Collection of Administrative Debts; Collection of Debts Arising From Enforcement and Administration of Campaign Finance Laws, 19873-19877 [2010-8736]
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19873
Rules and Regulations
Federal Register
Vol. 75, No. 73
Friday, April 16, 2010
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
FEDERAL ELECTION COMMISSION
11 CFR Parts 8 and 111
[Notice 2010–10]
Collection of Administrative Debts;
Collection of Debts Arising From
Enforcement and Administration of
Campaign Finance Laws
Federal Election Commission.
Final rule.
AGENCY:
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ACTION:
SUMMARY: The Federal Election
Commission (‘‘Commission’’) is
promulgating rules implementing
statutory provisions regarding the
collection of debts owed to the United
States Government. The Commission is
also integrating its rules regarding the
collection of debts arising solely from
the Administrative Fines program into
the new rules.
DATES: This rule is effective on May 17,
2010.
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: The
Commission is promulgating 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
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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, 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.
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The new regulations incorporate the
provisions of the DCIA and the FCCS, in
some instances directly, and in other
instances by cross-reference.
The Commission published a Notice
of Proposed Rulemaking in the Federal
Register on February 24, 2010. See
Notice of Proposed Rulemaking on
Collection of Administrative Debts;
Collection of Debts Arising From
Enforcement and Administration of
Campaign Finance Laws, 75 FR 8274
(February 24, 2010) (the ‘‘NPRM’’). The
comment period closed on March 26,
2010. The Commission received one
comment in response to the proposed
rules.1
Under the Administrative Procedure
Act, 5 U.S.C. 553(d), and the
Congressional Review of Agency
Rulemaking Act, 5 U.S.C. 801(a)(1),
agencies must submit final rules to the
Speaker of the House of Representatives
and the President of the Senate, and
publish them in the Federal Register at
least thirty calendar days before they
take effect. The final rules that follow
were transmitted to Congress on April
12, 2010.
Explanation and Justification
I. 11 CFR Part 8—Collection of
Administrative Debts
The Commission is adding 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 approach of separating the
two general categories of debt in the
regulations at 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.
1 This comment was from the Internal Revenue
Service, stating that the Internal Revenue Service
did not find any conflict between the Internal
Revenue Code and Treasury regulations and the
Commission’s proposed rules.
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A. 11 CFR 8.1—Purpose and Scope
Section 8.1 of 11 CFR provides that
the purpose of the regulations is to
apply the collection standards set out in
the DCIA and the FCCS.
B. 11 CFR 8.2—Debts That Are Covered
Section 8.2 of 11 CFR 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 regulations
in part 8 do 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 are
covered in new 11 CFR part 111 subpart
C. Section 8.2 mirrors 11 CFR 111.51.
The Commission’s regulations also do
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.
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C. 11 CFR 8.3—Administrative
Collection of Claims
Section 8.3 of 11 CFR states that the
Commission will collect the claims or
debts covered by 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
stated 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 final rule states that the
Commission will refer all debts that are
more than 180 days delinquent to the
U.S. Department of the Treasury, and
may, at its discretion, transfer
delinquent debts prior to the end of the
180 day period. This clarifies that the
Commission need not complete the
referral process to Treasury within the
180 day period. Instead, the
Commission is required to transfer debts
that are more than 180 days delinquent,
and has the discretion to transfer debts
before they are 180 days delinquent.
The rule includes examples of
collection actions that the U.S.
Department of the Treasury might take:
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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 rules to attempt to collect
the debt.
D. 11 CFR 8.4—Bankruptcy Claims
Section 8.4 of 11 CFR recognizes that
in cases where a debtor has sought
protection under the Bankruptcy Code,
the Code, particularly 11 U.S.C. 553,
may require the Commission to take
different action from that prescribed
under the debt collection regulations set
forth in part 8 and the FCCS. In these
situations, bankruptcy law will govern
the debt collection process.
E. 11 CFR 8.5—Interest, Penalties, and
Administrative Costs
Section 8.5 of 11 CFR 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 regulation also provides that the
Commission may, at its discretion,
waive collection of interest, penalties, or
administrative costs on any debt, even
debts that are not paid within thirty
days after the date on which interest
begins to accrue. The 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).
II. Removal of 11 CFR 111.45
The Commission has removed the
provision previously located at 11 CFR
111.45. This provision governed debt
collection with respect to the
Administrative Fines program. Under
the new regulations, these debts are
covered by 11 CFR part 111 subpart C—
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Collection of Debts Arising from
Enforcement and Administration of
Campaign Finance Laws.
III. 11 CFR Part 111 Subpart C—
Collection of Debts Arising From
Enforcement and Administration of
Campaign Finance Laws
The regulations in 11 CFR part 111
subpart C 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 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. 11 CFR 111.50—Purpose and Scope
Section 111.50 of 11 CFR provides
that the purpose of the regulations is to
apply the collection standards set out in
the DCIA and the FCCS. This provision
treats debts under 11 CFR part 111 in a
similar manner to those owed by
employees and vendors under 11 CFR
8.1, discussed above.
B. 11 CFR 111.51—Debts That Are
Covered
Section 111.51 of 11 CFR states that
the new Commission regulations in 11
CFR part 111 subpart C 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 regulations in 11 CFR part
111 subpart C do 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 are
covered by new 11 CFR part 8. This new
provision treats debts under 11 CFR part
111 in a similar manner to those owed
by employees and vendors under new
11 CFR 8.2, and the two provisions
taken together are designed to cover all
types of debt that the Commission must
collect. The Commission’s regulations
also do 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
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or otherwise exercise its authority to
enforce or administer the campaign
finance laws and regulations.
C. 11 CFR 111.52—Administrative
Collection of Claims
Section 111.52 of 11 CFR states that
the Commission will collect all claims
or debts in accordance with the FCCS,
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 provision treats the debts covered
by new 11 CFR part 111 subpart C in a
similar manner to those owed by
employees and vendors under new 11
CFR 8.3, discussed above. The proposed
provision stated 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 final rule states that the
Commission will refer all debts that are
more than 180 days delinquent to the
U.S. Department of the Treasury, and
may, at its discretion, transfer
delinquent debts prior to the end of the
180 day period. This clarifies that the
Commission need not complete the
referral process to Treasury within the
180 day period. Instead, the
Commission is required to transfer debts
that are more than 180 days delinquent,
and has the discretion to transfer debts
before they are 180 days delinquent.
The 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 rules, or may go to court
under the Commission’s litigating
authority in 31 U.S.C. 437g to attempt
to collect the debt.
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having an interest in the claim, and
debts under the Internal Revenue Code
of 1986.
E. 11 CFR 111.54—Bankruptcy Claims
Section 111.54 of 11 CFR recognizes
that in cases where a debtor has sought
protection under the Bankruptcy Code,
the Code, particularly 11 U.S.C. 362,
may require the Commission to take
different action from that prescribed
under the debt collection regulations set
forth in part 111 and the FCCS. In this
event, bankruptcy law will govern the
debt collection process. See 31 CFR
901.3(a)(5).
D. 11 CFR 111.53—Litigation by the
Commission
Section 111.53 of 11 CFR 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,
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F. 11 CFR 111.55—Interest, Penalties,
and Administrative Costs
Section 111.55 of 11 CFR 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 regulation also provides that the
Commission may, at its discretion,
waive collection of interest, penalties, or
administrative costs on any debt, even
debts that are not paid within thirty
days after the date on which interest
begins to accrue. The 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 provision treats the
debts covered by new 11 CFR part 111
subpart C in a similar manner to those
owed by employees and vendors under
new 11 CFR 8.5, discussed above.
Certification of No Effect Pursuant to 5
U.S.C. 605(b) (Regulatory Flexibility
Act)
The attached final rules do not have
a significant economic impact on a
substantial number of small entities.
There are two bases for this
certification. First, the attached final
rules implement statutorily required
processes for collecting unpaid debts,
and any economic impact of these rules
is caused by the statutory mandate,
rather than agency decisions contained
in these rules. Second, the provisions in
the new rules relate to agency
management and procedure and do not
impose new substantive or compliance
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19875
requirements directly on members of the
public. If the provision regarding the
imposition of interest, penalties, and
administrative costs could be viewed as
imposing a new requirement on the
public, the regulation merely
implements the statutory requirement
that the Commission assess these
additional costs and provides that the
Commission can exercise its discretion
to waive the assessment of such costs in
appropriate circumstances. Thus, any
incremental economic impact of this
rule on small entities is not significant.
Therefore, the Commission certifies that
the attached final rules 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 is amending Chapter 1 of
Title 11 of the Code of Federal
Regulations as follows:
■ 1. Part 8 is added to read as follows:
PART 8—Collection of Administrative
Debts
Sec.
8.1
8.2
8.3
8.4
8.5
Purpose and scope.
Debts that are covered.
Administrative collection of claims.
Bankruptcy claims.
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.
§ 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
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under this part 8 of more than $100,000
(exclusive of any interest and charges)
to the Department of Justice for
litigation.
§ 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
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.
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§ 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 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 900–904 also apply. The
Commission has adopted these
regulations by cross-reference.
(c) The Commission will refer to the
Dept. of Treasury all debt that has been
delinquent for more than 180 days, and
may refer to the Dept. of Treasury any
debt that has been delinquent for 180
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days or less. 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.
§ 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).
§ 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.
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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
§ 111.45
[Removed and Reserved]
3. Remove and reserve § 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.
§ 111.50
Purpose and scope.
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 900–904. 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.
§ 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;
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(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
Payment Account Act, 26 U.S.C. 9031 et
seq.
(c) 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.
WReier-Aviles on DSKGBLS3C1PROD with RULES
§ 111.52
claims.
Administrative collection of
(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 900–904, also apply. The
Commission has adopted these
regulations by cross-reference.
(c) The Commission will refer to the
Dept. of Treasury all debt that has been
delinquent for more than 180 days, and
may refer to the Dept. of Treasury any
debt that has been delinquent for 180
days or less. 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
VerDate Nov<24>2008
15:02 Apr 15, 2010
Jkt 220001
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.
§ 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).
§ 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).
§ 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
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
19877
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: April 12, 2010.
On behalf of the Commission.
Matthew S. Petersen,
Chairman, Federal Election Commission.
[FR Doc. 2010–8736 Filed 4–15–10; 8:45 am]
BILLING CODE 6715–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 61, 63, and 65
[Docket No. FAA–2009–0923; Special
Federal Aviation Regulation No. 100–2]
RIN 2120–AJ54
Relief for U.S. Military and Civilian
Personnel Who Are Assigned Outside
the United States in Support of U.S.
Armed Forces Operations
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Confirmation of effective date.
SUMMARY: This action confirms the
direct final rule issued March 4, 2010,
which becomes effective June 20, 2010.
The rule changes SFAR 100–1 with an
expiration date from June 20, 2010, to
SFAR 100–2 with an expiration of until
further notice.
DATES: The effective date for the direct
final rule that published in the Federal
Register on March 4, 2010 (75 FR 9763)
is confirmed as June 20, 2010.
FOR FURTHER INFORMATION CONTACT: R.
Lance Nuckolls, AFS–810, General
Aviation and Commercial Division,
Flight Standards Service, Federal
Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; telephone (202)
267–8212.
For legal questions about this SFAR,
contact: Michael Chase, AGC–240,
Office of Chief Counsel, Regulations
Division, Federal Aviation
Administration, 800 Independence
Avenue, SW., Washington, DC 20591;
telephone (202) 267–3110; e-mail to
michael.chase@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
The FAA is replacing Special Federal
Aviation Regulation 100–1 (SFAR 100–
1), with SFAR 100–2 that continues to
allow Flight Standards District Offices
(FSDOs) to accept expired flight
E:\FR\FM\16APR1.SGM
16APR1
Agencies
[Federal Register Volume 75, Number 73 (Friday, April 16, 2010)]
[Rules and Regulations]
[Pages 19873-19877]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8736]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 75, No. 73 / Friday, April 16, 2010 / Rules
and Regulations
[[Page 19873]]
FEDERAL ELECTION COMMISSION
11 CFR Parts 8 and 111
[Notice 2010-10]
Collection of Administrative Debts; Collection of Debts Arising
From Enforcement and Administration of Campaign Finance Laws
AGENCY: Federal Election Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Election Commission (``Commission'') is
promulgating rules implementing statutory provisions regarding the
collection of debts owed to the United States Government. The
Commission is also integrating its rules regarding the collection of
debts arising solely from the Administrative Fines program into the new
rules.
DATES: This rule is effective on May 17, 2010.
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: The Commission is promulgating 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, 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 new regulations incorporate the provisions of the DCIA and the
FCCS, in some instances directly, and in other instances by cross-
reference.
The Commission published a Notice of Proposed Rulemaking in the
Federal Register on February 24, 2010. See Notice of Proposed
Rulemaking on Collection of Administrative Debts; Collection of Debts
Arising From Enforcement and Administration of Campaign Finance Laws,
75 FR 8274 (February 24, 2010) (the ``NPRM''). The comment period
closed on March 26, 2010. The Commission received one comment in
response to the proposed rules.\1\
---------------------------------------------------------------------------
\1\ This comment was from the Internal Revenue Service, stating
that the Internal Revenue Service did not find any conflict between
the Internal Revenue Code and Treasury regulations and the
Commission's proposed rules.
---------------------------------------------------------------------------
Under the Administrative Procedure Act, 5 U.S.C. 553(d), and the
Congressional Review of Agency Rulemaking Act, 5 U.S.C. 801(a)(1),
agencies must submit final rules to the Speaker of the House of
Representatives and the President of the Senate, and publish them in
the Federal Register at least thirty calendar days before they take
effect. The final rules that follow were transmitted to Congress on
April 12, 2010.
Explanation and Justification
I. 11 CFR Part 8--Collection of Administrative Debts
The Commission is adding 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 approach of separating the two general
categories of debt in the regulations at 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.
[[Page 19874]]
A. 11 CFR 8.1--Purpose and Scope
Section 8.1 of 11 CFR provides that the purpose of the regulations
is to apply the collection standards set out in the DCIA and the FCCS.
B. 11 CFR 8.2--Debts That Are Covered
Section 8.2 of 11 CFR 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 regulations in part 8 do 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 are
covered in new 11 CFR part 111 subpart C. Section 8.2 mirrors 11 CFR
111.51. The Commission's regulations also do 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. 11 CFR 8.3--Administrative Collection of Claims
Section 8.3 of 11 CFR states that the Commission will collect the
claims or debts covered by 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 stated
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 final rule states that the Commission will refer all
debts that are more than 180 days delinquent to the U.S. Department of
the Treasury, and may, at its discretion, transfer delinquent debts
prior to the end of the 180 day period. This clarifies that the
Commission need not complete the referral process to Treasury within
the 180 day period. Instead, the Commission is required to transfer
debts that are more than 180 days delinquent, and has the discretion to
transfer debts before they are 180 days delinquent. The 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 rules to attempt to
collect the debt.
D. 11 CFR 8.4--Bankruptcy Claims
Section 8.4 of 11 CFR recognizes that in cases where a debtor has
sought protection under the Bankruptcy Code, the Code, particularly 11
U.S.C. 553, may require the Commission to take different action from
that prescribed under the debt collection regulations set forth in part
8 and the FCCS. In these situations, bankruptcy law will govern the
debt collection process.
E. 11 CFR 8.5--Interest, Penalties, and Administrative Costs
Section 8.5 of 11 CFR 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 regulation also provides that the Commission may, at its
discretion, waive collection of interest, penalties, or administrative
costs on any debt, even debts that are not paid within thirty days
after the date on which interest begins to accrue. The 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).
II. Removal of 11 CFR 111.45
The Commission has removed the provision previously located at 11
CFR 111.45. This provision governed debt collection with respect to the
Administrative Fines program. Under the new regulations, these debts
are covered by 11 CFR part 111 subpart C--Collection of Debts Arising
from Enforcement and Administration of Campaign Finance Laws.
III. 11 CFR Part 111 Subpart C--Collection of Debts Arising From
Enforcement and Administration of Campaign Finance Laws
The regulations in 11 CFR part 111 subpart C 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 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. 11 CFR 111.50--Purpose and Scope
Section 111.50 of 11 CFR provides that the purpose of the
regulations is to apply the collection standards set out in the DCIA
and the FCCS. This provision treats debts under 11 CFR part 111 in a
similar manner to those owed by employees and vendors under 11 CFR 8.1,
discussed above.
B. 11 CFR 111.51--Debts That Are Covered
Section 111.51 of 11 CFR states that the new Commission regulations
in 11 CFR part 111 subpart C 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 regulations in 11 CFR part 111 subpart C do 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 are covered by new 11
CFR part 8. This new provision treats debts under 11 CFR part 111 in a
similar manner to those owed by employees and vendors under new 11 CFR
8.2, and the two provisions taken together are designed to cover all
types of debt that the Commission must collect. The Commission's
regulations also do 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
[[Page 19875]]
having an interest in the claim, and debts under the Internal Revenue
Code of 1986.
C. 11 CFR 111.52--Administrative Collection of Claims
Section 111.52 of 11 CFR states that the Commission will collect
all claims or debts in accordance with the FCCS, 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
provision treats the debts covered by new 11 CFR part 111 subpart C in
a similar manner to those owed by employees and vendors under new 11
CFR 8.3, discussed above. The proposed provision stated 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 final rule states that the Commission will refer all debts that are
more than 180 days delinquent to the U.S. Department of the Treasury,
and may, at its discretion, transfer delinquent debts prior to the end
of the 180 day period. This clarifies that the Commission need not
complete the referral process to Treasury within the 180 day period.
Instead, the Commission is required to transfer debts that are more
than 180 days delinquent, and has the discretion to transfer debts
before they are 180 days delinquent. The 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 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. 11 CFR 111.53--Litigation by the Commission
Section 111.53 of 11 CFR 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. 11 CFR 111.54--Bankruptcy Claims
Section 111.54 of 11 CFR recognizes that in cases where a debtor
has sought protection under the Bankruptcy Code, the Code, particularly
11 U.S.C. 362, may require the Commission to take different action from
that prescribed under the debt collection regulations set forth in part
111 and the FCCS. In this event, bankruptcy law will govern the debt
collection process. See 31 CFR 901.3(a)(5).
F. 11 CFR 111.55--Interest, Penalties, and Administrative Costs
Section 111.55 of 11 CFR 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 regulation also provides that the Commission may, at its
discretion, waive collection of interest, penalties, or administrative
costs on any debt, even debts that are not paid within thirty days
after the date on which interest begins to accrue. The 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
provision treats the debts covered by new 11 CFR part 111 subpart C in
a similar manner to those owed by employees and vendors under new 11
CFR 8.5, discussed above.
Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory
Flexibility Act)
The attached final rules do not have a significant economic impact
on a substantial number of small entities. There are two bases for this
certification. First, the attached final rules implement statutorily
required processes for collecting unpaid debts, and any economic impact
of these rules is caused by the statutory mandate, rather than agency
decisions contained in these rules. Second, the provisions in the new
rules relate to agency management and procedure and do not impose new
substantive or compliance requirements directly on members of the
public. If the provision regarding the imposition of interest,
penalties, and administrative costs could be viewed as imposing a new
requirement on the public, the regulation merely implements the
statutory requirement that the Commission assess these additional costs
and provides that the Commission can exercise its discretion to waive
the assessment of such costs in appropriate circumstances. Thus, any
incremental economic impact of this rule on small entities is not
significant. Therefore, the Commission certifies that the attached
final rules 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.
0
For the reasons set out in the preamble, the Federal Election
Commission is amending Chapter 1 of Title 11 of the Code of Federal
Regulations as follows:
0
1. Part 8 is added 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
[[Page 19876]]
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 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 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 900-904 also apply. The
Commission has adopted these regulations by cross-reference.
(c) The Commission will refer to the Dept. of Treasury all debt
that has been delinquent for more than 180 days, and may refer to the
Dept. of Treasury any debt that has been delinquent for 180 days or
less. 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
0
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]
0
3. Remove and reserve Sec. 111.45.
0
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.
Sec. 111.50 Purpose and scope.
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 900-904. 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;
[[Page 19877]]
(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 Payment Account Act, 26 U.S.C. 9031 et seq.
(c) 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 900-904, also apply. The
Commission has adopted these regulations by cross-reference.
(c) The Commission will refer to the Dept. of Treasury all debt
that has been delinquent for more than 180 days, and may refer to the
Dept. of Treasury any debt that has been delinquent for 180 days or
less. 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: April 12, 2010.
On behalf of the Commission.
Matthew S. Petersen,
Chairman, Federal Election Commission.
[FR Doc. 2010-8736 Filed 4-15-10; 8:45 am]
BILLING CODE 6715-01-P