Debt Collection, 49093-49098 [E8-19203]

Agencies

• Equal Employment Opportunity Commission

[Federal Register Volume 73, Number 162 (Wednesday, August 20, 2008)]
[Rules and Regulations]
[Pages 49093-49098]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19203]



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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1650


Debt Collection

AGENCY: Equal Employment Opportunity Commission.

ACTION: Final rule.

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SUMMARY: The Equal Employment Opportunity Commission (EEOC) is revising 
its regulation on debt collection to reflect organizational changes, to 
update statutory and regulatory citations, and to clarify the 
procedures.

DATES: This rule is effective August 20, 2008.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal 
Counsel, at (202) 663-4668 (voice), or Lynn T. Dickinson, Senior 
Attorney, Office of Legal Counsel, at (202) 663-4640 (voice), or (202) 
663-7026 (TTY). This final rule is also available in the following 
formats: large print, braille, electronic file on computer disk, and 
audio-tape. Copies may be obtained from the EEOC's Publication Center 
by calling 1-800-669-3362 (voice) or 1-800-669-6820 (TTY).

SUPPLEMENTARY INFORMATION: EEOC is revising its regulation on debt 
collection found at 29 CFR part 1650. The purpose of the revisions is 
to reflect organizational changes at EEOC, to update statutory and 
regulatory citations, to ensure that the subparts are consistent with 
each other, to eliminate any ambiguities, and to follow more closely 
the regulations of the Office of Personnel Management (OPM), the 
Department of Treasury, and the Department of Justice.
    Subpart A is revised to reflect changes in the processing of 
requests for waiver of repayment of salary overpayments. Previously, 
such requests were submitted to the General Accounting Office (GAO). 
However, in 1996 the authority to waive collection of these debts was 
transferred to the Office of Management and Budget (OMB). That same 
year, OMB delegated this function to agency heads. Therefore, reference 
to submission of waiver requests to the GAO is deleted.
    Subpart A is also revised so that an employee's various options for 
resolving the matter are separately addressed. An employee can propose 
a voluntary repayment agreement, request waiver, and ask for a hearing. 
The language on voluntary repayment agreements mostly formalizes 
procedures that have been commonly followed in resolving debts. 
However, the new regulation also clarifies that if an employee proposes 
a repayment agreement, he or she does not lose the right to request a 
hearing afterwards if the request is denied. In addition, the revised 
language regarding hearings clarifies that employees have a right to a 
paper hearing to contest their debts, but if they would like an oral 
hearing, they must show that the matter cannot be resolved by reviewing 
the documentary evidence alone.
    Subpart B is revised to reflect changes in the procedures for 
collecting debts by tax refund offset. Specifically, beginning on 
January 1, 1998, administration of tax refund offset was transferred 
from the Internal Revenue Service to the Financial Management Service 
(FMS). Therefore, the regulation now provides for transmitting these 
debts to FMS.
    In addition, in 1996, Congress enacted the Debt Collection 
Improvement Act, which required implementation of a centralized offset 
program. Previously, agencies were required to attempt to collect debts 
using administrative and salary offset before referring debts for tax 
refund offset. Under the new centralized offset program, however, debts 
that are referred to Treasury are subject to administrative offset, 
salary offset, and tax refund offset. Therefore, all collection 
activities can be attempted simultaneously. Moreover, agencies do not 
have to report debts to credit bureaus before they can refer debts to 
Treasury. Finally, the prior requirement that agencies mail pre-offset 
notices to the address on file with IRS for debtor was changed. Now, 
agencies have greater flexibility to locate the best address available.
    Subpart C, Administrative Offset, is removed. In its place, the 
regulation already issued by the Department of Treasury is adopted by 
reference, as authorized by 37 U.S.C. Sec.  3716(b)(1).
    Subpart D, Administrative Wage Garnishment, is merely revised to 
reflect organizational changes at EEOC, and to use language consistent 
with other subparts.

Regulatory Procedures

Paperwork Reduction Act

    This Paperwork Reduction Act (44 U.S.C. Chapter 35) does not apply 
to this rule because it does not contain an information collection 
requirement that requires the approval of the Office of Management and 
Budget.

Regulatory Flexibility Act

    As Chair of the Equal Employment Opportunity Commission, I certify 
under the Regulatory Flexibility Act (5 U.S.C. Chapter 6) that this 
rule will not have a significant economic impact on a substantial 
number of small entities because it primarily affects Federal employees 
and former Federal employees.

Congressional Review Act

    This action pertains to agency management, personnel and 
organization and does not substantially affect the rights or 
obligations of non-agency parties and accordingly, is not a rule as 
that term is used by the Congressional Review Act. Therefore, the 
reporting requirement of 5 U.S.C. 801 does not apply.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

Administrative Procedure Act

    These amendments concern matters of agency management or personnel 
within the meaning of 5 U.S.C. 553(a)(2). Therefore, the notice and 
comment requirements of the Administrative Procedure Act are not 
applicable.

Executive Order 12866

    This action does not create any of the regulatory impacts specified 
by Executive Order 12866, is not a significant regulatory action within 
the meaning of section 3(f) of that Executive Order, and therefore does 
not require review under Executive Order 12866.

List of Subjects in 29 CFR Part 1650

    Administrative offset, Administrative wage garnishment, Debt 
collection, Salary offset, Tax refund offset.

    For the Commission.
Naomi C. Earp,
Chair.

0
For the reasons set forth in the preamble, the Equal Employment 
Opportunity Commission revises 29 CFR part 1650 to read as follows:

PART 1650--DEBT COLLECTION

Subpart A--Procedures for the Collection of Debts by Salary Offset
Sec.
1650.101 Purpose.
1650.102 Delegation of authority.
1650.103 Scope.
1650.104 Definitions.
1650.105 Notice of Debt.
1650.106 Right to inspect and copy records related to the debt.
1650.107 Voluntary repayment agreements.
1650.108 Waiver.

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1650.109 Hearing.
1650.110 Procedures for salary offset.
1650.111 Recovery from other payments due a separated employee.
1650.112 Interest, penalties, and administrative costs.
1650.113 Non-waiver of rights by payments.
1650.114 Refunds.
Subpart B--Procedures for the Collection of Debts by Federal Tax Refund 
Offset
1650.201 Purpose.
1650.202 Past-due legally enforceable debt.
1650.203 Notification of intent to collect.
1650.204 Reasonable attempt to notify.
1650.205 Consideration of evidence submitted as a result of 
notification of intent.
1650.206 Notification to Treasury.
1650.207 Administrative charges.
Subpart C--Procedures for Collection of Debts by Administrative Offset
1650.301 Purpose and regulatory procedures for the collection of 
debts by administrative offset.
Subpart D--Procedures for the Collection of Debts by Administrative 
Wage Garnishment
1650.401 Purpose and regulatory procedures for the collection of 
debts by administrative wage garnishment.

    Authority: 31 U.S.C. 3701 et seq.

    Subpart A also issued under 5 U.S.C. 5514; 5 CFR 550.1101.
    Subpart B also issued under 31 U.S.C. 3720A; 31 CFR 285.5(d)(4).
    Subpart C also issued under 31 U.S.C. 3716.
    Subpart D also issued under 31 U.S.C. 3720D.

Subpart A--Procedures for the Collection of Debts by Salary Offset


Sec.  1650.101  Purpose.

    This subpart sets forth the procedures to be followed in the 
collection by salary offset of debts owed to the United States under 5 
U.S.C. 5514. The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the Secretary of the Treasury and the 
Attorney General of the United States, the Federal Claims Collection 
Standards (31 CFR Parts 900-904), apply to the administrative 
collection activities of the EEOC. Debts owed by current federal 
employees to Government travel charge card contractors will be 
collected in accordance with the regulations issued by the General 
Services Administration at 41 CFR Part 301-54.


Sec.  1650.102  Delegation of authority.

    The Chair delegated to the Chief Human Capital Officer the 
authority to collect debts owed by current EEOC employees, and to the 
Chief Financial Officer the authority to collect debts owed by former 
EEOC employees and non-EEOC employees.


Sec.  1650.103  Scope.

    (a) This subpart applies to the collection of certain debts by 
salary offset against an employee's disposable pay.
    (1) This subpart applies to collections by the EEOC from:
    (i) Federal employees who are indebted to the EEOC; and
    (ii) EEOC employees who are indebted to other agencies.
    (2) This subpart does not apply:
    (i) To debts or claims arising under the Internal Revenue Code of 
1986 (26 U.S.C. 1 et seq.), the Social Security Act 42 U.S.C. 301 et 
seq., or the tariff laws of the United States;
    (ii) In any case where collection of a debt is explicitly provided 
for or prohibited by another statute (e.g., travel advances in 5 U.S.C. 
5705 and employee training expenses in 5 U.S.C. 4108).
    (b) Nothing in this subpart precludes the compromise, suspension, 
or termination of collection actions where appropriate under the 
standards implementing the Federal Claims Collection Act, 31 U.S.C. 
3711, namely, 31 CFR Parts 900-904; or the waiver of a debt where 
appropriate under 5 U.S.C. 5584 or 5 U.S.C. 5524a.


Sec.  1650.104  Definitions.

    For the purpose of this subpart, terms are defined as follows:
    (a) Agency means:
    (1) An Executive agency as defined in section 105 of title 5, 
United States Code, including the U.S. Postal Service and the U.S. 
Postal Rate Commission;
    (2) A military department as defined in section 102 of title 5, 
United States Code;
    (3) An agency or court in the judicial branch, including a court as 
defined in section 610 of title 28, United States Code, the District 
Court for the Northern Mariana Islands, and the Judicial Panel on 
Multidistrict Litigation;
    (4) An agency of the legislative branch, including the U.S. Senate 
and the U.S. House of Representatives; and
    (5) Other independent establishments that are entities of the 
Federal Government.
    (b) Commission means those officers, employees, and agents of the 
Equal Employment Opportunity Commission who are responsible for debt 
collection activities.
    (c) Debt means money owed by an employee of the Federal Government 
to an agency of the Federal Government, including direct loans, loans 
insured or guaranteed by the United States and all other amounts due 
the Government from fees, leases, rents, royalties, services, sales of 
real or personal property, overpayments, penalties, damages, interest, 
fines and forfeitures (except those arising under the Uniform Code of 
Military Justice), erroneous salary payments, and all other similar 
amounts owing to the Federal Government.
    (d) Disposable pay means that part of current basic pay, special 
pay, incentive pay, retired pay, retainer pay, or, in the case of an 
employee not entitled to basic pay, other authorized pay remaining 
after the deduction of any amount required by law to be withheld. 
Deductions described in 5 CFR 581.105(b) through (f) will be used to 
determine disposable pay subject to salary offset.
    (e) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces 
(Reserves).
    (f) Salary Offset means the collection of a debt under 5 U.S.C. 
5514 by deduction(s) at one or more officially established pay 
intervals from the current pay account of an employee without his or 
her consent.


Sec.  1650.105  Notice of Debt.

    (a) Timing and contents of notice. Notice of the Commission's 
intent to collect a debt by salary offset shall be given at least 30 
days before salary offset deductions are to begin. The written notice 
shall include the following:
    (1) The Commission's determination that a debt is owed, including 
the origin, nature, and amount of the debt;
    (2) The Commission's intention to collect the debt by means of 
deduction from the employee's current disposable pay account until the 
debt and all accumulated interest, penalties, and administrative costs 
are paid in full;
    (3) The estimated amount, frequency, beginning date, and duration 
of the intended deductions;
    (4) An explanation of the Commission's policy concerning interest, 
penalties, and administrative costs;
    (5) The employee's right to inspect and copy the Commission's 
records pertaining to the debt or to receive copies of such records if 
the employee is unable personally to inspect the records, due to 
geographical or other constraints;
    (6) The opportunity to propose a voluntary repayment schedule and 
agreement that is acceptable to the Commission in lieu of the proposed 
offset;

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    (7) The employee's right to a hearing conducted by an impartial 
hearing official (an Administrative Law Judge or an individual not 
under the supervision or control of the Chair) with respect to the 
existence and amount of the debt claimed or the repayment schedule 
(i.e., the percentage of disposable pay to be deducted each pay 
period); the method and time period for requesting a hearing; that the 
timely request for a hearing will stay the commencement of collection 
proceedings; and that a final decision will be issued at the earliest 
practical date, but not later than 60 days after receipt of the hearing 
request;
    (8) The employee's right to request a waiver under 5 U.S.C. 5584 or 
5 U.S.C. 5524a, or compromise under 31 U.S.C. 3711;
    (9) The making of any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (i) Disciplinary procedures appropriate under 5 U.S.C. chapter 75, 
5 CFR Part 752, or any other applicable statutes or regulations;
    (ii) Penalties under the False Claims Act, 31 U.S.C. 3729 et seq., 
or under any other applicable statutory authority; or
    (iii) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002 
or under any other applicable statutory authority; and
    (10) Unless there are applicable contractual or statutory 
provisions to the contrary, amounts paid on or deducted from debts that 
are later waived or found not to be owed to the United States will be 
promptly refunded to the employee.
    (b) Exception to the advance notice requirement. Advance notice 
under paragraph (a) of this section is not required:
    (1) Where an adjustment to pay arises out of an employee's election 
of coverage, or change in coverage, under a Federal benefits program 
requiring periodic deductions from the employee's pay and the amount to 
be recovered was accumulated over four pay periods or less;
    (2) Where a routine intra-agency adjustment of pay 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 a point of contact for contesting 
such adjustment;
    (3) Where any adjustment of pay to collect a debt amounting to $50 
or less is made, 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; or
    (4) Where an employee consents to withholdings from his or her 
current pay account.
    (c) Receipt of notice of debt. The Notice of Debt will be sent by 
certified mail, return-receipt requested. The date on which the return-
receipt is signed is the date on which the employee is deemed to have 
received the Notice of Debt.


Sec.  1650.106  Right to inspect and copy records related to the debt.

    An employee who desires to inspect or copy Commission records 
related to the debt must send a request to the official designated in 
the Notice of Debt. In response, the Commission will notify the 
employee of the location and time when the employee may inspect and 
copy the records or send copies of such records to the employee.


Sec.  1650.107  Voluntary repayment agreements.

    (a) In response to a Notice of Debt, an employee may propose a 
written repayment schedule in lieu of the proposed salary offset. Any 
proposal under this subsection must be received by the office of the 
official designated in the notice within 15 calendar days after receipt 
of the Notice of Debt.
    (b) It is within the Commission's discretion to accept or reject a 
voluntary repayment proposal. The Commission shall send the employee a 
written decision.
    (c) If the Commission decides that the proposed repayment schedule 
is unacceptable, and that the written proposed repayment schedule was 
timely received, the employee shall have a further 15 days from the 
date he or she received the decision on the proposed repayment schedule 
in which to file a request for a hearing.
    (d) If the Commission decides that the proposed repayment schedule 
is acceptable, the agreement shall be put in writing and signed by both 
the employee and the Commission.


Sec.  1650.108  Waiver.

    The Commission may waive debts, to the extent authorized by 5 
U.S.C. 5584, arising out of erroneous payments of pay, when collection 
would be against equity and good conscience and not in the best 
interests of the United States, and so long as there is no indication 
of fraud, fault, or lack of good faith on the part of the employee. 
Interest, penalties, and administrative costs may also be waived under 
31 U.S.C. 3717(h) and 31 CFR 901.9(g), on a case-by-case basis, if 
collection would be against equity and good conscience and not in the 
best interests of the United States.


Sec.  1650.109  Hearing.

    (a) Request for a hearing. An employee who wants a hearing on the 
existence of the debt, its amount, or on the proposed offset schedule 
must send a written request to the official designated in the Notice of 
Debt. The request for a hearing must be received by the designated 
office on or before the 15th calendar day following receipt by the 
employee of the Notice of Debt. The request must be signed by the 
employee and must contain a brief summary of the facts, evidence, and 
witnesses, if any, that the employee believes support his or her 
position. If the employee wants an oral hearing, the request must also 
explain why the matter cannot be resolved by review of documentary 
evidence alone (e.g., how an issue of credibility or veracity is 
involved). Because proof of the existence or amount of a debt rarely 
requires an evaluation of the credibility of witnesses, oral hearings 
will only rarely be granted. The timely filing of a request for hearing 
shall automatically stay the commencement of collection proceedings.
    (b) Failure to timely submit. If the request for hearing is late, 
the Commission may still grant the request if the employee can show 
that the delay was the result of circumstances beyond his or her 
control or that he or she failed to receive actual notice of the filing 
deadline.
    (c) Procedure.
    (1) Hearing official. The hearing official will be an 
Administrative Law Judge or an individual who is not under the 
supervision or control of the Chair.
    (2) Notice. The hearing official shall notify the employee whether 
the hearing will be oral or documentary. If the hearing will be oral, 
the notice shall set forth the date, time, and location of the hearing, 
which must occur no more than 30 days after the request is received. If 
the hearing will be conducted by examination of documents, the employee 
shall be notified that he or she should submit evidence and arguments 
in writing to the hearing official by a specified date after which the 
record shall be closed. This date shall give the employee reasonable 
time to submit documentation.
    (3) Oral hearing. The hearing official may grant a request for an 
oral hearing if he or she determines that the issues

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raised by the employee cannot be resolved by review of documentary 
evidence alone (e.g., when credibility or veracity are at issue). An 
oral hearing is not required to be an adversarial adjudication, and the 
hearing official is not required to apply rules of evidence. Oral 
hearings may take the form of, but are not limited to:
    (i) Informal conferences with the hearing official in which the 
employee and agency representative are given a full opportunity to 
present evidence, witnesses, and argument;
    (ii) Informal meetings in which the hearing examiner interviews the 
employee and, as necessary, others with relevant evidence; or
    (iii) Formal written submissions followed by an opportunity for 
oral presentation. Witnesses who testify in oral hearings shall do so 
under oath or affirmation.
    (4) Documentary hearing. If an oral hearing is not necessary, the 
hearing official shall make the determination based upon a review of 
the written record.
    (d) Record. The hearing official shall maintain a summary record of 
any hearing conducted under this section.
    (e) Date of decision. The hearing official shall issue a written 
decision as soon as practicable after the hearing, but not later than 
60 days after the date on which the request for hearing was received by 
the Commission, unless the hearing was delayed at the request of the 
employee, in which case the 60 day decision period shall be extended by 
the number of days by which the hearing was postponed.
    (f) Content of decision. The written decision shall include:
    (1) A summary of the facts concerning the origin, nature, and 
amount of the debt;
    (2) The hearing official's findings, analysis, and conclusions; and
    (3) The revised terms of any repayment schedule, if applicable.
    (g) Failure to appear. In the absence of good cause, if the 
employee or the representative of the agency fails to appear, the 
hearing official shall proceed with the hearing as scheduled, and make 
his or her determination based upon the oral testimony presented and 
the documentation submitted by both parties.


Sec.  1650.110  Implementation of salary offset.

    (a) Method of collection. A debt will be collected in a lump sum or 
by installment deductions at officially established pay intervals from 
an employee's current pay account, unless the employee and the 
Commission agree in writing to alternate arrangements for repayment.
    (b) Source of deductions. Deductions will be made only from basic 
pay, special pay, incentive pay, retired pay, retainer pay or in the 
case of an employee not entitled to basic pay, other authorized pay.
    (c) Duration of deductions. Debts will be collected in one lump sum 
when possible to minimize interest costs and administrative processing 
fees for the employee. If the employee is financially unable to pay in 
one lump sum and the amount of debt exceeds 15 percent of the 
employee's disposable pay for an officially established pay interval, 
collection by offset will be made in installments. Such installment 
deductions will be made over a period not greater than the anticipated 
period of active duty or employment of the employee and, except in rare 
circumstances, not to exceed 3 years.
    (d) Limitation on amount of deductions. The size and frequency of 
installment deductions will bear a reasonable relationship to the size 
of the debt and the employee's ability to pay. The amount deducted for 
any period, however, will not exceed 15 percent of the disposable pay 
from which the deduction is made, unless the employee has agreed in 
writing to the deduction of a greater amount. Installment payments of 
less than $25 will be accepted only in the most unusual circumstances.
    (e) When deductions may begin.
    (1) If the employee files a timely request for hearing, or a 
proposed voluntary repayment agreement, deductions will begin in the 
next bi-weekly salary payment after a final decision is issued on the 
request or repayment proposal.
    (2) If the employee fails to submit a timely request for hearing or 
proposal for a voluntary repayment agreement, deductions will commence 
in the next bi-weekly salary payment after the expiration of 30 days 
following the employee's receipt of the Notice of Debt under 
1650.105(c).
    (f) Lump-sum deduction from final check. When the employee retires, 
resigns, or ends his or her period of active duty before the debt is 
collected in full, the employee's debt will be automatically deducted 
from the final payments (e.g., final salary payment, lump-sum leave, 
etc.) due the employee to the extent necessary to liquidate the debt. 
If the employee's final pay is not sufficient to permit all deductions 
to be made, the order of precedence for the deductions will be: 
Retirement and FICA; Medicare; Federal income taxes; health benefits; 
group life insurance; indebtedness due to the United States; State 
income taxes; and voluntary deductions and allotments.


Sec.  1650.111  Recovery from other payments due a separated employee.

    When a debt owed to EEOC has not been completely liquidated through 
salary offset and the employee has separated from EEOC, the Commission 
shall, pursuant to 31 U.S.C. 3716 and the Federal Claims Collection 
Standards, 31 CFR parts 900-904, seek to offset the balance of the debt 
against any financial payment due the employee from the U.S. 
Government.


Sec.  1650.112  Interest, penalties, and administrative costs.

    Unless a debt is paid in full within 30 days of receipt of the 
Notice of Debt, the Commission will charge interest at the rate 
established in accordance with 31 U.S.C. 3717 effective on the date of 
delinquency, and a processing charge pursuant to 31 U.S.C. 3717. The 
Commission will charge a penalty, pursuant to 31 U.S.C. 3717(e)(2) not 
to exceed 6 percent a year, on the amount due on a debt that is 
delinquent more than 90 days. This charge shall accrue from the date of 
delinquency. If an employee files a timely proposal for a repayment 
agreement, request for waiver, or a request for a hearing, interest, 
penalties, and administrative costs will be suspended during the time 
the Commission is considering such request(s).


Sec.  1650.113  Non-waiver of rights by payments.

    An employee's payment of all or any portion of a debt collected by 
salary offset will not be construed as a waiver of any right the 
employee may have under 5 U.S.C. 5514 or any other provision of 
contract or law, unless there are statutory or contractual provisions 
to the contrary.


Sec.  1650.114  Refunds.

    Amounts paid, or deducted by salary offset, by an employee for a 
debt that is waived or otherwise not found owing to the United States 
will be refunded promptly to the employee. Refunds do not bear interest 
unless required by law or contract.

Subpart B--Procedures for the Collection of Debts by Federal Tax 
Refund Offset


Sec.  1650.201  Purpose.

    This subpart establishes procedures for EEOC to refer past-due 
legally enforceable debts to the Department of the Treasury (Treasury) 
for offset against the income tax refunds of persons owing

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debts to EEOC pursuant to 31 U.S.C. 3720A and 31 CFR 285.2. The general 
standards and procedures governing the collection, compromise, 
termination, and referral to the Department of Justice of claims for 
money and property that are prescribed in the regulations issued 
jointly by the Secretary of the Treasury and the Attorney General of 
the United States, the Federal Claims Collection Standards (31 CFR 
parts 900-904), apply to the administrative collection activities of 
the EEOC.


Sec.  1650.202  Past-due legally enforceable debt.

    A past due, legally enforceable debt is a debt:
    (a) That accrued within ten years of referral to Treasury;
    (b) That is at least $25.00; and
    (c) That the agency has made reasonable efforts to collect by:
    (1) Submitting the debt to Treasury, Financial Management Service, 
for collection by Administrative Offset and complying with 31 U.S.C. 
3716(a) and related regulations, to the extent that collection by 
administrative offset is not prohibited by statute;
    (2) Notifying, or making a reasonable attempt to notify, the debtor 
that the debt is past-due, and unless repaid within 60 days after the 
date of the notice, will be referred to Treasury for tax refund offset;
    (3) Giving the debtor at least 60 days from the date of 
notification to present evidence that all or part of the debt is not 
past-due or legally enforceable, considering any evidence presented by 
such debtor, and determining that an amount of such debt is past-due 
and legally enforceable; and
    (4) Providing the debtor with an opportunity to make a written 
agreement to repay the amount of the debt.


Sec.  1650.203  Notification of intent to collect.

    EEOC's notification of intent to collect by tax refund offset shall 
provide:
    (a) The amount of the debt;
    (b) That unless the debt is repaid within 60 days from the date of 
EEOC's notification of intent, EEOC intends to collect the debt by 
requesting Treasury to offset an amount equal to the amount of the debt 
and all accumulating interest and other charges against any overpayment 
of tax after liabilities subject to 26 U.S.C. 6402(a) and (c) have been 
satisfied;
    (c) A mailing address for forwarding any written correspondence and 
a contact and a telephone number for any questions;
    (d) That the debtor may make a written agreement with EEOC to repay 
the amount of the debt; and
    (e) That the debtor may present evidence within 60 days to EEOC 
that all or part of the debt is not past due or legally enforceable by:
    (1) Sending a written request for a review of the evidence to the 
address provided in the notification;
    (2) Stating in the request for review the amount disputed and the 
reasons why the debtor believes that the debt is not past-due or is not 
legally enforceable; and
    (3) Including in the request for review any documents that the 
debtor wishes to be considered, or stating that the additional 
information will be submitted within the remainder of the 60 day 
period.


Sec.  1650.204  Reasonable attempt to notify.

    In order to constitute a reasonable attempt to notify the debtor, 
EEOC may use the last known address on record with the EEOC. In 
addition, the EEOC may attempt to obtain a more current address from 
notices returned by the United States Postal Service, or by using the 
Treasury's Internal Revenue Service (IRS) address inquiry. If the 
debtor cannot be notified by EEOC through these procedures, the debt 
will be sent to Treasury for collection.


Sec.  1650.205  Consideration of evidence submitted as a result of 
notification of intent.

    (a) Consideration of evidence. If, as a result of the notification 
of intent, EEOC receives notice that the debtor will submit additional 
evidence or receives additional evidence from the debtor within the 
prescribed time period, collection will be stayed until EEOC:
    (1) Considers the evidence presented by the debtor;
    (2) Determines whether all or a portion of the debt is still past-
due and legally enforceable; and
    (3) Notifies the debtor of its determination.


Failure to submit the evidence within 60 days from the date of 
notification of intent will result in a referral of the debt to 
Treasury.
    (b) Notification to the debtor. Following its review of the 
evidence, EEOC will issue a written decision notifying the debtor 
whether EEOC has sustained, amended, or canceled its determination that 
the debt is past-due and legally enforceable. The notice will advise 
the debtor of any further action to be taken, such as any modification 
of the debt amount and/or referral of the debt to Treasury, and explain 
the supporting rationale for the decision.


Sec.  1650.206  Notification to Treasury.

    (a) When referring a debt to Treasury, EEOC will certify that the 
debt meets all of the requirements in Sec.  1650.202 and will provide 
the name, taxpayer identifying number (as defined in 26 U.S.C. 6109) of 
the debtor, the amount of the debt, the date on which the debt became 
past-due, and the designation of EEOC as the agency referring the debt.
    (b) After EEOC's initial notification and referral of a debt to 
Treasury for offset against a debtor's Federal income tax refund, EEOC 
will promptly notify Treasury of any changes in the notification, if 
EEOC:
    (1) Determines that an error has been made with respect to the 
information contained in the notification;
    (2) Receives a payment or credits a payment to the account of the 
debtor named in the notification that reduces the amount of the debt 
referred to Treasury for offset; or
    (3) Refunds all or part of the offset amount to the debtor.
    (c) When EEOC requests Treasury to increase the amount of a debt 
owed by a debtor named in EEOC's original notification to Treasury, 
EEOC will certify that the additional amount meets all of the 
requirements in Sec.  1650.202.
    (d) If the amount of a debt is reduced after referral by EEOC and 
offset by the Treasury, EEOC will refund to the debtor any excess 
amount and will promptly notify the Treasury of any refund made by 
EEOC.


Sec.  1650.207  Administrative charges.

    All administrative charges incurred in connection with the referral 
of a debt to the Treasury and all costs of collection of the debt will 
be assessed on the debt and thus increase the amount of the offset.

Subpart C--Procedures for Collection of Debts by Administrative 
Offset


Sec.  1650.301  Purpose and regulatory procedures for the collection of 
debts by administrative offset.

    The Commission hereby adopts by cross-reference the administrative 
offset regulation issued by the Department of the Treasury at 31 CFR 
285.5. The general standards and procedures governing the collection, 
compromise, termination, and referral to the Department of Justice of 
claims for money and property that are prescribed in the regulations 
issued jointly by the Secretary of the Treasury and the Attorney 
General of the United States, the Federal Claims Collection Standards 
(31 CFR Parts 900-904), apply to the administrative collection 
activities of the EEOC. The authority to collect debts by 
administrative offset is delegated to the CFO.

[[Page 49098]]

Subpart D--Procedures for the Collection of Debts by Administrative 
Wage Garnishment


Sec.  1650.401  Purpose and regulatory procedures for the collection of 
debts by administrative wage garnishment.

    The Commission hereby adopts by cross-reference the administrative 
wage garnishment regulation issued by the Department of the Treasury at 
31 CFR 285.11. The general standards and procedures governing the 
collection, compromise, termination, and referral to the Department of 
Justice of claims for money and property that are prescribed in the 
regulations issued jointly by the Secretary of the Treasury and the 
Attorney General of the United States, the Federal Claims Collection 
Standards (31 CFR Parts 900-904), apply to the administrative 
collection activities of the EEOC. The authority to collect debts by 
administrative wage garnishment is delegated to the CFO.

[FR Doc. E8-19203 Filed 8-19-08; 8:45 am]
BILLING CODE 6570-01-P