Debt Collection, 44870-44878 [05-14794]
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Federal Register / Vol. 70, No. 149 / Thursday, August 4, 2005 / Proposed Rules
new SIAPs for the Deering Airport. The
new approaches are (1) Area Navigation
(Global Positioning System) (RNAV
(GPS)) Runway (RWY) 2, original; (2)
RNAV (GPS) RWY 20, original; (3)
RNAV (GPS) RWY 11, original and (4)
RNAV (GPS) RWY 29, original. New
Class E controlled airspace extending
upward from 700 ft. and 1,200 ft. above
the surface within the Deering Airport
area would be created by this action.
The proposed airspace is sufficient to
contain aircraft executing the new
instrument procedures at the Deering
Airport.
The area would be depicted on
aeronautical charts for pilot reference.
The coordinates for this airspace docket
are based on North American Datum 83.
The Class E airspace areas designated as
700/1200 foot transition areas are
published in paragraph 6005 in FAA
Order 7400.9M, Airspace Designations
and Reporting Points, dated August 30,
2004, and effective September 16, 2004,
which is incorporated by reference in 14
CFR 71.1. The Class E airspace
designations listed in this document
would be published subsequently in the
Order.
The FAA has determined that this
proposed regulation only involves an
established body of technical
regulations for which frequent and
routine amendments are necessary to
keep them operationally current. It,
therefore—(1) is not a ‘‘significant
regulatory action’’ under Executive
Order 12866; (2) is not a ‘‘significant
rule’’ under DOT Regulatory Policies
and Procedures (44 FR 11034; February
26, 1979); and (3) does not warrant
preparation of a regulatory evaluation as
the anticipated impact is so minimal.
Since this is a routine matter that will
only affect air traffic procedures and air
navigation, it is certified that this rule,
when promulgated, will not have a
significant economic impact on a
substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle 1, section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority.
This rulemaking is promulgated
under the authority described in subtitle
VII, part A, subpart 1, section 40103,
Sovereignty and use of airspace. Under
that section, the FAA is charged with
prescribing regulations to ensure the
safe and efficient use of the navigable
airspace. This regulation is within the
scope of that authority because it
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proposes to establish Class E airspace
sufficient to contain aircraft executing
instrument procedures at Deering
Airport and represents the FAA’s
continuing effort to safely and
efficiently use the navigable airspace.
PRESIDIO TRUST
List of Subjects in 14 CFR Part 71
ACTION:
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
In consideration of the foregoing, the
Federal Aviation Administration
proposes to amend 14 CFR part 71 as
follows:
PART 71—DESIGNATION OF CLASS A,
CLASS B, CLASS C, CLASS D, AND
CLASS E AIRSPACE AREAS;
AIRWAYS; ROUTES; AND REPORTING
POINTS
1. The authority citation for 14 CFR
part 71 continues to read as follows:
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of Federal Aviation
Administration Order 7400.9M,
Airspace Designations and Reporting
Points, dated August 30, 2004, and
effective September 16, 2004, is to be
amended as follows:
*
*
*
*
*
Paragraph 6005 Class E airspace extending
upward from 700 feet or more above the
surface of the earth.
*
*
*
AAL AK E5
*
*
Deering, AK [New]
Deering Airport, AK
(Lat. 66°04′10″ N., long. 162°45′59″ W.)
That airspace extending upward from 700
feet above the surface within a 7-mile radius
of the Deering Airport, and that airspace
extending upward from 1,200 feet above the
surface within a 45-mile radius of the
Deering Airport, excluding the Kotzebue
Class E airspace, the Buckland Class E
airspace, the airspace designated for Federal
Airways and that airspace outside 12 miles
from the shoreline.
*
*
*
*
*
Issued in Anchorage, AK, on July 26, 2005.
Anthony M. Wylie,
Acting Area Director, Alaska Flight Services
Area Office.
[FR Doc. 05–15403 Filed 8–3–05; 8:45 am]
BILLING CODE 4910–13–P
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36 CFR Part 1011
Debt Collection
Presidio Trust.
Proposed rule with request for
comments.
AGENCY:
SUMMARY: This rule proposes to adopt
debt collection regulations to conform to
the Debt Collection Improvement Act of
1996, the Federal Claims Collection
Standards, and other laws applicable to
the collection of nontax debts owed to
the Presidio Trust.
DATES: Comments regarding this
proposed rule must be received on or
before September 19, 2005.
ADDRESSES: Send comments to Karen
Cook, General Counsel, Presidio Trust,
34 Graham Street, San Francisco, CA
94129. Comments also may be
submitted by electronic mail to
kcook@presidiotrust.gov.
FOR FURTHER INFORMATION CONTACT:
Karen Cook, General Counsel, Presidio
Trust, at (415) 561–5300, 34 Graham
Street, San Francisco, CA 94129.
Dated: July 20, 2005.
Karen A. Cook,
General Counsel.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule establishes the
Presidio Trust’s debt collection
regulations. They conform to the Debt
Collection Improvement Act of 1996
(DCIA), Public Law 104–134, 110 Stat.
1321, 1358 (Apr. 26, 1996), the Federal
Claims Collection Standards, 31 CFR
Chapter IX (parts 900 through 904), and
other laws applicable to the collection
of nontax debt owed to the Government.
This proposed regulation provides
procedures for the collection of nontax
debts owed to the Presidio Trust. The
Presidio Trust adopts the
Governmentwide debt collection
standards promulgated by the
Departments of the Treasury and Justice,
known as the Federal Claims Collection
Standards (FCCS), as revised on
November 22, 2000 (65 FR 70390), and
supplements the FCCS by prescribing
procedures consistent with the FCCS, as
necessary and appropriate for Presidio
Trust operations. The Presidio Trust
may, but is not required to, adopt
additional procedures and guidelines
consistent with this proposed
regulation, the FCCS, and other
applicable Federal laws, policies and
procedures. This proposed regulation
also provides the procedures for the
collection of debts owed to another
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Federal agency when a request for offset
is received from another Federal agency.
This proposed regulation does not
apply to the collection of tax debts,
which is governed by the Internal
Revenue Code of 1986 (26 U.S.C. 1 et
seq.) and regulations, policies and
procedures issued by the Internal
Revenue Service.
Nothing in this proposed regulation
precludes the use of collection remedies
not contained in this regulation. For
example, the Presidio Trust may collect
unused travel advances through setoff of
an employee’s pay under 5 U.S.C. 5705.
The Presidio Trust may simultaneously
use multiple collection remedies to
collect a debt, except as prohibited by
law.
Section Analysis
Subpart A—Sections 1011.1 Through
1011.3
Subpart A of this proposed regulation
addresses the general provisions
applicable to the collection of nontax
debts owed to the Presidio Trust.
As stated in section 1011.2 of this
proposed rule, nothing in this regulation
requires the Presidio Trust to duplicate
notices or administrative proceedings
required by contract, this regulation or
other laws or regulations. Thus, for
example, the Presidio Trust is not
required to provide a debtor with two
hearings on the same issue merely
because the entity uses two different
collection tools, each of which requires
that the debtor be provided with a
hearing.
Subpart B—Sections 1011.4 Through
1011.20
Subpart B of this proposed regulation
describes the procedures to be followed
by the Presidio Trust when collecting
debts owed to the Presidio Trust.
Among other things, subpart B outlines
the due process procedures the Presidio
Trust will follow when using offset
(administrative, tax refund and salary)
to collect a debt, when garnishing a
debtor’s wages, or before reporting a
debt to a credit bureau. Specifically, the
Presidio Trust will provide debtors with
notice of the amount and type of debt,
the intended collection action to be
taken, how a debtor may pay the debt
or make alternate repayment
arrangements, how a debtor may review
documents related to the debt, how a
debtor may dispute the debt, and the
consequences to the debtor if the debt
is not paid. Notices may be sent by firstclass mail, and if not returned by the
United States Postal Service, the
Presidio Trust may presume that the
notice was received. See Rosenthal v.
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Walker, 111 U.S. 185 (1884); Mahon v.
Credit Bureau of Placer County
Incorporated, 171 F.3d 1197 (9th Cir.
1999). Nothing in this proposed
regulation precludes the Presidio Trust
from sending a notice by certified mail
if appropriate or required by statute.
Subpart B also explains the
circumstances under which the Presidio
Trust may waive interest, penalties and
administrative costs.
This proposed regulation also
incorporates procedures for several
collection remedies authorized by the
DCIA, such as administrative wage
garnishment.
Subpart C—Sections 1011.21 and
1011.22
Subpart C of this proposed regulation
describes the procedures to be followed
when another Federal agency would
like to use the offset process to collect
a debt from payment issued by the
Presidio Trust as a payment agency.
Regulatory Analysis
E.O. 12866, Regulatory Review
This proposed rule is not a significant
regulatory action as defined in
Executive Order 12866.
Regulatory Flexibility Act
This proposed rule will only affect
persons who owe delinquent nontax
debts to the Presidio Trust and other
Federal agencies. Accordingly, a
regulatory flexibility analysis is not
required.
List of Subjects for 36 CFR Part 1011
Administrative practice and
procedure, Claims, Debt collections,
Federal employees, Garnishment of
wages, Reporting and recordkeeping
requirements.
Authority and Issuance
For the reasons set forth in the
preamble, 36 CFR part 1011 is proposed
to be added to read as follows:
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1011.6 When will the Presidio Trust allow
a debtor to enter into a repayment
agreement?
1011.7 When will the Presidio Trust
compromise a debt?
1011.8 When will the Presidio Trust
suspend or terminate debt collection on
a debt?
1011.9 When will the Presidio Trust
transfer a debt to the Financial
Management Service for collection?
1011.10 How will the Presidio Trust use
administrative offset (offset of non-tax
Federal payments) to collect a debt?
1011.11 How will the Presidio Trust use tax
refund offset to collect a debt?
1011.12 How will the Presidio Trust offset
a Federal employee’s salary to collect a
debt?
1011.13 How will the Presidio Trust use
administrative wage garnishment to
collect a debt from a debtor’s wages?
1011.14 How will the Presidio Trust report
debts to credit bureaus?
1011.15 How will the Presidio Trust refer
debts to private collection contractors?
1011.16 When will the Presidio Trust refer
debts to the Department of Justice?
1011.17 Will a debtor who owes a debt be
ineligible for Presidio Trust licenses,
permits, leases, privileges or services?
1011.18 How does a debtor request a
special review based on a change in
circumstances such as catastrophic
illness, divorce, death or disability?
1011.19 Will the Presidio Trust issue a
refund if money is erroneously collected
on a debt?
1011.20 Will the Presidio Trust’s failure to
comply with these regulations be a
defense to a debt?
Subpart C—Procedures for Offset of
Presidio Trust Payments To Collect Debts
Owed to Other Federal Agencies
1011.21 How do other Federal agencies use
the offset process to collect debts from
payments issued by the Presidio Trust?
1011.22 What does the Presidio Trust do
upon receipt of a request to offset the
salary of a Presidio Trust employee to
collect a debt owed by the employee to
another Federal agency?
Authority: The Presidio Trust is authorized
to publish this proposed rule pursuant to 16
U.S.C. 460bb appendix, as amended.
PART 1011—DEBT COLLECTION
Subpart A—General Provisions
Subpart A—General Provisions
Sec.
1011.1 What definitions apply to the
regulations in this part?
1011.2 Why is the Presidio Trust issuing
these regulations and what do they
cover?
1011.3 Do these regulations adopt the
Federal Claims Collection Standards?
§ 1011.1 What definitions apply to the
regulations in this part?
Subpart B—Procedures To Collect Presidio
Trust Debts
1011.4 What notice will the Presidio Trust
send to a debtor when collecting a debt?
1011.5 What interest, penalty charges and
administrative costs will the Presidio
Trust add to a debt?
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As used in this part:
Administrative offset or offset means
withholding funds payable by the
United States (including funds payable
by the United States on behalf of a State
Government) to, or held by the United
States for, a person to satisfy a debt
owed by the person. The term
‘‘administrative offset’’ includes,
without limitation, the offset of Federal
salary, vendor, retirement, and Social
Security benefit payments. The terms
‘‘centralized administrative offset’’ and
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‘‘centralized offset’’ refer to the process
by which the Treasury Department’s
Financial Management Service offsets
Federal payments through the Treasury
Offset Program.
Administrative wage garnishment
means the process by which a Federal
agency may, without first obtaining a
court order, order a non-Federal
employer to withhold amounts from a
debtor’s wages to satisfy a delinquent
debt.
Agency or Federal agency means a
department, agency, court, court
administrative office, or instrumentality
in the executive, judicial or legislative
branch of the Federal government,
including government corporations.
Certification means a written
statement received by a paying agency
or disbursing official that requests the
paying agency or disbursing official to
offset the salary of an employee and
specifies that required procedural
protections have been afforded the
employee.
Compromise means the settlement or
forgiveness of all or a portion of a debt.
Creditor agency means any Federal
agency that is owed a debt and includes
a debt collection center when it is acting
on behalf of the Presidio Trust.
Debt means any amount of money,
funds or property that has been
determined by an appropriate agency
official to be owed to the United States
by a person. As used in this part, the
term ‘‘debt’’ does not include debts
arising under the Internal Revenue
Code.
Debt collection center means the
Treasury Department or any agency or
division designated by the Secretary of
the Treasury with authority to collect
debts on behalf of creditor agencies.
Debtor means a person who owes a
debt to the United States.
Delinquent debt means a debt that has
not been paid by the date specified in
the Presidio Trust’s initial written
demand for payment or applicable
agreement or instrument (including a
post-delinquency payment agreement)
unless other satisfactory payment
arrangements have been made.
Disposable pay means that part of an
employee’s pay that remains after
deductions that are required by law to
be withheld have been made.
Employee or Federal employee means
a current employee of the Presidio Trust
or other Federal agency, including a
current member of the Armed Forces,
Reserve of the Armed Forces of the
United States or of the National Guard.
FCCS means the Federal Claims
Collection Standards, which were
jointly published by the Departments of
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the Treasury and Justice and codified at
31 CFR parts 900–904.
FMS means the Financial
Management Service, a bureau of the
Treasury Department, which is
responsible for the centralized
collection of delinquent debts through
the offset of Federal payments and other
means.
IRS means the Internal Revenue
Service.
Paying agency means any agency that
is making payments of any kind to a
debtor. In some cases, the Presidio Trust
may be both the paying agency and the
creditor agency.
Person means an individual,
corporation, partnership, association,
organization, state or local government,
or any other type of entity other than a
Federal agency.
Private collection contractor means a
private debt collector under contract
with an agency to collect a non-tax debt
owed to the Presidio Trust.
Salary offset means a type of
administrative offset to collect a debt
owed by a Federal employee from the
current pay account of the employee.
Tax refund offset means the reduction
of a tax refund by the amount of a
delinquent debt owed to the Presidio
Trust.
Treasury Department means the
United States Department of the
Treasury.
Treasury Offset Program means the
Treasury Department’s program for
withholding funds payable by the
United States to a person to satisfy a
debt owed by the person utilizing the
Financial Management Service’s system
that compares information about
payments with information about debts.
§ 1011.2 Why is the Presidio Trust issuing
these regulations and what do they cover?
(a) Scope. The Presidio Trust is
issuing these regulations to provide
procedures for the collection of debts
owed to the Presidio Trust. This part
also provides procedures for collection
of other debts owed to the United States
when a request for offset of a Treasury
payment is received by the Treasury
Department from another agency (for
example, when a Presidio Trust
employee owes a debt to the United
States Department of Education).
(b) Applicability. (1) This part applies
to the Presidio Trust when collecting a
debt and to persons who owe a debt to
the Presidio Trust, or to Federal
agencies requesting offset of a payment
issued by the Presidio Trust as a paying
agency (including salary payments to
Presidio Trust employees).
(2) This part does not apply to tax
debts.
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(3) Nothing in this part precludes
collection or disposition of any debt
under statutes and regulations other
than those described in this part.
(c) Additional policies, guidelines and
procedures. The Presidio Trust may
adopt additional policies, guidelines
and procedures consistent with this part
and other applicable law.
(d) Duplication not required. Nothing
in this part requires the Presidio Trust
to duplicate notices or administrative
proceedings required by contract, this
part or other laws or regulations.
(e) Use of multiple collection
remedies allowed. The Presidio Trust
may simultaneously use multiple
collection remedies to collect a debt,
except as prohibited by law. This part
is intended to promote aggressive debt
collection, using for each debt all
available collection remedies. These
remedies are not listed in any
prescribed order to provide the Presidio
Trust with flexibility in determining
which remedies will be most efficient in
collecting the particular debt.
(f) Cross-servicing with the Treasury
Department. These regulations
authorize the Presidio Trust to enter a
cross-servicing agreement with the
Treasury Department under which the
Treasury Department will take
authorized action to collect debts owed
to the Presidio Trust.
§ 1011.3 Do these regulations adopt the
Federal Claims Collections Standards?
This part adopts and incorporates all
provisions of the FCCS. This part also
supplements the FCCS by prescribing
procedures consistent with the FCCS, as
necessary and appropriate for Presidio
Trust operations.
Subpart B—Procedures To Collect
Presidio Trust Debts
§ 1011.4 What notice will the Presidio
Trust send to a debtor when collecting a
debt?
(a) Notice requirements. The Presidio
Trust will aggressively collect debts.
The Presidio Trust will send at least one
written notice to a debtor informing the
debtor of the consequences of failing to
pay or otherwise resolve a debt. The
notice(s) will be sent to the debtor’s
most current address for the debtor in
the records of the Presidio Trust. Except
as otherwise provided in paragraph (b)
of this section, the written notice(s) will
explain to the debtor:
(1) The amount, nature and basis of
the debt;
(2) How interest, penalty charges and
administrative costs are added to the
debt, the date by which payment should
be made to avoid such charges, and that
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such assessments must be made unless
waived (see § 1011.5 of this part);
(3) The date by which payment is due
and that the debt will be considered
delinquent if payment is not received by
the Presidio Trust by the due date,
which date will not be less than 30 days
after the date of the notice, and the date
by which payment must be received by
the Presidio Trust to avoid the enforced
collection actions described in
paragraph (a)(6) of this section, which
date will not be less than 60 days after
the date of the notice;
(4) How the debtor may enter into a
written agreement to repay the debt
voluntarily under terms acceptable to
the Presidio Trust (see § 1011.6 of this
part);
(5) The name, address and telephone
number of a contact person within the
Presidio Trust;
(6) The Presidio Trust’s intention to
enforce collection if the debtor fails to
pay or otherwise resolve the debt, by
taking one or more of the following
actions:
(i) Offset the debtor’s federal
payments, including income tax
refunds, salary, certain benefit payments
(such as Social Security), retirement,
vendor, travel reimbursements and
advances, and other federal payments
(see § 1011.10 through 1011.12 of this
part);
(ii) Refer the debt to a private
collection agency (see § 1011.15 of this
part);
(iii) Report the debt to a credit bureau
(see § 1011.14 of this part);
(iv) Garnish the debtor’s wages
through administrative wage
garnishment (see § 1011.13 of this part);
(v) Refer the debt to the Department
of Justice to initiate litigation to collect
the debt (see § 1011.16 of this part);
(vi) Refer the debt to the FMS for
collection (see § 1011.9 of this part);
(7) That debts over 180 days
delinquent must be referred to the FMS
for the collection actions described in
paragraph (a)(6) of this section (see
§ 1011.9 of this part);
(8) How the debtor may inspect and/
or obtain copies of disclosable records
related to the debt;
(9) How the debtor may request a
review of the Presidio Trust’s
determination that the debtor owes a
debt.
(10) How a debtor may request a
hearing if the Presidio Trust intends to
garnish the debtor’s non-Federal wages
(see § 1011.13(a) of this part), including:
(i) The method and time period for
requesting a hearing;
(ii) That the timely filing of a request
for a hearing on or before the 15th
business day following the date of the
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notice will stay the commencement of
administrative wage garnishment, but
not necessarily other collection
procedures; and
(iii) The name and address of the
office to which the request for a hearing
should be sent.
(11) How a debtor who is a Federal
employee subject to Federal salary offset
may request a hearing (see § 1011.12(e)
of this part), including:
(i) The method and time period for
requesting a hearing;
(ii) That the timely filing of a request
for a hearing on or before the 15th
business day following the date of the
notice will stay the commencement of
salary offset, but not necessarily other
collection procedures;
(iii) The name and address of the
office to which the request for a hearing
should be sent;
(iv) That the Presidio Trust will refer
the debt to the debtor’s employing
agency or to the FMS to implement
salary offset, unless the employee files
a timely request for a hearing;
(v) That a final decision on the
hearing, if requested, will be issued at
the earliest practical date, but not later
than 60 days after the filing of the
request for a hearing, unless the
employee requests and the hearing
official grants a delay in the
proceedings;
(vi) That any knowingly false or
frivolous statements, representations, or
evidence may subject the Federal
employee to penalties under the False
Claims Act (31 U.S.C. 3729–3731) or
other applicable statutory authority, and
criminal penalties under 18 U.S.C. 286,
287, 1001, and 1002, or other applicable
statutory authority;
(vii) That unless prohibited by
contract or statute, amounts paid on or
deducted for the debt which are later
waived or found not owed to the United
States will be promptly refunded to the
employee; and
(viii) That proceedings with respect to
such debt are governed by 5 U.S.C. 5514
and 31 U.S.C. 3716;
(12) That the debtor may request a
waiver of the debt;
(13) That the debtor’s spouse may
claim the spouse’s share of a joint
income tax refund by filing Form 8379
with the IRS;
(14) That the debtor may exercise
other statutory or regulatory rights and
remedies available to the debtor;
(15) That the Presidio Trust may
suspend or revoke any licenses, permits,
leases, privileges or services for failure
to pay a debt (see § 1011.17 of this part);
and
(16) That the debtor should advise the
Presidio Trust of a bankruptcy
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proceeding of the debtor or another
person liable for the debt being
collected.
(b) Exceptions to notice requirements.
The Presidio Trust may omit from a
notice to a debtor one or more of the
provisions contained in paragraphs
(a)(6) through (a)(16) of this section if
the Presidio Trust, in consultation with
its General Counsel, determines that any
provision is not legally required given
the collection remedies to be applied to
a particular debt.
(c) Respond to debtors. The Presidio
Trust will respond promptly to
communications from debtors.
§ 1011.5 What interest, penalty charges
and administrative costs will the Presidio
Trust add to a debt?
(a) Interest. (1) The Presidio Trust will
assess interest on all delinquent debts
unless prohibited by statute, regulation
or contract.
(2) Interest begins to accrue on all
debts from the date the debt becomes
delinquent. The Presidio Trust will
waive collection of interest if the debt
is paid within 30 days of the date on
which interest begins to accrue. The
Presidio Trust will assess interest at the
rate established by the Treasury
Department under 31 U.S.C. 3717,
unless a different rate is established by
a contract, repayment agreement or
statute. The Presidio Trust will notify
the debtor of the basis for the interest
rate assessed.
(b) Penalty. The Presidio Trust will
assess a penalty of not more than 6% a
year, or such other higher rate as
authorized by law, on any portion of a
debt that is delinquent for more than 90
days.
(c) Administrative costs. The Presidio
Trust will assess charges to cover
administrative costs incurred as a result
of the debtor’s failure to pay a debt
before it becomes delinquent.
Administrative costs include the costs
of processing and handling a debt,
obtaining a credit report, using a private
collection contractor, costs of a hearing
including, the costs of a hearing officer,
and service fees charged by a Federal
agency for collection activities
undertaken on behalf of the Presidio
Trust.
(d) Allocation of payments. A partial
or installment payment by a debtor will
be applied first to administrative costs,
second to outstanding penalty
assessments, third to accrued interest,
and fourth to outstanding debt
principal.
(e) Additional authority. The Presidio
Trust may have additional policies,
guidelines and procedures regarding
how interest, penalties and
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administrative costs are assessed on
particular types of debts. The Presidio
Trust will explain in the notice to the
debtor described in § 1011.4 of this part
how interest, penalties, administrative
costs and other charges are assessed,
unless the requirements are included in
a contract or repayment agreement.
(f) Waiver. (1) The Presidio Trust may
waive collection of all or part of accrued
interest, penalties and administrative
costs when it would be against equity
and good conscience or not in the
Presidio Trust’s best interest to collect
such charges.
(2) A decision to waive interest,
penalties or administrative costs may be
made at any time before a debt is paid.
However, unless otherwise provided in
these regulations, when these charges
have been collected before the waiver
decision, they will not be refunded.
(g) Accrual during suspension of debt
collection. In most cases, interest,
penalties and administrative costs will
continue to accrue during any period
when collection has been suspended for
any reason (for example, when the
debtor has requested a hearing). The
Presidio Trust may suspend accrual of
any or all of these charges when accrual
would be against equity and good
conscience or not in the Presidio Trust’s
best interest.
Presidio Trust will set the necessary
terms of any repayment agreement. No
repayment agreement will be binding on
the Presidio Trust unless it is in writing
and signed by both the debtor and an
authorized Presidio Trust
representative. The Presidio Trust is not
required to enter into a repayment
agreement.
§ 1011.7 When will the Presidio Trust
compromise a debt?
(a) Authority. The Presidio Trust may
compromise a debt in accordance with
the FCCS and such procedures as the
Presidio Trust may adopt. (See
§ 1011.16 of this subpart).
(b) Report to IRS. The uncollected
portion of a debt owed to the Presidio
Trust that is not recovered as the result
of a compromise will be reported to the
IRS as income to the debtor in
accordance with IRS and Presidio Trust
procedures.
§ 1011.8 When will the Presidio Trust
suspend or terminate debt collection on a
debt?
If, after pursuing all appropriate
means of collection, the Presidio Trust
determines that a debt is uncollectible,
the Presidio Trust may suspend or
terminate debt collection activity in
accordance with the FCCS and the
Presidio Trust’s procedures.
§ 1011.6 When will the Presidio Trust allow
a debtor to enter into a repayment
agreement?
§ 1011.9 When will the Presidio Trust
transfer a debt to the Financial Management
Service for collection?
(a) Voluntary repayment. In response
to a notice of a debt, the debtor may
propose to the Presidio Trust the
voluntary repayment of the debt in lieu
of the Presidio Trust taking other
collection actions under this part.
(b) Debtor’s request. The request from
the debtor must:
(1) Be in writing;
(2) Admit the existence of the entire
debt; and
(3) Either propose payment of the debt
(together with interest, penalties and
administrative costs) in a lump sum, or
set forth a proposed repayment
schedule.
(c) Repayment schedule. The Presidio
Trust will collect debts in one lump
sum whenever feasible. The Presidio
Trust may accept payment in regular
installments that bear a reasonable
relationship to the size of the debt.
(d) Repayment agreement. The
Presidio Trust will consider a request to
enter into a voluntary repayment
agreement in accordance with the FCCS.
The Presidio Trust may request
additional information from the debtor,
including financial statements, in order
to determine whether to enter into a
voluntary repayment agreement. The
(a) Cross-servicing. The Presidio Trust
will transfer any eligible debt that is
more than 180 days delinquent to the
FMS for debt collection services, a
process known as ‘‘cross-servicing.’’ The
Presidio Trust may transfer debts
delinquent 180 days or less to the FMS
in accordance with the procedures
described in 31 CFR 285.12. The FMS
takes appropriate action to collect or
compromise the transferred debt, or to
suspend or terminate collection action
thereon, in accordance with the
statutory and regulatory requirements
and authorities applicable to the debt
and the collection action to be taken.
Appropriate action includes, without
limitation, contact with the debtor,
referral of the debt to the Treasury
Offset Program, private collection
agencies or the Department of Justice,
reporting of the debt to credit bureaus,
and administrative wage garnishment.
(b) Notice; certification. At least 60
days prior to transferring a debt to the
FMS, the Presidio Trust will send notice
to the debtor as required by § 1011.4 of
this part. The Presidio Trust will certify
to the FMS, in writing, that the debt is
valid, delinquent, legally enforceable
and that there are no legal bars to
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collection. In addition, the Presidio
Trust will certify its compliance with all
applicable due process and other
requirements as described in this part
and other Federal laws.
(c) Treasury Offset Program. As part
of its debt collection process, the FMS
uses the Treasury Offset Program to
collect debts by administrative and tax
refund offset. The Treasury Offset
Program is a centralized offset program
administered by the FMS to collect
delinquent debts owed to Federal
agencies and states (including past-due
child support). Under the Treasury
Offset Program, before a federal
payment is disbursed, the FMS
compares the name and taxpayer
identification number (TIN) of the payee
with the names and TINs of debtors that
have been submitted by Federal
agencies and states to the Treasury
Offset Program database. If there is a
match, the FMS (or, in some cases,
another Federal disbursing agency)
offsets all or a portion of the federal
payment, disburses any remaining
payment to the payee, and pays the
offset amount to the creditor agency.
Federal payments eligible for offset
include, without limitation, income tax
refunds, salary, travel advances and
reimbursements, retirement and vendor
payments, and Social Security and other
benefit payments.
§ 1011.10 How will the Presidio Trust use
administrative offset (offset of non-tax
federal payments) to collect a debt?
(a) Centralized administrative offset
through the Treasury Offset Program. (1)
If not already transferred to the FMS
under § 1011.9 of this part, the Presidio
Trust will refer any eligible debt over
180 days delinquent to the Treasury
Offset Program for collection by
centralized administrative offset. The
Presidio Trust may refer any eligible
debt less than 180 days delinquent to
the Treasury Offset Program for offset.
(2) At least 60 days prior to referring
a debt to the Treasury Offset Program,
in accordance with paragraph (a)(1) of
this section, the Presidio Trust will send
notice to the debtor in accordance with
the requirements of § 1011.4 of this part.
The Presidio Trust will certify to the
FMS, in writing, that the debt is valid,
delinquent, legally enforceable and that
there are no legal bars to collection by
offset. In addition, the Presidio Trust
will certify its compliance with the
requirements described in this part.
(b) Non-centralized administrative
offset for a debt. (1) When centralized
administrative offset through the
Treasury Offset Program is not available
or appropriate, the Presidio Trust may
collect delinquent, legally enforceable
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debts through non-centralized
administrative offset. In these cases, the
Presidio Trust may offset a payment
internally or make an offset request
directly to a federal paying agency.
(2) At least 30 days prior to offsetting
a payment internally or requesting a
federal paying agency to offset a
payment, the Presidio Trust will send
notice to the debtor in accordance with
the requirements of § 1011.4 of this part.
When referring a debt for offset under
this paragraph (b), the Presidio Trust
will certify, in writing, that the debt is
valid, delinquent, legally enforceable
and that there are no legal bars to
collection by offset. In addition, the
Presidio Trust will certify its
compliance with these regulations
concerning administrative offset.
(c) Administrative review. The notice
described in § 1011.4 of this part will
explain to the debtor how to request an
administrative review of the Presidio
Trust determination that the debtor
owes a debt and how to present
evidence that the debt is not delinquent
or legally enforceable. In addition to
challenging the existence and amount of
the debt, the debtor may seek a review
of the terms of repayment. In most
cases, the Presidio Trust will provide
the debtor with a ‘‘paper hearing’’ based
upon a review of the written record,
including documentation provided by
the debtor. The Presidio Trust will
provide the debtor with a reasonable
opportunity for an oral hearing when
the debtor requests reconsideration of
the debt and the Presidio Trust
determines that the question of the
indebtedness cannot be resolved by
review of the documentary evidence, for
example, when the validity of the debt
turns on an issue of credibility or
veracity. Unless otherwise required by
law, an oral hearing under this section
is not required to be a formal
evidentiary hearing, although the
Presidio Trust will document all
significant matters presented at the
hearing. The Presidio Trust may
suspend collection through
administrative offset and/or other
collection actions pending the
resolution of a debtor’s dispute. The
Presidio Trust may establish policies,
guidelines and procedures concerning
the administrative review process
consistent with the FCCS and the
regulations in this section.
(d) Procedures for expedited offset.
Under the circumstances described by
the FCCS, the Presidio Trust may effect
an offset against a payment to be made
to the debtor prior to sending a notice
to the debtor, as described in § 1011.4 of
this part, or completing the procedures
described in paragraph (b)(2) and (c) of
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this section. The Presidio Trust will give
the debtor notice and an opportunity for
review as soon as practicable and
promptly refund any money ultimately
found not to have been owed to the
Government.
§ 1011.11 How will the Presidio Trust use
tax refund offset to collect a debt?
(a) Tax refund offset. In most cases,
the FMS uses the Treasury Offset
Program to collect debts by the offset of
tax refunds and other federal payments.
See § 1011.9(c) of this part. If not
already transferred to the FMS under
§ 1011.9 of this part, the Presidio Trust
will refer to the Treasury Offset Program
any delinquent, legally enforceable debt
for collection by tax refund offset.
(b) Notice; certification. At least 60
days prior to referring a debt to the
Treasury Offset Program, the Presidio
Trust will send notice to the debtor in
accordance with the requirements of
§ 1011.4 of this part. The Presidio Trust
will certify to the FMS’s Treasury Offset
Program, in writing, that the debt is
delinquent and legally enforceable in
the amount submitted and that the
Presidio Trust has made reasonable
efforts to obtain payment of the debt. In
addition, the Presidio Trust will certify
its compliance with all applicable due
process and other requirements
described in this part and other
applicable law.
(c) Administrative review. The notice
described in § 1011.4 of this part will
provide the debtor with at least 60 days
prior to the initiation of tax refund offset
to request an administrative review as
described in § 1011.10(c) of this part.
The Presidio Trust may suspend
collection through tax refund offset and/
or other collection actions pending the
resolution of the debtor’s dispute.
§ 1011.12 How will the Presidio Trust
offset a Federal employee’s salary to collect
a debt?
(a) Federal salary offset. (1) Salary
offset is used to collect debts owed to
the United States by Federal employees.
If a Presidio Trust employee owes a
debt, the Presidio Trust may offset the
employee’s federal salary to collect the
debt in the manner described in this
section. For information on how a
Federal agency other than the Presidio
Trust may collect a debt from the salary
of a Presidio Trust employee, see
§ 1011.21 and 1011.22, subpart C, of this
part.
(2) Nothing in this part requires the
Presidio Trust to collect a debt in
accordance with the provisions of this
section if Federal law allows otherwise.
(b) Centralized salary offset through
the Treasury Offset Program. As
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described in § 1011.9(a) of this part, the
Presidio Trust will refer debts to the
FMS for collection by administrative
offset, including salary offset, through
the Treasury Offset Program.
(c) Non-centralized salary offset for
Treasury debts. The Presidio Trust may
collect delinquent debts through noncentralized salary offset. In these cases,
the Presidio Trust may offset a payment
internally or make a request directly to
a paying agency to offset a salary
payment to collect a delinquent debt
owed by a Federal employee. At least 30
days prior to offsetting internally or
requesting a Federal agency to offset a
salary payment, the Presidio Trust will
send notice to the debtor in accordance
with the requirements of § 1011.4 of this
part. When referring a debt for offset,
the Presidio Trust will certify to the
paying agency, in writing, that the debt
is valid, delinquent and legally
enforceable in the amount stated, and
there are no legal bars to collection by
salary offset. In addition, the Presidio
Trust will certify that all due process
and other prerequisites to salary offset
have been met. See 5 U.S.C. 5514, 31
U.S.C. 3716(a), and this section for a
description of the process for salary
offset.
(d) When prior notice not required.
The Presidio Trust is not required to
provide prior notice to a Presidio Trust
employee when the following
adjustments are made:
(1) Any adjustment to pay arising out
of a Presidio Trust employee’s election
of coverage or a change in coverage
under a Federal benefits program
requiring periodic deductions from pay,
if the amount to be recovered was
accumulated over four pay periods or
fewer;
(2) A routine intra-agency adjustment
of pay that is made to correct an
overpayment of pay attributable to
clerical or administrative errors or
delays in processing pay documents, if
the overpayment occurred within the
four pay periods preceding the
adjustment, and, at the time of such
adjustment, or as soon thereafter as
practical, the individual is provided
written notice of the nature and the
amount of the adjustment and point of
contact for contesting such adjustment;
or
(3) Any adjustment to collect a debt
amounting to $50 or less, if, at the time
of such adjustment, or as soon thereafter
as practical, the individual is provided
written notice of the nature and the
amount of the adjustment and a point of
contact for contesting such adjustment.
(e) Hearing procedures. (1) Request
for a hearing. A Presidio Trust
employee who has received a notice that
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a debt will be collected by means of
salary offset may request a hearing
concerning the existence or amount of
the debt. The employee also may
request a hearing concerning the
amount proposed to be deducted from
the employee’s pay each pay period.
The employee must send any request for
hearing, in writing, to the office
designated in the notice described in
§ 1011.4(a)(11). The request must be
received by the designated office on or
before the 15th business day following
the employee’s receipt of the notice. The
employee must sign the request and
specify whether an oral or paper hearing
is requested. If an oral hearing is
requested, the employee must explain
why the matter cannot be resolved by
review of the documentary evidence
alone.
(2) Failure to submit timely request for
hearing. If the employee fails to submit
a request for hearing within the time
period described in paragraph (e)(1) of
this section, the employee will have
waived the right to a hearing, and salary
offset may be initiated. However, the
Presidio Trust may accept a late request
for hearing if the employee can show
that the late request was the result of
circumstances beyond the employee’s
control or because of a failure to receive
actual notice of the filing deadline.
(3) Hearing official. The Presidio
Trust hearing must be conducted by a
hearing official who is not under the
supervision or control of the Board of
Directors of the Presidio Trust. The
hearing official need not be an employee
of the Federal Government.
(4) Notice of hearing. After the
employee requests a hearing, a
designated hearing official will inform
the employee of the form of the hearing
to be provided. For oral hearings, the
notice will set forth the date, time and
location of the hearing. For paper
hearings, the notice will notify the
employee of the date by which the
employee should submit written
arguments to the designated hearing
official. The hearing official will give
the employee reasonable time to submit
documentation in support of the
employee’s position. The hearing
official will schedule a new hearing date
if requested by both parties. The hearing
official will give both parties reasonable
notice of the time and place of a
rescheduled hearing.
(5) Oral hearing. The hearing official
will conduct an oral hearing if the
official determines that the matter
cannot be resolved by review of
documentary evidence alone (for
example, when an issue of credibility or
veracity is involved). The hearing
official will determine the procedure for
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the oral hearing, determining, for
example, the hearing length.
(6) Paper hearing. If the hearing
official determines that an oral hearing
is not necessary, the official will make
the determination based upon a review
of the available written record,
including any documentation submitted
by the employee in support of the
employee’s position.
(7) Date of decision. The hearing
official will issue a written opinion
setting forth the decision, based upon
documentary evidence and information
developed at the hearing, as soon as
practicable after the hearing.
(8) Final agency action. The hearing
official’s decision will be final.
(f) Salary offset process. (1)
Determination of disposable pay. The
Presidio Trust payroll office will
determine the amount of the employee’s
disposable pay (as defined in § 1011.1 of
this part) and will implement salary
offset.
(2) When salary offset begins.
Deductions will begin within three
official pay periods.
(3) Amount of salary offset. The
amount to be offset from each salary
payment will be up to 15% of the
employee’s disposable pay, as follows:
(i) If the amount of the debt is equal
to or less than 15% of the disposable
pay, such debt generally will be
collected in one lump sum payment;
(ii) Installment deductions will be
made over a period of no greater than
the anticipated period of employment.
An installment deduction will not
exceed 15% of the disposable pay from
which the deduction is made unless the
employee has agreed in writing to the
deduction of a greater amount.
(4) Final salary payment. After the
employee’s employment with the
Presidio Trust ends, the Presidio Trust
may make a lump sum deduction
exceeding 15% of disposable pay from
any final salary or other payments in
order to satisfy a debt.
§ 1011.13 How will the Presidio Trust use
administrative wage garnishment to collect
a debt from a debtor’s wages?
(a) Authority and process. The
Presidio Trust is authorized to collect
debts from a debtor’s wages by means of
administrative wage garnishment in
accordance with the requirements of the
FCCS and other applicable law. This
part adopts and incorporates all of the
provisions of 31 CFR 285.11 concerning
administrative wage garnishment,
including the hearing procedures
described therein. The Presidio Trust
may use administrative wage
garnishment to collect a delinquent debt
unless the debtor is making timely
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payments under an agreement to pay the
debt in installments (see § 1011.6 of this
part). At least 30 days prior to initiating
an administrative wage garnishment, the
Presidio Trust will send notice to the
debtor in accordance with the
requirements of § 1011.4 of this part,
including the requirements of
§ 1011.4(a)(10) of this part. For debts
referred to the FMS under § 1011.9 of
this part, the Presidio Trust may
authorize the FMS to send a notice
informing the debtor that administrative
wage garnishment will be initiated and
how the debtor may request a hearing as
described in § 1011.4(a)(10) of this part.
If a debtor makes a timely request for a
hearing, administrative wage
garnishment will not begin until a
hearing is held and a decision is sent to
the debtor. If a debtor’s hearing request
is not timely, the Presidio Trust may
suspend collection by administrative
wage garnishment. All travel expenses
incurred by the debtor in connection
with an in-person hearing will be borne
by the debtor.
(b) Not applicable to federal salary
offset. This section does not apply to
federal salary offset, the process by
which the Presidio Trust collects debts
from the salaries of Federal employees
(see § 1011.12 of this part).
§ 1011.14 How will the Presidio Trust
report debts to credit bureaus?
The Presidio Trust will report
delinquent debts to credit bureaus in
accordance with the provisions of 31
U.S.C. 3711(e) and the FCCS. At least 60
days prior to reporting a delinquent debt
to a consumer reporting agency, the
Presidio Trust will send notice to the
debtor in accordance with the
requirements of § 1011.4 of this part.
The Presidio Trust may authorize the
FMS to report to credit bureaus those
delinquent debts that have been
transferred to the FMS under § 1011.9 of
this part.
§ 1011.15 How will the Presidio Trust refer
debts to private collection contractors?
The Presidio Trust will transfer
delinquent debts to the FMS to obtain
debt collection services provided by
private collection contractors. See
§ 1011.9 of this part.
§ 1011.16 When will the Presidio Trust
refer debts to the Department of Justice?
(a) Compromise or suspension or
termination of collection activity. The
Presidio Trust will refer debts having a
principal balance over $100,000, or such
higher amount as authorized by the
Attorney General, to the Department of
Justice for approval of any compromise
of a debt or suspension or termination
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of collection activity. See the FCCS and
§ 1011.7 and 1011.8 of this part.
(b) Litigation. The Presidio Trust will
promptly refer to the Department of
Justice for litigation delinquent debts on
which aggressive collection activity has
been taken in accordance with this part
that the Presidio Trust determines
should not be compromised, and on
which collection activity should not be
suspended or terminated. The Presidio
Trust may authorize the FMS to refer to
the Department of Justice for litigation
those delinquent debts that have been
transferred to the FMS under § 1011.9 of
this part.
§ 1011.17 Will a debtor who owes a debt
be ineligible for Presidio Trust licenses,
permits, leases, privileges or services?
Unless prohibited by law, the Presidio
Trust may terminate, suspend or revoke
licenses, permits, leases (subject to the
terms of the leases), or other privileges
or services for any inexcusable or
willful failure of a debtor to pay a debt.
The Presidio Trust may establish
guidelines and procedures governing
termination, suspension and revocation
for delinquent debtors. If applicable, the
Presidio Trust will advise the debtor in
the notice required by § 1011.4 of this
part of the Presidio Trust’s ability to
suspend or revoke licenses, permits or
privileges.
§ 1011.18 How does a debtor request a
special review based on a change in
circumstances such as catastrophic illness,
divorce, death or disability?
(a) Material change in circumstances.
A debtor who owes a debt may, at any
time, request a special review by the
Presidio Trust of the amount of any
offset, administrative wage garnishment
or voluntary payment, based on
materially changed circumstances
beyond the control of the debtor such
as, without limitation, catastrophic
illness, divorce, death or disability.
(b) Inability to pay. For purposes of
this section, in determining whether an
involuntary or voluntary payment
would prevent the debtor from meeting
essential subsistence expenses (costs
incurred for food, housing, clothing,
transportation and medical care), the
debtor must submit a detailed statement
and supporting documents for the
debtor, and the debtor’s dependents,
indicating:
(1) Income from all sources;
(2) Assets;
(3) Liabilities;
(4) Number of dependents;
(5) Expenses for food, housing,
clothing and transportation;
(6) Medical expenses; and
(7) Exceptional expenses, if any.
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(c) Alternative payment arrangement.
If the debtor requests a special review
under this section, the debtor must
submit an alternative proposed payment
schedule and a statement to the Presidio
Trust, with supporting documents,
showing why the current offset,
garnishment or repayment schedule
imposes an extreme financial hardship
on the debtor. The Presidio Trust will
evaluate the statement and
documentation and determine whether
the current offset, garnishment or
repayment schedule imposes extreme
financial hardship on the debtor. The
Presidio Trust will notify the debtor in
writing of such determination,
including, if appropriate, a revised
offset, garnishment or payment
schedule. If the special review results in
a revised offset, garnishment or
repayment schedule, the Presidio Trust
will notify the appropriate agency or
other persons about the new terms.
§ 1011.19 Will the Presidio Trust issue a
refund if money is erroneously collected on
a debt?
The Presidio Trust will promptly
refund to a debtor any amount collected
on a debt when the debt is waived or
otherwise found not to be owed to the
United States, or as otherwise required
by law. Refunds under this part will not
bear interest unless required by law.
§ 1011.20 Will the Presidio Trust’s failure
to comply with these regulations be a
defense to a debt?
No, the failure of the Presidio Trust to
comply with any standard in the FCCS,
these regulations or such other
procedures of the Presidio Trust will not
be available to any debtor as a defense.
Subpart C—Procedures for Offset of
Presidio Trust Payments To Collect
Debts Owed to Other Federal Agencies
§ 1011.21 How do other Federal agencies
use the offset process to collect debts from
payments issued by the Presidio Trust?
(a) Offset of Presidio Trust payments
to collect debts owed to other Federal
agencies. (1) In most cases, Federal
agencies submit eligible debts to the
Treasury Offset Program to collect
delinquent debts from payments issued
by other Federal agencies, a process
known as ‘‘centralized offset.’’ When
centralized offset is not available or
appropriate, any Federal agency may
ask the Presidio Trust (when acting as
a paying agency) to collect a debt owed
to such agency by offsetting funds
payable to a debtor by the Presidio
Trust, including salary payments issued
to the Presidio Trust employees. This
section and § 1011.22 of this subpart C
apply when a Federal agency asks the
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Presidio Trust to offset a payment
issued by the Presidio Trust to a person
who owes a debt to the United States.
(2) This subpart C does not apply to
the collection of debts through tax
refund offset.
(b) Administrative offset (including
salary offset); certification. The Presidio
Trust will initiate a requested offset
only upon receipt of written
certification from the creditor agency
that the debtor owes the delinquent,
legally enforceable debt in the amount
stated, and that the creditor agency has
fully complied with all applicable due
process and other requirements, and the
creditor agency’s regulations, as
applicable. Offsets will continue until
the debt is paid in full or otherwise
resolved to the satisfaction of the
creditor agency.
(c) Where a creditor agency makes
requests for offset. Requests for offset
under this section must be sent to the
Presidio Trust, ATTN: Chief Financial
Officer, P.O. Box 29052, San Francisco,
CA 94129–0052.
(d) Incomplete certification. The
Presidio Trust will return an incomplete
debt certification to the creditor agency
with notice that the creditor agency
must comply with paragraph (b) of this
section before action will be taken to
collect a debt from a payment issued by
the Presidio Trust.
(e) Review. The Presidio Trust is not
authorized to review the merits of the
creditor agency’s determination with
respect to the amount or validity of the
debt certified by the creditor agency.
(f) When the Presidio Trust will not
comply with offset request. The Presidio
Trust will comply with the offset
request of another agency unless the
Presidio Trust determines that the offset
would not be in the best interests of the
United States, or would otherwise be
contrary to law.
(g) Multiple debts. When two or more
creditor agencies are seeking offsets
from payments made to the same
person, or when two or more debts are
owed to a single creditor agency, the
Presidio Trust may determine the order
in which the debts will be collected or
whether one or more debts should be
collected by offset simultaneously.
(h) Priority of debts owed to the
Presidio Trust. For purposes of this
section, debts owed to the Presidio
Trust generally take precedence over
debts owed to other agencies. The
Presidio Trust may determine whether
to pay debts owed to other agencies
before paying a debt owed to the
Presidio Trust. The Presidio Trust will
determine the order in which the debts
will be collected based on the best
interests of the United States.
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Federal Register / Vol. 70, No. 149 / Thursday, August 4, 2005 / Proposed Rules
§ 1011.22 What does the Presidio Trust do
upon receipt of a request to offset the
salary of a Presidio Trust employee to
collect a debt owed by the employee to
another Federal agency?
(a) Notice to the Presidio Trust
employee. When the Presidio Trust
receives proper certification of a debt
owed by one of its employees, the
Presidio Trust will begin deductions
from the employee’s pay at the next
officially established pay interval. The
Presidio Trust will send a written notice
to the employee indicating that a
certified debt claim has been received
from the creditor agency, the amount of
the debt claimed to be owed to the
creditor agency, the date deductions
from salary will begin, and the amount
of such deductions.
(b) Amount of deductions from a
Presidio Trust employee’s salary. The
amount deducted under § 1011.21(b) of
this part will be the lesser of the amount
of the debt certified by the creditor
agency or an amount up to 15% of the
debtor’s disposable pay. Deductions will
continue until the Presidio Trust knows
that the debt is paid in full or until
otherwise instructed by the creditor
agency. Alternatively, the amount offset
may be an amount agreed upon, in
writing, by the debtor and the creditor
agency. See § 1011.12(g) (salary offset
process).
(c) When the debtor is no longer
employed by the Presidio Trust. (1)
Offset of final and subsequent
payments. If the Presidio Trust
employee retires or resigns or if his or
her employment ends before collection
of the debt is complete, the Presidio
Trust will continue to offset up to 100%
of an employee’s subsequent payments
until the debt is paid or otherwise
resolved. Such payments include a
debtor’s final salary payment, lump-sum
leave payment, and other payments
payable to the debtor by the Presidio
Trust.
(2) Notice to the creditor agency. If the
employee’s employment with the
Presidio Trust terminates before the
debt is paid in full, the Presidio Trust
will certify to the creditor agency the
total amount of its collection. If the
Presidio Trust is aware that the
employee is entitled to payments from
the Civil Service Retirement and
Disability Fund, Federal Employee
Retirement System, or other similar
payments, the Presidio Trust will
provide written notice to the agency
making such payments that the debtor
owes a debt (including the amount) and
that the provisions of 5 CFR 550.1109
have been fully complied with. The
creditor agency is responsible for
submitting a certified claim to the
VerDate jul<14>2003
15:17 Aug 03, 2005
Jkt 205001
agency responsible for making such
payments before collection may begin.
Generally, creditor agencies will collect
such monies through the Treasury
Offset Program as described in
§ 1011.9(c) of this part.
(3) Notice to the debtor. The Presidio
Trust will provide to the debtor a copy
of any notices sent to the creditor
agency under paragraph (c)(2) of this
section.
(d) When the debtor transfers to
another Federal agency. (1) Notice to the
creditor agency. If the debtor transfers to
another Federal agency before the debt
is paid in full, the Presidio Trust will
notify the creditor agency and will
certify the total amount of its collection
on the debt. The Presidio Trust will
provide a copy of the certification to the
creditor agency. The creditor agency is
responsible for submitting a certified
claim to the debtor’s new employing
agency before collection may begin.
(2) Notice to the debtor. The Presidio
Trust will provide to the debtor a copy
of any notices and certifications sent to
the creditor agency under paragraph
(d)(1) of this section.
(e) Request for hearing official. The
Presidio Trust will provide a hearing
official upon the creditor agency’s
request with respect to the Presidio
Trust employee.
[FR Doc. 05–14794 Filed 8–3–05; 8:45 am]
BILLING CODE 4310–4R–P
LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 202
[Docket No. RM 2005–9]
Preregistration of Certain Unpublished
Copyright Claims
AGENCY:
Library of Congress, Copyright
Office.
Supplemental notice of
proposed rulemaking.
ACTION:
SUMMARY: The Copyright Office is
supplementing its Notice of Proposed
Rulemaking on preregistration of
copyright claims, issued July 22, 2005.
That notice proposed procedures to
preregister any unpublished work being
prepared for commercial distribution
that is in a class of works determined by
the Register of Copyrights to have had
a history of pre–release infringement.
Today’s notice seeks information as to
whether persons filing the electronic–
only preregistration form prescribed by
the Copyright Office will experience
difficulties if it is necessary to use
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
Microsoft’s Internet Explorer web
browser in order to preregister a work.
DATES: Comments are due no later than
August 22, 2005. Reply comments are
due no later than September 7, 2005.
ADDRESSES: If hand delivered by a
private party, an original and five copies
of any comment should be brought to
Room LM–401 of the James Madison
Memorial Building between 8:30 a.m.
and 5 p.m. and the envelope should be
addressed as follows: Office of the
General Counsel, U.S. Copyright Office,
James Madison Memorial Building,
Room LM–401, 101 Independence
Avenue, SE., Washington, DC 20559–
6000. If hand delivered by a commercial
courier, an original and five copies of
any comment must be delivered to the
Congressional Courier Acceptance Site
located at Second and D Streets, NE.,
Washington, DC, between 8:30 a.m. and
4 p.m. The envelope should be
addressed as follows: Copyright Office
General Counsel, Room LM–403, James
Madison Memorial Building, 101
Independence Avenue, SE.,
Washington, DC. If sent by mail, an
original and five copies of any comment
should be addressed to: Copyright GC/
I&R, P.O. Box 70400, Southwest Station,
Washington, DC 20024–0400.
Comments may not be delivered by
means of overnight delivery services
such as Federal Express, United Parcel
Service, etc., due to delays in processing
receipt of such deliveries.
FOR FURTHER INFORMATION CONTACT:
David O. Carson, General Counsel, or
Charlotte Douglass, Principal Legal
Advisor, P.O. Box 70400, Washington,
DC 20024–0400, Telephone (202) 707–
8380. Telefax: (202) 707–8366.
SUPPLEMENTARY INFORMATION: In
accordance with the Artists’ Rights and
Theft Prevention Act of 2005 (the ART
Act), Title I of the Family Entertainment
and Copyright Act, Pub. L. No. 109–9,
119 Stat. 218, the Copyright Office
recently proposed implementing
regulations for preregistration of eligible
copyright claims. 70 FR 42286 (July 22,
2005). To be eligible for preregistration,
a work must be unpublished, in the
process of being prepared for
commercial distribution, and in a class
of works that the Register of Copyrights
determines has had a history of
copyright infringement.
Section 104 of the ART Act directs
that preregistration procedures must be
in place by October 24, 2005. 17 U.S.C.
408(f)(1). To comply with this time
frame and to facilitate efficient
processing of preregistration claims,
inter alia, the proposed rule calls for
filing such claims by electronic means
only. At this point in the process of
E:\FR\FM\04AUP1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 149 (Thursday, August 4, 2005)]
[Proposed Rules]
[Pages 44870-44878]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14794]
=======================================================================
-----------------------------------------------------------------------
PRESIDIO TRUST
36 CFR Part 1011
Debt Collection
AGENCY: Presidio Trust.
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule proposes to adopt debt collection regulations to
conform to the Debt Collection Improvement Act of 1996, the Federal
Claims Collection Standards, and other laws applicable to the
collection of nontax debts owed to the Presidio Trust.
DATES: Comments regarding this proposed rule must be received on or
before September 19, 2005.
ADDRESSES: Send comments to Karen Cook, General Counsel, Presidio
Trust, 34 Graham Street, San Francisco, CA 94129. Comments also may be
submitted by electronic mail to kcook@presidiotrust.gov.
FOR FURTHER INFORMATION CONTACT: Karen Cook, General Counsel, Presidio
Trust, at (415) 561-5300, 34 Graham Street, San Francisco, CA 94129.
Dated: July 20, 2005.
Karen A. Cook,
General Counsel.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule establishes the Presidio Trust's debt collection
regulations. They conform to the Debt Collection Improvement Act of
1996 (DCIA), Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996),
the Federal Claims Collection Standards, 31 CFR Chapter IX (parts 900
through 904), and other laws applicable to the collection of nontax
debt owed to the Government.
This proposed regulation provides procedures for the collection of
nontax debts owed to the Presidio Trust. The Presidio Trust adopts the
Governmentwide debt collection standards promulgated by the Departments
of the Treasury and Justice, known as the Federal Claims Collection
Standards (FCCS), as revised on November 22, 2000 (65 FR 70390), and
supplements the FCCS by prescribing procedures consistent with the
FCCS, as necessary and appropriate for Presidio Trust operations. The
Presidio Trust may, but is not required to, adopt additional procedures
and guidelines consistent with this proposed regulation, the FCCS, and
other applicable Federal laws, policies and procedures. This proposed
regulation also provides the procedures for the collection of debts
owed to another
[[Page 44871]]
Federal agency when a request for offset is received from another
Federal agency.
This proposed regulation does not apply to the collection of tax
debts, which is governed by the Internal Revenue Code of 1986 (26
U.S.C. 1 et seq.) and regulations, policies and procedures issued by
the Internal Revenue Service.
Nothing in this proposed regulation precludes the use of collection
remedies not contained in this regulation. For example, the Presidio
Trust may collect unused travel advances through setoff of an
employee's pay under 5 U.S.C. 5705. The Presidio Trust may
simultaneously use multiple collection remedies to collect a debt,
except as prohibited by law.
Section Analysis
Subpart A--Sections 1011.1 Through 1011.3
Subpart A of this proposed regulation addresses the general
provisions applicable to the collection of nontax debts owed to the
Presidio Trust.
As stated in section 1011.2 of this proposed rule, nothing in this
regulation requires the Presidio Trust to duplicate notices or
administrative proceedings required by contract, this regulation or
other laws or regulations. Thus, for example, the Presidio Trust is not
required to provide a debtor with two hearings on the same issue merely
because the entity uses two different collection tools, each of which
requires that the debtor be provided with a hearing.
Subpart B--Sections 1011.4 Through 1011.20
Subpart B of this proposed regulation describes the procedures to
be followed by the Presidio Trust when collecting debts owed to the
Presidio Trust. Among other things, subpart B outlines the due process
procedures the Presidio Trust will follow when using offset
(administrative, tax refund and salary) to collect a debt, when
garnishing a debtor's wages, or before reporting a debt to a credit
bureau. Specifically, the Presidio Trust will provide debtors with
notice of the amount and type of debt, the intended collection action
to be taken, how a debtor may pay the debt or make alternate repayment
arrangements, how a debtor may review documents related to the debt,
how a debtor may dispute the debt, and the consequences to the debtor
if the debt is not paid. Notices may be sent by first-class mail, and
if not returned by the United States Postal Service, the Presidio Trust
may presume that the notice was received. See Rosenthal v. Walker, 111
U.S. 185 (1884); Mahon v. Credit Bureau of Placer County Incorporated,
171 F.3d 1197 (9th Cir. 1999). Nothing in this proposed regulation
precludes the Presidio Trust from sending a notice by certified mail if
appropriate or required by statute.
Subpart B also explains the circumstances under which the Presidio
Trust may waive interest, penalties and administrative costs.
This proposed regulation also incorporates procedures for several
collection remedies authorized by the DCIA, such as administrative wage
garnishment.
Subpart C--Sections 1011.21 and 1011.22
Subpart C of this proposed regulation describes the procedures to
be followed when another Federal agency would like to use the offset
process to collect a debt from payment issued by the Presidio Trust as
a payment agency.
Regulatory Analysis
E.O. 12866, Regulatory Review
This proposed rule is not a significant regulatory action as
defined in Executive Order 12866.
Regulatory Flexibility Act
This proposed rule will only affect persons who owe delinquent
nontax debts to the Presidio Trust and other Federal agencies.
Accordingly, a regulatory flexibility analysis is not required.
List of Subjects for 36 CFR Part 1011
Administrative practice and procedure, Claims, Debt collections,
Federal employees, Garnishment of wages, Reporting and recordkeeping
requirements.
Authority and Issuance
For the reasons set forth in the preamble, 36 CFR part 1011 is
proposed to be added to read as follows:
PART 1011--DEBT COLLECTION
Subpart A--General Provisions
Sec.
1011.1 What definitions apply to the regulations in this part?
1011.2 Why is the Presidio Trust issuing these regulations and what
do they cover?
1011.3 Do these regulations adopt the Federal Claims Collection
Standards?
Subpart B--Procedures To Collect Presidio Trust Debts
1011.4 What notice will the Presidio Trust send to a debtor when
collecting a debt?
1011.5 What interest, penalty charges and administrative costs will
the Presidio Trust add to a debt?
1011.6 When will the Presidio Trust allow a debtor to enter into a
repayment agreement?
1011.7 When will the Presidio Trust compromise a debt?
1011.8 When will the Presidio Trust suspend or terminate debt
collection on a debt?
1011.9 When will the Presidio Trust transfer a debt to the Financial
Management Service for collection?
1011.10 How will the Presidio Trust use administrative offset
(offset of non-tax Federal payments) to collect a debt?
1011.11 How will the Presidio Trust use tax refund offset to collect
a debt?
1011.12 How will the Presidio Trust offset a Federal employee's
salary to collect a debt?
1011.13 How will the Presidio Trust use administrative wage
garnishment to collect a debt from a debtor's wages?
1011.14 How will the Presidio Trust report debts to credit bureaus?
1011.15 How will the Presidio Trust refer debts to private
collection contractors?
1011.16 When will the Presidio Trust refer debts to the Department
of Justice?
1011.17 Will a debtor who owes a debt be ineligible for Presidio
Trust licenses, permits, leases, privileges or services?
1011.18 How does a debtor request a special review based on a change
in circumstances such as catastrophic illness, divorce, death or
disability?
1011.19 Will the Presidio Trust issue a refund if money is
erroneously collected on a debt?
1011.20 Will the Presidio Trust's failure to comply with these
regulations be a defense to a debt?
Subpart C--Procedures for Offset of Presidio Trust Payments To Collect
Debts Owed to Other Federal Agencies
1011.21 How do other Federal agencies use the offset process to
collect debts from payments issued by the Presidio Trust?
1011.22 What does the Presidio Trust do upon receipt of a request to
offset the salary of a Presidio Trust employee to collect a debt
owed by the employee to another Federal agency?
Authority: The Presidio Trust is authorized to publish this
proposed rule pursuant to 16 U.S.C. 460bb appendix, as amended.
Subpart A--General Provisions
Sec. 1011.1 What definitions apply to the regulations in this part?
As used in this part:
Administrative offset or offset means withholding funds payable by
the United States (including funds payable by the United States on
behalf of a State Government) to, or held by the United States for, a
person to satisfy a debt owed by the person. The term ``administrative
offset'' includes, without limitation, the offset of Federal salary,
vendor, retirement, and Social Security benefit payments. The terms
``centralized administrative offset'' and
[[Page 44872]]
``centralized offset'' refer to the process by which the Treasury
Department's Financial Management Service offsets Federal payments
through the Treasury Offset Program.
Administrative wage garnishment means the process by which a
Federal agency may, without first obtaining a court order, order a non-
Federal employer to withhold amounts from a debtor's wages to satisfy a
delinquent debt.
Agency or Federal agency means a department, agency, court, court
administrative office, or instrumentality in the executive, judicial or
legislative branch of the Federal government, including government
corporations.
Certification means a written statement received by a paying agency
or disbursing official that requests the paying agency or disbursing
official to offset the salary of an employee and specifies that
required procedural protections have been afforded the employee.
Compromise means the settlement or forgiveness of all or a portion
of a debt.
Creditor agency means any Federal agency that is owed a debt and
includes a debt collection center when it is acting on behalf of the
Presidio Trust.
Debt means any amount of money, funds or property that has been
determined by an appropriate agency official to be owed to the United
States by a person. As used in this part, the term ``debt'' does not
include debts arising under the Internal Revenue Code.
Debt collection center means the Treasury Department or any agency
or division designated by the Secretary of the Treasury with authority
to collect debts on behalf of creditor agencies.
Debtor means a person who owes a debt to the United States.
Delinquent debt means a debt that has not been paid by the date
specified in the Presidio Trust's initial written demand for payment or
applicable agreement or instrument (including a post-delinquency
payment agreement) unless other satisfactory payment arrangements have
been made.
Disposable pay means that part of an employee's pay that remains
after deductions that are required by law to be withheld have been
made.
Employee or Federal employee means a current employee of the
Presidio Trust or other Federal agency, including a current member of
the Armed Forces, Reserve of the Armed Forces of the United States or
of the National Guard.
FCCS means the Federal Claims Collection Standards, which were
jointly published by the Departments of the Treasury and Justice and
codified at 31 CFR parts 900-904.
FMS means the Financial Management Service, a bureau of the
Treasury Department, which is responsible for the centralized
collection of delinquent debts through the offset of Federal payments
and other means.
IRS means the Internal Revenue Service.
Paying agency means any agency that is making payments of any kind
to a debtor. In some cases, the Presidio Trust may be both the paying
agency and the creditor agency.
Person means an individual, corporation, partnership, association,
organization, state or local government, or any other type of entity
other than a Federal agency.
Private collection contractor means a private debt collector under
contract with an agency to collect a non-tax debt owed to the Presidio
Trust.
Salary offset means a type of administrative offset to collect a
debt owed by a Federal employee from the current pay account of the
employee.
Tax refund offset means the reduction of a tax refund by the amount
of a delinquent debt owed to the Presidio Trust.
Treasury Department means the United States Department of the
Treasury.
Treasury Offset Program means the Treasury Department's program for
withholding funds payable by the United States to a person to satisfy a
debt owed by the person utilizing the Financial Management Service's
system that compares information about payments with information about
debts.
Sec. 1011.2 Why is the Presidio Trust issuing these regulations and
what do they cover?
(a) Scope. The Presidio Trust is issuing these regulations to
provide procedures for the collection of debts owed to the Presidio
Trust. This part also provides procedures for collection of other debts
owed to the United States when a request for offset of a Treasury
payment is received by the Treasury Department from another agency (for
example, when a Presidio Trust employee owes a debt to the United
States Department of Education).
(b) Applicability. (1) This part applies to the Presidio Trust when
collecting a debt and to persons who owe a debt to the Presidio Trust,
or to Federal agencies requesting offset of a payment issued by the
Presidio Trust as a paying agency (including salary payments to
Presidio Trust employees).
(2) This part does not apply to tax debts.
(3) Nothing in this part precludes collection or disposition of any
debt under statutes and regulations other than those described in this
part.
(c) Additional policies, guidelines and procedures. The Presidio
Trust may adopt additional policies, guidelines and procedures
consistent with this part and other applicable law.
(d) Duplication not required. Nothing in this part requires the
Presidio Trust to duplicate notices or administrative proceedings
required by contract, this part or other laws or regulations.
(e) Use of multiple collection remedies allowed. The Presidio Trust
may simultaneously use multiple collection remedies to collect a debt,
except as prohibited by law. This part is intended to promote
aggressive debt collection, using for each debt all available
collection remedies. These remedies are not listed in any prescribed
order to provide the Presidio Trust with flexibility in determining
which remedies will be most efficient in collecting the particular
debt.
(f) Cross-servicing with the Treasury Department. These regulations
authorize the Presidio Trust to enter a cross-servicing agreement with
the Treasury Department under which the Treasury Department will take
authorized action to collect debts owed to the Presidio Trust.
Sec. 1011.3 Do these regulations adopt the Federal Claims Collections
Standards?
This part adopts and incorporates all provisions of the FCCS. This
part also supplements the FCCS by prescribing procedures consistent
with the FCCS, as necessary and appropriate for Presidio Trust
operations.
Subpart B--Procedures To Collect Presidio Trust Debts
Sec. 1011.4 What notice will the Presidio Trust send to a debtor when
collecting a debt?
(a) Notice requirements. The Presidio Trust will aggressively
collect debts. The Presidio Trust will send at least one written notice
to a debtor informing the debtor of the consequences of failing to pay
or otherwise resolve a debt. The notice(s) will be sent to the debtor's
most current address for the debtor in the records of the Presidio
Trust. Except as otherwise provided in paragraph (b) of this section,
the written notice(s) will explain to the debtor:
(1) The amount, nature and basis of the debt;
(2) How interest, penalty charges and administrative costs are
added to the debt, the date by which payment should be made to avoid
such charges, and that
[[Page 44873]]
such assessments must be made unless waived (see Sec. 1011.5 of this
part);
(3) The date by which payment is due and that the debt will be
considered delinquent if payment is not received by the Presidio Trust
by the due date, which date will not be less than 30 days after the
date of the notice, and the date by which payment must be received by
the Presidio Trust to avoid the enforced collection actions described
in paragraph (a)(6) of this section, which date will not be less than
60 days after the date of the notice;
(4) How the debtor may enter into a written agreement to repay the
debt voluntarily under terms acceptable to the Presidio Trust (see
Sec. 1011.6 of this part);
(5) The name, address and telephone number of a contact person
within the Presidio Trust;
(6) The Presidio Trust's intention to enforce collection if the
debtor fails to pay or otherwise resolve the debt, by taking one or
more of the following actions:
(i) Offset the debtor's federal payments, including income tax
refunds, salary, certain benefit payments (such as Social Security),
retirement, vendor, travel reimbursements and advances, and other
federal payments (see Sec. 1011.10 through 1011.12 of this part);
(ii) Refer the debt to a private collection agency (see Sec.
1011.15 of this part);
(iii) Report the debt to a credit bureau (see Sec. 1011.14 of this
part);
(iv) Garnish the debtor's wages through administrative wage
garnishment (see Sec. 1011.13 of this part);
(v) Refer the debt to the Department of Justice to initiate
litigation to collect the debt (see Sec. 1011.16 of this part);
(vi) Refer the debt to the FMS for collection (see Sec. 1011.9 of
this part);
(7) That debts over 180 days delinquent must be referred to the FMS
for the collection actions described in paragraph (a)(6) of this
section (see Sec. 1011.9 of this part);
(8) How the debtor may inspect and/or obtain copies of disclosable
records related to the debt;
(9) How the debtor may request a review of the Presidio Trust's
determination that the debtor owes a debt.
(10) How a debtor may request a hearing if the Presidio Trust
intends to garnish the debtor's non-Federal wages (see Sec. 1011.13(a)
of this part), including:
(i) The method and time period for requesting a hearing;
(ii) That the timely filing of a request for a hearing on or before
the 15th business day following the date of the notice will stay the
commencement of administrative wage garnishment, but not necessarily
other collection procedures; and
(iii) The name and address of the office to which the request for a
hearing should be sent.
(11) How a debtor who is a Federal employee subject to Federal
salary offset may request a hearing (see Sec. 1011.12(e) of this
part), including:
(i) The method and time period for requesting a hearing;
(ii) That the timely filing of a request for a hearing on or before
the 15th business day following the date of the notice will stay the
commencement of salary offset, but not necessarily other collection
procedures;
(iii) The name and address of the office to which the request for a
hearing should be sent;
(iv) That the Presidio Trust will refer the debt to the debtor's
employing agency or to the FMS to implement salary offset, unless the
employee files a timely request for a hearing;
(v) That a final decision on the hearing, if requested, will be
issued at the earliest practical date, but not later than 60 days after
the filing of the request for a hearing, unless the employee requests
and the hearing official grants a delay in the proceedings;
(vi) That any knowingly false or frivolous statements,
representations, or evidence may subject the Federal employee to
penalties under the False Claims Act (31 U.S.C. 3729-3731) or other
applicable statutory authority, and criminal penalties under 18 U.S.C.
286, 287, 1001, and 1002, or other applicable statutory authority;
(vii) That unless prohibited by contract or statute, amounts paid
on or deducted for the debt which are later waived or found not owed to
the United States will be promptly refunded to the employee; and
(viii) That proceedings with respect to such debt are governed by 5
U.S.C. 5514 and 31 U.S.C. 3716;
(12) That the debtor may request a waiver of the debt;
(13) That the debtor's spouse may claim the spouse's share of a
joint income tax refund by filing Form 8379 with the IRS;
(14) That the debtor may exercise other statutory or regulatory
rights and remedies available to the debtor;
(15) That the Presidio Trust may suspend or revoke any licenses,
permits, leases, privileges or services for failure to pay a debt (see
Sec. 1011.17 of this part); and
(16) That the debtor should advise the Presidio Trust of a
bankruptcy proceeding of the debtor or another person liable for the
debt being collected.
(b) Exceptions to notice requirements. The Presidio Trust may omit
from a notice to a debtor one or more of the provisions contained in
paragraphs (a)(6) through (a)(16) of this section if the Presidio
Trust, in consultation with its General Counsel, determines that any
provision is not legally required given the collection remedies to be
applied to a particular debt.
(c) Respond to debtors. The Presidio Trust will respond promptly to
communications from debtors.
Sec. 1011.5 What interest, penalty charges and administrative costs
will the Presidio Trust add to a debt?
(a) Interest. (1) The Presidio Trust will assess interest on all
delinquent debts unless prohibited by statute, regulation or contract.
(2) Interest begins to accrue on all debts from the date the debt
becomes delinquent. The Presidio Trust will waive collection of
interest if the debt is paid within 30 days of the date on which
interest begins to accrue. The Presidio Trust will assess interest at
the rate established by the Treasury Department under 31 U.S.C. 3717,
unless a different rate is established by a contract, repayment
agreement or statute. The Presidio Trust will notify the debtor of the
basis for the interest rate assessed.
(b) Penalty. The Presidio Trust will assess a penalty of not more
than 6% a year, or such other higher rate as authorized by law, on any
portion of a debt that is delinquent for more than 90 days.
(c) Administrative costs. The Presidio Trust will assess charges to
cover administrative costs incurred as a result of the debtor's failure
to pay a debt before it becomes delinquent. Administrative costs
include the costs of processing and handling a debt, obtaining a credit
report, using a private collection contractor, costs of a hearing
including, the costs of a hearing officer, and service fees charged by
a Federal agency for collection activities undertaken on behalf of the
Presidio Trust.
(d) Allocation of payments. A partial or installment payment by a
debtor will be applied first to administrative costs, second to
outstanding penalty assessments, third to accrued interest, and fourth
to outstanding debt principal.
(e) Additional authority. The Presidio Trust may have additional
policies, guidelines and procedures regarding how interest, penalties
and
[[Page 44874]]
administrative costs are assessed on particular types of debts. The
Presidio Trust will explain in the notice to the debtor described in
Sec. 1011.4 of this part how interest, penalties, administrative costs
and other charges are assessed, unless the requirements are included in
a contract or repayment agreement.
(f) Waiver. (1) The Presidio Trust may waive collection of all or
part of accrued interest, penalties and administrative costs when it
would be against equity and good conscience or not in the Presidio
Trust's best interest to collect such charges.
(2) A decision to waive interest, penalties or administrative costs
may be made at any time before a debt is paid. However, unless
otherwise provided in these regulations, when these charges have been
collected before the waiver decision, they will not be refunded.
(g) Accrual during suspension of debt collection. In most cases,
interest, penalties and administrative costs will continue to accrue
during any period when collection has been suspended for any reason
(for example, when the debtor has requested a hearing). The Presidio
Trust may suspend accrual of any or all of these charges when accrual
would be against equity and good conscience or not in the Presidio
Trust's best interest.
Sec. 1011.6 When will the Presidio Trust allow a debtor to enter into
a repayment agreement?
(a) Voluntary repayment. In response to a notice of a debt, the
debtor may propose to the Presidio Trust the voluntary repayment of the
debt in lieu of the Presidio Trust taking other collection actions
under this part.
(b) Debtor's request. The request from the debtor must:
(1) Be in writing;
(2) Admit the existence of the entire debt; and
(3) Either propose payment of the debt (together with interest,
penalties and administrative costs) in a lump sum, or set forth a
proposed repayment schedule.
(c) Repayment schedule. The Presidio Trust will collect debts in
one lump sum whenever feasible. The Presidio Trust may accept payment
in regular installments that bear a reasonable relationship to the size
of the debt.
(d) Repayment agreement. The Presidio Trust will consider a request
to enter into a voluntary repayment agreement in accordance with the
FCCS. The Presidio Trust may request additional information from the
debtor, including financial statements, in order to determine whether
to enter into a voluntary repayment agreement. The Presidio Trust will
set the necessary terms of any repayment agreement. No repayment
agreement will be binding on the Presidio Trust unless it is in writing
and signed by both the debtor and an authorized Presidio Trust
representative. The Presidio Trust is not required to enter into a
repayment agreement.
Sec. 1011.7 When will the Presidio Trust compromise a debt?
(a) Authority. The Presidio Trust may compromise a debt in
accordance with the FCCS and such procedures as the Presidio Trust may
adopt. (See Sec. 1011.16 of this subpart).
(b) Report to IRS. The uncollected portion of a debt owed to the
Presidio Trust that is not recovered as the result of a compromise will
be reported to the IRS as income to the debtor in accordance with IRS
and Presidio Trust procedures.
Sec. 1011.8 When will the Presidio Trust suspend or terminate debt
collection on a debt?
If, after pursuing all appropriate means of collection, the
Presidio Trust determines that a debt is uncollectible, the Presidio
Trust may suspend or terminate debt collection activity in accordance
with the FCCS and the Presidio Trust's procedures.
Sec. 1011.9 When will the Presidio Trust transfer a debt to the
Financial Management Service for collection?
(a) Cross-servicing. The Presidio Trust will transfer any eligible
debt that is more than 180 days delinquent to the FMS for debt
collection services, a process known as ``cross-servicing.'' The
Presidio Trust may transfer debts delinquent 180 days or less to the
FMS in accordance with the procedures described in 31 CFR 285.12. The
FMS takes appropriate action to collect or compromise the transferred
debt, or to suspend or terminate collection action thereon, in
accordance with the statutory and regulatory requirements and
authorities applicable to the debt and the collection action to be
taken. Appropriate action includes, without limitation, contact with
the debtor, referral of the debt to the Treasury Offset Program,
private collection agencies or the Department of Justice, reporting of
the debt to credit bureaus, and administrative wage garnishment.
(b) Notice; certification. At least 60 days prior to transferring a
debt to the FMS, the Presidio Trust will send notice to the debtor as
required by Sec. 1011.4 of this part. The Presidio Trust will certify
to the FMS, in writing, that the debt is valid, delinquent, legally
enforceable and that there are no legal bars to collection. In
addition, the Presidio Trust will certify its compliance with all
applicable due process and other requirements as described in this part
and other Federal laws.
(c) Treasury Offset Program. As part of its debt collection
process, the FMS uses the Treasury Offset Program to collect debts by
administrative and tax refund offset. The Treasury Offset Program is a
centralized offset program administered by the FMS to collect
delinquent debts owed to Federal agencies and states (including past-
due child support). Under the Treasury Offset Program, before a federal
payment is disbursed, the FMS compares the name and taxpayer
identification number (TIN) of the payee with the names and TINs of
debtors that have been submitted by Federal agencies and states to the
Treasury Offset Program database. If there is a match, the FMS (or, in
some cases, another Federal disbursing agency) offsets all or a portion
of the federal payment, disburses any remaining payment to the payee,
and pays the offset amount to the creditor agency. Federal payments
eligible for offset include, without limitation, income tax refunds,
salary, travel advances and reimbursements, retirement and vendor
payments, and Social Security and other benefit payments.
Sec. 1011.10 How will the Presidio Trust use administrative offset
(offset of non-tax federal payments) to collect a debt?
(a) Centralized administrative offset through the Treasury Offset
Program. (1) If not already transferred to the FMS under Sec. 1011.9
of this part, the Presidio Trust will refer any eligible debt over 180
days delinquent to the Treasury Offset Program for collection by
centralized administrative offset. The Presidio Trust may refer any
eligible debt less than 180 days delinquent to the Treasury Offset
Program for offset.
(2) At least 60 days prior to referring a debt to the Treasury
Offset Program, in accordance with paragraph (a)(1) of this section,
the Presidio Trust will send notice to the debtor in accordance with
the requirements of Sec. 1011.4 of this part. The Presidio Trust will
certify to the FMS, in writing, that the debt is valid, delinquent,
legally enforceable and that there are no legal bars to collection by
offset. In addition, the Presidio Trust will certify its compliance
with the requirements described in this part.
(b) Non-centralized administrative offset for a debt. (1) When
centralized administrative offset through the Treasury Offset Program
is not available or appropriate, the Presidio Trust may collect
delinquent, legally enforceable
[[Page 44875]]
debts through non-centralized administrative offset. In these cases,
the Presidio Trust may offset a payment internally or make an offset
request directly to a federal paying agency.
(2) At least 30 days prior to offsetting a payment internally or
requesting a federal paying agency to offset a payment, the Presidio
Trust will send notice to the debtor in accordance with the
requirements of Sec. 1011.4 of this part. When referring a debt for
offset under this paragraph (b), the Presidio Trust will certify, in
writing, that the debt is valid, delinquent, legally enforceable and
that there are no legal bars to collection by offset. In addition, the
Presidio Trust will certify its compliance with these regulations
concerning administrative offset.
(c) Administrative review. The notice described in Sec. 1011.4 of
this part will explain to the debtor how to request an administrative
review of the Presidio Trust determination that the debtor owes a debt
and how to present evidence that the debt is not delinquent or legally
enforceable. In addition to challenging the existence and amount of the
debt, the debtor may seek a review of the terms of repayment. In most
cases, the Presidio Trust will provide the debtor with a ``paper
hearing'' based upon a review of the written record, including
documentation provided by the debtor. The Presidio Trust will provide
the debtor with a reasonable opportunity for an oral hearing when the
debtor requests reconsideration of the debt and the Presidio Trust
determines that the question of the indebtedness cannot be resolved by
review of the documentary evidence, for example, when the validity of
the debt turns on an issue of credibility or veracity. Unless otherwise
required by law, an oral hearing under this section is not required to
be a formal evidentiary hearing, although the Presidio Trust will
document all significant matters presented at the hearing. The Presidio
Trust may suspend collection through administrative offset and/or other
collection actions pending the resolution of a debtor's dispute. The
Presidio Trust may establish policies, guidelines and procedures
concerning the administrative review process consistent with the FCCS
and the regulations in this section.
(d) Procedures for expedited offset. Under the circumstances
described by the FCCS, the Presidio Trust may effect an offset against
a payment to be made to the debtor prior to sending a notice to the
debtor, as described in Sec. 1011.4 of this part, or completing the
procedures described in paragraph (b)(2) and (c) of this section. The
Presidio Trust will give the debtor notice and an opportunity for
review as soon as practicable and promptly refund any money ultimately
found not to have been owed to the Government.
Sec. 1011.11 How will the Presidio Trust use tax refund offset to
collect a debt?
(a) Tax refund offset. In most cases, the FMS uses the Treasury
Offset Program to collect debts by the offset of tax refunds and other
federal payments. See Sec. 1011.9(c) of this part. If not already
transferred to the FMS under Sec. 1011.9 of this part, the Presidio
Trust will refer to the Treasury Offset Program any delinquent, legally
enforceable debt for collection by tax refund offset.
(b) Notice; certification. At least 60 days prior to referring a
debt to the Treasury Offset Program, the Presidio Trust will send
notice to the debtor in accordance with the requirements of Sec.
1011.4 of this part. The Presidio Trust will certify to the FMS's
Treasury Offset Program, in writing, that the debt is delinquent and
legally enforceable in the amount submitted and that the Presidio Trust
has made reasonable efforts to obtain payment of the debt. In addition,
the Presidio Trust will certify its compliance with all applicable due
process and other requirements described in this part and other
applicable law.
(c) Administrative review. The notice described in Sec. 1011.4 of
this part will provide the debtor with at least 60 days prior to the
initiation of tax refund offset to request an administrative review as
described in Sec. 1011.10(c) of this part. The Presidio Trust may
suspend collection through tax refund offset and/or other collection
actions pending the resolution of the debtor's dispute.
Sec. 1011.12 How will the Presidio Trust offset a Federal employee's
salary to collect a debt?
(a) Federal salary offset. (1) Salary offset is used to collect
debts owed to the United States by Federal employees. If a Presidio
Trust employee owes a debt, the Presidio Trust may offset the
employee's federal salary to collect the debt in the manner described
in this section. For information on how a Federal agency other than the
Presidio Trust may collect a debt from the salary of a Presidio Trust
employee, see Sec. 1011.21 and 1011.22, subpart C, of this part.
(2) Nothing in this part requires the Presidio Trust to collect a
debt in accordance with the provisions of this section if Federal law
allows otherwise.
(b) Centralized salary offset through the Treasury Offset Program.
As described in Sec. 1011.9(a) of this part, the Presidio Trust will
refer debts to the FMS for collection by administrative offset,
including salary offset, through the Treasury Offset Program.
(c) Non-centralized salary offset for Treasury debts. The Presidio
Trust may collect delinquent debts through non-centralized salary
offset. In these cases, the Presidio Trust may offset a payment
internally or make a request directly to a paying agency to offset a
salary payment to collect a delinquent debt owed by a Federal employee.
At least 30 days prior to offsetting internally or requesting a Federal
agency to offset a salary payment, the Presidio Trust will send notice
to the debtor in accordance with the requirements of Sec. 1011.4 of
this part. When referring a debt for offset, the Presidio Trust will
certify to the paying agency, in writing, that the debt is valid,
delinquent and legally enforceable in the amount stated, and there are
no legal bars to collection by salary offset. In addition, the Presidio
Trust will certify that all due process and other prerequisites to
salary offset have been met. See 5 U.S.C. 5514, 31 U.S.C. 3716(a), and
this section for a description of the process for salary offset.
(d) When prior notice not required. The Presidio Trust is not
required to provide prior notice to a Presidio Trust employee when the
following adjustments are made:
(1) Any adjustment to pay arising out of a Presidio Trust
employee's election of coverage or a change in coverage under a Federal
benefits program requiring periodic deductions from pay, if the amount
to be recovered was accumulated over four pay periods or fewer;
(2) A routine intra-agency adjustment of pay that is made to
correct an overpayment of pay attributable to clerical or
administrative errors or delays in processing pay documents, if the
overpayment occurred within the four pay periods preceding the
adjustment, and, at the time of such adjustment, or as soon thereafter
as practical, the individual is provided written notice of the nature
and the amount of the adjustment and point of contact for contesting
such adjustment; or
(3) Any adjustment to collect a debt amounting to $50 or less, if,
at the time of such adjustment, or as soon thereafter as practical, the
individual is provided written notice of the nature and the amount of
the adjustment and a point of contact for contesting such adjustment.
(e) Hearing procedures. (1) Request for a hearing. A Presidio Trust
employee who has received a notice that
[[Page 44876]]
a debt will be collected by means of salary offset may request a
hearing concerning the existence or amount of the debt. The employee
also may request a hearing concerning the amount proposed to be
deducted from the employee's pay each pay period. The employee must
send any request for hearing, in writing, to the office designated in
the notice described in Sec. 1011.4(a)(11). The request must be
received by the designated office on or before the 15th business day
following the employee's receipt of the notice. The employee must sign
the request and specify whether an oral or paper hearing is requested.
If an oral hearing is requested, the employee must explain why the
matter cannot be resolved by review of the documentary evidence alone.
(2) Failure to submit timely request for hearing. If the employee
fails to submit a request for hearing within the time period described
in paragraph (e)(1) of this section, the employee will have waived the
right to a hearing, and salary offset may be initiated. However, the
Presidio Trust may accept a late request for hearing if the employee
can show that the late request was the result of circumstances beyond
the employee's control or because of a failure to receive actual notice
of the filing deadline.
(3) Hearing official. The Presidio Trust hearing must be conducted
by a hearing official who is not under the supervision or control of
the Board of Directors of the Presidio Trust. The hearing official need
not be an employee of the Federal Government.
(4) Notice of hearing. After the employee requests a hearing, a
designated hearing official will inform the employee of the form of the
hearing to be provided. For oral hearings, the notice will set forth
the date, time and location of the hearing. For paper hearings, the
notice will notify the employee of the date by which the employee
should submit written arguments to the designated hearing official. The
hearing official will give the employee reasonable time to submit
documentation in support of the employee's position. The hearing
official will schedule a new hearing date if requested by both parties.
The hearing official will give both parties reasonable notice of the
time and place of a rescheduled hearing.
(5) Oral hearing. The hearing official will conduct an oral hearing
if the official determines that the matter cannot be resolved by review
of documentary evidence alone (for example, when an issue of
credibility or veracity is involved). The hearing official will
determine the procedure for the oral hearing, determining, for example,
the hearing length.
(6) Paper hearing. If the hearing official determines that an oral
hearing is not necessary, the official will make the determination
based upon a review of the available written record, including any
documentation submitted by the employee in support of the employee's
position.
(7) Date of decision. The hearing official will issue a written
opinion setting forth the decision, based upon documentary evidence and
information developed at the hearing, as soon as practicable after the
hearing.
(8) Final agency action. The hearing official's decision will be
final.
(f) Salary offset process. (1) Determination of disposable pay. The
Presidio Trust payroll office will determine the amount of the
employee's disposable pay (as defined in Sec. 1011.1 of this part) and
will implement salary offset.
(2) When salary offset begins. Deductions will begin within three
official pay periods.
(3) Amount of salary offset. The amount to be offset from each
salary payment will be up to 15% of the employee's disposable pay, as
follows:
(i) If the amount of the debt is equal to or less than 15% of the
disposable pay, such debt generally will be collected in one lump sum
payment;
(ii) Installment deductions will be made over a period of no
greater than the anticipated period of employment. An installment
deduction will not exceed 15% of the disposable pay from which the
deduction is made unless the employee has agreed in writing to the
deduction of a greater amount.
(4) Final salary payment. After the employee's employment with the
Presidio Trust ends, the Presidio Trust may make a lump sum deduction
exceeding 15% of disposable pay from any final salary or other payments
in order to satisfy a debt.
Sec. 1011.13 How will the Presidio Trust use administrative wage
garnishment to collect a debt from a debtor's wages?
(a) Authority and process. The Presidio Trust is authorized to
collect debts from a debtor's wages by means of administrative wage
garnishment in accordance with the requirements of the FCCS and other
applicable law. This part adopts and incorporates all of the provisions
of 31 CFR 285.11 concerning administrative wage garnishment, including
the hearing procedures described therein. The Presidio Trust may use
administrative wage garnishment to collect a delinquent debt unless the
debtor is making timely payments under an agreement to pay the debt in
installments (see Sec. 1011.6 of this part). At least 30 days prior to
initiating an administrative wage garnishment, the Presidio Trust will
send notice to the debtor in accordance with the requirements of Sec.
1011.4 of this part, including the requirements of Sec. 1011.4(a)(10)
of this part. For debts referred to the FMS under Sec. 1011.9 of this
part, the Presidio Trust may authorize the FMS to send a notice
informing the debtor that administrative wage garnishment will be
initiated and how the debtor may request a hearing as described in
Sec. 1011.4(a)(10) of this part. If a debtor makes a timely request
for a hearing, administrative wage garnishment will not begin until a
hearing is held and a decision is sent to the debtor. If a debtor's
hearing request is not timely, the Presidio Trust may suspend
collection by administrative wage garnishment. All travel expenses
incurred by the debtor in connection with an in-person hearing will be
borne by the debtor.
(b) Not applicable to federal salary offset. This section does not
apply to federal salary offset, the process by which the Presidio Trust
collects debts from the salaries of Federal employees (see Sec.
1011.12 of this part).
Sec. 1011.14 How will the Presidio Trust report debts to credit
bureaus?
The Presidio Trust will report delinquent debts to credit bureaus
in accordance with the provisions of 31 U.S.C. 3711(e) and the FCCS. At
least 60 days prior to reporting a delinquent debt to a consumer
reporting agency, the Presidio Trust will send notice to the debtor in
accordance with the requirements of Sec. 1011.4 of this part. The
Presidio Trust may authorize the FMS to report to credit bureaus those
delinquent debts that have been transferred to the FMS under Sec.
1011.9 of this part.
Sec. 1011.15 How will the Presidio Trust refer debts to private
collection contractors?
The Presidio Trust will transfer delinquent debts to the FMS to
obtain debt collection services provided by private collection
contractors. See Sec. 1011.9 of this part.
Sec. 1011.16 When will the Presidio Trust refer debts to the
Department of Justice?
(a) Compromise or suspension or termination of collection activity.
The Presidio Trust will refer debts having a principal balance over
$100,000, or such higher amount as authorized by the Attorney General,
to the Department of Justice for approval of any compromise of a debt
or suspension or termination
[[Page 44877]]
of collection activity. See the FCCS and Sec. 1011.7 and 1011.8 of
this part.
(b) Litigation. The Presidio Trust will promptly refer to the
Department of Justice for litigation delinquent debts on which
aggressive collection activity has been taken in accordance with this
part that the Presidio Trust determines should not be compromised, and
on which collection activity should not be suspended or terminated. The
Presidio Trust may authorize the FMS to refer to the Department of
Justice for litigation those delinquent debts that have been
transferred to the FMS under Sec. 1011.9 of this part.
Sec. 1011.17 Will a debtor who owes a debt be ineligible for Presidio
Trust licenses, permits, leases, privileges or services?
Unless prohibited by law, the Presidio Trust may terminate, suspend
or revoke licenses, permits, leases (subject to the terms of the
leases), or other privileges or services for any inexcusable or willful
failure of a debtor to pay a debt. The Presidio Trust may establish
guidelines and procedures governing termination, suspension and
revocation for delinquent debtors. If applicable, the Presidio Trust
will advise the debtor in the notice required by Sec. 1011.4 of this
part of the Presidio Trust's ability to suspend or revoke licenses,
permits or privileges.
Sec. 1011.18 How does a debtor request a special review based on a
change in circumstances such as catastrophic illness, divorce, death or
disability?
(a) Material change in circumstances. A debtor who owes a debt may,
at any time, request a special review by the Presidio Trust of the
amount of any offset, administrative wage garnishment or voluntary
payment, based on materially changed circumstances beyond the control
of the debtor such as, without limitation, catastrophic illness,
divorce, death or disability.
(b) Inability to pay. For purposes of this section, in determining
whether an involuntary or voluntary payment would prevent the debtor
from meeting essential subsistence expenses (costs incurred for food,
housing, clothing, transportation and medical care), the debtor must
submit a detailed statement and supporting documents for the debtor,
and the debtor's dependents, indicating:
(1) Income from all sources;
(2) Assets;
(3) Liabilities;
(4) Number of dependents;
(5) Expenses for food, housing, clothing and transportation;
(6) Medical expenses; and
(7) Exceptional expenses, if any.
(c) Alternative payment arrangement. If the debtor requests a
special review under this section, the debtor must submit an
alternative proposed payment schedule and a statement to the Presidio
Trust, with supporting documents, showing why the current offset,
garnishment or repayment schedule imposes an extreme financial hardship
on the debtor. The Presidio Trust will evaluate the statement and
documentation and determine whether the current offset, garnishment or
repayment schedule imposes extreme financial hardship on the debtor.
The Presidio Trust will notify the debtor in writing of such
determination, including, if appropriate, a revised offset, garnishment
or payment schedule. If the special review results in a revised offset,
garnishment or repayment schedule, the Presidio Trust will notify the
appropriate agency or other persons about the new terms.
Sec. 1011.19 Will the Presidio Trust issue a refund if money is
erroneously collected on a debt?
The Presidio Trust will promptly refund to a debtor any amount
collected on a debt when the debt is waived or otherwise found not to
be owed to the United States, or as otherwise required by law. Refunds
under this part will not bear interest unless required by law.
Sec. 1011.20 Will the Presidio Trust's failure to comply with these
regulations be a defense to a debt?
No, the failure of the Presidio Trust to comply with any standard
in the FCCS, these regulations or such other procedures of the Presidio
Trust will not be available to any debtor as a defense.
Subpart C--Procedures for Offset of Presidio Trust Payments To
Collect Debts Owed to Other Federal Agencies
Sec. 1011.21 How do other Federal agencies use the offset process to
collect debts from payments issued by the Presidio Trust?
(a) Offset of Presidio Trust payments to collect debts owed to
other Federal agencies. (1) In most cases, Federal agencies submit
eligible debts to the Treasury Offset Program to collect delinquent
debts from payments issued by other Federal agencies, a process known
as ``centralized offset.'' When centralized offset is not available or
appropriate, any Federal agency may ask the Presidio Trust (when acting
as a paying agency) to collect a debt owed to such agency by offsetting
funds payable to a debtor by the Presidio Trust, including salary
payments issued to the Presidio Trust employees. This section and Sec.
1011.22 of this subpart C apply when a Federal agency asks the Presidio
Trust to offset a payment issued by the Presidio Trust to a person who
owes a debt to the United States.
(2) This subpart C does not apply to the collection of debts
through tax refund offset.
(b) Administrative offset (including salary offset); certification.
The Presidio Trust will initiate a requested offset only upon receipt
of written certification from the creditor agency that the debtor owes
the delinquent, legally enforceable debt in the amount stated, and that
the creditor agency has fully complied with all applicable due process
and other requirements, and the creditor agency's regulations, as
applicable. Offsets will continue until the debt is paid in full or
otherwise resolved to the satisfaction of the creditor agency.
(c) Where a creditor agency makes requests for offset. Requests for
offset under this section must be sent to the Presidio Trust, ATTN:
Chief Financial Officer, P.O. Box 29052, San Francisco, CA 94129-0052.
(d) Incomplete certification. The Presidio Trust will return an
incomplete debt certification to the creditor agency with notice that
the creditor agency must comply with paragraph (b) of this section
before action will be taken to collect a debt from a payment issued by
the Presidio Trust.
(e) Review. The Presidio Trust is not authorized to review the
merits of the creditor agency's determination with respect to the
amount or validity of the debt certified by the creditor agency.
(f) When the Presidio Trust will not comply with offset request.
The Presidio Trust will comply with the offset request of another
agency unless the Presidio Trust determines that the offset would not
be in the best interests of the United States, or would otherwise be
contrary to law.
(g) Multiple debts. When two or more creditor agencies are seeking
offsets from payments made to the same person, or when two or more
debts are owed to a single creditor agency, the Presidio Trust may
determine the order in which the debts will be collected or whether one
or more debts should be collected by offset simultaneously.
(h) Priority of debts owed to the Presidio Trust. For purposes of
this section, debts owed to the Presidio Trust generally take
precedence over debts owed to other agencies. The Presidio Trust may
determine whether to pay debts owed to other agencies before paying a
debt owed to the Presidio Trust. The Presidio Trust will determine the
order in which the debts will be collected based on the best interests
of the United States.
[[Page 44878]]
Sec. 1011.22 What does the Presidio Trust do upon receipt of a
request to offset the salary of a Presidio Trust employee to collect a
debt owed by the employee to another Federal agency?
(a) Notice to the Presidio Trust employee. When the Presidio Trust
receives proper certification of a debt owed by one of its employees,
the Presidio Trust will begin deductions from the employee's pay at the
next officially established pay interval. The Presidio Trust will send
a written notice to the employee indicating that a certified debt claim
has been received from the creditor agency, the amount of the debt
claimed to be owed to the creditor agency, the date deductions from
salary will begin, and the amount of such deductions.
(b) Amount of deductions from a Presidio Trust employee's salary.
The amount deducted under Sec. 1011.21(b) of this part will be the
lesser of the amount of the debt certified by the creditor agency or an
amount up to 15% of the debtor's disposable pay. Deductions will
continue until the Presidio Trust knows that the debt is paid in full
or until otherwise instructed by the creditor agency. Alternatively,
the amount offset may be an amount agreed upon, in writing, by the
debtor and the creditor agency. See Sec. 1011.12(g) (salary offset
process).
(c) When the debtor is no longer employed by the Presidio Trust.
(1) Offset of final and subsequent payments. If the Presidio Trust
employee retires or resigns or if his or her employment ends before
collection of the debt is complete, the Presidio Trust will continue to
offset up to 100% of an employee's subsequent payments until the debt
is paid or otherwise resolved. Such payments include a debtor's final
salary payment, lump-sum leave payment, and other payments payable to
the debtor by the Presidio Trust.
(2) Notice to the creditor agency. If the employee's employment
with the Presidio Trust terminates before the debt is paid in full, the
Presidio Trust will certify to the creditor agency the total amount of
its collection. If the Presidio Trust is aware that the employee is
entitled to payments from the Civil Service Retirement and Disability
Fund, Federal Employee Retirement System, or other similar payments,
the Presidio Trust will provide written notice to the agency making
such payments that the debtor owes a debt (including the amount) and
that the provisions of 5 CFR 550.1109 have been fully complied with.
The creditor agency is responsible for submitting a certified claim to
the agency responsible for making such payments before collection may
begin. Generally, creditor agencies will collect such monies through
the Treasury Offset Program as described in Sec. 1011.9(c) of this
part.
(3) Notice to the debtor. The Presidio Trust will provide to the
debtor a copy of any notices sent to the creditor agency under
paragraph (c)(2) of this section.
(d) When the debtor transfers to another Federal agency. (1) Notice
to the creditor agency. If the debtor transfers to another Federal
agency before the debt is paid in full, the Presidio Trust will notify
the creditor agency and will certify the total amount of its collection
on the debt. The Presidio Trust will provide a copy of the
certification to the creditor agency. The creditor agency is
responsible for submitting a certified claim to the debtor's new
employing agency before collection may begin.
(2) Notice to the debtor. The Presidio Trust will provide to the
debtor a copy of any notices and certifications sent to the creditor
agency under paragraph (d)(1) of this section.
(e) Request for hearing official. The Presidio Trust will provide a
hearing official upon the creditor agency's request with respect to the
Presidio Trust employee.
[FR Doc. 05-14794 Filed 8-3-05; 8:45 am]
BILLING CODE 4310-4R-P
