Debt Collection Authorities Under the Debt Collection Improvement Act of 1996, 1318-1320 [2015-33044]

Download as PDF 1318 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Rules and Regulations tkelley on DSK3SPTVN1PROD with RULES thefts and losses to ATF both telephonically and by submitting Form 3310.11. Licensees must also report the theft or loss to the appropriate local authorities. Pursuant to 27 CFR 479.141 and according to the instructions on Form 3310.11, licensees reporting the theft or loss of registered NFA firearms must provide additional notification to ATF. As discussed in section I, no form exists for this purpose, and the person reporting typically submits a letter with the required information to the NFA Branch. As part of this rulemaking, Form 3310.11, approved under OMB control number 1140–0039, will capture the information required by 27 CFR 479.141. Therefore, under this final rule, a licensee will satisfy its obligation to provide the required notification to the NFA Branch by submitting Form 3310.11 to NTC, and NTC will notify the NFA Branch. Submitting Form 3310.11 will satisfy the requirements of both 27 CFR 478.39a and 27 CFR 479.141 with one notification. In addition, the instructions on Form 3310.11 state that a licensee must reflect the theft or loss of a firearm as a disposition entry in the A&D Record required by subpart H of part 478 (formerly 178). These instructions further state that the disposition entry should indicate whether the incident is a theft or loss and include the ATFIssued Incident Number and the Incident Number provided by the local law enforcement agency. Finally, the instructions state that if the firearms are located, they should be re-entered in the A&D Record as acquisition entries. The final rule adds both sets of these instructions to the regulatory text in 27 CFR 478.39a with modifications. See section V for full discussion of these revisions. The information collection required by 27 CFR 478.39a—i.e., the submission of Form 3310.11—has been approved by the Office of Management and Budget under control number 1140–0039. This final rule specifies that when a firearm is stolen or lost in transit, for reporting purposes, it is considered stolen or lost from the transferor’s/sender’s inventory. Drafting Information The author of this document is Denise Brown, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives. List of Subjects in 27 CFR Part 478 Administrative practice and procedure, Arms and munitions, Customs duties and inspection, Exports, Imports, Intergovernmental relations, VerDate Sep<11>2014 20:17 Jan 11, 2016 Jkt 238001 Law enforcement officers, Military personnel, Penalties, Reporting and recordkeeping requirements, Research, Seizures and forfeitures, Transportation. Authority and Issuance Accordingly, for the reasons discussed in the preamble, 27 CFR part 478 is amended as follows: PART 478—COMMERCE IN FIREARMS AND AMMUNITION 1. The authority citation for 27 CFR part 478 is revised to read as follows: ■ Authority: 5 U.S.C. 552(a); 18 U.S.C. 921– 931; 44 U.S.C. 3504(h). ■ 2. Revise § 478.39a to read as follows: § 478.39a firearms. Reporting theft or loss of (a)(1) Each licensee shall report the theft or loss of a firearm from the licensee’s inventory (including any firearm which has been transferred from the licensee’s inventory to a personal collection and held as a personal firearm for at least 1 year), or from the collection of a licensed collector, within 48 hours after the theft or loss is discovered. (2) When a firearm is stolen or lost in transit on a common or contract carrier (which for purposes of this paragraph includes the U.S. Postal Service), it is considered stolen or lost from the transferor/sender licensee’s inventory for reporting purposes. Therefore, the transferor/sender of the stolen or lost firearm shall report the theft or loss of the firearm within 48 hours after the transferor/sender discovers the theft or loss. (b) Each licensee shall report the theft or loss by telephoning ATF at 1–888– 930–9275 (nationwide toll-free number), and by preparing and submitting to ATF a Federal Firearms Licensee Theft/Loss Report, ATF Form 3310.11, in accordance with the instructions on the form. The original of the report shall be retained by the licensee as part of the licensee’s required records. (c) When a licensee submits to ATF a Federal Firearms Licensee Theft/Loss Report, ATF Form 3310.11, for the theft or loss of a firearm registered under the National Firearms Act, this report also satisfies the notification requirement under § 479.141 of this chapter. (d) Theft or loss of any firearm shall also be reported to the appropriate local authorities. If the location of the theft or loss is known, the local law enforcement agency at that location would be the appropriate local authority. Otherwise, the report should be made to the local law enforcement PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 authorities at the licensee’s location or business premises. (e) Licensees shall reflect the theft or loss of a firearm as a disposition entry in the Record of Acquisition and Disposition required by subpart H of this part not later than 7 days following discovery of the theft or loss. The disposition entry shall record whether the incident is a theft or loss, the ATFIssued Incident Number, and the Incident Number provided by the local law enforcement agency. (f) Licensees who report the theft or loss of a firearm and later discover its whereabouts shall advise ATF at 1–888– 930–9275 (nationwide toll-free number) that the firearm has been located, and shall re-enter the firearm in the Record of Acquisition and Disposition as an acquisition or disposition entry as appropriate. Dated: January 4, 2016. Loretta E. Lynch, Attorney General. [FR Doc. 2016–00112 Filed 1–11–16; 8:45 am] BILLING CODE 4410–FY–P DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 285 RIN 1530–AA12 Debt Collection Authorities Under the Debt Collection Improvement Act of 1996 Bureau of the Fiscal Service, Treasury. ACTION: Final rule. AGENCY: The Department of the Treasury, Bureau of the Fiscal Service, is amending its regulations concerning the offset of Federal benefit payments to collect past-due, legally enforceable nontax debt, centralized offset of Federal payments to collect nontax debts owed to the United States, salary offset, and transfer of debts to Treasury for collection. The amendment adjusts the time period in which Federal agencies must notify the Secretary of the Treasury of past due, nontax debt for the purposes of administrative offset. A statutory change, enacted as part of the Digital Accountability and Transparency Act of 2014, shortened the period of delinquency within which Federal agencies are required to notify the Secretary of past due, nontax debt from 180 days to 120 days. DATES: This rule is effective January 12, 2016. SUMMARY: E:\FR\FM\12JAR1.SGM 12JAR1 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Rules and Regulations Bureau of the Fiscal Service, 401 14th Street SW., Washington, DC 20227. SUPPLEMENTARY INFORMATION: ADDRESSES: tkelley on DSK3SPTVN1PROD with RULES I. Background Section 5 of the Digital Accountability and Transparency Act of 2014, Public Law 113–101, amended a provision of the Debt Collection Improvement Act of 1996, codified at 31 U.S.C. 3716(c)(6), to change the time by which Federal agencies must notify the Secretary of the Treasury of past due, nontax debts for the purposes of administrative offset. The amendment changes the notice requirement from 180 days delinquent to 120 days delinquent. The changes to this rule conform to the statutory language by removing references to 180 days in the sections relating to: Offset of Federal benefit payments to collect past-due, legally enforceable nontax debt; centralized offset of Federal payments to collect nontax debts owed to the United States; salary offset; and the transfer of debts to Treasury for collection. In each instance, ‘‘180 days’’ is replaced with ‘‘120 days.’’ In addition, the rule makes revisions to address agencies that transfer debts to Fiscal Service for debt collection services and on behalf of which Fiscal Service submits debt for administrative offset. Federal agencies that are owed debt must transfer any debt that is more than 180 days delinquent to Fiscal Service for debt collection services. Administrative offset is one of the collection tools used by Fiscal Service to collect debt. Therefore, agencies transferring debts to Fiscal Service for debt collection are able to satisfy the notification requirement for administrative offset and the requirement to transfer delinquent debts with a single referral. Because the notice requirement for administrative offset is now 120 days and not 180 days, agencies relying on Fiscal Service to submit debts for administrative offset on their behalf must transfer the debts no later than 120 days after they become delinquent in order to meet the notification requirement for administrative offset. Agencies that do not rely on Fiscal Service to submit their debts for administrative offset must still transfer their debts no later than 180 days after they become delinquent. II. Procedural Analyses Administrative Procedures Act This rule is being issued without prior public notice and comment because the changes to the rule are being made to conform to statutory requirements. VerDate Sep<11>2014 20:17 Jan 11, 2016 Jkt 238001 Under 5 U.S.C. 553(b) and (d)(3), good cause exists to determine that notice and comment rulemaking is unnecessary and contrary to the public interest. The amendments made by this rule merely mirror amendments already enacted into law. Further delay in making these amendments would create an inconsistency between the law and the regulations and would cause confusion. Regulatory Planning and Review The final rule does not meet the criteria for a ‘‘significant regulatory action’’ as defined in Executive Order 12866. Therefore, the regulatory review procedures contained therein do not apply. Regulatory Flexibility Act Analysis Because no notice of rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. et seq.) do not apply. List of Subjects in 31 CFR Part 285 Administrative practice and procedure, Child support, Child welfare, Claims, Credits, Debts, Disability benefits, Federal employees, Garnishment of wages, Hearing and appeal procedures, Loan programs, Privacy, Railroad retirement, Railroad unemployment insurance, Salaries, Social Security benefits, Supplemental Security Income (SSI), Taxes, Veterans’ benefits, Wages. For the reasons set forth in the preamble, we are amending 31 CFR part 285 as follows: PART 285—DEBT COLLECTION AUTHORITIES UNDER THE DEBT COLLECTION IMPROVEMENT ACT OF 1996 1. The authority citation for part 285 continues to read as follows: ■ Authority: 5 U.S.C. 5514; 26 U.S.C. 6402; 31 U.S.C. 321, 3701, 3711, 3716, 3719, 3720A, 3720B, 3720D; 42 U.S.C. 664; E.O. 13019, 61 FR 51763, 3 CFR, 1996 Comp., p. 216. § 285.4 [Amended] 2. In § 285.4, in paragraph (d), remove ‘‘180’’ and add in its place ‘‘120’’ each place it appears. ■ § 285.5 [Amended] 3. In § 285.5, in paragraphs (d)(1) and (2) and two occurences in paragraph (d)(3)(iv), remove ‘‘180’’ and add in its place ‘‘120’’. ■ PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 § 285.7 1319 [Amended] 4. In § 285.7, in paragraph (d)(1), remove ‘‘180’’ and add in its place ‘‘120’’. ■ 5. In § 285.12, revise paragraphs (c)(1), (c)(3)(i), and (g) to read as follows: ■ § 285.12 Governing transfer of debts to Treasury for collection. * * * * * (c) * * * (1) Except as set forth in paragraph (d) of this section, a creditor agency shall transfer any debt that is more than 180 days delinquent to Fiscal Service for debt collection services. Agencies that transfer delinquent debts to Fiscal Service for the purposes of debt collection and that rely on Fiscal Service to submit the transferred debts for administrative offset on the agency’s behalf must transfer the debts to Fiscal Service no later than 120 days after the debts become delinquent in order to satisfy the 120-day notice requirement for purposes of administrative offset. For accounting and reporting purposes, the debt remains on the books and records of the agency which transferred the debt. * * * * * (3)(i) A debt is considered delinquent for purposes of this section if it is past due and is legally enforceable. A debt is past-due if it has not been paid by the date specified in the agency’s initial written demand for payment or applicable agreement or instrument (including a post-delinquency payment agreement) unless other satisfactory payment arrangements have been made. A debt is legally enforceable if there has been a final agency determination that the debt, in the amount stated, is due and there are no legal bars to collection action. Where, for example, a debt is the subject of a pending administrative review process required by statute or regulation and collection action during the review process is prohibited, the debt is not considered legally enforceable for purposes of mandatory transfer to Fiscal Service and is not to be transferred even if the debt is more than 180 days past-due. * * * * * (g) Administrative offset. As described in paragraph (c) of this section, under the DCIA, agencies are required to transfer all debts over 180 days delinquent to Fiscal Service for purposes of debt collection (i.e., crossservicing). Agencies are also required, under the DCIA, to notify the Secretary of all debts over 120 days delinquent for purposes of administrative offset. Administrative offset is one type of collection tool used by Fiscal Service E:\FR\FM\12JAR1.SGM 12JAR1 1320 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Rules and Regulations and Treasury-designated debt collection centers to collect debts transferred under this section. Thus, by transferring debt to Fiscal Service or to a Treasurydesignated debt collection center under this section, Federal agencies will satisfy the requirement to notify the Secretary of debts for purposes of administrative offset and duplicate referrals are not required. Agencies relying on Fiscal Service to submit debts for administrative offset on the agency’s behalf must transfer the debts to Fiscal Service no later than 120 days after the debts become delinquent in order to satisfy the 120-day notice requirement for purposes of administrative offset. A debt which is not transferred to Fiscal Service for purposes of debt collection, however, such as a debt which falls within one of the exempt categories listed in paragraph (d) of this section, nevertheless may be subject to the DCIA requirement of notification to the Secretary for purposes of administrative offset. * * * * * David A. Lebryk, Fiscal Assistant Secretary. [FR Doc. 2015–33044 Filed 1–11–16; 8:45 am] BILLING CODE P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R04–OAR–2015–0247; FRL–9940–87– Region 4] Approval and Promulgation of Implementation Plans; Mississippi; Memphis, TN–MS–AR Emissions Statements for the 2008 8-Hour Ozone Standard Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is taking final action to approve the state implementation plan (SIP) revision submitted by the State of Mississippi, through the Mississippi Department of Environmental Quality (MDEQ) on August 28, 2015, to address the emissions statement requirements for the State’s portion of the Memphis, Tennessee-Mississippi-Arkansas (Memphis, TN–MS–AR) 2008 8-hour ozone national ambient air quality standards (NAAQS) nonattainment area (hereafter referred to as the ‘‘Memphis, TN–MS–AR Area’’ or ‘‘Area’’). Annual emissions reporting (i.e., emission statements) is required for all ozone nonattainment areas. The Area is tkelley on DSK3SPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 20:17 Jan 11, 2016 Jkt 238001 comprised of Shelby County in Tennessee, Crittenden County in Arkansas, and a portion of DeSoto County in Mississippi. In this action, EPA is taking final action to approve the emissions statement requirements for DeSoto County in Mississippi portion of the Area. DATES: This final rule is effective February 11, 2016. ADDRESSES: EPA has established a docket for this action under Docket Identification No. EPA–R04–OAR– 2015–0247. All documents in the docket are listed on the www.regulations.gov Web site. Although listed in the index, some information is not publicly available, i.e., Confidential Business Information or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through www.regulations.gov or in hard copy at the Air Regulatory Management Section, Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303–8960. EPA requests that if at all possible, you contact the person listed in the FOR FURTHER INFORMATION CONTACT section to schedule your inspection. The Regional Office’s official hours of business are Monday through Friday 8:30 a.m. to 4:30 p.m., excluding Federal holidays. FOR FURTHER INFORMATION CONTACT: Tiereny Bell, Air Regulatory Management Section, Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303–8960. Ms. Bell can be reached at (404) 562–9088 and via electronic mail at bell.tiereny@ epa.gov. SUPPLEMENTARY INFORMATION: I. Background On August 28, 2015, MDEQ submitted a SIP revision to EPA that seeks to add 11 Mississippi Administrative Code (MAC), Part 2, Chapter 11, ‘‘Regulations for Ambient Air Quality NonAttainment Areas,’’ 1 into the 1 These regulations conform to the new nomenclature for Mississippi’s state regulations pursuant to the State’s recently amended Administrative Procedures Act. Mississippi has not provided EPA with a SIP revision to renumber the state regulations currently incorporated into the SIP. PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 Mississippi SIP to meet the emissions statements requirement of CAA section 182(a)(3)(B).2 This chapter of the MAC contains Rule 11.1—General, which states the purpose of the regulation; Rule 11.2—Definitions, which defines Commission, Department, NAAQS, Nonattainment Area, and Emissions Statement; and Rule—11.3 Emissions Statement, which: (1) Applies to all stationary sources of NOX [nitrogen oxides] or VOCs [volatile organic compounds] which have the potential to emit 25 tons or more of either pollutant per calendar year and are located in areas designated as nonattainment for the 2008 ozone NAAQS; (2) requires owners and operators of those stationary sources of NOX and VOC to provide a statement showing the actual emissions of NOX and VOCs from that source; and (3) requires that emissions statements be submitted to MDEQ by July 1 of every year, showing actual emissions of the previous calendar year and containing a certification that the information contained in the statement is accurate to the best knowledge of the individual certifying the statement. EPA has determined that these regulations meet all of the requirements of the Clean Air Act (CAA or Act) section 182(a)(3)(B) for the Mississippi portion of the Area because they cover the portion of DeSoto County within the Area and satisfy the applicability, certification, and other emissions statements criteria contained therein. In a notice of proposed rulemaking published on August 10, 2015, EPA proposed to approve Mississippi’s June 1, 2015, draft SIP revision submitted for parallel processing that sought to add new Rules 11.1, 11.2, and 11.3 from Title 11 of the Mississippi Administrative Code, Part 2, Chapter 11 into the SIP. See 80 FR 47883. The details of Mississippi’s submittal and the rationale for EPA’s actions are explained in the Proposed Rule. Comments on the proposed rulemaking were due on or before September 9, 2015. No adverse comments were received. On August 28, 2015, Mississippi submitted a final SIP revision that did not contain any substantive changes from the draft version submitted on June 1, 2015. EPA is now taking final action to approve the 2 Section 182(a)(3)(B) of the CAA requires each state with ozone nonattainment areas to submit a SIP revision requiring annual emissions statements to be submitted to the state by the owner or operator of each NOX or VOC stationary source located within a nonattainment area showing the actual emissions of NOX and VOC from that source. The first statement is due three years from the area’s nonattainment designation, and subsequent statements are due at least annually thereafter. E:\FR\FM\12JAR1.SGM 12JAR1

Agencies

[Federal Register Volume 81, Number 7 (Tuesday, January 12, 2016)]
[Rules and Regulations]
[Pages 1318-1320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-33044]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 285

RIN 1530-AA12


Debt Collection Authorities Under the Debt Collection Improvement 
Act of 1996

AGENCY: Bureau of the Fiscal Service, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of the Treasury, Bureau of the Fiscal Service, 
is amending its regulations concerning the offset of Federal benefit 
payments to collect past-due, legally enforceable nontax debt, 
centralized offset of Federal payments to collect nontax debts owed to 
the United States, salary offset, and transfer of debts to Treasury for 
collection. The amendment adjusts the time period in which Federal 
agencies must notify the Secretary of the Treasury of past due, nontax 
debt for the purposes of administrative offset. A statutory change, 
enacted as part of the Digital Accountability and Transparency Act of 
2014, shortened the period of delinquency within which Federal agencies 
are required to notify the Secretary of past due, nontax debt from 180 
days to 120 days.

DATES: This rule is effective January 12, 2016.

[[Page 1319]]


ADDRESSES: Bureau of the Fiscal Service, 401 14th Street SW., 
Washington, DC 20227.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 5 of the Digital Accountability and Transparency Act of 
2014, Public Law 113-101, amended a provision of the Debt Collection 
Improvement Act of 1996, codified at 31 U.S.C. 3716(c)(6), to change 
the time by which Federal agencies must notify the Secretary of the 
Treasury of past due, nontax debts for the purposes of administrative 
offset. The amendment changes the notice requirement from 180 days 
delinquent to 120 days delinquent.
    The changes to this rule conform to the statutory language by 
removing references to 180 days in the sections relating to: Offset of 
Federal benefit payments to collect past-due, legally enforceable 
nontax debt; centralized offset of Federal payments to collect nontax 
debts owed to the United States; salary offset; and the transfer of 
debts to Treasury for collection. In each instance, ``180 days'' is 
replaced with ``120 days.'' In addition, the rule makes revisions to 
address agencies that transfer debts to Fiscal Service for debt 
collection services and on behalf of which Fiscal Service submits debt 
for administrative offset. Federal agencies that are owed debt must 
transfer any debt that is more than 180 days delinquent to Fiscal 
Service for debt collection services. Administrative offset is one of 
the collection tools used by Fiscal Service to collect debt. Therefore, 
agencies transferring debts to Fiscal Service for debt collection are 
able to satisfy the notification requirement for administrative offset 
and the requirement to transfer delinquent debts with a single 
referral. Because the notice requirement for administrative offset is 
now 120 days and not 180 days, agencies relying on Fiscal Service to 
submit debts for administrative offset on their behalf must transfer 
the debts no later than 120 days after they become delinquent in order 
to meet the notification requirement for administrative offset. 
Agencies that do not rely on Fiscal Service to submit their debts for 
administrative offset must still transfer their debts no later than 180 
days after they become delinquent.

II. Procedural Analyses

Administrative Procedures Act

    This rule is being issued without prior public notice and comment 
because the changes to the rule are being made to conform to statutory 
requirements. Under 5 U.S.C. 553(b) and (d)(3), good cause exists to 
determine that notice and comment rulemaking is unnecessary and 
contrary to the public interest. The amendments made by this rule 
merely mirror amendments already enacted into law. Further delay in 
making these amendments would create an inconsistency between the law 
and the regulations and would cause confusion.

Regulatory Planning and Review

    The final rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866. Therefore, the 
regulatory review procedures contained therein do not apply.

Regulatory Flexibility Act Analysis

    Because no notice of rulemaking is required, the provisions of the 
Regulatory Flexibility Act (5 U.S.C. et seq.) do not apply.

List of Subjects in 31 CFR Part 285

    Administrative practice and procedure, Child support, Child 
welfare, Claims, Credits, Debts, Disability benefits, Federal 
employees, Garnishment of wages, Hearing and appeal procedures, Loan 
programs, Privacy, Railroad retirement, Railroad unemployment 
insurance, Salaries, Social Security benefits, Supplemental Security 
Income (SSI), Taxes, Veterans' benefits, Wages.

    For the reasons set forth in the preamble, we are amending 31 CFR 
part 285 as follows:

PART 285--DEBT COLLECTION AUTHORITIES UNDER THE DEBT COLLECTION 
IMPROVEMENT ACT OF 1996

0
1. The authority citation for part 285 continues to read as follows:

    Authority:  5 U.S.C. 5514; 26 U.S.C. 6402; 31 U.S.C. 321, 3701, 
3711, 3716, 3719, 3720A, 3720B, 3720D; 42 U.S.C. 664; E.O. 13019, 61 
FR 51763, 3 CFR, 1996 Comp., p. 216.

Sec.  285.4  [Amended]

0
2. In Sec.  285.4, in paragraph (d), remove ``180'' and add in its 
place ``120'' each place it appears.


Sec.  285.5  [Amended]

0
3. In Sec.  285.5, in paragraphs (d)(1) and (2) and two occurences in 
paragraph (d)(3)(iv), remove ``180'' and add in its place ``120''.


Sec.  285.7  [Amended]

0
4. In Sec.  285.7, in paragraph (d)(1), remove ``180'' and add in its 
place ``120''.

0
5. In Sec.  285.12, revise paragraphs (c)(1), (c)(3)(i), and (g) to 
read as follows:


Sec.  285.12  Governing transfer of debts to Treasury for collection.

* * * * *
    (c) * * *
    (1) Except as set forth in paragraph (d) of this section, a 
creditor agency shall transfer any debt that is more than 180 days 
delinquent to Fiscal Service for debt collection services. Agencies 
that transfer delinquent debts to Fiscal Service for the purposes of 
debt collection and that rely on Fiscal Service to submit the 
transferred debts for administrative offset on the agency's behalf must 
transfer the debts to Fiscal Service no later than 120 days after the 
debts become delinquent in order to satisfy the 120-day notice 
requirement for purposes of administrative offset. For accounting and 
reporting purposes, the debt remains on the books and records of the 
agency which transferred the debt.
* * * * *
    (3)(i) A debt is considered delinquent for purposes of this section 
if it is past due and is legally enforceable. A debt is past-due if it 
has not been paid by the date specified in the agency's initial written 
demand for payment or applicable agreement or instrument (including a 
post-delinquency payment agreement) unless other satisfactory payment 
arrangements have been made. A debt is legally enforceable if there has 
been a final agency determination that the debt, in the amount stated, 
is due and there are no legal bars to collection action. Where, for 
example, a debt is the subject of a pending administrative review 
process required by statute or regulation and collection action during 
the review process is prohibited, the debt is not considered legally 
enforceable for purposes of mandatory transfer to Fiscal Service and is 
not to be transferred even if the debt is more than 180 days past-due.
* * * * *
    (g) Administrative offset. As described in paragraph (c) of this 
section, under the DCIA, agencies are required to transfer all debts 
over 180 days delinquent to Fiscal Service for purposes of debt 
collection (i.e., cross-servicing). Agencies are also required, under 
the DCIA, to notify the Secretary of all debts over 120 days delinquent 
for purposes of administrative offset. Administrative offset is one 
type of collection tool used by Fiscal Service

[[Page 1320]]

and Treasury-designated debt collection centers to collect debts 
transferred under this section. Thus, by transferring debt to Fiscal 
Service or to a Treasury-designated debt collection center under this 
section, Federal agencies will satisfy the requirement to notify the 
Secretary of debts for purposes of administrative offset and duplicate 
referrals are not required. Agencies relying on Fiscal Service to 
submit debts for administrative offset on the agency's behalf must 
transfer the debts to Fiscal Service no later than 120 days after the 
debts become delinquent in order to satisfy the 120-day notice 
requirement for purposes of administrative offset. A debt which is not 
transferred to Fiscal Service for purposes of debt collection, however, 
such as a debt which falls within one of the exempt categories listed 
in paragraph (d) of this section, nevertheless may be subject to the 
DCIA requirement of notification to the Secretary for purposes of 
administrative offset.
* * * * *

David A. Lebryk,
Fiscal Assistant Secretary.
[FR Doc. 2015-33044 Filed 1-11-16; 8:45 am]
BILLING CODE P