency See Agency for Toxic Substances and Disease Registry Trade Trade Representative, Office of United States NOTICES Generalized System of Preferences: 2000 Annual GSP Country Eligibility Practices Review; petitions submission deadline, 41514-41515 00-16873 World Trade Organization: Korea; import of line pipe; safeguards, 41515-41516 00-16962 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See Federal Highway Administration See National Highway Traffic Safety Administration See Surface Transportation Board NOTICES Aviation proceedings: Agreements filed; weekly receipts, 41516 00-16825 Certificates of public convenience and necessity and foreign air carrier permits; weekly applications, 41516 00-16824 Treasury Treasury Department See Comptroller of the Currency See Fiscal Service See Foreign Assets Control Office See Internal Revenue Service Veterans Veterans Employment and Training, Office of Assistant Secretary NOTICES Grants and cooperative agreements; availability, etc.: Rural Homeless Veterans Reintegration Projects, 41493-41507 00-16861 Separate Parts In This Issue Part II Department of Transportation, Federal Aviation Administration, 41527-41534 00-16884 Part III Department of Education, 41535-41536 00-16907 Part IV Department of Housing and Urban Development, 41537-41539 00-16804 Part V The President, 41541-41543 00-17174 Part VI The President, 41545-41549 00-17184 00-17185 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. 65 129 Wednesday, July 5, 2000 Rules and Regulations DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Parts 272, 273 and 274 [Amdt. No. 378] RIN 0584-AC61 Food Stamp Program; Electronic Benefit Transfer Benefit Adjustments AGENCY: Food and Nutrition Service, USDA. ACTION: Final rule. SUMMARY: This action provides final rulemaking for an interim rule published on September 9, 1999. The final rule revises Food Stamp Program regulations pertaining to a State agency's ability to make an adjustment to a household's account in an Electronic Benefit Transfer system. It enables State agencies to make adjustments to correct system errors without sending households *advance* notice of the action but does require that households be notified of any such actions. The rule also defines the timeframes and other requirements for the adjustments. The final rule incorporates several changes in response to a number of comments the Department received on the interim rule. As a separate action, this regulation also adopts as final the requirements for re-presentation in the interim rule. State agencies may use re-presentation to recover funds when the host computer is inaccessible and there are insufficient funds to cover a manual transaction. DATES: This final rule is effective August 4, 2000. State agencies may begin implementing the rule August 4, 2000 but no later than January 2, 2001. FOR FURTHER INFORMATION CONTACT: Jeffrey N. Cohen, Chief, Electronic Benefit Transfer Branch, Benefit Redemption Division, Food and Nutrition Service, USDA, room 718, 3101 Park Center Drive, Alexandria, Virginia 22302, or telephone

(703)305-2517. SUPPLEMENTARY INFORMATION: Executive Order 12866 This final rule has been determined to be non-significant for purposes of Executive Order 12866 and therefore was not reviewed by the Office of Management and Budget. Public Law 104-4 Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. L. 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, the Food and Nutrition Service generally must prepare a written statement, including a cost-benefit analysis, for proposed and final rules with “Federal mandates” that may result in expenditures by State, local or tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, Section 205 of the UMRA generally requires the Food and Nutrition Service to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective or least burdensome alternative that achieves the objectives of the rule. This final rule contains no Federal mandates (under the regulatory provisions of Title II of UMRA) for State, local and tribal governments or the private sector of $100 million or more in any one year. Thus, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. Executive Order 12372 The Food Stamp Program is listed in the Catalog of Federal Domestic Assistance under No. 10.551. For the reasons set forth in the final rule in 7 CFR part 3015, subpart V and related Notice (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 rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). Samuel Chambers, Jr., Administrator, Food and Nutrition Service, has certified that this final rule will not have a significant economic impact on a substantial number of small entities. Food stamp authorized retailers will be affected minimally. State and local welfare agencies will be the most affected to the extent that they administer the Program. Paperwork Reduction Act This rule does not contain reporting or recordkeeping requirements subject to approval by the Office of Management and Budget

(OMB)under the Paperwork Reduction Act of 1980 (44 U.S.C. 3507). Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is intended to have preemptive effect with respect to any State or local laws, regulations or policies which conflict with its provisions or which would otherwise impede its full implementation. This rule is not intended to have retroactive effect unless so specified in the “Dates” paragraph of this preamble. Prior to any judicial challenge to the provisions of this rule or the application of its provisions, all applicable administrative procedures must be exhausted. In the Food Stamp Program, the administrative procedures are as follows:

(1)For Program benefit recipients—State administrative procedures issued pursuant to 7 U.S.C. 2020(e)(1) and 7 CFR 273.15;

(2)for State agencies—administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 276.7 for rules related to non-quality control

(QC)liabilities or 7 CFR Part 283 for rules related to QC liabilities; and

(3)for Program retailers and wholesalers—administrative procedures issued pursuant to 7 U.S.C. 2023 set out at 7 CFR 278.8. Background In a State where food stamp benefits are issued using an Electronic Benefit Transfer System (EBT), Food Stamp Program

(FSP)participants purchase food by swiping their EBT card through a point-of-sale

(POS)machine at an authorized retailer. In the transaction, benefits move from the participants' accounts to the retailers' bank accounts. During normal EBT transaction processing, settlement of the transaction is completed when the transaction acquirer, typically a retail food store, has been properly credited for an amount equal to the amount debited from the household's benefit allotment. System malfunctions can cause an interruption to this process, resulting in a settlement condition that does not reflect the original transaction. Proposed regulations were published in the **Federal Register** on May 19, 1998 at 63 FR 27511 to change the way in which certain EBT error conditions are handled. Because of the complex nature of this issue and the substantive comments received to the proposed rule, the Department published an interim rule rather than a final rule in order to obtain further comments. The interim rule, published in the **Federal Register** September 9, 1999 at 64 FR 48933, implemented the proposed rule with some substantive changes as a result of comments received on the proposed rule. The interim rule requires State agencies to make adjustments to correct out-of-balance settlement conditions that do not reflect original EBT transactions as a result of system malfunctions. In cases where a store is not credited for the full transaction amount, the interim rule requires State agencies to make an adjustment by debiting the client household's account, provided a concurrent notice is sent to the household. The interim rule also requires State agencies to debit a household's future month's benefits to complete an adjustment. Apart and separate from system error adjustments, changes were also implemented for handling re-presentations when the system host computer cannot be accessed and there are insufficient funds in the household's account to cover a manual transaction. Readers should refer to the proposed and interim regulations for a more complete understanding of this final action. This final rule reflects further revisions to the regulations, taking into consideration all comments received on the interim rule. Comments on the interim rule were solicited through November 8, 1999. Seventeen comment letters were received in response. Individual comments were received from twelve State agencies. Of the remaining letters, 2 were from EBT processors, 1 was from a retailer association, 1 was from an alliance of States, networks, financial institutions and retailers, and 1 was from a credit card company. In general, the commenters supported the Department's efforts to streamline the adjustment process for certain types of system errors. However, the commenters still believe that the Department did not go far enough in doing so and that the EBT adjustment policy should be further simplified to more closely mirror procedures used to correct system errors in the commercial environment. The major comments are discussed below. General There is a significant difference between adjustments in an EBT environment and adjustments in a commercial environment. Processors treat commercial adjustments as routine corrections which do not require special notification to customers. However, commercial debit card customers do have protections found in Regulation E at 12 CFR part 205 (hereinafter “Reg. E”), that food stamp clients do not have. One important protection is the requirement that commercial debit card users receive monthly statements summarizing their account activities. The monthly statement provides the account holder notification after the fact that an adjustment was processed to the account. However, food stamp EBT users were explicitly exempted from Reg. E with the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104-193 (PRWORA). Requirements set forth in the Food Stamp Act of 1977, as amended, 7 U.S.C. 2019(e)(10), (FSA), and in the FSP regulations, require client notifications and rights to appeal when negative actions are taken. Because debit adjustments against a food stamp client's EBT account can be viewed as a type of adverse action, the same notice and appeal rights must be applied in these circumstances. The State agencies and other stakeholders continue to raise this as a primary concern due to the potential costs associated with notification and the fair hearing process. However, because of the statutory and regulatory provisions set up to protect food stamp households in situations of adverse action, and the gap left without the customer protections from Reg. E, these requirements remain unchanged in the final regulation. Several commenters expressed concern that there needs to be sufficient training for retailers and third party processors on how the adjustment rule will be implemented, especially those aspects of the rule dealing with liabilities and timeframes. Although not addressed in the regulation, the Department will work with State agencies to ensure that the appropriate level of information is made available to retailers and third party processors. We will also work with State agencies to determine how best to disseminate that information. Definitions The interim rule defined business days as Automated Clearing House

(ACH)days. Two commenters requested that instead of ACH days, we define business days as calendar days other than Saturdays, Sundays or Federal holidays. We have made this change at 7 CFR 274.12 (f)(4)(ii)(A) to make the rule language more universal. Another commenter requested that we clarify all references to “days” as either “calendar” or “business” days. Where appropriate, we have done so throughout the final rule. Future Month's Benefits The interim rule requires a debit adjustment from a recipient's account to be made from a future month's benefit, *i.e.,* benefits that are not in the account at the time the initial adjustment is attempted, but are issued in subsequent months. This would apply in situations where either:

(1)No benefits are available in the client account when the adjustment is attempted, or

(2)only a portion of the benefits required for the full adjustment is available at the time the adjustment is attempted. Two commenters provided general support of collection against future month's benefits. One commenter, however, asked for clarification on what was meant in the interim rule by requiring State agencies to collect from future months in which there has been a break in benefits. In the interim rule, State agencies are required to complete an outstanding adjustment that exists for a household that comes back on to the FSP after being off the Program for a period of time. This would require debiting the household's account in a month other than when the error occurred, *i.e.,* use their future month's benefits. Two commenters suggested limiting the number of months processors must attempt adjustments against a client's account, *e.g.,* 1 future month, before the adjustment debt is canceled. Limiting the number of months an adjustment must be carried over until it is satisfied reduces the length of time State agencies and processors must track and account for an adjustment. Consequently, State agencies will also be relieved of tracking adjustments that cannot be collected from a household that leaves the FSP, regardless of whether that household returns to the FSP at a future date. The Department is convinced that limiting the length of time the State agency may attempt an adjustment to one future month greatly reduces costs and makes this operation much more manageable. The Department is further convinced that this change will not significantly impact the number of adjustments that can be completed for the full amount. This is consistent with data that shows the average EBT transaction amount is $20, and therefore, most adjustments will be fully satisfied after going against no more than one future month's issuance. The final rule reflects this change. At 7 CFR 274.12(f)(4)(ii), the interim rule states that, by definition, the amount of an adjustment cannot differ from the value of the original transaction. In response to three commenters, we are removing this language from the rule because it does not account for the possibility of partial adjustments in the current month, and again in future months. This language becomes more problematic now that we are limiting the State agencies' access to one future month's benefits to make an adjustment. In some cases, it is possible that the State agency will not be able to collect anything from a household, or only a portion of a total adjustment because the household has left the FSP, or they have a minimal benefit issuance that will not cover the full adjustment in the next month. However, the Department is clarifying that we are not requiring State agencies to settle partial adjustments to retailer accounts. We have been informed that many acquirers' systems cannot accept partial adjustment amounts that do not match the original error transaction and prefer receiving no credit rather than a partial credit. In cases where the State agency chooses not to settle a partial adjustment to the acquirer, the adjustment amount must be returned to the household account. Another commenter raised the concern that making a partial adjustment in the current month, then another partial adjustment in the next month is problematic. This is another example where tracking and settling the adjustment becomes complicated by the likelihood of multiple transactions to complete a full adjustment. The suggested solution from the commenter was to place a hold on a partial adjustment available in the current month, then move the funds at one time, as a single adjustment, after the next month's benefits are issued. This reduces the number of transactions required to make an adjustment when going against a future month's benefits. We can see the merit in this approach and will allow State agencies to handle the process in this way, so long as the notification to households:

(1)Is sent at the time the initial hold is placed on the current month's remaining available funds, if any;

(2)clearly states the full adjustment amount; and

(3)advises the household that any amount still owing is subject to collection from the household's next future month's benefits. To reduce the possibility of creating a hardship on the household, the processor must place a hold on whatever portion of the adjustment is available in the current month rather than wait to debit the entire adjustment amount from the household's next month's issuance. Two commenters suggested dropping the language at 7 CFR 274.12(f)(4)(ii), which provides that “[a] State agency shall make adjustments to an account after the availability date * * *,” because it implies that adjustments can never be made before the availability date. We have re-worded this paragraph to clarify that State agencies must make adjustments to correct system errors and that those adjustments may be made after the availability date. This distinguishes system error adjustments from other types of adjustments to client EBT accounts which may not be made after the benefit availability date. The Department will require State agencies to amend training materials to disclose information to households about adjustments, including the possibility that an adjustment can be made against a future month's benefit. Training materials must also inform households of their right to a fair hearing if they do not feel that the adjustment is warranted and their right to receive a credit for the adjustment amount pending a fair hearing decision. Although one commenter questioned the sense of allowing State agencies a grace period to make changes to training materials, we have not changed the rule. State agencies may grandfather disclosure information on adjustments into their training materials if they have EBT systems that have been operational for one year from the date of this publication. However, as we discuss below, whenever a household's account is debited to make an adjustment, the State agency must provide the household concurrent notification of their rights to appeal and to provisional credits, including the possibility of adjustment from the next month's benefits. Notice and Fair Hearing Requirement When an adjustment will adversely affect the household, the interim rule requires State agencies to send a concurrent notice at the time the action is taken rather than an advance notice which must be sent 10 days before an action is taken. The concurrent notice gives households the right to a fair hearing and the right to be credited for the adjustment amount pending the outcome of the fair hearing. The majority of comments received on this subject continue to disagree with the notice requirement. However, as mentioned above, such notification is mandated by the FSA. Thus, the final rule remains unchanged in requiring concurrent notice to households. These notices must contain the level of detail described in current regulations at 7 CFR 273.13, *i.e.,* State agencies are required to include information about the circumstances which resulted in the adverse action. State agencies are encouraged to include as much detail about the transaction—date, time and location—as possible, since such information could reduce calls to the help desk as well as requests for fair hearings and provisional credits. Several commenters relayed concern that only one notice be required, even when partial adjustments are necessary from future months to recoup the full adjustment amount. It is the intent of this rule that only one notice be sent to a household informing it of the error and disclosing the full adjustment amount. The State agency must send the notice concurrent to taking initial action on the adjustment. Subsequent transactions to move the funds or otherwise complete the adjustment do not require additional household notification. It should be noted that all actions taken to reduce the household's allotment are subject to notice, including the correction of an erroneous adjustment that first went in the household's favor. No notice is necessary if an adjustment is a credit to the household account. The household has 90 days from the date of the notice to request a fair hearing. However, if the request is received within 10 days from the date of the notice, the household must be granted a provisional credit pending the fair hearing decision. Three commenters believe that merchants and/or processors need to have input into the fair hearing process. There is no prohibition against parties other than the State agency and the FSP households having input into the fair hearing process. We encourage State agencies to ensure that all parties involved in resolving an error have access to the fair hearing process. Provisional Credits Several comments were received relating to provisional credits pending fair hearing determination. There continues to be considerable confusion about how to handle provisional credits, specifically how to handle claims of system errors and how provisional credits should be funded. Commenters also continue to have questions regarding liabilities for provisional credits in various circumstances. First, the Department is clarifying that provisional credits are not required for denied system error claims initiated by client households. For example, a household claims that they are missing benefits from the EBT account as a result of a retailer's system problem, but the alleged system error cannot be substantiated with settlement data. In this case, the State agency may deny the adjustment. However, in so doing, they must also inform the household of their right to a fair hearing. In such a case, if the household does request a fair hearing, the State agency is not required to make a provisional credit to the household pending the fair hearing decision. Several commenters were also concerned with the complexity of the provisional credit process when a retailer requests an adjustment. The interim rule states that, when a client responds to a retailer-initiated adjustment by requesting a fair hearing and provisional credit, the State agency must notify the processor to initiate another adjustment to credit the recipient's account—presumably coming out of the retailer's account. This scenario becomes even further complicated in cases where the client's fair hearing is not upheld. At such time, the amount of the provisional credit must be debited from the client account and credited back to the retailer. Many commenters expressed concerns about the problems associated with State agencies and their processors having to track adjustments back and forth between the retailer and household accounts pending a fair hearing decision. There was also concern expressed about the likelihood that a household may spend the provisional credit and leave the FSP before it could be determined that the adjustment was in error. To simplify the process and reduce the risk involved in instances of retailer-initiated adjustments, the Department will require State agencies to have their processors place a hold on the adjustment amount in the client account pending a timely request for a provisional credit. If the household does not request a provisional credit within the 10-day timeframe allotted for doing so, the hold on the funds in the client account is released and the adjustment is made into the retailer's account. As discussed above, if there are insufficient funds to cover the full adjustment amount, the State agency may choose to maintain the hold until the next month's benefits are issued and settle the full adjustment amount. If the household does request the provisional credit, the hold is released and the funds remain in the client's account. Should the fair hearing decision go against the client, the adjustment amount will then be credited to the retailer's account. Four commenters felt that it was unfair to make retailers liable for provisional credits. Three commenters asked that we specify where provisional credits are to come from. Three other commenters suggested that government sources rather than private sources fund provisional credits. We are not changing the source of provisional credits in the final rule. However, we believe that, by not requiring provisional credits in instances of denied client-initiated adjustments, and by requiring State agencies to put a hold on an adjustment until after the time when a household can request a provisional credit, we have simplified the adjustment process and reduced the retailers' liability for unwarranted provisional credits. Four commenters supported the Department taking on the liability of funding credit adjustments to clients when the responsible retailers have left the FSP or otherwise refuse to fund a legitimate adjustment. The Department has determined that because these adjustments result from the State agency's system errors, the State is ultimately responsible for making the client whole in these instances. The number of these situations that are likely to occur are quite small given that adjustments occur infrequently and the majority of food stamp transactions take place in stores with historically low turnover in the FSP. Moreover, adjustment amounts as reported by retailers and processors are small. If a client household leaves the FSP before a credit adjustment has been completed for a retailer, the adjustment is discontinued. As was stated in the interim rule, collections made from clients that are not credited to retailers because they have left the FSP must be returned to the Department. Timeframes The interim rule distinguishes between adjustments generated by retailers and recipients. It allows the State agency 10 days from the date of the error transaction to complete an adjustment requested by a retailer and 5 days from the date a client household notifies the State agency or help desk to complete a client-initiated adjustment. Three commenters felt the timeframes to complete adjustments were too short; three others specified that the 5-day timeframe to complete a client-initiated adjustment was too short, given the actions that must take place and the number of participants inherent in the adjustment process. The processes described by the commenters include compilation of documentation, research, exchange of information, and making the adjustment. The suggestion was to extend the timeframe for client initiated adjustments from 5 days to 10 or 15 days. We believe that most client-initiated adjustments will result in funds owed to the household. In these scenarios, recipients have suffered a loss through no fault of their own, ostensibly through a verifiable system error. However, we have been convinced that 5 days is not enough time to complete an investigation of a client-initiated adjustment request. Therefore, the Department is extending the timeframe for client-initiated adjustments from 5 days to 10 days, in order to provide sufficient time for the State agencies and the processors to complete error verification research and handle the adjustment properly. This timeframe also applies to circumstances where the State agency or other entity besides the household discovers an error which must be corrected by crediting the household's account. Such a correction must occur within 10 days from the time the error is discovered. The Department does not believe that a case has been made to justify allowing additional time after the 10-day deadline to complete retailer-initiated adjustments. In response to three comments, we are clarifying the use of the word “completed” in the context of retailer-initiated adjustments to mean that the initial adjustment transaction, which will be a hold placed on the funds available in the client account, must be attempted as soon as possible within 10 days of the error transaction, and a concurrent notification must be sent to the household. The funds will not move until after the time has passed for a household to request a provisional credit. We understand that, in some cases, all or some portion of the full adjustment will have to be made from the next month's allotment. However, the household must be notified concurrent with the initial adjustment action. The State agency may not take action on any adjustment to debit a household's account if more than 10 days have passed since the error transaction occurred, except in cases when the action is initiated within the 10-day timeframe but the funds are not available in the current month and must be taken from the next month's benefit issuance. Another comment was raised regarding the 180 days a client household has to notify the State agency of a system error and request an adjustment. Indications are that client households do not request adjustments this far from the date an alleged error occurred, primarily because EBT households do not receive account statements, and therefore, keep track of their account balances with their POS receipts. As such, it is more likely that they will discover the error soon after the transaction takes place. Furthermore, many State agencies only keep transaction data on-line at the host computer for 90 days. To research an alleged error once the data has been moved off-line greatly increases the potential cost and administrative burden of the adjustment process. The Department is convinced that the 180-day timeframe is longer than necessary for households to request an adjustment and has reduced the timeframe to 90 days. One commenter requested that the Department put specific deadlines on each participant in the adjustment, e.g., the retailer has a certain number of days to request the adjustment, then the processors have another specified timeframe to complete the process, and so on. The Department believes that such an approach would be difficult to track and administratively burdensome. We realize, however, that each of these participants has a responsibility to the others to handle their portion expeditiously if timeframes are to be met. We would recommend and expect that this level of detail be addressed in retailer and third party agreements. One commenter wanted clarification on the ramifications of not meeting timeframes or otherwise complying with this rule. This rule will not impose specific penalties for non-compliance. As with other regulatory requirements, however, State agencies are required to ensure the processor's compliance and failure to do so may result in administrative sanctions by the Department against the State agency. Re-presentations The Department received three comments relaying confusion about how re-presentation fits into the adjustment process. In fact, re-presentation regulations are separate and apart from adjustment rules, because State agencies now have access to a household's future month's benefit issuance to make an adjustment. The only time a State agency would need to consider re-presentation is in the event of insufficient funds to cover a manual transaction when the system host computer is down. Any references to re-presentation are used in the context of 7 CFR 274.12(e). There are no changes regarding re-presentations in the final rule from what was published in the interim rule. Implementation This final rule is effective August 4, 2000. State agencies may begin implementing the rule August 4, 2000 but no later than January 2, 2001. State agencies that have already implemented EBT shall have one year in which to grandfather adjustment disclosure into their training materials according to 7 CFR 274.12(f)(10)(viii). List of Subjects 7 CFR Part 272 Alaska, Civil Rights, Food Stamps, Grant Programs—social programs, Reporting and recordkeeping requirements. 7 CFR Part 273 Administrative practice and procedures, Aliens, Claims, Food stamps, Grant programs—social programs, Penalties, Reporting and recordkeeping requirements, Social security, Students. 7 CFR Part 274 Administrative procedures and practices, Food Stamps, Grant programs-social programs, Reporting and recordkeeping requirements. Accordingly, the interim rule amending 7 CFR Parts 272, 273 and 274, which was published at 64 FR 48933 on September 9, 1999, is adopted as a final rule with the following changes: 1. The authority citation for 7 CFR Parts 272, 273 and 274 continues to read as follows: **Authority** : 7 U.S.C. 2011-3036. PART 272—REQUIREMENTS FOR PARTICIPATING STATE AGENCIES 2. In § 272.1, paragraph (g)(154) is revised to read as follows: § 272.1 General terms and conditions.

(g)*Implementation* . * * *

(154)*Amendment No. 386. * The provisions of Amendment No.386 are effective August 4, 2000. State agencies may begin implementing the rule August 4, 2000 but not later than January 2, 2001. State agencies that have already implemented EBT shall have one year in which to grandfather adjustment disclosure into their training materials according to 7 CFR 274.12(f)(10)(viii). PART 273—CERTIFICATION OF ELIGIBLE HOUSEHOLDS 3. In § 273.13, paragraph (a)(3)(vii) is redesignated as (a)(4) and is revised to read as follows: § 273.13 Notice of adverse action.

(a)* * *

(4)The State agency shall notify a household that its benefits will be reduced if an EBT system-error has occurred during the redemption process resulting in an out-of-balance settlement condition. This notification shall be made no later than the date the action is initiated against the household account. The State agency shall adjust the benefit in accordance with § 274.12 of this chapter. 4. In § 273.15, the fifth and sixth sentences of paragraph (k)(1) are revised to read as follows: § 273.15 Fair hearings.

(k)*Continuation of benefits* .

(1)* * * In the case of an EBT adjustment, as defined in § 274.12(f)(4)(ii) of this chapter, once an adverse action is upheld, the State agency shall immediately debit the household's account for the total amount stated in its original notice. If there are no benefits or insufficient benefits remaining in the household's account at the time the State agency action is upheld, the State agency may only make the adjustment from the next month's benefits, regardless of whether this satisfies the full adjustment amount. * * * PART 274—ISSUANCE AND USE OF COUPONS 5. In § 274.12, paragraphs (f)(4) and (f)(10)(viii) are revised to read as follows: § 274.12 Electronic Benefit Transfer issuance system approval standards.

(f)*Household Participation* * * *

(4)*Issuance of Benefits* . State agencies shall establish an availability date for household access to their benefits and inform households of this date.

(i)The State agency may make adjustments to benefits posted to household accounts after the posting process is complete but prior to the availability date for household access in the event benefits are erroneously posted.

(ii)A State agency shall make adjustments to an account to correct an auditable, out-of-balance settlement condition that occurs during the redemption process as a result of a system error. A system error is defined as an error resulting from a malfunction at any point in the redemption process: from the system host computer, to the switch, to the third party processors, to a store's host computer or point of sale

(POS)device. These adjustments may occur after the availability date and may result in either a debit or credit to the household.

(A)*Client-initiated adjustments* . The State agency must act on all requests for adjustments made by client households within 90 calendar days of the error transaction. The State agency has 10 business days from the date the household notifies it of the error to investigate and reach a decision on an adjustment and move funds into the client account. This timeframe also applies if the State agency or entity other than the household discovers a system error that requires a credit adjustment to the household. Business days are defined as calendar days other than Saturdays, Sundays, and Federal holidays.

(B)*Retailer-initiated adjustments* . The State agency must act upon all adjustments to debit a household's account no later than 10 business days from the date the error occurred, by placing a hold on the adjustment balance in the household's account. If there are insufficient benefits to cover the entire adjustment, a hold shall be placed on any remaining balance that exists, with the difference being subject to availability only in the next future month. The household shall be given, at a minimum, adequate notice in accordance with § 273.13 of this chapter. The notice must be sent at the time the initial hold is attempted on the household's current month's remaining balance, clearly state the full adjustment amount, and advise the household that any amount still owing is subject to collection from the household's next future month's benefits. ( *1* ) The household shall have 90 days from the date of the notice to request a fair hearing. ( *2* ) Should the household dispute the adjustment and request a hearing within 10 days of the notice, a provisional credit must be made to the household's account by releasing the hold on the adjustment balance within 48 hours of the request by the household, pending resolution of the fair hearing. If no request for a hearing is made within 10 days of the notice, the hold is released on the adjustment balance, and this amount is credited to the retailer's account. If there are insufficient funds available in the current month to cover the full adjustment amount, the hold may be maintained and settled at one time after the next month's benefits become available.

(iii)The appropriate management controls and procedures for accessing benefit accounts after the posting shall be instituted to ensure that no unauthorized adjustments are made in accordance with paragraph (f)(7)(iii) of this section.

(10)* * *

(viii)Disclosure information regarding adjustments and a household's rights to notice, fair hearings, and provisional credits. The disclosure must also state where to call to dispute an adjustment and request a fair hearing. State agencies that have already implemented EBT shall have one year in which to grandfather adjustment disclosure into their training materials. Dated: June 28, 2000. Samuel Chambers, Jr., Administrator, Food and Nutrition Service. [FR Doc. 00-16944 Filed 7-3-00; 8:45 am]

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