Salary Offset Procedures for Collecting Debts Owed by Federal
Employees to the Federal Government
[Federal Register: April 24, 2002 (Volume 67, Number 79)]
[Proposed Rules]
[Page 20059-20062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ap02-22]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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NUCLEAR REGULATORY COMMISSION
10 CFR Part 16
RIN 3150-AG96
Salary Offset Procedures for Collecting Debts Owed by Federal
Employees to the Federal Government
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend
its regulations concerning the procedures used to collect debts that
are owed to NRC by Federal employees. The proposed amendment would
conform NRC regulations to the legislative changes enacted in the Debt
Collection Improvement Act of 1996 (DCIA) and the amended procedures
presented in the Federal Claims Collection Standards (FCCS) issued by
the Department of the Treasury (Treasury) and the Department of Justice
(DOJ). The proposed action is intended to allow the NRC to improve its
collection of debts due the United States from Federal employees.
DATES: The comment period expires July 8, 2002. Comments received after
this date will be considered if it is practical to do so, but the
Commission is able to ensure consideration only for comments received
on or before this date.
ADDRESSES: Submit comments to the Secretary, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and
Adjudications Staff. Deliver comments to: 11555 Rockville Pike,
Rockville, Maryland, between 7:30 a.m. and 4:15 p.m. Federal workdays
(Telephone 301-415-1678).
Comments also may be submitted via the NRC's interactive rulemaking
Website at (http://ruleforum.llnl.gov). 
This site provides the
capability to upload comments as files (any format), if your Web
browser supports that function. For information about the interactive
rulemaking Website, contact Ms. Carol Gallagher, 301-415-5905 (e-mail
CAG@nrc.gov). Comments received also may be viewed and downloaded
electronically via this interactive rulemaking website.
With the exception of restricted information, documents created or
received at the NRC, after November 1, 1999, are also available
electronically at the NRC's Public Electronic Reading Room on the
Internet at http://www.nrc.gov/reading-rm/ADAMS/index.html. From this
site, the public can gain entry into the NRC's Agencywide Document
Access and Management System (ADAMS), which provides text and image
files of NRC's public documents. For more information, contact the NRC
Public Document Room (PDR) Reference staff at 1-800-397-4209 or 301-
415-4737 pdr@nrc.gov.
FOR FURTHER INFORMATION CONTACT: Leah Tremper, Office of the Chief
Financial Officer, U.S. Nuclear Regulatory Commission, 11545 Rockville
Pike, Rockville, MD 20852-2738, Telephone 301-415-7347.
SUPPLEMENTARY INFORMATION:
I. Background
II. Section by Section Analysis
III. Plain Language
IV. Voluntary Consensus Standards
V. Finding of No Significant Environmental Impact
VI. Paperwork Reduction Act
VII. Regulatory Analysis
VIII. Regulatory Flexibility Certification
IX. Backfit Analysis
I. Background
On October 16, 1991 (56 FR 51829), the Nuclear Regulatory
Commission (NRC) published a final rule concerning procedures for the
collection of debts from Federal employees. Since then, the DCIA of
1996 (Pub. L. 104-134), was enacted on April 26, 1996. A major purpose
of the DCIA of 1996 is to increase the collection of delinquent nontax
debts owed to the Federal Government. Among other things, the DCIA of
1996 established a centralized process for withholding or reducing
eligible Federal payments, including Federal salary payments, to pay
the payee's delinquent debt owed to the United States. This process is
known as ``centralized administrative offset.'' The DCIA of 1996
requires Federal agencies to match their delinquent debtor records with
records of Federal employees, at least annually, to identify Federal
employees who owe delinquent debt to the Federal Government. The
Treasury and other disbursing officials will match payments from the
Federal Government, including Federal salary payments, for the purpose
of offsetting the payments of those debtors who owe debt to the United
States. When a match occurs and all the requirements for offset have
been met, the payment will be offset to satisfy the debt in whole or
part. To meet this responsibility, Treasury has established the
Treasury Offset Program. Under the DCIA of 1996, Federal agencies are
required to notify the Financial Management Service (FMS) of all past-
due, legally enforceable nontax debts owed to the United States that
are over 180 days delinquent. The debts are included in the delinquent
debtor database and include debts owed by Federal employees that the
NRC seeks to collect from the employee's pay account at another agency.
Compliance with the administrative offset provisions of the DCIA of
1996 will accomplish salary offset. This rule establishes NRC's
procedures for notifying Treasury of delinquent debtors for the purpose
of matching NRC's debtors against the delinquent debtor database.
The FCCS (31 CFR Chapter IX and parts 900, 901, 902, 903, and 904)
were revised on November 22, 2000 (65 FR 70390). The revised FCCS
clarify and simplify Federal debt collection procedures and reflect
changes under the DCIA of 1996 and the General Accounting Office Act of
1996. The revised FCCS reflect legislative changes to Federal debt
collection procedures enacted under the DCIA of 1996, Public Law 104-
134, 110 Stat. 1321-358, as part of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996. The revised FCCS provide
agencies with greater latitude to adopt agency-specific regulations,
tailored to the legal and policy requirements applicable to the various
types of Federal debt, to maximize the effectiveness of Federal debt
collection procedures. The Secretary of the Treasury has been added as
a co-promulgator of the FCCS in accordance with section 31001(g)(1)(C)
of the DCIA of 1996. The Comptroller General has been removed as a co-
promulgator in accordance with section 115(g) of the General Accounting
Office Act of 1996, Public Law 104-316, 110 Stat. 3826 (October 19,
1996), (65 FR 70390
[[Page 20060]]
(November 22, 2000)). The Department of the Treasury and DOJ have
published the revised FCCS as a joint final rule under new Chapter IX,
31 Code of Federal Regulations. The revised FCCS supersede the current
FCCS codified at 4 CFR parts 101-105.
The revised FCCS prescribe standards for Federal agency use in the
administrative collection, offset, compromise, and the suspension or
termination of collection activity for civil claims for money, funds,
or property, as defined by 31 U.S.C. 3701(b), unless specific Federal
agency statutes or regulations apply to such activities, or as provided
for by Title 11 of the United States Code when the claims involve
bankruptcy. The revised FCCS also prescribe standards for referring
debts to the Department of Justice for litigation.
II. Section by Section Analysis
Section 16.1 Purpose and Scope
This section would be amended to state (1) the NRC is not limited
to collection remedies contained in the revised FCCS, (2) delete the
statement that these procedures do not apply to the Social Security
Act, 42 U.S.C. 301 et. seq., and (3) delete the reference to 4 CFR
parts 101-105 and substitute the reference to 31 CFR Chapter IX, Parts
900-904.
Section 16.3 Definitions
This section would be amended to revise the definitions of
``agency,'' ``creditor agency,'' ``debt and claim,'' ``disposable
pay,'' ``employee,'' and ``FCCS'' to conform with the DCIA of 1996.
Other definitions such as ``centralized salary offset computer
matching,'' ``debt collection center,'' ``delinquent debt record,''
``disbursing official,'' and ``Treasury'' have been added to conform to
the definitions in the DCIA of 1996.
Section 16.7 Notice Requirements
This section would be amended to state the amount of the intended
deduction may be stated as a fixed dollar or a percentage of pay and
delete the reference to 4 CFR 102.2(e) and substitute the reference to
31 CFR Chapter IX, 901.2(d).
Section 16.8 Information Collection Requirements: OMB Approval
This section would be added to state that this part contains no
information collection requirements and is not subject to the
requirements of the Paperwork Reduction Act.
Section 16.9 Hearing
This section would be amended to delete the reference to 4 CFR
102.3(c) and substitute the reference to 31 CFR Chapter IX, 901.3(e).
Section 16.13 Coordinating Offset With Another Federal Agency
This section would be amended to change the section heading from
``Coordinating offset with another Federal agency'' to ``Procedures for
centralized administrative offset'' and amended in its entirety to
include NRC's procedures for offset.
Section 16.15 Procedures for Salary Offset
This section would be amended to change the section heading from
``Procedures for salary offset'' to ``Procedures for internal salary
offset.''
Section 16.23 Interest, Penalties, and Administrative Charges
This section would be amended to delete the reference to 4
CFR102.13 and substitute the reference to 31 CFR Chapter IX, 901.9.
III. Plain language
The Presidential Memorandum dated June 1, 1998, entitled ``Plain
Language in Government Writing'' directed that the Government's writing
be in plain language. This memorandum was published on June 10, 1998
(63 FR 31885). The NRC requests comments on this proposed rule
specifically with respect to the clarity and effectiveness of the
language used. Comments should be sent to the address listed under the
ADDRESSES caption of the preamble.
IV. Voluntary Consensus Standards
The National Technology Transfer and Advancement Act of 1995,
Public Law 104-113, requires that Federal agencies use technical
standards that are developed or adopted by voluntary consensus
standards bodies unless using such a standard is inconsistent with
applicable law or is otherwise impractical. In this proposed rule, the
NRC is amending Part 16 to reflect the current requirements of the DCIA
of 1996 and the revised FCCS. This action does not constitute the
establishment of a standard that contains generally applicable
requirements.
V. Finding of No Significant Environmental Impact
The Commission has determined, under the National Environmental
Policy Act of 1969, as amended, and the Commission's regulations in
Subpart A of 10 CFR part 51, that this rule, if adopted, would not be a
major Federal action significantly affecting the quality of the human
environment and, therefore, an environmental impact statement is not
required. This proposed rule is necessary to conform the NRC
regulations to the amended procedures presented in the FCCS. Amending
the procedures that the NRC uses to collect debts which are owed to it
will not have any radiological environmental impact offsite and no
impact on occupational radiation exposure onsite. The rule does not
affect nonradiological plant effluents and has no other environmental
impact. The environmental assessment and finding of no significant
impact, on which this determination is based, are available for
inspection at the NRC Public Document Room, 11555 Rockville Pike,
Rockville, Maryland, between 7:30 a.m. and 4:15 p.m. except on Federal
holidays.
VI. Paperwork Reduction Act
This proposed rule contains no information collection requirements
and, therefore, is not subject to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
VII. Regulatory Analysis
The proposed rule will conform NRC procedures for collecting debts
owed it with the amended procedures presented in the FCCS, the DCIA of
1996, 5 CFR part 550 Pay Administration, and 31 CFR part 285 Salary
Offset and, as such, will not have a significant impact on state and
local Governments and geographical regions; health, safety, and the
environment; nor will it represent substantial costs to licensees, the
NRC, or other Federal agencies. This constitutes the regulatory
analysis for this proposed rule.
VIII. Regulatory Flexibility Certification
In accordance with the Regulatory Flexibility Act (5 U.S.C.
605(b)), the Commission certifies that this rule will not, if
promulgated, have a significant economic impact on a substantial number
of small entities because this rule applies only to Federal agencies
and employees.
IX. Backfit Analysis
The NRC has determined that the backfit rule does not apply to this
proposed rule; therefore, a backfit analysis is not required for this
proposed rule because these amendments are mandated by the DCIA of 1996
(Pub. L. 104-134, 110 Stat. 1321-358 (April 26, 1996)).
[[Page 20061]]
List of Subjects in 10 CFR Part 16
Administrative practice and procedures, Debt collection, Salary
offset, Government employees, Wages.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended; the Energy Reorganization
Act of 1974, as amended; and 5 U.S.C. 553, the NRC is proposing to
adopt the following amendments to 10 CFR part 16.
PART 16--SALARY OFFSET PROCEDURES FOR COLLECTING DEBTS OWED BY
FEDERAL EMPLOYEES TO THE FEDERAL GOVERNMENT
1. The authority citation for Part 16 is revised to read as
follows:
Authority: Secs. 161, 186, 68 Stat. 948, 955, as amended (42
U.S.C. 2201, 2236); sec. 201, 88 Stat. 1242, as amended (42 U.S.C.
5841); sec. 1, Pub. L. 97-258, 96 Stat. 972 (31 U.S.C. 3713); sec 5,
Pub. L. 89-508, 80 Stat. 308, as amended (31 U.S.C. 3711, 3717,
3718); Pub. L. 97-365, 96 Stat. 1749; Federal Claims Collection
Standards, 31 CFR Chapter IX, Parts 900-904; 31 U.S.C. Secs. 3701,
3716; 31 CFR Sec 285; 26 U.S.C. Sec 6402(d); 31 U.S.C. Sec. 3720A;
26 U.S.C. Sec. 6402(c); 42 U.S.C. Sec. 664; Pub. L. 104-134, as
amended (31 U.S.C. 3713); 5 U.S.C. 5514; Executive Order 12988 (3
CFR, 1996 Comp., pp. 157-163); 5 CFR 550.
2. In Sec. 16.1 paragraph (b)(2) is removed, paragraphs (b)(3) and
(b)(4) are redesignated as (b)(2) and (b)(3) and paragraph (d) is
revised and paragraph (f) is added to read as follows:
Sec. 16.1 Purpose and scope.
* * * * *
(d) These procedures do not preclude the compromise, suspension, or
termination of collection action where appropriate under the standards
implementing the revised FCCS, 31 U.S.C. 3711 et seq., 31 CFR Chapter
IX, Parts 900-904.
* * * * *
(f) The NRC is not limited to collection remedies contained in the
revised FCCS. The FCCS is not intended to impair common law remedies.
3. In Sec. 16.3, the definitions of agency, creditor agency, debt
and claim, disposable pay, employee, and FCCS are revised, and the
definitions of centralized salary offset computer matching, debt
collection center, delinquent debt record, disbursing official, and
Treasury are added in alphabetical order to read as follows:
Sec. 16.3 Definitions.
* * * * *
Agency means any agency of the executive, legislative, and judicial
branches of the Federal Government, including Government corporations.
Centralized salary offset computer matching describes the
computerized process used to match delinquent debt records with Federal
salary payment records when the purpose of the match is to identify
Federal employees who owe debt to the Federal Government.
Creditor agency means the agency to which the debt is owed,
including a debt collection center when acting in behalf of a creditor
agency in matters pertaining to the collection of a debt.
Debt and claim are used synonymously to refer to an amount of
money, funds, or property that has been determined by an agency
official to be owed to the United States from any person, organization,
or entity, except another Federal agency. For the purposes of
administrative offset under 31 U.S.C. 3716, the terms debt and claim
include an amount of money, funds, or property owed by a person to a
State (including past-due support being enforced by a State), the
District of Columbia, American Samoa, Guam, the United States Virgin
Islands, the Commonwealth of the Northern Mariana Islands, or the
Commonwealth of Puerto Rico.
Debt collection center means the Department of the Treasury or
other Government agency or division designated by the Secretary of the
Treasury with authority to collect debts on behalf of creditor
agencies.
Delinquent debt record refers to the information about a debt that
an agency submits to Treasury when the agency refers the debt for
collection by offset in accordance with the provision of 31 U.S.C.
3716.
Disbursing official means an official who has authority to disburse
Federal salary payments pursuant to 31 U.S.C. 3321 or another law.
Disposable pay means that part of current basic pay, special pay,
incentive pay, retired pay, retainer pay, or in the case of an employee
not entitled to basic pay, other authorized pay remaining after the
deduction of (a) any amount required by law to be withheld; (b) amounts
properly withheld for Federal, state or local income tax purposes; (c)
amounts deducted as health insurance premiums; (d) amounts deducted as
normal retirement contributions, not including amounts deducted for
supplementary coverage; and (e) amounts deducted as normal life
insurance premiums not including amounts deducted for supplementary
coverage.
Employee is any individual employed by any agency of the executive,
legislative, and judicial branches of the Federal Government, including
Government corporations.
FCCS means the Federal Claims Collection Standards jointly
published by the Department of the Treasury and the Department of
Justice at 31 CFR Chapter IX, Parts 900-904.
* * * * *
Treasury as used in 10 CFR Part 16 means the Department of the
Treasury.
* * * * *
4. In Sec. 16.7, paragraphs (b)(3) and (b)(6) are revised to read
as follows:
Sec. 16.7 Notice requirements.
* * * * *
(b) * * *
* * * * *
(3) The amount and frequency of the intended deduction (stated as a
fixed dollar amount or as a percentage of pay, not to exceed 15 percent
of disposable pay) and the intention to continue the deduction until
the debt is paid in full or otherwise resolved.
* * * * *
(6) If not previously provided, the opportunity (under terms
agreeable to the NRC) to establish a schedule for the voluntary
repayment of the debt or to enter into a written agreement to establish
a schedule for repayment of the debt in lieu of offset (31 CFR Chapter
IX, Part 901.2). The agreement must be in writing, signed by the
employee and the NRC, and documented in the NRC's files.
* * * * *
5. Section 16.8 is added to read as follows:
Sec. 16.8 Information collection requirements: OMB approval.
This part contains no information collection requirements, and,
therefore, is not subject to the requirements of the Paperwork
Reduction Act (44 U.S.C. 3501 et. seq.).
6. In Sec. 16.9, paragraph (b)(2) is revised to read as follows:
Sec. 16.9 Hearing.
* * * * *
(b) * * *
(2) The hearing must conform to procedures contained in the revised
FCCS, 31 CFR Chapter IX, 901.3(e). The burden is on the employee to
demonstrate either that the existence or the amount of the debt is in
error or that the terms of the repayment schedule would result in undue
financial hardship or would be against equity and good conscience.
7. Section 16.13 is revised to read as follows:
[[Page 20062]]
Sec. 16.13 Procedures for centralized administrative offset.
(a) The NRC must notify Treasury of all debts that are delinquent
as defined in the FCCS (over 180 days old) so that recovery may be made
by centralized administrative offset. This includes those debts the NRC
seeks to recover from the pay account of an employee of another agency
via salary offset. The Treasury and other Federal disbursing officials
will match payments, including Federal salary payments, against such
debts. When a match occurs, and all the requirements for offset have
been met, the payments will be offset to collect the debt. Prior to
offset of the pay account of an employee, the NRC must comply with the
requirements of 5 U.S.C. 5514, 5 CFR Part 550, and 10 CFR Part 15.
Procedures for notifying Treasury of a debt for purposes of collection
by centralized administrative offset are contained in 31 CFR Part 285
and 10 CFR 15.33. Procedures for internal salary offset are contained
in Sec. 16.15 of this chapter.
(b) When the NRC determines that an employee of another Federal
agency owes a delinquent debt to the NRC, the NRC will, as appropriate:
(1) Arrange for a hearing upon the proper petitioning by the
employee;
(2) Provide the Federal employee with a notice and an opportunity
to dispute the debt as contained in 5 U.S.C. 5514 and 10 CFR 15.26.
(3) Submit the debt to Treasury for centralized administrative
offset and certify in writing that the debtor has been afforded the
legally required due process notification.
(4) If collection must be made in installments, the NRC must advise
the paying agency of the amount or percentage of disposable pay to be
collected in each installment.
(c) Offset amount. (1) The amount offset from a salary payment
under this section shall be the lesser of:
(i) The amount of the debt, including any interest, penalties, and
administrative costs; or
(ii) An amount up to 15% of the debtor's disposable pay.
(2) Alternatively, the amount offset may be an amount agreed upon,
in writing, by the debtor and the NRC.
(3) Offsets will continue until the debt, including any interest,
penalties, and costs, is paid in full or otherwise resolved to the
satisfaction of the NRC.
(d) Priorities. (1) A levy pursuant to the Internal Revenue Code of
1986 shall take precedence over other deductions under this section.
(2) When a salary payment may be reduced to collect more than one
debt, amounts offset under this section will be applied to a debt only
after amounts offset have been applied to satisfy past due child
support debt assigned to a State pursuant 26 U.S.C. 6402(c) and 31 CFR
285.7(h)(2).
(e) Notice. (1) Before offsetting a salary payment, the disbursing
official, or the paying agency on behalf of the disbursing official,
shall notify the Federal employee in writing of the date that
deductions from salary will commence and of the amount of such
deductions.
(2)(i) When an offset occurs under this section, the disbursing
official, or the paying agency on behalf of the disbursing official,
shall notify the Federal employee in writing that an offset has
occurred including:
(A) A description of the payment and the amount of the offset
taken;
(B) Identification of NRC as the agency requesting the offset; and,
(C) A contact point within the NRC that will handle concerns
regarding the offset.
(ii) The information described in paragraphs (e)(2)(i)(B) and
(e)(2)(i)(C) of this section does not need to be provided to the
Federal employee when the offset occurs if such information was
included in a prior notice from the disbursing official or paying
agency.
(3) The disbursing official will advise the NRC of the names,
mailing addresses, and taxpayer identifying numbers of the debtors from
whom amounts of past-due, legally enforceable debt were collected and
of the amounts collected from each debtor. The disbursing official will
not advise the NRC of the source of payment from which such amounts
were collected.
(f) Fees. Agencies that perform centralized salary offset computer
matching services may charge a fee sufficient to cover the full cost of
such services. In addition, Treasury or a paying agency acting on
behalf of Treasury, may charge a fee sufficient to cover the full cost
of implementing the administrative offset program. Treasury may deduct
the fees from amounts collected by offset or may bill the NRC. Fees
charged for offset shall be based on actual administrative offsets
completed.
(g) Disposition of amounts collected. The disbursing official
conducting the offset will transmit amounts collected for debts, less
fees charged under paragraph (f) of this section, to NRC. If an
erroneous offset payment is made to the NRC, the disbursing official
will notify the NRC that an erroneous offset payment has been made. The
disbursing official may deduct the amount of the erroneous offset
payment from future amounts payable to the NRC. Alternatively, upon the
disbursing official's request, the NRC shall return promptly to the
disbursing official or the affected payee an amount equal to the amount
of the erroneous payment (without regard to whether any other amounts
payable to the agency have been paid). The disbursing official and the
NRC shall adjust the debtor records appropriately.
8. Section 16.15 is amended by revising the section heading to read
as follows:
Sec. 16.15 Procedures for internal salary offset.
9. Section 16.23 is revised to read as follows:
Sec. 16.23 Interest, penalties, and administrative charges.
Charges may be assessed for interest, penalties, and administrative
charges in accordance with the FCCS, 31 CFR Chapter IX, 901.9.
Dated at Rockville, Maryland, this 16th day of April 2002.
For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.
[FR Doc. 02-9885 Filed 4-23-02; 8:45 am]
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