Collection of Administrative Debts; Collection of Debts Arising From Enforcement and Administration of Campaign Finance Laws, 8274-8278 [2010-3687]

Agencies

• Federal Election Commission

[Federal Register Volume 75, Number 36 (Wednesday, February 24, 2010)]
[Proposed Rules]
[Pages 8274-8278]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3687]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 75, No. 36 / Wednesday, February 24, 2010 / 
Proposed Rules

[[Page 8274]]



FEDERAL ELECTION COMMISSION

11 CFR Parts 8 and 111

[Notice 2010-04]


Collection of Administrative Debts; Collection of Debts Arising 
From Enforcement and Administration of Campaign Finance Laws

AGENCY: Federal Election Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Election Commission (``Commission'') requests 
comments on proposed rules implementing statutory provisions regarding 
the collection of debts owed to the United States Government. The 
Commission also proposes integrating its rules regarding the collection 
of debts arising solely from the Administrative Fines program into the 
new proposed rules.

DATES: Comments must be received on or before March 26, 2010.

ADDRESSES: All comments must be in writing, must be addressed to Ms. 
Amy L. Rothstein, Assistant General Counsel, and must be submitted in 
either e-mail, facsimile, or paper copy form. Commenters are strongly 
encouraged to submit comments by e-mail to ensure timely receipt and 
consideration. E-mail comments must be sent to 
debtcollectionrules@fec.gov. If e-mail comments include an attachment, 
the attachment must be in either Adobe Acrobat (.pdf) or Microsoft Word 
(.doc) format. Faxed comments must be sent to (202) 219-3923, with 
paper copy follow-up. Paper comments and paper copy follow-up of faxed 
comments must be sent to the Federal Election Commission, 999 E Street, 
NW., Washington, DC 20463. All comments must include the full name and 
postal service address of the commenter or they will not be considered. 
The Commission will post all comments on its Web site after the comment 
period ends.

FOR FURTHER INFORMATION CONTACT: Ms. Amy L. Rothstein, Assistant 
General Counsel, or Ms. Esther D. Heiden, Attorney, 999 E Street, NW., 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission is proposing new rules to implement the Debt 
Collection Improvement Act of 1996 (``DCIA''), Public Law 104-134, 110 
Stat. 1321-358. The DCIA governs the Federal government's debt 
collection activities, and mandates that all nontax debts or claims 
owed to the United States that have been delinquent for a period of 180 
days shall be referred to the U.S. Department of the Treasury or a 
Treasury-designated collection center for appropriate action to collect 
or terminate collection of the claim or debt. 31 U.S.C. 3711(g)(1). The 
purposes of the DCIA are: (1) To maximize collections of delinquent 
debts owed to the Government by ensuring quick action to enforce 
recovery of debts and the use of all appropriate collection tools; (2) 
to minimize the costs of debt collection by consolidating related 
functions and activities and using interagency teams; (3) to reduce 
losses arising from debt management activity by requiring proper 
screening of potential borrowers, aggressive monitoring of all 
accounts, and sharing of information within and among Federal agencies; 
(4) to ensure that the public is fully informed of the Federal 
government's debt collection policies and that debtors are aware of 
their obligations to repay amounts owed to the Federal government; (5) 
to ensure that debtors have all appropriate due process rights, 
including the ability to verify, challenge, and compromise claims, and 
access to administrative appeals procedures that are both reasonable 
and protect the interests of the United States; (6) to encourage 
agencies, when appropriate, to sell delinquent debt, particularly debts 
with underlying collateral; and (7) to rely on the experience and 
expertise of private sector professionals to provide debt collection 
services to Federal agencies. Public Law 104-134, sec. 31001(b), 110 
Stat. 1321-358.
    The Federal Claims Collection Standards (``FCCS''), 31 CFR parts 
900-904, were promulgated by the U.S. Department of the Treasury and 
the U.S. Department of Justice. The FCCS prescribes the standards that 
Federal agencies must use in the administrative collection, offset, 
compromise, and suspension or termination of collection activity for 
civil claims of money, funds, or property as defined by 31 U.S.C. 
3701(b). The FCCS applies unless more specific Federal statutes or 
agency regulations apply, and in certain cases involving bankruptcy. 
The FCCS clarifies and simplifies Federal debt collection procedures, 
and prescribes the steps that an agency must take before initiating 
debt collection to ensure that individuals' rights are protected. These 
steps include notifying the debtor of the debt and the consequences of 
failing to resolve the debt. See 31 CFR 901.2. The FCCS provides 
agencies with limited discretion to adopt agency-specific regulations, 
tailored to the legal and policy requirements applicable to various 
types of Federal debt. The Commission seeks comment on all sections of 
the proposed rules in this notice.
    The regulations proposed here would incorporate the provisions of 
the DCIA and the FCCS, in some instances directly, and in other 
instances by cross-reference.

II. Proposed 11 CFR Part 8--Collection of Administrative Debts

    The Commission is proposing to add new part 8 and new subpart C to 
part 111 of its regulations to provide for debt collection. The two 
provisions taken together are designed to cover all types of debt that 
the Commission must collect. The proposed approach of separating the 
two general categories of debt in the regulations at proposed 11 CFR 
part 8 and 11 CFR part 111 subpart C is for the convenience of the 
reader. Placing provisions concerning the collection of debts arising 
from the Commission's enforcement of the campaign finance laws in 11 
CFR part 111 is consistent with the current placement of the 
regulations for collecting Administrative Fines debts with the 
enforcement provisions of part 111; placing the other debt collection 
provisions in 11 CFR part 8 also enables general administrative 
provisions to be located together.

A. Proposed 11 CFR 8.1--Purpose and Scope

    Proposed 11 CFR 8.1 provides that the purpose of the proposed 
regulations is

[[Page 8275]]

to apply the collection standards set out in the DCIA and the FCCS.

B. Proposed 11 CFR 8.2--Debts That Are Covered

    Proposed 11 CFR 8.2 states that the new Commission regulations in 
part 8 cover only those debts that are either owed by current and 
former Commission employees, or arise from the provision of goods or 
services by contractors or vendors doing business with the Commission. 
The proposed regulations in part 8 would not cover debts arising from 
compliance matters, administrative fines, alternative dispute 
resolution, repayments of public funds, and court judgments arising 
from the Commission's enforcement of the campaign finance laws, which 
would be covered in proposed 11 CFR part 111 subpart C. Proposed 
section 8.2 mirrors proposed 11 CFR 111.51. The Commission's proposed 
regulations also would not cover other types of debt that are 
specifically excluded from the FCCS, such as debts involving criminal 
actions of fraud, the presentation of a false claim, or 
misrepresentation on the part of the debtor or any other person having 
an interest in the claim, and debts under the Internal Revenue Code of 
1986.

C. Proposed 11 CFR 8.3--Administrative Collection of Claims

    Proposed 11 CFR 8.3 states that the Commission will collect the 
claims or debts covered by proposed 11 CFR part 8 in accordance with 
the FCCS, and adopts by cross-reference the relevant provisions of the 
DCIA, and U.S. Department of the Treasury and Department of Justice 
debt collection regulations. See 31 U.S.C. 3701 et seq.; 31 CFR 285.2, 
285.4, 285.7, 285.11, and parts 900-904. Proposed section 8.3 also 
states that the Commission will refer debts to the U.S. Department of 
the Treasury for collection no later than 180 days after the debts 
become delinquent. The proposed rule includes examples of collection 
actions that the U.S. Department of the Treasury might take: Referral 
to another debt collection center, referral to a private collection 
contractor, or referral to the Department of Justice for litigation. 
These examples are taken from the U.S. Department of the Treasury 
regulation governing the transfer of debts to the U.S. Department of 
the Treasury, and are not a comprehensive list of the actions that the 
U.S. Department of the Treasury may take in collecting such debt. See 
31 CFR 285.12(c)(2). During the 180 days before the mandatory transfer 
of a debt to the U.S. Department of the Treasury, the Commission may 
take any action under these proposed rules to attempt to collect the 
debt.

D. Proposed 11 CFR 8.4--Bankruptcy Claims

    Proposed 11 CFR 8.4 recognizes that in cases where a debtor has 
sought protection under the Bankruptcy Code, the Code, particularly 11 
U.S.C. 106, 362, and 553, may require the Commission to take different 
action from that prescribed under the debt collection regulations set 
forth in proposed part 8 and the FCCS. In these situations, bankruptcy 
law will govern the debt collection process.

E. Proposed 11 CFR 8.5--Interest, Penalties, and Administrative Costs

    Proposed 11 CFR 8.5 states that the Commission shall assess 
interest, penalties, and administrative costs on debts owed to the 
United States, in accordance with Federal law. The Commission shall 
waive collection of interest and administrative costs on debts or 
portions of debts that are paid within thirty days after the date on 
which interest begins to accrue.
    The proposed regulation also provides that the Commission may, at 
its discretion, waive collection of interest, penalties, or 
administrative costs on any debt that is not paid within thirty days 
after the date on which interest begins to accrue. The proposed 
regulation states that the Commission may waive collection of interest, 
penalties, or administrative costs if it determines that: (1) 
Collection is against equity and good conscience or is not in the best 
interest of the United States, including when an administrative offset 
or installment agreement is in effect; or, (2) waiver is appropriate 
under the criteria for compromise of debts set forth at 31 CFR 
902.2(a).

III. Proposed Removal of 11 CFR 111.45

    The Commission proposes to remove current 11 CFR 111.45. This 
provision governs debt collection with respect to the Administrative 
Fines program. Under the proposed new regulations, these debts would be 
covered by proposed 11 CFR Part 111 Subpart C--Collection of Debts 
Arising from Enforcement and Administration of Campaign Finance Laws. 
The Commission requests comments on this proposal.

IV. Proposed 11 CFR Part 111 Subpart C--Collection of Debts Arising 
From Enforcement and Administration of Campaign Finance Laws

    The proposed regulations in 11 CFR part 111 subpart C would govern 
the Commission's collection of debts arising from compliance matters, 
administrative fines, alternative dispute resolution, repayments of 
public funds, and court judgments arising from the Commission's 
enforcement of the campaign finance laws. The proposed regulations 
cover the collection of debts only, and will be invoked only after the 
completion of existing Commission processes during which respondents or 
other parties have had a full and fair opportunity to demonstrate that 
no civil penalty or repayment should be imposed. See 11 CFR parts 111 
and 9038, and 9008.11-9008.15.

A. Proposed 11 CFR 111.50--Purpose and Scope

    Proposed 11 CFR 111.50 provides that the purpose of the proposed 
regulations is to apply the collection standards set out in the DCIA 
and the FCCS. This proposed provision would treat debts under proposed 
11 CFR part 111 in a similar manner to those owed by employees and 
vendors under proposed new 11 CFR 8.1.

B. Proposed 11 CFR 111.51--Debts That Are Covered

    Proposed 11 CFR 111.51 states that the new Commission regulations 
in 11 CFR part 111 subpart C would cover only those debts arising from 
compliance matters, administrative fines, alternative dispute 
resolution, repayments of public funds, and court judgments arising 
from the Commission's enforcement and administration of the campaign 
finance laws. The proposed regulations in 11 CFR part 111 subpart C 
would not cover debts either owed by current and former Commission 
employees, or arising from the provision of goods or services by 
contractors or vendors doing business with the Commission, which would 
be covered by proposed new 11 CFR part 8. This proposed new provision 
would treat debts under proposed 11 CFR part 111 in a similar manner to 
those owed by employees and vendors under proposed new 11 CFR 8.2, and 
the two provisions are designed to cover all types of debt that the 
Commission must collect. The Commission's proposed regulations also 
would not cover other types of debt that are specifically excluded from 
the FCCS, such as debts involving criminal actions of fraud, the 
presentation of a false claim, or misrepresentation on the part of the 
debtor or any other person having an interest in the claim, and debts 
under the Internal Revenue Code of 1986.

[[Page 8276]]

C. Proposed 11 CFR 111.52--Administrative Collection of Claims

    Proposed 11 CFR 111.52 states that the Commission will collect all 
claims or debts in accordance with the FCC, and adopts by cross-
reference the relevant DCIA, U.S. Department of the Treasury, and U.S. 
Department of Justice debt collection provisions. See 31 U.S.C. 3701 et 
seq.; 31 CFR 285.2, 285.4, 285.7, 285.11, and parts 900-904. This 
proposed provision would treat the debts covered by proposed new 11 CFR 
part 111 subpart C in a similar manner to those owed by employees and 
vendors under proposed new 11 CFR 8.3. The proposed provision also 
states that the Commission will refer debts to the U.S. Department of 
the Treasury for collection no later than 180 days after the debt 
becomes delinquent. The proposed rule includes examples of collection 
actions that the U.S. Department of the Treasury might take: Referral 
to another debt collection center, or referral to a private collection 
contractor. These examples are taken from the U.S. Department of the 
Treasury regulation governing the transfer of debts to the U.S. 
Department of the Treasury, and are not a comprehensive list of the 
actions that the U.S. Department of the Treasury may take in collecting 
such debt. See 31 CFR 285.12(c)(2). During the 180 days before the 
mandatory transfer of a debt to the U.S. Department of the Treasury, 
the Commission may take any action under these proposed rules, or may 
go to court under the Commission's litigating authority in 31 U.S.C. 
437g to attempt to collect the debt.

D. Proposed 11 CFR 111.53--Litigation by the Commission

    Proposed 11 CFR 111.53 states that nothing in the debt collection 
procedures precludes the Commission from filing suit under 2 U.S.C. 
437g to enforce compliance with a conciliation agreement, seek a civil 
money penalty, petition the court for a contempt order, or otherwise 
exercise its authority to enforce or administer the campaign finance 
laws and regulations.

E. Proposed 11 CFR 111.54--Bankruptcy Claims

    Proposed 11 CFR 111.54 recognizes that in cases where a debtor has 
sought protection under the Bankruptcy Code, the Code, particularly 11 
U.S.C. 106, 362, and 553, may require the Commission to take different 
action from that prescribed under the debt collection regulations set 
forth in proposed part 111 and the FCCS. In this event, bankruptcy law 
will govern the debt collection process. See 31 CFR 901.3(a)(5). The 
Commission requests comments on this proposed section.

F. Proposed 11 CFR 111.55--Interest, Penalties, and Administrative 
Costs

    Proposed 11 CFR 111.55 states that the Commission shall assess 
interest, penalties, and administrative costs on debts owed to the 
United States, as required by Federal law. See 31 U.S.C. 3717. The 
Commission shall waive collection of interest and administrative costs 
on debts or portions of debts that are paid within thirty days after 
the date on which interest begins to accrue.
    The proposed regulation also provides that the Commission may, at 
its discretion, waive collection of interest, penalties, or 
administrative costs on any debt that is not paid within thirty days 
after the date on which interest begins to accrue. The proposed 
regulation states that the Commission may waive collection of interest, 
penalties, or administrative costs if it determines that: (1) 
Collection is against equity and good conscience or is not in the best 
interest of the United States, including when an administrative offset 
or installment agreement is in effect; or, (2) waiver is appropriate 
under the criteria for compromise of debts set forth at 31 CFR 
902.2(a). This proposed provision would treat the debts covered by 
proposed new 11 CFR part 111 subpart C in a similar manner to those 
owed by employees and vendors under proposed new 11 CFR 8.5.

Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory 
Flexibility Act)

    The attached proposed rules would not, if promulgated, have a 
significant economic impact on a substantial number of small entities. 
There are two bases for this certification. First, that the attached 
proposed rules would implement statutorily required processes for 
collecting unpaid debts, and any economic impact of these rules would 
be caused by the statutory mandate, rather than agency decisions 
contained in these proposed rules. Second, the provisions in the 
proposed rules relate to agency management and procedure and do not 
impose new substantive or compliance requirements directly on members 
of the public. If the proposed provision regarding the imposition of 
interest, penalties, and administrative costs could be viewed as 
imposing a new requirement on the public, the proposed regulation would 
merely implement the statutory requirement that the Commission assess 
these additional costs and provides that the Commission could exercise 
its discretion to waive the assessment of such costs in appropriate 
circumstances. Thus, any incremental economic impact of this rule on 
small entities would not be significant. Therefore, the Commission 
certifies that the attached proposed rules, if promulgated, will not 
have a significant economic impact on a substantial number of small 
entities.

List of Subjects

11 CFR Part 8

    Administrative practice and procedure, Debt collection procedures, 
Government contracts, Law enforcement, Penalties.

11 CFR Part 111

    Administrative practice and procedure, Debt collection procedures, 
Elections, Law enforcement, Penalties.

    For the reasons set out in the preamble, the Federal Election 
Commission proposes to amend Chapter 1 of Title 11 of the Code of 
Federal Regulations as follows:
    1. Part 8 is to read as follows:

PART 8--COLLECTION OF ADMINISTRATIVE DEBTS

Sec.
8.1 Purpose and scope.
8.2 Debts that are covered.
8.3 Administrative collection of claims.
8.4 Bankruptcy claims.
8.5 Interest, penalties, and administrative costs.

    Authority: 31 U.S.C. 3701, 3711, and 3716-3720A, as amended; 2 
U.S.C. 431 et seq., as amended; 31 CFR parts 285, and 900-904.


Sec.  8.1  Purpose and scope.

    This part prescribes standards and procedures under which the 
Commission will collect and dispose of certain debts owed to the United 
States, as described in 11 CFR 8.2. The regulations in this part 
implement the Debt Collection Improvement Act of 1996, 31 U.S.C. 3701, 
3711, and 3716-3720A, as amended; and the Federal Claims Collection 
Standards, 31 CFR parts 900-904. The activities covered include: The 
collection of claims of any amount; compromising claims; suspending or 
terminating the collection of claims; referring debts to the U.S. 
Department of the Treasury for collection action; and referring debts 
under this part 8 of more than $100,000 (exclusive of any interest and 
charges) to the Department of Justice for litigation.


Sec.  8.2  Debts that are covered.

    (a) The procedures covered by this part apply to debts that are 
either owed by current and former Commission employees, or arise from 
the provision

[[Page 8277]]

of goods or services by contractors or vendors doing business with the 
Commission.
    (b) The procedures covered by this part do not apply to any of the 
following debts:
    (1) Debts that are covered by 11 CFR 111.51, regarding debts 
arising from compliance matters, administrative fines, alternative 
dispute resolution, repayments, and court judgments arising under the 
statutes specified in 11 CFR 111.51(a).
    (2) Debts involving criminal actions of fraud, the presentation of 
a false claim, or misrepresentation on the part of the debtor or any 
other person having an interest in the claim.
    (3) Debts based in whole or in part on conduct in violation of the 
antitrust laws.
    (4) Debts under the Internal Revenue Code of 1986.
    (5) Debts between the Commission and another Federal agency. The 
Commission will attempt to resolve interagency claims by negotiation in 
accordance with Executive Order 12146, 3 CFR pp. 409-12 (1980 Comp.).
    (6) Debts that have become subject to salary offset under 5 U.S.C. 
5514.


Sec.  8.3  Administrative collection of claims.

    (a) The Commission shall act to collect all claims or debts. These 
collection activities will be undertaken promptly and followup action 
will be taken as appropriate in accordance with 31 CFR 901.1.
    (b) The Commission may take any and all appropriate collection 
actions authorized and required by the Debt Collection Act of 1982, as 
amended by the Debt Collection Improvement Act of 1996, 31 U.S.C. 3701 
et seq. The U.S. Department of the Treasury regulations at 31 CFR 
285.2, 285.4, 285.7 and 285.11, and the Federal Claims Collection 
Standards issued jointly by the Department of Justice and the U.S. 
Department of the Treasury at 31 CFR parts 900-904 also apply. The 
Commission has adopted these regulations by cross-reference.
    (c) The Commission will refer debts to the U.S. Department of the 
Treasury no later than 180 days after the debt has become delinquent. 
On behalf of the Commission, the U.S. Department of the Treasury will 
attempt to collect the debt, in accordance with the statutory and 
regulatory requirements and authorities applicable to the debt and 
action. This may include referral to another debt collection center, a 
private collection contractor, or the Department of Justice for 
litigation. See 31 CFR 285.12 (Transfer of debts to Treasury for 
collection). This requirement does not apply to any debt that:
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sale program;
    (3) Has been referred to a private collection contractor for a 
period of time acceptable to the U.S. Department of the Treasury; or
    (4) Will be collected under internal offset procedures within three 
years after the debt first became delinquent.
    (d) The U.S. Department of the Treasury is authorized to charge a 
fee for services rendered regarding referred or transferred debts. The 
Commission will add the fee to the debt as an administrative cost, in 
accordance with 11 CFR 8.5.


Sec.  8.4  Bankruptcy claims.

    When the Commission learns that a bankruptcy petition has been 
filed by a debtor, before proceeding with further collection action, 
the Commission will take any necessary action in accordance with the 
provision of 31 CFR 901.2(h).


Sec.  8.5  Interest, penalties, and administrative costs.

    (a) The Commission shall assess interest, penalties, and 
administrative costs on debts owed to the United States Government in 
accordance with 31 U.S.C. 3717 and 31 CFR 901.9.
    (b) The Commission shall waive collection of interest and 
administrative costs on a debt or any portion of the debt that is paid 
in full within thirty days after the date on which the interest begins 
to accrue.
    (c) The Commission may waive collection of interest, penalties, and 
administrative costs if it:
    (1) Determines that collection is against equity and good 
conscience or not in the best interest of the United States, including 
when an administrative offset or installment agreement is in effect; 
or,
    (2) Determines that waiver is appropriate under the criteria for 
compromise of debts set forth at 31 CFR 902.2(a).
    (d) The Commission is authorized to impose interest and related 
charges on debts not subject to 31 U.S.C. 3717, in accordance with 
common law.

PART 111--COMPLIANCE PROCEDURES

    2. The authority citation for part 111 is revised to read as 
follows:

    Authority: 2 U.S.C. 432(i), 437g, 437d(a), 438(a)(8); 28 U.S.C. 
2461 nt; 31 U.S.C. 3701, 3711, 3716-3719, and 3720A, as amended; 31 
CFR parts 285 and 900-904.

Subpart B--Administrative Fines


Sec.  111.45  [Removed and Reserved]

    3. Subpart B is amended by removing and reserving section 111.45.
    4. Subpart C is added to read as follows:

Subpart C--Collection of Debts Arising From Enforcement and 
Administration of Campaign Finance Laws

Sec.
111.50 Purpose and scope.
111.51 Debts that are covered.
111.52 Administrative collection of claims.
111.53 Litigation by the Commission.
111.54 Bankruptcy claims.
111.55 Interest, penalties, and administrative costs.

Subpart C--Collection of Debts Arising From Enforcement and 
Administration of Campaign Finance Laws


Sec.  111.50  Purpose and scope.

    This subpart C prescribes standards and procedures under which the 
Commission will collect and dispose of certain debts owed to the United 
States, as described in 11 CFR 111.51. The regulations in this subpart 
implement the Debt Collection Improvement Act of 1996, 31 U.S.C. 3701, 
3711, and 3716-3720A, as amended; and the Federal Claims Collection 
Standards, 31 CFR parts 900 through 904. The activities covered 
include: The collection of claims of any amount; compromising claims; 
suspending or terminating the collection of claims; and referring debts 
to the U.S. Department of the Treasury for collection action.


Sec.  111.51  Debts that are covered.

    (a) The procedures of this subpart C of part 111 apply to claims 
for payment or debt arising from, or ancillary to, any action 
undertaken by or on behalf of the Commission in furtherance of efforts 
to ensure compliance with the Federal Election Campaign Act, 2 U.S.C. 
431 et seq., as amended, and to administer the Presidential Election 
Campaign Fund Act, 26 U.S.C. 9001 et seq., or the Presidential Primary 
Matching Payment Account Act, 26 U.S.C. 9031 et seq., and Commission 
regulations, including:
    (1) Negotiated civil penalties in enforcement matters and 
alternative dispute resolution matters;
    (2) Civil money penalties assessed under the administrative fines 
program;
    (3) Claims reduced to judgment in the courts and that are no longer 
in litigation;
    (4) Repayments of public funds under the Presidential Election 
Campaign Fund Act, 26 U.S.C. 9001 et seq.; or
    (5) Repayment of public funds under the Presidential Primary 
Matching

[[Page 8278]]

Payment Account Act, 26 U.S.C. 9031 et seq.
    (b) The procedures covered by this subpart do not apply to any of 
the following debts:
    (1) Debts that result from administrative activities of the 
Commission that are governed by 11 CFR part 8.
    (2) Debts involving criminal actions of fraud, the presentation of 
a false claim, or misrepresentation on the part of the debtor or any 
other person having an interest in the claim.
    (3) Debts based in whole or in part on conduct in violation of the 
antitrust laws.
    (4) Debts under the Internal Revenue Code of 1986.
    (5) Debts between the Commission and another Federal agency. The 
Commission will attempt to resolve interagency claims by negotiation in 
accordance with Executive Order 12146, 3 CFR pp. 409-12 (1980 Comp.).
    (6) Debts that have become subject to salary offset under 5 U.S.C. 
5514.


Sec.  111.52  Administrative collection of claims.

    (a) The Commission shall act to collect all claims or debts. These 
collection activities will be undertaken promptly and follow up action 
will be taken as appropriate in accordance with 31 CFR 901.1.
    (b) The Commission may take any and all appropriate collection 
actions authorized and required by the Debt Collection Act of 1982, as 
amended by the Debt Collection Improvement Act of 1996, 31 U.S.C. 3701 
et seq. The U.S. Department of the Treasury regulations at 31 CFR 
285.2, 285.4, 285.7, and 285.11, and the Federal Claims Collection 
Standards issued jointly by the Department of Justice and the U.S. 
Department of the Treasury at 31 CFR parts 900 through 904, also apply. 
The Commission has adopted these regulations by cross-reference.
    (c) The Commission will refer debts to the U.S. Department of the 
Treasury no later than 180 days after the debt has become delinquent. 
On behalf of the Commission, the U.S. Department of the Treasury will 
attempt to collect the debt, in accordance with the statutory and 
regulatory requirements and authorities applicable to the debt and 
action. This may include referral to another debt collection center, or 
a private collection contractor. See 31 CFR 285.12 (Transfer of debts 
to Treasury for collection). This requirement does not apply to any 
debt that:
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sale program;
    (3) Has been referred to a private collection contractor for a 
period of time acceptable to the U.S. Department of the Treasury; or
    (4) Will be collected under internal offset procedures within three 
years after the debt first became delinquent.
    (d) The U.S. Department of the Treasury is authorized to charge a 
fee for services rendered regarding referred or transferred debts. The 
Commission will add the fee to the debt as an administrative cost, in 
accordance with 11 CFR 111.55.


Sec.  111.53  Litigation by the Commission.

    Nothing in this subpart C precludes the Commission from filing suit 
in the appropriate court to enforce compliance with a conciliation 
agreement under 2 U.S.C. 437g(a)(5)(D), seek a civil money penalty 
under 2 U.S.C. 437g(a)(6), petition the court for a contempt order 
under 2 U.S.C. 437g(a)(11), or otherwise exercise its authority to 
enforce or administer the statutes specified in 11 CFR 111.51(a).


Sec.  111.54  Bankruptcy claims.

    When the Commission learns that a bankruptcy petition has been 
filed by a debtor, before proceeding with further collection action, 
the Commission will take any necessary action in accordance with the 
provision of 31 CFR 901.2(h).


Sec.  111.55  Interest, penalties, and administrative costs.

    (a) The Commission shall assess interest, penalties, and 
administrative costs on debts owed to the United States Government, 
pursuant to 31 U.S.C. 3717. Interest, penalties, and administrative 
costs will be assessed in accordance with 31 CFR 901.9.
    (b) The Commission shall waive collection of interest and 
administrative costs on a debt or any portion of the debt that is paid 
within thirty days after the date on which the interest begins to 
accrue.
    (c) The Commission may waive collection of interest, penalties, and 
administrative costs if it:
    (1) Determines that collection is against equity and good 
conscience or not in the best interest of the United States, including 
when an administrative offset or installment agreement is in effect; 
or,
    (2) Determines that waiver is appropriate under the criteria for 
compromise of debts set forth at 31 CFR 902.2(a).
    (d) The Commission is authorized to impose interest and related 
charges on debts not subject to 31 U.S.C. 3717, in accordance with 
common law.

    Dated: February 19, 2010.

    On behalf of the Commission.
Matthew S. Peterson,
Chairman, Federal Election Commission.
[FR Doc. 2010-3687 Filed 2-23-10; 8:45 am]
BILLING CODE 6715-01-P