[Federal Register Volume 62, Number 116 (Tuesday, June 17, 1997)]
[Rules and Regulations]
[Pages 32685-32687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14805]
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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
29 CFR Part 1650
RIN 3046-AA45
Procedures for the Collection of Debts by Administrative Offset
AGENCY: Equal Employment Opportunity Commission.
ACTION: Interim rule.
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SUMMARY: The Debt Collection Act of 1982, as amended by the Debt
Collection Improvement Act of 1996, requires Federal agencies prior to
collecting a claim owed to the Government by administrative offset to
either adopt Department of Justice, the General Accounting Office or
the Department of Treasury administrative offset regulations without
change or to prescribe their own regulations for collecting claims by
administrative offset which are consistent with Department of Justice,
the General Accounting Office or Department of Treasury regulations.
This interim rule establishes Commission regulations for the collection
of debts by administrative offset.
DATES: This rule will become effective on June 17, 1997. Written
comments on the interim rule must be received on or before August 18,
1997.
ADDRESSES: Comments should be submitted to the Office of the Executive
Secretariat, Equal Employment Opportunity Commission, 1801 L Street,
N.W., Washington D.C. 20507. Copies of comments submitted by the public
will be available for review at the Commission's library, room 6502,
1801 L Street, N.W., Washington, D.C. between the hours of 9:30 a.m.
and 5:00 p.m.
FOR FURTHER INFORMATION CONTACT: Kassie A. Billingsley, Director
Financial and Resource Management Services, Equal Employment
Opportunity Commission, 1801 L Street, N.W., Room 2001, Washington,
D.C. 20507, (202) 663-4200 or 202 (663)-4074 (TDD). A copy of the
interim rule may be obtained by contacting Ms. Billingsley. This
interim rule is also available in the following formats: large print,
braille, audio tape and electronic file on computer disk. Requests for
this interim rule in an alternative format should be made to the
Publications Center at 1-800-669-3362.
SUPPLEMENTARY INFORMATION: The Commission is publishing Subpart C
(Secs. 1650.301 through 1650.309) as an interim rule to provide for the
continued collection of debts by administrative offset. The Commission
will consider all comments received on Subpart C and, if necessary,
will publish a revised final rule.
Promulgation of these regulations pursuant to the Debt Collection
Improvement Act of 1996 (31 U.S.C. 3716) ensures that the public is
informed of the Federal Government's debt collection policies,
reaffirms the Government's commitment to collect debts due it, and
reiterates the public's obligation to repay amounts owed to the Federal
Government. The regulations provide a debtor the appropriate due
process rights such as the ability to verify, challenge and compromise
claims and access to an administrative appeal procedure which is
reasonable, while at the same time protecting the Government's
interests.
Executive Order 12866
In promulgating the interim rules implementing the administrative
offset provisions of the Debt Collection Improvement Act of 1996, the
Commission has adhered to the regulatory philosophy and the applicable
principles of regulation set forth in section 1 of Executive Order
12866, Regulatory Planning and Review. In addition, it has been
determined that this regulation is not a significant regulatory action
within the meaning of section 3(f).
Regulatory Flexibility Act
As Chairman of the Equal Employment Opportunity Commission, I
certify under the Regulatory Flexibility Act (5 U.S.C. chapter 6) that
this interim rule will have no economic impact on small entities
because it establishes Commission procedures for the collection of
debts owed to the Government by its current and former employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
to this interim rule because it does not contain information collection
requirements that require the approval of the Office of Management and
Budget.
List of Subjects in 29 CFR Part 1650
Administrative practice and procedure, Claims, Government
employees, Income taxes.
Dated: May 16, 1997.
For the Commission.
Gilbert F. Casellas,
Chairman.
For the reasons set forth in the preamble, title 29, chapter XIV of
the Code of Federal Regulations is amended as follows:
PART 1650--DEBT COLLECTION
1. The authority citation for Part 1650 is revised to read as
follows:
Authority: 5 U.S.C. 5514; 31 U.S.C. 3716, 3720A; 5 CFR 550.1101.
2. Subpart C, consisting of Secs. 1650.301 through 1650.309, is
added to Part 1650 to read as follows:
Subpart C--Procedures for Collection of Debts by Administrative Offset
Sec.
1650.301 Purpose.
1650.302 Scope.
1650.303 Definitions.
1650.304 Notice of administrative offset.
1650.305 Agency review.
1650.306 Written repayment agreement.
1650.307 Administrative offset.
1650.308 Accelerated procedures.
[[Page 32686]]
1650.309 Additional administrative procedures.
Subpart C--Procedures for Collection of Debts by Administrative
Offset
Sec. 1650.301 Purpose.
This subpart sets forth the procedures to be followed in the
collection by administrative offset of debts owed to the United States.
Sec. 1650.302 Scope.
(a) Applicability. (1) The procedures in this subpart apply to the
collection by administrative offset of debts owed to the Commission or
other Federal agencies by former or current Commission employees under
the authority of 31 U.S.C. 3716, common law, or any other applicable
statutory authority, e.g., training expenses under 5 U.S.C. 4108, debts
of employees removed for cause under 5 U.S.C. 5511, amounts owed by
accountable officers under 5 U.S.C. 5512, advances of pay under 5
U.S.C. 5522, temporary duty travel advances under 5 U.S.C. 5705, and
relocation advances under 5 U.S.C. 5724.
(2) The procedures in this subpart also apply to offset of debts
owed to the Commission or other Federal agencies by the Commission's
contractors and grant recipients.
(b) Non-applicability. (1) The procedures in this subpart do not
apply where collection by administrative offset of the debt involved is
explicitly provided for or prohibited by another statute.
(2) The procedures in this subpart also do not apply to debts owed
to the Commission by other Federal agencies or debts owed to the
Commission or other Federal agencies by a State or local government.
(c) Waiver requests and claims to the GAO. The procedures in this
subpart do not preclude a debtor from requesting waiver of an erroneous
payment of pay, travel, transportation, or relocation expenses under 5
U.S.C. 5584 or any other provision of law or from questioning the
amount or validity of a debt by submitting a subsequent claim to the
U.S. Government Accounting Office.
(d) Compromise, suspension, or termination under the Federal Claims
Collection Standards. Nothing in this subpart precludes the compromise,
suspension, or termination of administrative offset collection actions,
where appropriate, in accordance with the Federal Claims Collection
Standards in 4 CFR chapter II.
Sec. 1650.303 Definitions.
For purposes of this subpart, the term administrative offset means
the withholding of money payable by the Commission to, or held by the
Commission for, a person to satisfy a debt the person owes to the
Government. The term person means a natural person or persons, profit
or non-profit corporation, partnership, association, trust, estate,
consortium, or other entity which is capable of owing a debt to the
United States Government except that the term does not include an
agency of the United States Government or any State or a unit of a
general local government. The terms agency, creditor agency, debt,
employee, FCCS, FRMS and waiver shall have the meanings set forth in
subpart A of this part.
Sec. 1650.304 Notice of administrative offset.
(a) Advance notice. At least 30 days in advance of collecting any
debt by administrative offset, notice of the Commission's intent to
offset shall be given to the debtor by certified mail, return receipt
requested, at the most current address that is available to the
Commission. The notice shall provide:
(1) A description of the nature and amount of the debt and the
Commission's intention to collect the debt through administrative
offset;
(2) An opportunity to inspect and copy the records of the
Commission with respect to the debt;
(3) An opportunity to request review of the Commission's
determinations with respect to the debt; and
(4) An opportunity to enter into a written agreement for the
repayment of the amount of the debt.
(b) Exception to the advance notice requirement. When the
procedural requirements in this subpart have been previously provided
to a debtor in connection with the same debt under another statutory or
regulatory authority, such as for salary offset or pursuant to a notice
of audit disallowance, the Commission is not required to duplicate
those procedures before initiating collection of the debt by
administrative offset.
Sec. 1650.305 Agency review.
(a) A debtor may dispute the existence of the debt, the amount of
the debt, or the terms of repayment. The request to review the disputed
debt must be received by the Director of the Financial Management
Division within 30 calendar days of the debtor's receipt of the pre-
offset notice.
(b) If the debtor requests an opportunity to inspect or copy the
Commission's records concerning the debt, then the debtor will have 10
business days from the date of inspection or from receipt of the mailed
documents for review.
(c) Pending review of the disputed debt, transactions in any of the
debtor's account(s) maintained in the Commission may be temporarily
suspended to the extent of the debt that is owed. Depending on the type
of transaction, the suspension could preclude payment, withdrawal, or
transfer, as well as prevent the payment of interest or discount due
thereon. Should the dispute be resolved in the debtor's favor, the
suspension will be lifted immediately.
(d) During the review period, interest, penalties, and
administrative costs authorized under the Federal Claims Collection Act
of 1966, as amended (31 U.S.C. 3711), will continue to accrue.
Sec. 1650.306 Written repayment agreement.
A debtor may request an opportunity to negotiate a written
agreement for the repayment of the debt. If the financial position of
the debtor does not support the ability to pay in one lump-sum,
reasonable installments may be considered. No installment arrangement
will be considered unless the debtor submits a financial statement,
executed under penalty of perjury, reflecting the debtor's assets,
liabilities, income, and expenses. The financial statement must be
submitted within 10 business days of the Commission's request for the
statement. At the Commission's option, a confess-judgment note or bond
of indemnity with surety may be required for the installment agreement.
Notwithstanding the provisions of this section, any reduction or
compromise of a claim will be governed by 4 CFR part 103 and 31 U.S.C.
3711.
Sec. 1650.307 Administrative offset.
(a) If the debtor does not timely exercise his right to review or,
as a result of the review, it is determined that the debt is due and no
written agreement is executed, then administrative offset shall be
ordered in accordance with these regulations without further notice.
(b) The Director of the Financial Management Division of Financial
and Resource Management Services or designee, after attempting to
collect a debt from a person under the Federal Claims Collection Act of
1966, as amended (31 U.S.C. 3711), may collect the debt by
administrative offset subject to the following:
(1) The debt is certain in amount; and
(2) It is in the best interest of the United States to collect the
debt by administrative offset because it is less
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costly and speeds repayment of the debt.
(c) If the 6-year period for bringing action on a debt provided in
28 U.S.C. 2415 has expired, then administrative offset may be used to
collect the debt only if the costs of bringing such action are likely
to be less than the amount of the debt.
(d) No collection by administrative offset shall be made on any
debt that has been outstanding for more than 10 years unless facts
material to the Government's right to collect the debt were not known,
and reasonably could not have been known, by the official or officials
responsible for discovering and collecting such debt.
(e) Request for administrative offset by the Commission to another
Federal agency. The Director of the Financial Management Division, or
designee, may request that funds due and payable to a debtor by a
Federal agency be administratively offset in order to collect a debt
owed to the Commission by that debtor. In requesting administrative
offset the Commission, as creditor, will certify in writing to the
Federal agency holding funds of the debtor:
(1) That the debtor owes the debt;
(2) The amount and basis of the debt; and
(3) That the Commission has complied with the requirements of its
own administrative offset regulations in this subpart, and the
applicable provisions of 4 CFR part 102, including providing any
required hearing or review.
(f) Request for administrative offset from another Federal agency.
Any Federal creditor agency may request the Commission make an
administrative offset from any Commission funds due and payable to a
creditor agency's debtor. The Commission shall initiate the requested
administrative offset only upon:
(1) Receipt of written certification from the creditor agency:
(i) That the debtor owes the debt;
(ii) The amount and basis of the debt;
(iii) That the agency has prescribed regulations for the exercise
of administrative offset; and
(iv) That the agency has complied with its own administrative
offset regulations and with the applicable provisions of 4 CFR part
102, including providing any required hearing or review; and
(2) A determination by the Commission that collection by
administrative offset against funds payable to the debtor by the
Commission would not otherwise be contrary to law.
Sec. 1650.308 Accelerated procedures.
The Commission may make an administrative offset against a payment
to be made to the debtor prior to the completion of the procedures
required by this subpart, if failure to take the offset would
substantially jeopardize the Commission's ability to collect the debt,
and the time before the payment is to be made does not reasonably
permit the completion of those procedures. Such prior offset shall be
promptly followed by the completion of the procedures required by this
subpart. Amounts recovered by offset but later found not to be owed to
the Commission shall be promptly refunded.
Sec. 1650.309 Additional administrative procedures.
Nothing contained in this subpart is intended to preclude the use
of any other administrative remedy which may be available.
[FR Doc. 97-14805 Filed 6-16-97; 8:45 am]
BILLING CODE 6570-06-P
