Commerce Debt Collection, 12810-12820 [2016-05341]
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Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Rules and Regulations
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA, call
202–741–6030, or go to: https://
www.archives.gov/federal-register/cfr/ibrlocations.html.
FOR FURTHER INFORMATION CONTACT:
Issued in Renton, Washington, on February
8, 2016.
Michael Kaszycki,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
History
[FR Doc. 2016–04564 Filed 3–10–16; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2015–7489; Airspace
Docket No. 15–ASW–20]
Amendment of Class D and E
Airspace; Enid Vance AFB, OK; Enid
Woodring Municipal Airport, Enid, OK;
and Enid, OK
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; delay of effective
date, correction.
AGENCY:
This action changes the
effective date of a final rule published
in the Federal Register of February 19,
2016, amending Class E surface area
airspace, Class E airspace designated as
an extension, and Class E airspace
extending upward from 700 feet above
the surface, in the Enid, OK, area to
allow additional time for charting. This
correction adds the part-time Notice to
Airmen (NOTAM) language
inadvertently removed from the Class E
surface area description for Vance AFB,
and Woodring Municipal Airport, Enid,
OK. Adjustment of the geographic
coordinates are also made to the Vance
VHF Omnidirectional Range Tactical
Air Navigation (VORTAC) listed in the
Class E airspace area designated as an
extension to the Class D surface area.
DATES: This correction is effective 0901
UTC, July 21, 2016, and the effective
date of the rule amending 14 CFR part
71 published on February 19, 2016 (81
FR 8389), is delayed to 0901 UTC July
21, 2016.
The Director of the Federal Register
approves this incorporation by reference
action under Title 1, Code of Federal
Regulations, part 51, subject to the
annual revision of FAA Order 7400.9
and publication of conforming
amendments.
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SUMMARY:
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Jeffrey Claypool, Federal Aviation
Administration, Operations Support
Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX,
76177; telephone (817) 222–5711.
SUPPLEMENTARY INFORMATION:
The Federal Register published a
final rule amending Class E surface area
airspace, Class E airspace designated as
an extension, and Class E airspace
extending upward from 700 feet above
the surface, at Vance AFB, Enid, OK;
and Woodring Municipal Airport, Enid,
OK (81 FR 8389, February 19, 2016)
Docket No. FAA–2015–7489.
Subsequent to publication, the FAA
determined that the part-time NOTAM
language in the Class E surface area
description was inadvertently removed
in error. Potential safety concerns were
identified due to the possibility for
confusion in determining the operating
rules and equipment requirements in
the Vance AFB and Woodring
Municipal Airport terminal areas. The
concerns were based on the opportunity
for part-time Class D surface area
airspace and continuous Class E surface
area airspace to be active at the same
time.
To resolve these concerns, the FAA is
keeping the part-time NOTAM language
in the Class E surface area description
to retain it as part-time airspace
supplementing the existing part-time
Class D surface area airspace at Vance
AFB and Woodring Municipal Airport.
The regulatory text is rewritten for
clarity. A minor adjustment is also made
to the geographic coordinates of the
Vance VORTAC listed in Class E
airspace area designated as an extension
to Class D. These are administrative
corrections and do not affect the
controlled airspace boundaries or
operating requirements supporting
operations in the Vance AFB and
Woodring Municipal Airport terminal
areas.
Correction to Final Rule
Accordingly, pursuant to the
authority delegated to me, in the
Federal Register of February 19, 2016
(81 FR 8389) FR Doc. 2016–03365,
Amendment of Class D and E Airspace;
Enid Vance AFB, Ok; Enid Woodring
Municipal Airport, Enid, OK; and Enid,
OK, is corrected as follows:
§ 71.1
[Amended]
ASW OK E2
Enid, OK [Corrected]
On page 8390, column 3, beginning on
line 42, remove the following text:
■
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‘‘Within a 5.1-mile radius of Vance
AFB, and within a 4.1-mile radius of
Woodring Municipal Airport.’’, and add
in its place:
‘‘Within a 5.1-mile radius of Vance
AFB, and within a 4.1-mile radius of
Woodring Municipal Airport. This Class
E airspace area is effective during the
specific dates and times established in
advance by a Notice to Airmen. The
effective date and time will thereafter be
continuously published in the Airport/
Facility Directory.’’
ASW OK E4 Enid Vance AFB, OK
[Corrected]
■ On page 8390, column 3, line 54,
remove ‘‘(lat. 36°20′42″ N., long.
97°55′07″ W.)’’ and add in its place
‘‘(lat. 36°20′42″ N., long. 97°55′06″ W.)’’
Issued in Fort Worth, Texas, on March 1,
2016.
Vonnie Royal
Acting Manager, Operations Support Group,
ATO Central Service Center.
[FR Doc. 2016–05395 Filed 3–10–16; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Office of the Secretary
15 CFR Part 19
[Docket No. 150902806–5806–01]
RIN 0605–AA40
Commerce Debt Collection
Office of the Chief Financial
Officer and Assistant Secretary for
Administration, Department of
Commerce.
ACTION: Final rule.
AGENCY:
The Department of Commerce
(Commerce Department) hereby revises
its debt collection regulations as a result
of, and to conform to, an amendment
made by the Digital Accountability and
Transparency Act of 2014 (DATA Act).
Specifically, the law, as amended by the
DATA Act, requires Commerce
Department to refer to the Secretary of
the Treasury all past due, legally
enforceable nontax debt that are over
120 days delinquent, including nontax
debt administered by a third party
acting as an agent for the Federal
Government, for purposes of
administrative offset. These revised debt
collection regulations also provide
updated references to the Bureau of the
Fiscal Service as the agency within the
Department of the Treasury to which
Commerce Department refers delinquent
debts to reflect a reorganization made by
the Department of the Treasury.
SUMMARY:
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Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Rules and Regulations
DATES:
This rule is effective April 11,
2016.
FOR FURTHER INFORMATION CONTACT:
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Gordon T. Alston, Acting Deputy Chief
Financial Officer and Director for
Financial Management, Office of
Financial Management, at (202) 482–
1207, Department of Commerce, 1401
Constitution Avenue NW., Room D200,
Washington, DC 20230. The Commerce
Department debt collection regulations
are available for downloading from
Commerce Department, Office of
Financial Management’s Web site at the
following address: https://
www.osec.doc.gov/ofm/OFM_
Publications.html.
SUPPLEMENTARY INFORMATION:
Background
This final rule revises and replaces
Commerce Department debt collection
regulations found at 15 CFR part 19 to
conform to the Debt Collection
Improvement Act of 1996 (DCIA), Public
Law 104–134, 110 Stat. 1321, 1358 (Apr.
26, 1996), the revised Federal Claims
Collection Standards, 31 CFR Chapter
IX Parts 900 through 904, and other
laws applicable to the collection of nontax debt owed to the Government.
Commerce Department made revisions
to 15 CFR part 19 to merely update
Commerce Department regulations on
debt collection to conform with an
amendment to 31 U.S.C. 3716(c)(6)
made by Section 5 of the DATA Act.
That amendment requires that
Commerce Department refer to the
Secretary of the Treasury all past due,
legally enforceable nontax debt that are
over 120 days delinquent, including
nontax debt administered by a third
party acting as an agent for the Federal
Government, for purposes of
administrative offset. Accordingly, the
regulations at 15 CFR part 19 are being
updated to reflect current law. Agency
debts which are more than 120 days
delinquent and have not been timely
referred to the Department of the
Treasury shall be reported to the
Congress by the Secretary of the
Treasury. These revised debt collection
regulations also provide updated
references to the Bureau of the Fiscal
Service as the agency within the
Department of Treasury to which
Commerce Department refers delinquent
debts to reflect a reorganization made by
the Department of the Treasury.
These regulations provide procedures
for the collection of non-tax debts owed
to Commerce Department entities.
Commerce Department adopts the
government-wide debt collection
standards promulgated by the
Departments of the Treasury and Justice,
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known as the Federal Claims Collection
Standards (FCCS), as revised on
November 22, 2000 (31 CFR Chapter IX
parts 900–904), and supplements FCCS
by prescribing procedures consistent
with FCCS, as necessary and
appropriate for Commerce Department
operations. These regulations also
provide the procedures for the
collection of debts owed to other
Federal agencies when a request for
offset is received by Commerce
Department.
These regulations do not contain a
section regarding the delegation of debt
collection authority within Commerce
Department. The delegation is contained
in the Commerce Department Credit and
Debt Management Operating Standards
and Procedures Handbook, available at
https://www.osec.doc.gov/ofm/credit/
cover.html, and does not need to be
included in the regulations.
Nothing in these regulations
precludes the use of collection remedies
not contained in these regulations. For
example, Commerce Department entities
may collect unused travel advances
through offset of an employee’s pay
under 5 U.S.C. 5705. Commerce
Department entities and other Federal
agencies may simultaneously use
multiple collection remedies to collect a
debt, except as prohibited by law.
Commerce Department entities may,
but are not required to, promulgate
additional policies and procedures
consistent with these regulations, FCCS,
and other applicable Federal laws,
policies, and procedures, subject to the
approval of the Deputy Chief Financial
Officer and Director for Financial
Management.
Classification
These revisions to Commerce
Department debt collection regulations
at 15 CFR part 19 relate only to agency
procedure and practice and do not affect
any public right, interest, or remedy
otherwise available. This action makes
no substantive changes and does not
change or impose additional
requirements that necessitate
adjustments by entities subject to the
debt collection regulations. Instead, it
merely updates delinquent debt day
count figures and a Department of the
Treasury bureau title in the existing
regulations to bring the regulations into
line with the DATA Act’s debt referral
requirements and the current
Department of the Treasury bureau title,
over which Commerce Department has
no discretion. To the extent that this
rule updates these regulations to reflect
the changes to the Department of the
Treasury’s organization, it will help
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reduce confusion regarding the correct
entity to contact.
Accordingly, notice and comment are
not required for this rule, pursuant to
Section 553(b)(A) of the Administrative
Procedure Act (5 U.S.C. 551, et seq.).
Paperwork Reduction Act
The provisions of the Paperwork
Reduction Act of 1995, Public Law 104–
13, 44 U.S.C. Chapter 35, and its
implementing regulations, 5 CFR part
1320, do not apply to this rule because
there are no new or revised
recordkeeping or reporting
requirements.
Regulatory Analysis
E.O. 12866 and 13563, Regulatory
Review
This rule is not a significant
regulatory action as defined in
Executive Orders 12866 and 13563.
Regulatory Flexibility Act
Because notice of proposed
rulemaking and opportunity for
comment are not required pursuant to 5
U.S.C. 553, or any other law, the
analytical requirements of the
Regulatory Flexibility act (5 U.S.C. 601,
et seq.) are inapplicable. Therefore, a
regulatory flexibility analysis is not
required and has not been prepared.
List of Subjects in 15 CFR Part 19
Administrative practice and
procedure, Claims, Debts, Garnishment
of wages, Federal Government
employee, Hearing and appeal
procedures, Pay administration,
Salaries, Wages.
Dated: March 4, 2016.
Gordon T. Alston,
Acting Deputy Chief Financial Officer and
Director for Financial Management,
Department of Commerce.
Authority and Issuance
For the reasons stated in the
preamble, Commerce Department
revises 15 CFR part 19 to read as
follows:
PART 19—COMMERCE DEBT
COLLECTION
Subpart A—General Provisions
Sec.
19.1
What definitions apply to the
regulations in this part?
19.2 Why did the Commerce Department
issue these regulations and what do they
cover?
19.3 Do these regulations adopt the Federal
Claims Collection Standards (FCCS)?
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Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Rules and Regulations
Subpart B—Procedures to Collect
Commerce Debts
Subpart A—General Provisions
19.4
§ 19.1 What definitions apply to the
regulations in this part?
What notice will Commerce entities
send to a debtor when collecting a
Commerce debt?
19.5 How will Commerce entities add
interest, penalty charges, and
administrative costs to a Commerce
debt?
19.6 When will Commerce entities allow a
debtor to pay a Commerce debt in
installments instead of one lump sum?
19.7 When will Commerce entities
compromise a Commerce debt?
19.8 When will Commerce entities suspend
or terminate debt collection on a
Commerce debt?
19.9 When will Commerce entities transfer
a Commerce debt to the Treasury
Department’s Bureau of the Fiscal
Service for collection?
19.10 How will Commerce entities use
administrative offset (offset of non-tax
Federal payments) to collect a Commerce
debt?
19.11 How will Commerce entities use tax
refund offset to collect a Commerce debt?
19.12 How will Commerce entities offset a
Federal employee’s salary to collect a
Commerce debt?
19.13 How will Commerce entities use
administrative wage garnishment to
collect a Commerce debt from a debtor’s
wages?
19.14 How will Commerce entities report
Commerce debts to credit bureaus?
19.15 How will Commerce entities refer
Commerce debts to private collection
agencies?
19.16 When will Commerce entities refer
Commerce debts to the Department of
Justice?
19.17 Will a debtor who owes a Commerce
or other Federal agency debt, and
persons controlled by or controlling such
debtors, be ineligible for Federal loan
assistance, grants, cooperative
agreements, or other sources of Federal
funds or for Federal licenses, permits, or
privileges?
19.18 How does a debtor request a special
review based on a change in
circumstances such as catastrophic
illness, divorce, death, or disability?
19.19 Will Commerce entities issue a
refund if money is erroneously collected
on a Commerce debt?
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Subpart C—Procedures for Offset of
Commerce Department Payments To
Collect Debts Owed to Other Federal
Agencies
19.20 How do other Federal agencies use
the offset process to collect debts from
payments issued by a Commerce entity?
19.21 What does a Commerce entity do
upon receipt of a request to offset the
salary of a Commerce entity employee to
collect a debt owed by the employee to
another Federal agency?
Authority: 31 U.S.C. 3701, et seq.
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As used in this part:
Administrative offset or offset means
withholding funds payable by the
United States (including funds payable
by the United States on behalf of a state
government) to, or held by the United
States for, a person to satisfy a debt
owed by the person. The term
‘‘administrative offset’’ can include, but
is not limited to, the offset of Federal
salary, vendor, retirement, and Social
Security benefit payments. The terms
‘‘centralized administrative offset’’ and
‘‘centralized offset’’ refer to the process
by which the Treasury Department’s
Bureau of the Fiscal Service offsets
Federal payments through the Treasury
Offset Program.
Administrative wage garnishment
means the process by which a Federal
agency orders a non-Federal employer
to withhold amounts from a debtor’s
wages to satisfy a debt, as authorized by
31 U.S.C. 3720D, 31 CFR 285.11, and
this part.
Agency or Federal agency means a
department, agency, court, court
administrative office, or instrumentality
in the executive, judicial, or legislative
branch of the Federal Government,
including government corporations.
Bureau of the Fiscal Service means
the Bureau of the Fiscal Service, a
bureau of the Treasury Department,
which is responsible for the centralized
collection of delinquent debts through
the offset of Federal payments and other
means.
Commerce debt means a debt owed to
a Commerce entity by a person.
Commerce Department means the
United States Department of Commerce.
Commerce entity means a component
of the Commerce Department, including
offices or bureaus. Commerce offices
currently include the Office of the
Secretary of Commerce, and the Office
of Inspector General. Commerce bureaus
currently include the Bureau of Industry
and Security, the Economics and
Statistics Administration (including the
Bureau of Economic Analysis, and the
Bureau of the Census), the Economic
Development Administration, the
International Trade Administration, the
Minority Business Development
Agency, the National Oceanic and
Atmospheric Administration, the
National Telecommunications and
Information Administration, the U.S.
Patent and Trademark Office, and the
Technology Administration (including
the National Institute of Standards and
Technology, and the National Technical
Information Service).
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Creditor agency means any Federal
agency that is owed a debt.
Day means calendar day except when
express reference is made to business
day, which reference shall mean
Monday through Friday. For purposes of
time computation, the last day of the
period provided will be included in the
calculation unless that day is a
Saturday, a Sunday, or a Federal legal
holiday; in which case, the next
business day will be included.
Debt means any amount of money,
funds or property that has been
determined by an appropriate official of
the Federal Government to be owed to
the United States by a person. As used
in this part, the term ‘‘debt’’ can include
a Commerce debt but does not include
debts arising under the Internal Revenue
Code of 1986 (26 U.S.C. 1 et seq.).
Debtor means a person who owes a
debt to the United States.
Delinquent debt means a debt that has
not been paid by the date specified in
the agency’s initial written demand for
payment or applicable agreement or
instrument (including a postdelinquency payment agreement) unless
other satisfactory payment arrangements
have been made.
Delinquent Commerce debt means a
delinquent debt owed to a Commerce
entity.
Disposable pay has the same meaning
as that term is defined in 5 CFR
550.1103.
Employee or Federal employee means
a current employee of the Commerce
Department or other Federal agency,
including a current member of the
uniformed services, including the Army,
Navy, Air Force, Marine Corps, Coast
Guard, Commissioned Corps of the
National Oceanic and Atmospheric
Administration, and Commissioned
Corps of the Public Health Service,
including the National Guard and the
reserve forces of the uniformed services.
FCCS means the Federal Claims
Collection Standards, which were
jointly published by the Departments of
the Treasury and Justice and codified at
31 CFR parts 900–904.
Payment agency or Federal payment
agency means any Federal agency that
transmits payment requests in the form
of certified payment vouchers, or other
similar forms, to a disbursing official for
disbursement. The payment agency may
be the agency that employs the debtor.
In some cases, the Commerce
Department may be both the creditor
agency and payment agency.
Person means an individual,
corporation, partnership, association,
organization, State or local government
or any other type of entity other than a
Federal agency.
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Salary offset means a type of
administrative offset to collect a debt
under 5 CFR part 5514 by deductions(s)
at one or more officially established pay
intervals from the current pay account
of an employee without his or her
consent.
Secretary means the Secretary of
Commerce.
Tax refund offset is defined in 31 CFR
285.2(a).
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§ 19.2 Why did the Commerce Department
issue these regulations and what do they
cover?
(a) Scope. This part provides
procedures for the collection of
Commerce Department debts. This part
also provides procedures for collection
of other debts owed to the United States
when a request for offset of a payment
for which Commerce Department is the
payment agency is received by
Commerce Department from another
agency (for example, when a Commerce
Department employee owes a debt to the
United States Department of Education).
(b) Applicability. (1) This part applies
to Commerce Department when
collecting a Commerce Department debt,
to persons who owe Commerce
Department debts, to persons controlled
by or controlling persons who owe
Federal agency debts, and to Federal
agencies requesting offset of a payment
issued by Commerce Department as a
payment agency (including salary
payments to Commerce Department
employees).
(2) This part does not apply to tax
debts nor to any debt for which there is
an indication of fraud or
misrepresentation, as described in
section 900.3 of the FCCS, unless the
debt is returned by the Department of
Justice to Commerce Department for
handling.
(3) Nothing in this part precludes
collection or disposition of any debt
under statutes and regulations other
than those described in this part. See,
for example, 5 U.S.C. 5705,
Advancements and Deductions, which
authorizes Commerce entities to recover
travel advances by offset of up to 100
percent of a Federal employee’s accrued
pay. See, also, 5 U.S.C. 4108, governing
the collection of training expenses. To
the extent that the provisions of laws,
other regulations, and Commerce
Department enforcement policies differ
from the provisions of this part, those
provisions of law, other regulations, and
Commerce Department enforcement
policies apply to the remission or
mitigation of fines, penalties, and
forfeitures, and to debts arising under
the tariff laws of the United States,
rather than the provisions of this part.
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(c) Additional policies and
procedures. Commerce entities may, but
are not required to, promulgate
additional policies and procedures
consistent with this part, the FCCS, and
other applicable Federal law, policies,
and procedures, subject to the approval
of Deputy Chief Financial Officer.
(d) Duplication not required. Nothing
in this part requires a Commerce entity
to duplicate notices or administrative
proceedings required by contract, this
part, or other laws or regulations,
including but not limited to those
required by financial assistance awards
such as grants, cooperative agreements,
loans or loan guarantees.
(e) Use of multiple collection
remedies allowed. Commerce entities
and other Federal agencies may
simultaneously use multiple collection
remedies to collect a debt, except as
prohibited by law. This part is intended
to promote aggressive debt collection,
using for each debt all available and
appropriate collection remedies. These
remedies are not listed in any
prescribed order to provide Commerce
entities with flexibility in determining
which remedies will be most efficient in
collecting the particular debt.
§ 19.3 Do these regulations adopt the
Federal Claims Collection Standards
(FCCS)?
This part adopts and incorporates all
provisions of the FCCS (31 CFR Chapter
IX parts 900–904). This part also
supplements the FCCS by prescribing
procedures consistent with the FCCS, as
necessary and appropriate for
Commerce Department operations.
Subpart B—Procedures To Collect
Commerce Debts
§ 19.4 What notice will Commerce entities
send to a debtor when collecting a
Commerce debt?
(a) Notice requirements. Commerce
entities shall aggressively collect
Commerce debts. Commerce entities
shall promptly send at least one written
notice to a debtor informing the debtor
of the consequences of failing to pay or
otherwise resolve a Commerce debt. The
notice(s) shall be sent to the debtor at
the most current address of the debtor
in the records of the Commerce entity
collecting the Commerce debt.
Generally, before starting the collection
actions described in §§ 19.5 and 19.9
through 19.17 of this part, Commerce
entities will send no more than two
written notices to the debtor. The
notice(s) explain why the Commerce
debt is owed, the amount of the
Commerce debt, how a debtor may pay
the Commerce debt or make alternate
repayment arrangements, how a debtor
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may review non-privileged documents
related to the Commerce debt, how a
debtor may dispute the Commerce debt,
the collection remedies available to
Commerce entities if the debtor refuses
or otherwise fails to pay the Commerce
debt, and other consequences to the
debtor if the Commerce debt is not paid.
Except as otherwise provided in
paragraph (b) of this section, the written
notice(s) shall explain to the debtor:
(1) The nature and amount of the
Commerce debt, and the facts giving rise
to the Commerce debt;
(2) How interest, penalties, and
administrative costs are added to the
Commerce debt, the date by which
payment should be made to avoid such
charges, and that such assessments must
be made unless excused in accordance
with 31 CFR 901.9 (see § 19.5 of this
part);
(3) The date by which payment
should be made to avoid the enforced
collection actions described in
paragraph (a)(6) of this section;
(4) The Commerce entity’s willingness
to discuss alternative payment
arrangements and how the debtor may
enter into a written agreement to repay
the Commerce debt under terms
acceptable to the Commerce entity (see
§ 19.6 of this part);
(5) The name, address, and telephone
number of a contact person or office
within the Commerce entity;
(6) The Commerce entity’s intention
to enforce collection by taking one or
more of the following actions if the
debtor fails to pay or otherwise resolve
the Commerce debt:
(i) Offset. Offset the debtor’s Federal
payments, including income tax
refunds, salary, certain benefit payments
(such as Social Security), retirement,
vendor, travel reimbursements and
advances, and other Federal payments
(see §§ 19.10 through 19.12 of this part);
(ii) Private collection agency. Refer
the Commerce debt to a private
collection agency (see § 19.15 of this
part);
(iii) Credit bureau reporting. Report
the Commerce debt to a credit bureau
(see § 19.14 of this part);
(iv) Administrative wage garnishment.
Garnish the individual debtor’s wages
through administrative wage
garnishment (see § 19.13 of this part);
(v) Litigation. Refer the Commerce
debt to the Department of Justice to
initiate litigation to collect the
Commerce debt (see § 19.16 of this part);
(vi) Treasury Department’s Bureau of
the Fiscal Service. Refer the Commerce
debt to the Bureau of the Fiscal Service
for collection (see § 19.9 of this part);
(7) That Commerce debts over 120
days delinquent must be referred to the
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Bureau of the Fiscal Service for the
collection actions described in
paragraph (a)(6) of this section (see
§ 19.9 of this part);
(8) How the debtor may inspect and
copy non-privileged records related to
the Commerce debt;
(9) How the debtor may request a
review of the Commerce entity’s
determination that the debtor owes a
Commerce debt and present evidence
that the Commerce debt is not
delinquent or legally enforceable (see
§§ 19.10(c) and 19.11(c) of this part);
(10) How a debtor who is an
individual may request a hearing if the
Commerce entity intends to garnish the
debtor’s private sector (i.e., non-Federal)
wages (see § 1 9.13(a) of this part),
including:
(i) The method and time period for
requesting a hearing;
(ii) That a request for a hearing, timely
filed on or before the 15th business day
following the date of the mailing of the
notice, will stay the commencement of
administrative wage garnishment, but
not other collection procedures; and
(iii) The name and address of the
office to which the request for a hearing
should be sent.
(11) How a debtor who is an
individual and a Federal employee
subject to Federal salary offset may
request a hearing (see § 19.12(e) of this
part), including:
(i) The method and time period for
requesting a hearing;
(ii) That a request for a hearing, timely
filed on or before the 15th day following
receipt of the notice, will stay the
commencement of salary offset, but not
other collection procedures;
(iii) The name and address of the
office to which the request for a hearing
should be sent;
(iv) That the Commerce entity will
refer the Commerce debt to the debtor’s
employing agency or to the Bureau of
the Fiscal Service to implement salary
offset, unless the employee files a timely
request for a hearing;
(v) That a final decision on the
hearing, if requested, will be issued at
the earliest practical date, but not later
than 60 days after the filing of the
request for a hearing, unless the
employee requests and the hearing
official grants a delay in the
proceedings;
(vi) That any knowingly false or
frivolous statements, representations, or
evidence may subject the Federal
employee to penalties under the False
Claims Act (31 U.S.C. 3729–3731) or
other applicable statutory authority, and
criminal penalties under 18 U.S.C. 286,
287, 1001, and 1002, or other applicable
statutory authority;
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(vii) That unless prohibited by
contract or statute, amounts paid on or
deducted for the Commerce debt which
are later waived or found not owed to
the United States will be promptly
refunded to the employee; and
(viii) That proceedings with respect to
such Commerce debt are governed by 5
U.S.C. 5514 and 31 U.S.C. 3716.
(12) How the debtor may request a
waiver of the Commerce debt, if
applicable. See, for example, §§ 19.5
and 19.12(f) of this part.
(13) How the debtor’s spouse may
claim his or her share of a joint income
tax refund by filing Form 8379 with the
Internal Revenue Service (see https://
www.irs.gov);
(14) How the debtor may exercise
other rights and remedies, if any,
available to the debtor under
programmatic statutory or regulatory
authority under which the Commerce
debt arose.
(15) That certain debtors and, if
applicable, persons controlled by or
controlling such debtors, may be
ineligible for Federal Government loans,
guaranties and insurance, grants,
cooperative agreements or other sources
of Federal funds (see 28 U.S.C. 3201(e);
31 U.S.C. 3720B, 31 CFR 285.13, and
§ 19.17(a) of this part);
(16) If applicable, the Commerce
entity’s intention to deny, suspend or
revoke licenses, permits or privileges
(see § 19.17(b) of this part); and
(17) That the debtor should advise the
Commerce entity of a bankruptcy
proceeding of the debtor or another
person liable for the Commerce debt
being collected.
(b) Exceptions to notice requirements.
A Commerce entity may omit from a
notice to a debtor one or more of the
provisions contained in paragraphs
(a)(6) through (17) of this section if the
Commerce entity, in consultation with
its legal counsel, determines that any
provision is not legally required given
the collection remedies to be applied to
a particular Commerce debt.
(c) Respond to debtors; comply with
FCCS. Commerce entities should
respond promptly to communications
from debtors and comply with other
FCCS provisions applicable to the
administrative collection of debts. See
31 CFR part 901.
§ 19.5 How will Commerce entities add
interest, penalty charges, and
administrative costs to a Commerce debt?
(a) Assessment and notice. Commerce
entities shall assess interest, penalties
and administrative costs on Commerce
debts in accordance with the provisions
of 31 U.S.C. 3717 and 31 CFR 901.9.
Interest shall be charged in accordance
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with the requirements of 31 U.S.C.
3717(a). Penalties shall accrue at a rate
of not more than 6% per year or such
other higher rate as authorized by law.
Administrative costs, that is, the costs of
processing and handling a delinquent
debt, shall be determined by the
Commerce entity collecting the debt, as
directed by the Office of the Deputy
Chief Financial Officer. Commerce
entities may have additional policies
regarding how interest, penalties, and
administrative costs are assessed on
particular types of debts, subject to the
approval of the Deputy Chief Financial
Officer. Commerce entities are required
to explain in the notice to the debtor
described in § 19.4 of this part how
interest, penalties, costs, and other
charges are assessed, unless the
requirements are included in a contract
or other legally binding agreement.
(b) Waiver of interest, penalties, and
administrative costs. Unless otherwise
required by law or contract, Commerce
entities may not charge interest if the
amount due on the Commerce debt is
paid within 30 days after the date from
which the interest accrues. See 31
U.S.C. 3717(d). Commerce entities may,
with legal counsel approval, waive
interest, penalties, and administrative
costs, or any portion thereof, when it
would be against equity and good
conscience or not in the United States’
best interest to collect such charges, in
accordance with Commerce guidelines
for such waivers. (See Commerce
Department Credit and Debt
Management Operating Standards and
Procedures Handbook, available at
https://www.osec.doc.gov/ofm/credit/
cover.html.)
(c) Accrual during suspension of debt
collection. In most cases, interest,
penalties and administrative costs will
continue to accrue during any period
when collection has been suspended for
any reason (for example, when the
debtor has requested a hearing).
Commerce entities may suspend accrual
of any or all of these charges when
accrual would be against equity and
good conscience or not in the United
States’ best interest, in accordance with
Commerce guidelines for such waivers.
(See Commerce Department Credit and
Debt Management Operating Standards
and Procedures Handbook, available at
https://www.osec.doc.gov/ofm/
credit.cover.html.)
§ 19.6 When will Commerce entities allow
a debtor to pay a Commerce debt in
installments instead of one lump sum?
If a debtor is financially unable to pay
the Commerce debt in one lump sum, a
Commerce entity may accept payment
of a Commerce debt in regular
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installments, in accordance with the
provisions of 31 CFR 901.8 and the
Commerce entity’s policies and
procedures.
§ 19.7 When will Commerce entities
compromise a Commerce debt?
If a Commerce entity cannot collect
the full amount of a Commerce debt, the
Commerce entity may, with legal
counsel approval, compromise the
Commerce debt in accordance with the
provisions of 31 CFR part 902 and the
Commerce entity’s policies and
procedures. (See Commerce Department
Credit and Debt Management Operating
Standards and Procedures Handbook,
available at https://www.osec.doc.gov/
ofm/credit.cover.html.)
§ 19.8 When will Commerce entities
suspend or terminate debt collection on a
Commerce debt?
If, after pursuing all appropriate
means of collection, a Commerce entity
determines that a Commerce debt is
uncollectible, the Commerce entity may,
with legal counsel approval, suspend or
terminate debt collection activity in
accordance with the provisions of 31
CFR part 903 and the Commerce entity’s
policies and procedures. Termination of
debt collection activity by a Commerce
entity does not discharge the
indebtedness. (See Commerce
Department Credit and Debt
Management Operating Standards and
Procedures Handbook, available at
https://www.osec.doc.gov/ofm/credit/
cover.html.)
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§ 19.9 When will Commerce entities
transfer a Commerce debt to the Treasury
Department’s Bureau of the Fiscal Service
for collection?
(a) Commerce entities will transfer
any Commerce debt that is more than
120 days delinquent to the Bureau of the
Fiscal Service for debt collection
services, a process known as ‘‘crossservicing.’’ See 31 U.S.C. 3711(g), 31
CFR 285.12, and 31 U.S.C. 3716(c)(6).
Commerce entities may transfer
Commerce debts delinquent 120 days or
less to the Bureau of the Fiscal Service
in accordance with the procedures
described in 31 CFR 285.12. The Bureau
of the Fiscal Service takes appropriate
action to collect or compromise the
transferred Commerce debt, or to
suspend or terminate collection action
thereon, in accordance with the
statutory and regulatory requirements
and authorities applicable to the
Commerce debt and the collection
action to be taken. See 31 CFR 285.12(b)
and 285.12(c)(2). Appropriate action can
include, but is not limited to, contact
with the debtor, referral of the
Commerce debt to the Treasury Offset
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Program, private collection agencies or
the Department of Justice, reporting of
the Commerce debt to credit bureaus,
and administrative wage garnishment.
(b) At least sixty (60) days prior to
transferring a Commerce debt to the
Bureau of the Fiscal Service, Commerce
entities will send notice to the debtor as
required by § 19.4 of this part.
Commerce entities will certify to the
Bureau of the Fiscal Service, in writing,
that the Commerce debt is valid,
delinquent, legally enforceable, and that
there are no legal bars to collection. In
addition, Commerce entities will certify
their compliance with all applicable due
process and other requirements as
described in this part and other Federal
laws. See 31 CFR 285.12(i) regarding the
certification requirement.
(c) As part of its debt collection
process, the Bureau of the Fiscal Service
uses the Treasury Offset Program to
collect Commerce debts by
administrative and tax refund offset. See
31 CFR 285.12(g). The Treasury Offset
Program is a centralized offset program
administered by the Bureau of the Fiscal
Service to collect delinquent debts owed
to Federal agencies and states (including
past-due child support). Under the
Treasury Offset Program, before a
Federal payment is disbursed, the
Bureau of the Fiscal Service compares
the name and taxpayer identification
number (TIN) of the payee with the
names and TINs of debtors that have
been submitted by Federal agencies and
states to the Treasury Offset Program
database. If there is a match, the Bureau
of the Fiscal Service (or, in some cases,
another Federal disbursing agency)
offsets all or a portion of the Federal
payment, disburses any remaining
payment to the payee, and pays the
offset amount to the creditor agency.
Federal payments eligible for offset
include, but are not limited to, income
tax refunds, salary, travel advances and
reimbursements, retirement and vendor
payments, and Social Security and other
benefit payments.
§ 19.10 How will Commerce entities use
administrative offset (offset of non-tax
Federal payments) to collect a Commerce
debt?
(a) Centralized administrative offset
through the Treasury Offset Program. (1)
In most cases, the Bureau of the Fiscal
Service uses the Treasury Offset
Program to collect Commerce debts by
the offset of Federal payments. See
§ 19.9(c) of this part. If not already
transferred to the Bureau of the Fiscal
Service under § 19.9 of this part,
Commerce entities will refer Commerce
debt over 120 days delinquent to the
Treasury Offset Program for collection
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by centralized administrative offset. See
31 U.S.C. 3716(c)(6); 31 CFR part 285,
subpart A; and 31 CFR 901.3(b).
Commerce entities may refer to the
Treasury Offset Program for offset any
Commerce debt that has been
delinquent for 120 days or less.
(2) At least sixty (60) days prior to
referring a Commerce debt to the
Treasury Offset Program, in accordance
with paragraph (a)(1) of this section,
Commerce entities will send notice to
the debtor in accordance with the
requirements of § 19.4 of this part.
Commerce entities will certify to the
Bureau of the Fiscal Service, in writing,
that the Commerce debt is valid,
delinquent, legally enforceable, and that
there are no legal bars to collection by
offset. In addition, Commerce entities
will certify their compliance with the
requirements described in this part.
(b) Non-centralized administrative
offset for Commerce debts. (1) When
centralized administrative offset
through the Treasury Offset Program is
not available or appropriate, Commerce
entities may collect past-due, legally
enforceable Commerce debts through
non-centralized administrative offset.
See 31 CFR 901.3(c). In these cases,
Commerce entities may offset a payment
internally or make an offset request
directly to a Federal payment agency. If
the Federal payment agency is another
Commerce entity, the Commerce entity
making the request shall do so through
the Deputy Chief Financial Officer as
described in § 19.20(c) of this part.
(2) At least thirty (30) days prior to
offsetting a payment internally or
requesting a Federal payment agency to
offset a payment, Commerce entities
will send notice to the debtor in
accordance with the requirements of
§ 19.4 of this part. When referring a
Commerce debt for offset under this
paragraph (b), Commerce entities
making the request will certify, in
writing, that the Commerce debt is
valid, delinquent, legally enforceable,
and that there are no legal bars to
collection by offset. In addition,
Commerce entities will certify their
compliance with these regulations
concerning administrative offset. See 31
CFR 901.3(c)(2)(ii).
(c) Administrative review. The notice
described in § 19.4 of this part shall
explain to the debtor how to request an
administrative review of a Commerce
entity’s determination that the debtor
owes a Commerce debt and how to
present evidence that the Commerce
debt is not delinquent or legally
enforceable. In addition to challenging
the existence and amount of the
Commerce debt, the debtor may seek a
review of the terms of repayment. In
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most cases, Commerce entities will
provide the debtor with a ‘‘paper
hearing’’ based upon a review of the
written record, including
documentation provided by the debtor.
Commerce entities shall provide the
debtor with a reasonable opportunity for
an oral hearing when the debtor
requests reconsideration of the
Commerce debt and the Commerce
entity determines that the question of
the indebtedness cannot be resolved by
review of the documentary evidence, for
example, when the validity of the
Commerce debt turns on an issue of
credibility or veracity. Unless otherwise
required by law, an oral hearing under
this section is not required to be a
formal evidentiary hearing, although
Commerce entities should carefully
document all significant matters
discussed at the hearing. Commerce
entities may suspend collection through
administrative offset and/or other
collection actions pending the
resolution of a debtor’s dispute.
(d) Procedures for expedited offset.
Under the circumstances described in
31 CFR 901.3(b)(4)(iii), Commerce
entities may, with legal counsel
approval, effect an offset against a
payment to be made to the debtor prior
to sending a notice to the debtor, as
described in § 19.4 of this part, or
completing the procedures described in
paragraph (b)(2) and (c) of this section.
Commerce entities shall give the debtor
notice and an opportunity for review as
soon as practicable and promptly refund
any money ultimately found not to have
been owed to the Government. (See
Commerce Department Credit and Debt
Management Operating Standards and
Procedures Handbook, available at
https://www.osec.doc.gov/ofm/
credit.cover.html.)
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§ 19.11 How will Commerce entities use
tax refund offset to collect a Commerce
debt?
(a) Tax refund offset. In most cases,
the Bureau of the Fiscal Service uses the
Treasury Offset Program to collect
Commerce debts by the offset of tax
refunds and other Federal payments.
See § 19.9(c) of this part. If not already
transferred to the Bureau of the Fiscal
Service under § 19.9 of this part,
Commerce entities will refer to the
Treasury Offset Program any past-due,
legally enforceable Commerce debt for
collection by tax refund offset. See 26
U.S.C. 6402(d), 31 U.S.C. 3720A and 31
CFR 285.2.
(b) Notice. At least sixty (60) days
prior to referring a Commerce debt to
the Treasury Offset Program, Commerce
entities will send notice to the debtor in
accordance with the requirements of
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§ 19.4 of this part. Commerce entities
will certify to the Bureau of the Fiscal
Service’s Treasury Offset Program, in
writing, that the Commerce debt is past
due and legally enforceable in the
amount submitted and that the
Commerce entities have made
reasonable efforts to obtain payment of
the Commerce debt as described in 31
CFR 285.2(d). In addition, Commerce
entities will certify their compliance
with all applicable due process and
other requirements described in this
part and other Federal laws. See 31
U.S.C. 3720A(b) and 31 CFR 285.2.
(c) Administrative review. The notice
described in § 19.4 of this part shall
provide the debtor with at least 60 days
prior to the initiation of tax refund offset
to request an administrative review as
described in § 19.10(c) of this part.
Commerce entities may suspend
collection through tax refund offset
and/or other collection actions pending
the resolution of the debtor’s dispute.
§ 19.12 How will Commerce entities offset
a Federal employee’s salary to collect a
Commerce debt?
(a) Federal salary offset. (1) Salary
offset is used to collect debts owed to
the United States by Commerce
Department and other Federal
employees. If a Federal employee owes
a Commerce debt, Commerce entities
may offset the employee’s Federal salary
to collect the Commerce debt in the
manner described in this section. For
information on how a Federal agency
other than a Commerce entity may
collect debt from the salary of a
Commerce Department employee, see
§§ 19.20 and 19.21, subpart C, of this
part.
(2) Nothing in this part requires a
Commerce entity to collect a Commerce
debt in accordance with the provisions
of this section if Federal law allows
otherwise. See, for example, 5 U.S.C.
5705 (travel advances not used for
allowable travel expenses are
recoverable from the employee or his
estate by setoff against accrued pay and
other means) and 5 U.S.C. 4108
(recovery of training expenses).
(3) Commerce entities may use the
administrative wage garnishment
procedure described in § 19.13 of this
part to collect a Commerce debt from an
individual’s non-Federal wages.
(b) Centralized salary offset through
the Treasury Offset Program. As
described in § 19.9(a) of this part,
Commerce entities will refer Commerce
debts to the Bureau of the Fiscal Service
for collection by administrative offset,
including salary offset, through the
Treasury Offset Program. When
possible, Commerce entities should
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attempt salary offset through the
Treasury Offset Program before applying
the procedures in paragraph (c) of this
section. See 5 CFR 550.1108 and
550.1109.
(c) Non-centralized salary offset for
Commerce debts. When centralized
salary offset through the Treasury Offset
Program is not available or appropriate,
Commerce entities may collect
delinquent Commerce debts through
non-centralized salary offset. See 5 CFR
550.1109. In these cases, Commerce
entities may offset a payment internally
or make a request directly to a Federal
payment agency to offset a salary
payment to collect a delinquent
Commerce debt owed by a Federal
employee. If the Federal payment
agency is another Commerce entity, the
Commerce entity making the request
shall do so through the Deputy Chief
Financial Officer as described in
§ 19.20(c) of this part. At least thirty (30)
days prior to offsetting internally or
requesting a Federal agency to offset a
salary payment, Commerce entities will
send notice to the debtor in accordance
with the requirements of § 19.4 of this
part. When referring a Commerce debt
for offset, Commerce entities will certify
to the payment agency, in writing, that
the Commerce debt is valid, delinquent
and legally enforceable in the amount
stated, and there are no legal bars to
collection by salary offset. In addition,
Commerce entities will certify that all
due process and other prerequisites to
salary offset have been met. See 5 U.S.C.
5514, 31 U.S.C. 3716(a), and this section
for a description of the due process and
other prerequisites for salary offset.
(d) When prior notice not required.
Commerce entities are not required to
provide prior notice to an employee
when the following adjustments are
made by a Commerce entity to a
Commerce employee’s pay:
(1) Any adjustment to pay arising out
of any employee’s election of coverage
or a change in coverage under a Federal
benefits program requiring periodic
deductions from pay, if the amount to
be recovered was accumulated over four
pay periods or less;
(2) A routine intra-agency adjustment
of pay that is made to correct an
overpayment of pay attributable to
clerical or administrative errors or
delays in processing pay documents, if
the overpayment occurred within the
four pay periods preceding the
adjustment, and, at the time of such
adjustment, or as soon thereafter as
practical, the individual is provided
written notice of the nature and the
amount of the adjustment and point of
contact for contesting such adjustment;
or
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(3) Any adjustment to collect a
Commerce debt amounting to $50 or
less, if, at the time of such adjustment,
or as soon thereafter as practical, the
individual is provided written notice of
the nature and the amount of the
adjustment and a point of contact for
contesting such adjustment.
(e) Hearing procedures. (1) Request
for a hearing. A Federal employee who
has received a notice that his or her
Commerce debt will be collected by
means of salary offset may request a
hearing concerning the existence or
amount of the Commerce debt. The
Federal employee also may request a
hearing concerning the amount
proposed to be deducted from the
employee’s pay each pay period. The
employee must send any request for
hearing, in writing, to the office
designated in the notice described in
§ 19.4. See § 19.4(a)(11). The request
must be received by the designated
office on or before the 15th day
following the employee’s receipt of the
notice. The employee must sign the
request and specify whether an oral or
paper hearing is requested. If an oral
hearing is requested, the employee must
explain why the matter cannot be
resolved by review of the documentary
evidence alone. All travel expenses
incurred by the Federal employee in
connection with an in-person hearing
will be borne by the employee. See 31
CFR 901.3(a)(7).
(2) Failure to submit timely request for
hearing. If the employee fails to submit
a request for hearing within the time
period described in paragraph (e)(1) of
this section, the employee will have
waived the right to a hearing, and salary
offset may be initiated. However,
Commerce entities should accept a late
request for hearing if the employee can
show that the late request was the result
of circumstances beyond the employee’s
control or because of a failure to receive
actual notice of the filing deadline.
(3) Hearing official. Commerce
entities must obtain the services of a
hearing official who is not under the
supervision or control of the Secretary.
Commerce entities may contact the
Deputy Chief Financial Officer as
described in § 19.20(c) of this part or an
agent of any Commerce agency
designated in Appendix A to 5 CFR part
581 (List of Agents Designated to Accept
Legal Process) to request a hearing
official.
(4) Notice of hearing. After the
employee requests a hearing, the
designated hearing official shall inform
the employee of the form of the hearing
to be provided. For oral hearings, the
notice shall set forth the date, time and
location of the hearing. For paper
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hearings, the notice shall notify the
employee of the date by which he or she
should submit written arguments to the
designated hearing official. The hearing
official shall give the employee
reasonable time to submit
documentation in support of the
employee’s position. The hearing
official shall schedule a new hearing
date if requested by both parties. The
hearing official shall give both parties
reasonable notice of the time and place
of a rescheduled hearing.
(5) Oral hearing. The hearing official
will conduct an oral hearing if he or she
determines that the matter cannot be
resolved by review of documentary
evidence alone (for example, when an
issue of credibility or veracity is
involved). The hearing need not take the
form of an evidentiary hearing, but may
be conducted in a manner determined
by the hearing official, including but not
limited to:
(i) Informal conferences with the
hearing official, in which the employee
and agency representative will be given
full opportunity to present evidence,
witnesses and argument;
(ii) Informal meetings with an
interview of the employee by the
hearing official; or
(iii) Formal written submissions, with
an opportunity for oral presentation.
(6) Paper hearing. If the hearing
official determines that an oral hearing
is not necessary, he or she will make the
determination based upon a review of
the available written record, including
any documentation submitted by the
employee in support of his or her
position. See 31 CFR 901.3(a)(7).
(7) Failure to appear or submit
documentary evidence. In the absence of
good cause shown (for example,
excused illness), if the employee fails to
appear at an oral hearing or fails to
submit documentary evidence as
required for a paper hearing, the
employee will have waived the right to
a hearing, and salary offset may be
initiated. Further, the employee will
have been deemed to admit the
existence and amount of the Commerce
debt as described in the notice of intent
to offset. If the Commerce entity
representative fails to appear at an oral
hearing, the hearing official shall
proceed with the hearing as scheduled,
and make his or her determination
based upon the oral testimony presented
and the documentary evidence
submitted by both parties.
(8) Burden of proof. Commerce
entities will have the initial burden to
prove the existence and amount of the
Commerce debt. Thereafter, if the
employee disputes the existence or
amount of the Commerce debt, the
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employee must prove by a
preponderance of the evidence that no
such Commerce debt exists or that the
amount of the Commerce debt is
incorrect. In addition, the employee
may present evidence that the proposed
terms of the repayment schedule are
unlawful, would cause a financial
hardship to the employee, or that
collection of the Commerce debt may
not be pursued due to operation of law.
(9) Record. The hearing official shall
maintain a summary record of any
hearing provided by this part. Witnesses
will testify under oath or affirmation in
oral hearings. See 31 CFR 901.3(a)(7).
(10) Date of decision. The hearing
official shall issue a written opinion
stating his or her decision, based upon
documentary evidence and information
developed at the hearing, as soon as
practicable after the hearing, but not
later than 60 days after the date on
which the request for hearing was
received by the Commerce entity. If the
employee requests a delay in the
proceedings, the deadline for the
decision may be postponed by the
number of days by which the hearing
was postponed. When a decision is not
timely rendered, the Commerce entity
shall waive interest and penalties
applied to the Commerce debt for the
period beginning with the date the
decision is due and ending on the date
the decision is issued.
(11) Content of decision. The written
decision shall include:
(i) A statement of the facts presented
to support the origin, nature, and
amount of the Commerce debt;
(ii) The hearing official’s findings,
analysis, and conclusions; and
(iii) The terms of any repayment
schedules, if applicable.
(12) Final agency action. The hearing
official’s decision shall be final.
(f) Waiver not precluded. Nothing in
this part precludes an employee from
requesting waiver of an overpayment
under 5 U.S.C. 5584 or 8346(b), 10
U.S.C. 2774, 32 U.S.C. 716, or other
statutory authority. Commerce entities
may grant such waivers when it would
be against equity and good conscience
or not in the United States’ best interest
to collect such Commerce debts, in
accordance with those authorities, 5
CFR 550.1102(b)(2), and Commerce
policies and procedures. (See Commerce
Department Credit and Debt
Management Operating Standards and
Procedures Handbook, available at
https://www.osec.doc.gov/ofm/credit/
cover.html.)
(g) Salary offset process—(1)
Determination of disposable pay. The
Deputy Chief Financial Officer will
consult with the appropriate Commerce
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entity payroll office to determine the
amount of a Commerce Department
employee’s disposable pay (as defined
in § 19.1 of this part) and will
implement salary offset when requested
to do so by a Commerce entity, as
described in paragraph (c) of this
section, or another agency, as described
in § 19.20 of this part. If the debtor is
not employed by Commerce
Department, the agency employing the
debtor will determine the amount of the
employee’s disposable pay and will
implement salary offset upon request.
(2) When salary offset begins.
Deductions shall begin within three
official pay periods following receipt of
the creditor agency’s request for offset.
(3) Amount of salary offset. The
amount to be offset from each salary
payment will be up to 15 percent of a
debtor’s disposable pay, as follows:
(i) If the amount of the Commerce
debt is equal to or less than 15 percent
of the disposable pay, such Commerce
debt generally will be collected in one
lump sum payment;
(ii) Installment deductions will be
made over a period of no greater than
the anticipated period of employment.
An installment deduction will not
exceed 15 percent of the disposable pay
from which the deduction is made
unless the employee has agreed in
writing to the deduction of a greater
amount or the creditor agency has
determined that smaller deductions are
appropriate based on the employee’s
ability to pay.
(4) Final salary payment. After the
employee has separated either
voluntarily or involuntarily from the
payment agency, the payment agency
may make a lump sum deduction
exceeding 15 percent of disposable pay
from any final salary or other payments
pursuant to 31 U.S.C. 3716 in order to
satisfy a Commerce debt.
(h) Payment agency’s responsibilities.
(1) As required by 5 CFR 550.1109, if
the employee separates from the
payment agency from which a
Commerce entity has requested salary
offset, the payment agency must certify
the total amount of its collection and
notify the Commerce entity and the
employee of the amounts collected. If
the payment agency is aware that the
employee is entitled to payments from
the Civil Service Retirement Fund and
Disability Fund, the Federal Employee
Retirement System, or other similar
payments, it must provide written
notification to the payment agency
responsible for making such payments
that the debtor owes a Commerce debt,
the amount of the Commerce debt, and
that the Commerce entity has complied
with the provisions of this section.
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Commerce entities must submit a
properly certified claim to the new
payment agency before the collection
can be made.
(2) If the employee is already
separated from employment and all
payments due from his or her former
payment agency have been made,
Commerce entities may request that
money due and payable to the employee
from the Civil Service Retirement Fund
and Disability Fund, the Federal
Employee Retirement System, or other
similar funds, be administratively offset
to collect the Commerce debt. Generally,
Commerce entities will collect such
monies through the Treasury Offset
Program as described in § 19.9(c) of this
part.
(3) When an employee transfers to
another agency, Commerce entities
should resume collection with the
employee’s new payment agency in
order to continue salary offset.
§ 19.13 How will Commerce entities use
administrative wage garnishment to collect
a Commerce debt from a debtor’s wages?
(a) Commerce entities are authorized
to collect Commerce debts from an
individual debtor’s wages by means of
administrative wage garnishment in
accordance with the requirements of 31
U.S.C. 3720D and 31 CFR 285.11. This
part adopts and incorporates all of the
provisions of 31 CFR 285.11 concerning
administrative wage garnishment,
including the hearing procedures
described in 31 CFR 285.11(f).
Commerce entities may use
administrative wage garnishment to
collect a delinquent Commerce debt
unless the debtor is making timely
payments under an agreement to pay the
Commerce debt in installments (see
§ 19.6 of this part). At least thirty (30)
days prior to initiating an administrative
wage garnishment, Commerce entities
will send notice to the debtor in
accordance with the requirements of
§ 19.4 of this part, including the
requirements of § 19.4(a)(10) of this part.
For Commerce debts referred to the
Bureau of the Fiscal Service under
§ 19.9 of this part, Commerce entities
may authorize the Bureau of the Fiscal
Service to send a notice informing the
debtor that administrative wage
garnishment will be initiated and how
the debtor may request a hearing as
described in § 19.4(a)(10) of this part. If
a debtor makes a timely request for a
hearing, administrative wage
garnishment will not begin until a
hearing is held and a decision is sent to
the debtor. See 31 CFR 285.11(f)(4).
Even if a debtor’s hearing request is not
timely, Commerce entities may suspend
collection by administrative wage
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garnishment in accordance with the
provisions of 31 CFR 285.11(f)(5). All
travel expenses incurred by the debtor
in connection with an in-person hearing
will be borne by the debtor.
(b) This section does not apply to
Federal salary offset, the process by
which Commerce entities collect
Commerce debts from the salaries of
Federal employees (see § 19.12 of this
part).
§ 19.14 How will Commerce entities report
Commerce debts to credit bureaus?
Commerce entities shall report
delinquent Commerce debts to credit
bureaus in accordance with the
provisions of 31 U.S.C. 3711(e), 31 CFR
901.4, and the Office of Management
and Budget Circular A–129, ‘‘Policies
for Federal Credit Programs and Non-tax
Receivables.’’ For additional
information, see Bureau of the Fiscal
Service’s ‘‘Guide to the Federal Credit
Bureau Program,’’ available at https://
www.fiscal.treasury.gov/fsreports/
fs_reference.htm. At least sixty (60) days
prior to reporting a delinquent
Commerce debt to a consumer reporting
agency, Commerce entities will send
notice to the debtor in accordance with
the requirements of § 19.4 of this part.
Commerce entities may authorize the
Bureau of the Fiscal Service to report to
credit bureaus those delinquent
Commerce debts that have been
transferred to the Bureau of the Fiscal
Service under § 19.9 of this part.
§ 19.15 How will Commerce entities refer
Commerce debts to private collection
agencies?
Commerce entities will transfer
delinquent Commerce debts to the
Bureau of the Fiscal Service to obtain
debt collection services provided by
private collection agencies. See § 19.9 of
this part.
§ 19.16 When will Commerce entities refer
Commerce debts to the Department of
Justice?
(a) Compromise or suspension or
termination of collection activity.
Commerce entities shall refer Commerce
debts having a principal balance over
$100,000, or such higher amount as
authorized by the Attorney General, to
the Department of Justice for approval of
any compromise of a Commerce debt or
suspension or termination of collection
activity. See §§ 19.7 and 19.8 of this
part; 31 CFR 902.1; 31 CFR 903.1.
(b) Litigation. Commerce entities shall
promptly refer to the Department of
Justice for litigation delinquent
Commerce debts on which aggressive
collection activity has been taken in
accordance with this part and that
should not be compromised, and on
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which collection activity should not be
suspended or terminated. See 31 CFR
part 904. Commerce entities may
authorize the Bureau of the Fiscal
Service to refer to the Department of
Justice for litigation those delinquent
Commerce debts that have been
transferred to the Bureau of the Fiscal
Service under § 19.9 of this part.
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§ 19.17 Will a debtor who owes a
Commerce or other Federal agency debt,
and persons controlled by or controlling
such debtors, be ineligible for Federal loan
assistance, grants, cooperative
agreements, or other sources of Federal
funds or for Federal licenses, permits, or
privileges?
(a) Delinquent debtors are ineligible
for and barred from obtaining Federal
loans or loan insurance or guaranties.
As required by 31 U.S.C. 3720B and 31
CFR 901.6, Commerce entities will not
extend financial assistance in the form
of a loan, loan guarantee, or loan
insurance to any person delinquent on
a debt owed to a Federal agency.
Commerce Department may issue
standards under which Commerce
Department may determine that persons
controlled by or controlling such
delinquent debtors are similarly
ineligible in accordance with 31 CFR
285.13(c)(2). This prohibition does not
apply to disaster loans. Commerce
entities may extend credit after the
delinquency has been resolved. See 31
CFR 285.13. Waivers of ineligibility may
be granted by the Secretary or designee
on a person by person basis in
accordance with 31 CFR 285.13(g).
However, such authority may not be
delegated below the Deputy Chief
Financial Officer.
(b) A debtor who has a judgment lien
against the debtor’s property for a debt
to the United States is not eligible to
receive grants, loans or funds directly or
indirectly from the United States until
the judgment is paid in full or otherwise
satisfied. This prohibition does not
apply to funds to which the debtor is
entitled as beneficiary. Commerce
Department may promulgate regulations
to allow for waivers of this ineligibility.
See 28 U.S.C. 3201(e).
(c) Suspension or revocation of
eligibility for licenses, permits, or
privileges. Unless prohibited by law,
Commerce entities with the authority to
do so under the circumstances should
deny, suspend or revoke licenses,
permits, or other privileges for any
inexcusable or willful failure of a debtor
to pay a debt. The Commerce entity
responsible for distributing the licenses,
permits, or other privileges will
establish policies and procedures
governing suspension and revocation for
delinquent debtors. If applicable,
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Commerce entities will advise the
debtor in the notice required by § 19.4
of this part of the Commerce entities’
ability to deny, suspend or revoke
licenses, permits or privileges. See
§ 19.4(a)(16) of this part.
(d) To the extent that a person
delinquent on a Commerce debt is not
otherwise barred under § 19.17(a) and
§ 19.17 (c) of this part from becoming or
remaining a recipient of a Commerce
Department grant or cooperative
agreement, it is Commerce Department
policy that no award of Federal funds
shall be made to a Commerce
Department grant or cooperative
agreement applicant who has an
outstanding delinquent Commerce debt
until:
(1) The delinquent Commerce debt is
paid in full,
(2) A negotiated repayment schedule
acceptable to Commerce Department is
established and at least one payment is
received, or
(3) Other arrangements satisfactory to
Commerce Department are made.
§ 19.18 How does a debtor request a
special review based on a change in
circumstances such as catastrophic illness,
divorce, death, or disability?
(a) Material change in circumstances.
A debtor who owes a Commerce debt
may, at any time, request a special
review by the applicable Commerce
entity of the amount of any offset,
administrative wage garnishment, or
voluntary payment, based on materially
changed circumstances beyond the
control of the debtor such as, but not
limited to, catastrophic illness, divorce,
death, or disability.
(b) Inability to pay. For purposes of
this section, in determining whether an
involuntary or voluntary payment
would prevent the debtor from meeting
essential subsistence expenses (e.g.,
costs incurred for food, housing,
clothing, transportation, and medical
care), the debtor shall submit a detailed
statement and supporting documents for
the debtor, his or her spouse, and
dependents, indicating:
(1) Income from all sources;
(2) Assets;
(3) Liabilities;
(4) Number of dependents;
(5) Expenses for food, housing,
clothing, and transportation;
(6) Medical expenses;
(7) Exceptional expenses, if any; and
(8) Any additional materials and
information that the Commerce entity
may request relating to ability or
inability to pay the amount(s) currently
required.
(c) Alternative payment arrangement.
If the debtor requests a special review
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12819
under this section, the debtor shall
submit an alternative proposed payment
schedule and a statement to the
Commerce entity collecting the
Commerce debt, with supporting
documents, showing why the current
offset, garnishment or repayment
schedule imposes an extreme financial
hardship on the debtor. The Commerce
entity will evaluate the statement and
documentation and determine whether
the current offset, garnishment, or
repayment schedule imposes extreme
financial hardship on the debtor. The
Commerce entity shall notify the debtor
in writing of such determination,
including, if appropriate, a revised
offset, garnishment, or payment
schedule. If the special review results in
a revised offset, garnishment, or
repayment schedule, the Commerce
entity will notify the appropriate
Federal agency or other persons about
the new terms.
§ 19.19 Will Commerce entities issue a
refund if money is erroneously collected on
a Commerce debt?
Commerce entities shall promptly
refund to a debtor any amount collected
on a Commerce debt when the
Commerce debt is waived or otherwise
found not to be owed to the United
States, or as otherwise required by law.
Refunds under this part shall not bear
interest unless required by law.
Subpart C—Procedures for Offset of
Commerce Department Payments To
Collect Debts Owed to Other Federal
Agencies
§ 19.20 How do other Federal agencies use
the offset process to collect debts from
payments issued by a Commerce entity?
(a) Offset of Commerce entity
payments to collect debts owed to other
Federal agencies. (1) In most cases,
Federal agencies submit debts to the
Treasury Offset Program to collect
delinquent debts from payments issued
by Commerce entities and other Federal
agencies, a process known as
‘‘centralized offset.’’ When centralized
offset is not available or appropriate,
any Federal agency may ask a
Commerce entity (when acting as a
‘‘payment agency’’) to collect a debt
owed to such agency by offsetting funds
payable to a debtor by the Commerce
entity, including salary payments issued
to Commerce entity employees. This
section and § 19.21 of this subpart C
apply when a Federal agency asks a
Commerce entity to offset a payment
issued by the Commerce entity to a
person who owes a debt to the United
States.
(2) This subpart C does not apply to
Commerce debts. See §§ 19.10 through
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19.12 of this part for offset procedures
applicable to Commerce debts.
(3) This subpart C does not apply to
the collection of non-Commerce debts
through tax refund offset. See 31 CFR
285.2 for tax refund offset procedures.
(b) Administrative offset (including
salary offset); certification. A Commerce
entity will initiate a requested offset
only upon receipt of written
certification from the creditor agency
that the debtor owes the past-due,
legally enforceable debt in the amount
stated, and that the creditor agency has
fully complied with all applicable due
process and other requirements
contained in 31 U.S.C. 3716, 5 U.S.C.
5514, and the creditor agency’s
regulations, as applicable. Offsets will
continue until the debt is paid in full or
otherwise resolved to the satisfaction of
the creditor agency.
(c) Where a creditor agency makes
requests for offset. Requests for offset
under this section shall be sent to the
Department of Commerce, ATTN:
Deputy Chief Financial Officer, 1401
Constitution Avenue NW., Room D200,
Washington, DC 20230. The Deputy
Chief Financial Officer will forward the
request to the appropriate Commerce
entity for processing in accordance with
this subpart C.
(d) Incomplete certification. A
Commerce entity will return an
incomplete debt certification to the
creditor agency with notice that the
creditor agency must comply with
paragraph (b) of this section before
action will be taken to collect a debt
from a payment issued by a Commerce
entity.
(e) Review. A Commerce entity is not
authorized to review the merits of the
creditor agency’s determination with
respect to the amount or validity of the
debt certified by the creditor agency.
(f) When Commerce entities will not
comply with offset request. A Commerce
entity will comply with the offset
request of another agency unless the
Commerce entity determines that the
offset would not be in the best interests
of the United States, or would otherwise
be contrary to law.
(g) Multiple debts. When two or more
creditor agencies are seeking offsets
from payments made to the same
person, or when two or more debts are
owed to a single creditor agency, the
Commerce entity that has been asked to
offset the payments may determine the
order in which the debts will be
collected or whether one or more debts
should be collected by offset
simultaneously.
(h) Priority of debts owed to
Commerce entity. For purposes of this
section, debts owed to a Commerce
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entity generally take precedence over
debts owed to other agencies. The
Commerce entity that has been asked to
offset the payments may determine
whether to pay debts owed to other
agencies before paying a debt owed to
a Commerce entity. The Commerce
entity that has been asked to offset the
payments will determine the order in
which the debts will be collected based
on the best interests of the United
States.
§ 19.21 What does a Commerce entity do
upon receipt of a request to offset the
salary of a Commerce entity employee to
collect a debt owed by the employee to
another Federal agency?
(a) Notice to the Commerce employee.
When a Commerce entity receives
proper certification of a debt owed by
one of its employees, the Commerce
entity will begin deductions from the
employee’s pay at the next officially
established pay interval. The Commerce
entity will send a written notice to the
employee indicating that a certified debt
claim has been received from the
creditor agency, the amount of the debt
claimed to be owed by the creditor
agency, the date deductions from salary
will begin, and the amount of such
deductions.
(b) Amount of deductions from
Commerce employee’s salary. The
amount deducted under § 19.20(b) of
this part will be the lesser of the amount
of the debt certified by the creditor
agency or an amount up to 15 percent
of the debtor’s disposable pay.
Deductions shall continue until the
Commerce entity knows that the debt is
paid in full or until otherwise instructed
by the creditor agency. Alternatively,
the amount offset may be an amount
agreed upon, in writing, by the debtor
and the creditor agency. See § 19.12(g)
(salary offset process).
(c) When the debtor is no longer
employed by the Commerce entity—(1)
Offset of final and subsequent
payments. If a Commerce entity
employee retires or resigns or if his or
her employment ends before collection
of the debt is complete, the Commerce
entity will continue to offset, under 31
U.S.C. 3716, up to 100 percent of an
employee’s subsequent payments until
the debt is paid or otherwise resolved.
Such payments include a debtor’s final
salary payment, lump-sum leave
payment, and other payments payable to
the debtor by the Commerce entity. See
31 U.S.C. 3716 and 5 CFR 550.1104(l)
and 550.1104(m).
(2) Notice to the creditor agency. If the
employee is separated from the
Commerce entity before the debt is paid
in full, the Commerce entity will certify
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to the creditor agency the total amount
of its collection. If the Commerce entity
is aware that the employee is entitled to
payments from the Civil Service
Retirement and Disability Fund, Federal
Employee Retirement System, or other
similar payments, the Commerce entity
will provide written notice to the
agency making such payments that the
debtor owes a debt (including the
amount) and that the provisions of 5
CFR 550.1109 have been fully complied
with. The creditor agency is responsible
for submitting a certified claim to the
agency responsible for making such
payments before collection may begin.
Generally, creditor agencies will collect
such monies through the Treasury
Offset Program as described in § 19.9(c)
of this part.
(3) Notice to the debtor. The
Commerce entity will provide to the
debtor a copy of any notices sent to the
creditor agency under paragraph (c)(2)
of this section.
(d) When the debtor transfers to
another Federal agency—(1) Notice to
the creditor agency. If the debtor
transfers to another Federal agency
before the debt is paid in full, the
Commerce entity will notify the creditor
agency and will certify the total amount
of its collection on the debt. The
Commerce entity will provide a copy of
the certification to the creditor agency.
The creditor agency is responsible for
submitting a certified claim to the
debtor’s new employing agency before
collection may begin.
(2) Notice to the debtor. The
Commerce entity will provide to the
debtor a copy of any notices and
certifications sent to the creditor agency
under paragraph (d)(1) of this section.
(e) Request for hearing official. A
Commerce entity will provide a hearing
official upon the creditor agency’s
request with respect to a Commerce
entity employee. See 5 CFR 550.1107(a).
[FR Doc. 2016–05341 Filed 3–10–16; 8:45 am]
BILLING CODE 3510–DP–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 1
General Regulations Under the
Commodity Exchange Act
CFR Correction
In Title 17 of the Code of Federal
Regulations, Parts 1 to 40, revised as of
April 1, 2015, on page 12, in § 1.3,
remove the second paragraph (aa)(3)(ii).
[FR Doc. 2016–05576 Filed 3–10–16; 8:45 am]
BILLING CODE 1505–01–D
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Agencies
[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)]
[Rules and Regulations]
[Pages 12810-12820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05341]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Office of the Secretary
15 CFR Part 19
[Docket No. 150902806-5806-01]
RIN 0605-AA40
Commerce Debt Collection
AGENCY: Office of the Chief Financial Officer and Assistant Secretary
for Administration, Department of Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Commerce (Commerce Department) hereby
revises its debt collection regulations as a result of, and to conform
to, an amendment made by the Digital Accountability and Transparency
Act of 2014 (DATA Act). Specifically, the law, as amended by the DATA
Act, requires Commerce Department to refer to the Secretary of the
Treasury all past due, legally enforceable nontax debt that are over
120 days delinquent, including nontax debt administered by a third
party acting as an agent for the Federal Government, for purposes of
administrative offset. These revised debt collection regulations also
provide updated references to the Bureau of the Fiscal Service as the
agency within the Department of the Treasury to which Commerce
Department refers delinquent debts to reflect a reorganization made by
the Department of the Treasury.
[[Page 12811]]
DATES: This rule is effective April 11, 2016.
FOR FURTHER INFORMATION CONTACT: Gordon T. Alston, Acting Deputy Chief
Financial Officer and Director for Financial Management, Office of
Financial Management, at (202) 482-1207, Department of Commerce, 1401
Constitution Avenue NW., Room D200, Washington, DC 20230. The Commerce
Department debt collection regulations are available for downloading
from Commerce Department, Office of Financial Management's Web site at
the following address: https://www.osec.doc.gov/ofm/OFM_Publications.html.
SUPPLEMENTARY INFORMATION:
Background
This final rule revises and replaces Commerce Department debt
collection regulations found at 15 CFR part 19 to conform to the Debt
Collection Improvement Act of 1996 (DCIA), Public Law 104-134, 110
Stat. 1321, 1358 (Apr. 26, 1996), the revised Federal Claims Collection
Standards, 31 CFR Chapter IX Parts 900 through 904, and other laws
applicable to the collection of non-tax debt owed to the Government.
Commerce Department made revisions to 15 CFR part 19 to merely update
Commerce Department regulations on debt collection to conform with an
amendment to 31 U.S.C. 3716(c)(6) made by Section 5 of the DATA Act.
That amendment requires that Commerce Department refer to the Secretary
of the Treasury all past due, legally enforceable nontax debt that are
over 120 days delinquent, including nontax debt administered by a third
party acting as an agent for the Federal Government, for purposes of
administrative offset. Accordingly, the regulations at 15 CFR part 19
are being updated to reflect current law. Agency debts which are more
than 120 days delinquent and have not been timely referred to the
Department of the Treasury shall be reported to the Congress by the
Secretary of the Treasury. These revised debt collection regulations
also provide updated references to the Bureau of the Fiscal Service as
the agency within the Department of Treasury to which Commerce
Department refers delinquent debts to reflect a reorganization made by
the Department of the Treasury.
These regulations provide procedures for the collection of non-tax
debts owed to Commerce Department entities. Commerce Department adopts
the government-wide debt collection standards promulgated by the
Departments of the Treasury and Justice, known as the Federal Claims
Collection Standards (FCCS), as revised on November 22, 2000 (31 CFR
Chapter IX parts 900-904), and supplements FCCS by prescribing
procedures consistent with FCCS, as necessary and appropriate for
Commerce Department operations. These regulations also provide the
procedures for the collection of debts owed to other Federal agencies
when a request for offset is received by Commerce Department.
These regulations do not contain a section regarding the delegation
of debt collection authority within Commerce Department. The delegation
is contained in the Commerce Department Credit and Debt Management
Operating Standards and Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit/cover.html, and does not need to be
included in the regulations.
Nothing in these regulations precludes the use of collection
remedies not contained in these regulations. For example, Commerce
Department entities may collect unused travel advances through offset
of an employee's pay under 5 U.S.C. 5705. Commerce Department entities
and other Federal agencies may simultaneously use multiple collection
remedies to collect a debt, except as prohibited by law.
Commerce Department entities may, but are not required to,
promulgate additional policies and procedures consistent with these
regulations, FCCS, and other applicable Federal laws, policies, and
procedures, subject to the approval of the Deputy Chief Financial
Officer and Director for Financial Management.
Classification
These revisions to Commerce Department debt collection regulations
at 15 CFR part 19 relate only to agency procedure and practice and do
not affect any public right, interest, or remedy otherwise available.
This action makes no substantive changes and does not change or impose
additional requirements that necessitate adjustments by entities
subject to the debt collection regulations. Instead, it merely updates
delinquent debt day count figures and a Department of the Treasury
bureau title in the existing regulations to bring the regulations into
line with the DATA Act's debt referral requirements and the current
Department of the Treasury bureau title, over which Commerce Department
has no discretion. To the extent that this rule updates these
regulations to reflect the changes to the Department of the Treasury's
organization, it will help reduce confusion regarding the correct
entity to contact.
Accordingly, notice and comment are not required for this rule,
pursuant to Section 553(b)(A) of the Administrative Procedure Act (5
U.S.C. 551, et seq.).
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Public Law
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR
part 1320, do not apply to this rule because there are no new or
revised recordkeeping or reporting requirements.
Regulatory Analysis
E.O. 12866 and 13563, Regulatory Review
This rule is not a significant regulatory action as defined in
Executive Orders 12866 and 13563.
Regulatory Flexibility Act
Because notice of proposed rulemaking and opportunity for comment
are not required pursuant to 5 U.S.C. 553, or any other law, the
analytical requirements of the Regulatory Flexibility act (5 U.S.C.
601, et seq.) are inapplicable. Therefore, a regulatory flexibility
analysis is not required and has not been prepared.
List of Subjects in 15 CFR Part 19
Administrative practice and procedure, Claims, Debts, Garnishment
of wages, Federal Government employee, Hearing and appeal procedures,
Pay administration, Salaries, Wages.
Dated: March 4, 2016.
Gordon T. Alston,
Acting Deputy Chief Financial Officer and Director for Financial
Management, Department of Commerce.
Authority and Issuance
For the reasons stated in the preamble, Commerce Department revises
15 CFR part 19 to read as follows:
PART 19--COMMERCE DEBT COLLECTION
Subpart A--General Provisions
Sec.
19.1 What definitions apply to the regulations in this part?
19.2 Why did the Commerce Department issue these regulations and
what do they cover?
19.3 Do these regulations adopt the Federal Claims Collection
Standards (FCCS)?
[[Page 12812]]
Subpart B--Procedures to Collect Commerce Debts
19.4 What notice will Commerce entities send to a debtor when
collecting a Commerce debt?
19.5 How will Commerce entities add interest, penalty charges, and
administrative costs to a Commerce debt?
19.6 When will Commerce entities allow a debtor to pay a Commerce
debt in installments instead of one lump sum?
19.7 When will Commerce entities compromise a Commerce debt?
19.8 When will Commerce entities suspend or terminate debt
collection on a Commerce debt?
19.9 When will Commerce entities transfer a Commerce debt to the
Treasury Department's Bureau of the Fiscal Service for collection?
19.10 How will Commerce entities use administrative offset (offset
of non-tax Federal payments) to collect a Commerce debt?
19.11 How will Commerce entities use tax refund offset to collect a
Commerce debt?
19.12 How will Commerce entities offset a Federal employee's salary
to collect a Commerce debt?
19.13 How will Commerce entities use administrative wage garnishment
to collect a Commerce debt from a debtor's wages?
19.14 How will Commerce entities report Commerce debts to credit
bureaus?
19.15 How will Commerce entities refer Commerce debts to private
collection agencies?
19.16 When will Commerce entities refer Commerce debts to the
Department of Justice?
19.17 Will a debtor who owes a Commerce or other Federal agency
debt, and persons controlled by or controlling such debtors, be
ineligible for Federal loan assistance, grants, cooperative
agreements, or other sources of Federal funds or for Federal
licenses, permits, or privileges?
19.18 How does a debtor request a special review based on a change
in circumstances such as catastrophic illness, divorce, death, or
disability?
19.19 Will Commerce entities issue a refund if money is erroneously
collected on a Commerce debt?
Subpart C--Procedures for Offset of Commerce Department Payments To
Collect Debts Owed to Other Federal Agencies
19.20 How do other Federal agencies use the offset process to
collect debts from payments issued by a Commerce entity?
19.21 What does a Commerce entity do upon receipt of a request to
offset the salary of a Commerce entity employee to collect a debt
owed by the employee to another Federal agency?
Authority: 31 U.S.C. 3701, et seq.
Subpart A--General Provisions
Sec. 19.1 What definitions apply to the regulations in this part?
As used in this part:
Administrative offset or offset means withholding funds payable by
the United States (including funds payable by the United States on
behalf of a state government) to, or held by the United States for, a
person to satisfy a debt owed by the person. The term ``administrative
offset'' can include, but is not limited to, the offset of Federal
salary, vendor, retirement, and Social Security benefit payments. The
terms ``centralized administrative offset'' and ``centralized offset''
refer to the process by which the Treasury Department's Bureau of the
Fiscal Service offsets Federal payments through the Treasury Offset
Program.
Administrative wage garnishment means the process by which a
Federal agency orders a non-Federal employer to withhold amounts from a
debtor's wages to satisfy a debt, as authorized by 31 U.S.C. 3720D, 31
CFR 285.11, and this part.
Agency or Federal agency means a department, agency, court, court
administrative office, or instrumentality in the executive, judicial,
or legislative branch of the Federal Government, including government
corporations.
Bureau of the Fiscal Service means the Bureau of the Fiscal
Service, a bureau of the Treasury Department, which is responsible for
the centralized collection of delinquent debts through the offset of
Federal payments and other means.
Commerce debt means a debt owed to a Commerce entity by a person.
Commerce Department means the United States Department of Commerce.
Commerce entity means a component of the Commerce Department,
including offices or bureaus. Commerce offices currently include the
Office of the Secretary of Commerce, and the Office of Inspector
General. Commerce bureaus currently include the Bureau of Industry and
Security, the Economics and Statistics Administration (including the
Bureau of Economic Analysis, and the Bureau of the Census), the
Economic Development Administration, the International Trade
Administration, the Minority Business Development Agency, the National
Oceanic and Atmospheric Administration, the National Telecommunications
and Information Administration, the U.S. Patent and Trademark Office,
and the Technology Administration (including the National Institute of
Standards and Technology, and the National Technical Information
Service).
Creditor agency means any Federal agency that is owed a debt.
Day means calendar day except when express reference is made to
business day, which reference shall mean Monday through Friday. For
purposes of time computation, the last day of the period provided will
be included in the calculation unless that day is a Saturday, a Sunday,
or a Federal legal holiday; in which case, the next business day will
be included.
Debt means any amount of money, funds or property that has been
determined by an appropriate official of the Federal Government to be
owed to the United States by a person. As used in this part, the term
``debt'' can include a Commerce debt but does not include debts arising
under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).
Debtor means a person who owes a debt to the United States.
Delinquent debt means a debt that has not been paid by the date
specified in the 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.
Delinquent Commerce debt means a delinquent debt owed to a Commerce
entity.
Disposable pay has the same meaning as that term is defined in 5
CFR 550.1103.
Employee or Federal employee means a current employee of the
Commerce Department or other Federal agency, including a current member
of the uniformed services, including the Army, Navy, Air Force, Marine
Corps, Coast Guard, Commissioned Corps of the National Oceanic and
Atmospheric Administration, and Commissioned Corps of the Public Health
Service, including the National Guard and the reserve forces of the
uniformed services.
FCCS means the Federal Claims Collection Standards, which were
jointly published by the Departments of the Treasury and Justice and
codified at 31 CFR parts 900-904.
Payment agency or Federal payment agency means any Federal agency
that transmits payment requests in the form of certified payment
vouchers, or other similar forms, to a disbursing official for
disbursement. The payment agency may be the agency that employs the
debtor. In some cases, the Commerce Department may be both the creditor
agency and payment agency.
Person means an individual, corporation, partnership, association,
organization, State or local government or any other type of entity
other than a Federal agency.
[[Page 12813]]
Salary offset means a type of administrative offset to collect a
debt under 5 CFR part 5514 by deductions(s) at one or more officially
established pay intervals from the current pay account of an employee
without his or her consent.
Secretary means the Secretary of Commerce.
Tax refund offset is defined in 31 CFR 285.2(a).
Sec. 19.2 Why did the Commerce Department issue these regulations and
what do they cover?
(a) Scope. This part provides procedures for the collection of
Commerce Department debts. This part also provides procedures for
collection of other debts owed to the United States when a request for
offset of a payment for which Commerce Department is the payment agency
is received by Commerce Department from another agency (for example,
when a Commerce Department employee owes a debt to the United States
Department of Education).
(b) Applicability. (1) This part applies to Commerce Department
when collecting a Commerce Department debt, to persons who owe Commerce
Department debts, to persons controlled by or controlling persons who
owe Federal agency debts, and to Federal agencies requesting offset of
a payment issued by Commerce Department as a payment agency (including
salary payments to Commerce Department employees).
(2) This part does not apply to tax debts nor to any debt for which
there is an indication of fraud or misrepresentation, as described in
section 900.3 of the FCCS, unless the debt is returned by the
Department of Justice to Commerce Department for handling.
(3) Nothing in this part precludes collection or disposition of any
debt under statutes and regulations other than those described in this
part. See, for example, 5 U.S.C. 5705, Advancements and Deductions,
which authorizes Commerce entities to recover travel advances by offset
of up to 100 percent of a Federal employee's accrued pay. See, also, 5
U.S.C. 4108, governing the collection of training expenses. To the
extent that the provisions of laws, other regulations, and Commerce
Department enforcement policies differ from the provisions of this
part, those provisions of law, other regulations, and Commerce
Department enforcement policies apply to the remission or mitigation of
fines, penalties, and forfeitures, and to debts arising under the
tariff laws of the United States, rather than the provisions of this
part.
(c) Additional policies and procedures. Commerce entities may, but
are not required to, promulgate additional policies and procedures
consistent with this part, the FCCS, and other applicable Federal law,
policies, and procedures, subject to the approval of Deputy Chief
Financial Officer.
(d) Duplication not required. Nothing in this part requires a
Commerce entity to duplicate notices or administrative proceedings
required by contract, this part, or other laws or regulations,
including but not limited to those required by financial assistance
awards such as grants, cooperative agreements, loans or loan
guarantees.
(e) Use of multiple collection remedies allowed. Commerce entities
and other Federal agencies may simultaneously use multiple collection
remedies to collect a debt, except as prohibited by law. This part is
intended to promote aggressive debt collection, using for each debt all
available and appropriate collection remedies. These remedies are not
listed in any prescribed order to provide Commerce entities with
flexibility in determining which remedies will be most efficient in
collecting the particular debt.
Sec. 19.3 Do these regulations adopt the Federal Claims Collection
Standards (FCCS)?
This part adopts and incorporates all provisions of the FCCS (31
CFR Chapter IX parts 900-904). This part also supplements the FCCS by
prescribing procedures consistent with the FCCS, as necessary and
appropriate for Commerce Department operations.
Subpart B--Procedures To Collect Commerce Debts
Sec. 19.4 What notice will Commerce entities send to a debtor when
collecting a Commerce debt?
(a) Notice requirements. Commerce entities shall aggressively
collect Commerce debts. Commerce entities shall promptly send at least
one written notice to a debtor informing the debtor of the consequences
of failing to pay or otherwise resolve a Commerce debt. The notice(s)
shall be sent to the debtor at the most current address of the debtor
in the records of the Commerce entity collecting the Commerce debt.
Generally, before starting the collection actions described in
Sec. Sec. 19.5 and 19.9 through 19.17 of this part, Commerce entities
will send no more than two written notices to the debtor. The notice(s)
explain why the Commerce debt is owed, the amount of the Commerce debt,
how a debtor may pay the Commerce debt or make alternate repayment
arrangements, how a debtor may review non-privileged documents related
to the Commerce debt, how a debtor may dispute the Commerce debt, the
collection remedies available to Commerce entities if the debtor
refuses or otherwise fails to pay the Commerce debt, and other
consequences to the debtor if the Commerce debt is not paid. Except as
otherwise provided in paragraph (b) of this section, the written
notice(s) shall explain to the debtor:
(1) The nature and amount of the Commerce debt, and the facts
giving rise to the Commerce debt;
(2) How interest, penalties, and administrative costs are added to
the Commerce debt, the date by which payment should be made to avoid
such charges, and that such assessments must be made unless excused in
accordance with 31 CFR 901.9 (see Sec. 19.5 of this part);
(3) The date by which payment should be made to avoid the enforced
collection actions described in paragraph (a)(6) of this section;
(4) The Commerce entity's willingness to discuss alternative
payment arrangements and how the debtor may enter into a written
agreement to repay the Commerce debt under terms acceptable to the
Commerce entity (see Sec. 19.6 of this part);
(5) The name, address, and telephone number of a contact person or
office within the Commerce entity;
(6) The Commerce entity's intention to enforce collection by taking
one or more of the following actions if the debtor fails to pay or
otherwise resolve the Commerce debt:
(i) Offset. Offset the debtor's Federal payments, including income
tax refunds, salary, certain benefit payments (such as Social
Security), retirement, vendor, travel reimbursements and advances, and
other Federal payments (see Sec. Sec. 19.10 through 19.12 of this
part);
(ii) Private collection agency. Refer the Commerce debt to a
private collection agency (see Sec. 19.15 of this part);
(iii) Credit bureau reporting. Report the Commerce debt to a credit
bureau (see Sec. 19.14 of this part);
(iv) Administrative wage garnishment. Garnish the individual
debtor's wages through administrative wage garnishment (see Sec. 19.13
of this part);
(v) Litigation. Refer the Commerce debt to the Department of
Justice to initiate litigation to collect the Commerce debt (see Sec.
19.16 of this part);
(vi) Treasury Department's Bureau of the Fiscal Service. Refer the
Commerce debt to the Bureau of the Fiscal Service for collection (see
Sec. 19.9 of this part);
(7) That Commerce debts over 120 days delinquent must be referred
to the
[[Page 12814]]
Bureau of the Fiscal Service for the collection actions described in
paragraph (a)(6) of this section (see Sec. 19.9 of this part);
(8) How the debtor may inspect and copy non-privileged records
related to the Commerce debt;
(9) How the debtor may request a review of the Commerce entity's
determination that the debtor owes a Commerce debt and present evidence
that the Commerce debt is not delinquent or legally enforceable (see
Sec. Sec. 19.10(c) and 19.11(c) of this part);
(10) How a debtor who is an individual may request a hearing if the
Commerce entity intends to garnish the debtor's private sector (i.e.,
non-Federal) wages (see Sec. 1 9.13(a) of this part), including:
(i) The method and time period for requesting a hearing;
(ii) That a request for a hearing, timely filed on or before the
15th business day following the date of the mailing of the notice, will
stay the commencement of administrative wage garnishment, but not other
collection procedures; and
(iii) The name and address of the office to which the request for a
hearing should be sent.
(11) How a debtor who is an individual and a Federal employee
subject to Federal salary offset may request a hearing (see Sec.
19.12(e) of this part), including:
(i) The method and time period for requesting a hearing;
(ii) That a request for a hearing, timely filed on or before the
15th day following receipt of the notice, will stay the commencement of
salary offset, but not other collection procedures;
(iii) The name and address of the office to which the request for a
hearing should be sent;
(iv) That the Commerce entity will refer the Commerce debt to the
debtor's employing agency or to the Bureau of the Fiscal Service to
implement salary offset, unless the employee files a timely request for
a hearing;
(v) That a final decision on the hearing, if requested, will be
issued at the earliest practical date, but not later than 60 days after
the filing of the request for a hearing, unless the employee requests
and the hearing official grants a delay in the proceedings;
(vi) That any knowingly false or frivolous statements,
representations, or evidence may subject the Federal employee to
penalties under the False Claims Act (31 U.S.C. 3729-3731) or other
applicable statutory authority, and criminal penalties under 18 U.S.C.
286, 287, 1001, and 1002, or other applicable statutory authority;
(vii) That unless prohibited by contract or statute, amounts paid
on or deducted for the Commerce debt which are later waived or found
not owed to the United States will be promptly refunded to the
employee; and
(viii) That proceedings with respect to such Commerce debt are
governed by 5 U.S.C. 5514 and 31 U.S.C. 3716.
(12) How the debtor may request a waiver of the Commerce debt, if
applicable. See, for example, Sec. Sec. 19.5 and 19.12(f) of this
part.
(13) How the debtor's spouse may claim his or her share of a joint
income tax refund by filing Form 8379 with the Internal Revenue Service
(see https://www.irs.gov);
(14) How the debtor may exercise other rights and remedies, if any,
available to the debtor under programmatic statutory or regulatory
authority under which the Commerce debt arose.
(15) That certain debtors and, if applicable, persons controlled by
or controlling such debtors, may be ineligible for Federal Government
loans, guaranties and insurance, grants, cooperative agreements or
other sources of Federal funds (see 28 U.S.C. 3201(e); 31 U.S.C. 3720B,
31 CFR 285.13, and Sec. 19.17(a) of this part);
(16) If applicable, the Commerce entity's intention to deny,
suspend or revoke licenses, permits or privileges (see Sec. 19.17(b)
of this part); and
(17) That the debtor should advise the Commerce entity of a
bankruptcy proceeding of the debtor or another person liable for the
Commerce debt being collected.
(b) Exceptions to notice requirements. A Commerce entity may omit
from a notice to a debtor one or more of the provisions contained in
paragraphs (a)(6) through (17) of this section if the Commerce entity,
in consultation with its legal counsel, determines that any provision
is not legally required given the collection remedies to be applied to
a particular Commerce debt.
(c) Respond to debtors; comply with FCCS. Commerce entities should
respond promptly to communications from debtors and comply with other
FCCS provisions applicable to the administrative collection of debts.
See 31 CFR part 901.
Sec. 19.5 How will Commerce entities add interest, penalty charges,
and administrative costs to a Commerce debt?
(a) Assessment and notice. Commerce entities shall assess interest,
penalties and administrative costs on Commerce debts in accordance with
the provisions of 31 U.S.C. 3717 and 31 CFR 901.9. Interest shall be
charged in accordance with the requirements of 31 U.S.C. 3717(a).
Penalties shall accrue at a rate of not more than 6% per year or such
other higher rate as authorized by law. Administrative costs, that is,
the costs of processing and handling a delinquent debt, shall be
determined by the Commerce entity collecting the debt, as directed by
the Office of the Deputy Chief Financial Officer. Commerce entities may
have additional policies regarding how interest, penalties, and
administrative costs are assessed on particular types of debts, subject
to the approval of the Deputy Chief Financial Officer. Commerce
entities are required to explain in the notice to the debtor described
in Sec. 19.4 of this part how interest, penalties, costs, and other
charges are assessed, unless the requirements are included in a
contract or other legally binding agreement.
(b) Waiver of interest, penalties, and administrative costs. Unless
otherwise required by law or contract, Commerce entities may not charge
interest if the amount due on the Commerce debt is paid within 30 days
after the date from which the interest accrues. See 31 U.S.C. 3717(d).
Commerce entities may, with legal counsel approval, waive interest,
penalties, and administrative costs, or any portion thereof, when it
would be against equity and good conscience or not in the United
States' best interest to collect such charges, in accordance with
Commerce guidelines for such waivers. (See Commerce Department Credit
and Debt Management Operating Standards and Procedures Handbook,
available at https://www.osec.doc.gov/ofm/credit/cover.html.)
(c) Accrual during suspension of debt collection. In most cases,
interest, penalties and administrative costs will continue to accrue
during any period when collection has been suspended for any reason
(for example, when the debtor has requested a hearing). Commerce
entities may suspend accrual of any or all of these charges when
accrual would be against equity and good conscience or not in the
United States' best interest, in accordance with Commerce guidelines
for such waivers. (See Commerce Department Credit and Debt Management
Operating Standards and Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit.cover.html.)
Sec. 19.6 When will Commerce entities allow a debtor to pay a
Commerce debt in installments instead of one lump sum?
If a debtor is financially unable to pay the Commerce debt in one
lump sum, a Commerce entity may accept payment of a Commerce debt in
regular
[[Page 12815]]
installments, in accordance with the provisions of 31 CFR 901.8 and the
Commerce entity's policies and procedures.
Sec. 19.7 When will Commerce entities compromise a Commerce debt?
If a Commerce entity cannot collect the full amount of a Commerce
debt, the Commerce entity may, with legal counsel approval, compromise
the Commerce debt in accordance with the provisions of 31 CFR part 902
and the Commerce entity's policies and procedures. (See Commerce
Department Credit and Debt Management Operating Standards and
Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit.cover.html.)
Sec. 19.8 When will Commerce entities suspend or terminate debt
collection on a Commerce debt?
If, after pursuing all appropriate means of collection, a Commerce
entity determines that a Commerce debt is uncollectible, the Commerce
entity may, with legal counsel approval, suspend or terminate debt
collection activity in accordance with the provisions of 31 CFR part
903 and the Commerce entity's policies and procedures. Termination of
debt collection activity by a Commerce entity does not discharge the
indebtedness. (See Commerce Department Credit and Debt Management
Operating Standards and Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit/cover.html.)
Sec. 19.9 When will Commerce entities transfer a Commerce debt to the
Treasury Department's Bureau of the Fiscal Service for collection?
(a) Commerce entities will transfer any Commerce debt that is more
than 120 days delinquent to the Bureau of the Fiscal Service for debt
collection services, a process known as ``cross-servicing.'' See 31
U.S.C. 3711(g), 31 CFR 285.12, and 31 U.S.C. 3716(c)(6). Commerce
entities may transfer Commerce debts delinquent 120 days or less to the
Bureau of the Fiscal Service in accordance with the procedures
described in 31 CFR 285.12. The Bureau of the Fiscal Service takes
appropriate action to collect or compromise the transferred Commerce
debt, or to suspend or terminate collection action thereon, in
accordance with the statutory and regulatory requirements and
authorities applicable to the Commerce debt and the collection action
to be taken. See 31 CFR 285.12(b) and 285.12(c)(2). Appropriate action
can include, but is not limited to, contact with the debtor, referral
of the Commerce debt to the Treasury Offset Program, private collection
agencies or the Department of Justice, reporting of the Commerce debt
to credit bureaus, and administrative wage garnishment.
(b) At least sixty (60) days prior to transferring a Commerce debt
to the Bureau of the Fiscal Service, Commerce entities will send notice
to the debtor as required by Sec. 19.4 of this part. Commerce entities
will certify to the Bureau of the Fiscal Service, in writing, that the
Commerce debt is valid, delinquent, legally enforceable, and that there
are no legal bars to collection. In addition, Commerce entities will
certify their compliance with all applicable due process and other
requirements as described in this part and other Federal laws. See 31
CFR 285.12(i) regarding the certification requirement.
(c) As part of its debt collection process, the Bureau of the
Fiscal Service uses the Treasury Offset Program to collect Commerce
debts by administrative and tax refund offset. See 31 CFR 285.12(g).
The Treasury Offset Program is a centralized offset program
administered by the Bureau of the Fiscal Service to collect delinquent
debts owed to Federal agencies and states (including past-due child
support). Under the Treasury Offset Program, before a Federal payment
is disbursed, the Bureau of the Fiscal Service compares the name and
taxpayer identification number (TIN) of the payee with the names and
TINs of debtors that have been submitted by Federal agencies and states
to the Treasury Offset Program database. If there is a match, the
Bureau of the Fiscal Service (or, in some cases, another Federal
disbursing agency) offsets all or a portion of the Federal payment,
disburses any remaining payment to the payee, and pays the offset
amount to the creditor agency. Federal payments eligible for offset
include, but are not limited to, income tax refunds, salary, travel
advances and reimbursements, retirement and vendor payments, and Social
Security and other benefit payments.
Sec. 19.10 How will Commerce entities use administrative offset
(offset of non-tax Federal payments) to collect a Commerce debt?
(a) Centralized administrative offset through the Treasury Offset
Program. (1) In most cases, the Bureau of the Fiscal Service uses the
Treasury Offset Program to collect Commerce debts by the offset of
Federal payments. See Sec. 19.9(c) of this part. If not already
transferred to the Bureau of the Fiscal Service under Sec. 19.9 of
this part, Commerce entities will refer Commerce debt over 120 days
delinquent to the Treasury Offset Program for collection by centralized
administrative offset. See 31 U.S.C. 3716(c)(6); 31 CFR part 285,
subpart A; and 31 CFR 901.3(b). Commerce entities may refer to the
Treasury Offset Program for offset any Commerce debt that has been
delinquent for 120 days or less.
(2) At least sixty (60) days prior to referring a Commerce debt to
the Treasury Offset Program, in accordance with paragraph (a)(1) of
this section, Commerce entities will send notice to the debtor in
accordance with the requirements of Sec. 19.4 of this part. Commerce
entities will certify to the Bureau of the Fiscal Service, in writing,
that the Commerce debt is valid, delinquent, legally enforceable, and
that there are no legal bars to collection by offset. In addition,
Commerce entities will certify their compliance with the requirements
described in this part.
(b) Non-centralized administrative offset for Commerce debts. (1)
When centralized administrative offset through the Treasury Offset
Program is not available or appropriate, Commerce entities may collect
past-due, legally enforceable Commerce debts through non-centralized
administrative offset. See 31 CFR 901.3(c). In these cases, Commerce
entities may offset a payment internally or make an offset request
directly to a Federal payment agency. If the Federal payment agency is
another Commerce entity, the Commerce entity making the request shall
do so through the Deputy Chief Financial Officer as described in Sec.
19.20(c) of this part.
(2) At least thirty (30) days prior to offsetting a payment
internally or requesting a Federal payment agency to offset a payment,
Commerce entities will send notice to the debtor in accordance with the
requirements of Sec. 19.4 of this part. When referring a Commerce debt
for offset under this paragraph (b), Commerce entities making the
request will certify, in writing, that the Commerce debt is valid,
delinquent, legally enforceable, and that there are no legal bars to
collection by offset. In addition, Commerce entities will certify their
compliance with these regulations concerning administrative offset. See
31 CFR 901.3(c)(2)(ii).
(c) Administrative review. The notice described in Sec. 19.4 of
this part shall explain to the debtor how to request an administrative
review of a Commerce entity's determination that the debtor owes a
Commerce debt and how to present evidence that the Commerce debt is not
delinquent or legally enforceable. In addition to challenging the
existence and amount of the Commerce debt, the debtor may seek a review
of the terms of repayment. In
[[Page 12816]]
most cases, Commerce entities will provide the debtor with a ``paper
hearing'' based upon a review of the written record, including
documentation provided by the debtor. Commerce entities shall provide
the debtor with a reasonable opportunity for an oral hearing when the
debtor requests reconsideration of the Commerce debt and the Commerce
entity determines that the question of the indebtedness cannot be
resolved by review of the documentary evidence, for example, when the
validity of the Commerce debt turns on an issue of credibility or
veracity. Unless otherwise required by law, an oral hearing under this
section is not required to be a formal evidentiary hearing, although
Commerce entities should carefully document all significant matters
discussed at the hearing. Commerce entities may suspend collection
through administrative offset and/or other collection actions pending
the resolution of a debtor's dispute.
(d) Procedures for expedited offset. Under the circumstances
described in 31 CFR 901.3(b)(4)(iii), Commerce entities may, with legal
counsel approval, effect an offset against a payment to be made to the
debtor prior to sending a notice to the debtor, as described in Sec.
19.4 of this part, or completing the procedures described in paragraph
(b)(2) and (c) of this section. Commerce entities shall give the debtor
notice and an opportunity for review as soon as practicable and
promptly refund any money ultimately found not to have been owed to the
Government. (See Commerce Department Credit and Debt Management
Operating Standards and Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit.cover.html.)
Sec. 19.11 How will Commerce entities use tax refund offset to
collect a Commerce debt?
(a) Tax refund offset. In most cases, the Bureau of the Fiscal
Service uses the Treasury Offset Program to collect Commerce debts by
the offset of tax refunds and other Federal payments. See Sec. 19.9(c)
of this part. If not already transferred to the Bureau of the Fiscal
Service under Sec. 19.9 of this part, Commerce entities will refer to
the Treasury Offset Program any past-due, legally enforceable Commerce
debt for collection by tax refund offset. See 26 U.S.C. 6402(d), 31
U.S.C. 3720A and 31 CFR 285.2.
(b) Notice. At least sixty (60) days prior to referring a Commerce
debt to the Treasury Offset Program, Commerce entities will send notice
to the debtor in accordance with the requirements of Sec. 19.4 of this
part. Commerce entities will certify to the Bureau of the Fiscal
Service's Treasury Offset Program, in writing, that the Commerce debt
is past due and legally enforceable in the amount submitted and that
the Commerce entities have made reasonable efforts to obtain payment of
the Commerce debt as described in 31 CFR 285.2(d). In addition,
Commerce entities will certify their compliance with all applicable due
process and other requirements described in this part and other Federal
laws. See 31 U.S.C. 3720A(b) and 31 CFR 285.2.
(c) Administrative review. The notice described in Sec. 19.4 of
this part shall provide the debtor with at least 60 days prior to the
initiation of tax refund offset to request an administrative review as
described in Sec. 19.10(c) of this part. Commerce entities may suspend
collection through tax refund offset and/or other collection actions
pending the resolution of the debtor's dispute.
Sec. 19.12 How will Commerce entities offset a Federal employee's
salary to collect a Commerce debt?
(a) Federal salary offset. (1) Salary offset is used to collect
debts owed to the United States by Commerce Department and other
Federal employees. If a Federal employee owes a Commerce debt, Commerce
entities may offset the employee's Federal salary to collect the
Commerce debt in the manner described in this section. For information
on how a Federal agency other than a Commerce entity may collect debt
from the salary of a Commerce Department employee, see Sec. Sec. 19.20
and 19.21, subpart C, of this part.
(2) Nothing in this part requires a Commerce entity to collect a
Commerce debt in accordance with the provisions of this section if
Federal law allows otherwise. See, for example, 5 U.S.C. 5705 (travel
advances not used for allowable travel expenses are recoverable from
the employee or his estate by setoff against accrued pay and other
means) and 5 U.S.C. 4108 (recovery of training expenses).
(3) Commerce entities may use the administrative wage garnishment
procedure described in Sec. 19.13 of this part to collect a Commerce
debt from an individual's non-Federal wages.
(b) Centralized salary offset through the Treasury Offset Program.
As described in Sec. 19.9(a) of this part, Commerce entities will
refer Commerce debts to the Bureau of the Fiscal Service for collection
by administrative offset, including salary offset, through the Treasury
Offset Program. When possible, Commerce entities should attempt salary
offset through the Treasury Offset Program before applying the
procedures in paragraph (c) of this section. See 5 CFR 550.1108 and
550.1109.
(c) Non-centralized salary offset for Commerce debts. When
centralized salary offset through the Treasury Offset Program is not
available or appropriate, Commerce entities may collect delinquent
Commerce debts through non-centralized salary offset. See 5 CFR
550.1109. In these cases, Commerce entities may offset a payment
internally or make a request directly to a Federal payment agency to
offset a salary payment to collect a delinquent Commerce debt owed by a
Federal employee. If the Federal payment agency is another Commerce
entity, the Commerce entity making the request shall do so through the
Deputy Chief Financial Officer as described in Sec. 19.20(c) of this
part. At least thirty (30) days prior to offsetting internally or
requesting a Federal agency to offset a salary payment, Commerce
entities will send notice to the debtor in accordance with the
requirements of Sec. 19.4 of this part. When referring a Commerce debt
for offset, Commerce entities will certify to the payment agency, in
writing, that the Commerce debt is valid, delinquent and legally
enforceable in the amount stated, and there are no legal bars to
collection by salary offset. In addition, Commerce entities will
certify that all due process and other prerequisites to salary offset
have been met. See 5 U.S.C. 5514, 31 U.S.C. 3716(a), and this section
for a description of the due process and other prerequisites for salary
offset.
(d) When prior notice not required. Commerce entities are not
required to provide prior notice to an employee when the following
adjustments are made by a Commerce entity to a Commerce employee's pay:
(1) Any adjustment to pay arising out of any employee's election of
coverage or a change in coverage under a Federal benefits program
requiring periodic deductions from pay, if the amount to be recovered
was accumulated over four pay periods or less;
(2) A routine intra-agency adjustment of pay that is made to
correct an overpayment of pay attributable to clerical or
administrative errors or delays in processing pay documents, if the
overpayment occurred within the four pay periods preceding the
adjustment, and, at the time of such adjustment, or as soon thereafter
as practical, the individual is provided written notice of the nature
and the amount of the adjustment and point of contact for contesting
such adjustment; or
[[Page 12817]]
(3) Any adjustment to collect a Commerce debt amounting to $50 or
less, if, at the time of such adjustment, or as soon thereafter as
practical, the individual is provided written notice of the nature and
the amount of the adjustment and a point of contact for contesting such
adjustment.
(e) Hearing procedures. (1) Request for a hearing. A Federal
employee who has received a notice that his or her Commerce debt will
be collected by means of salary offset may request a hearing concerning
the existence or amount of the Commerce debt. The Federal employee also
may request a hearing concerning the amount proposed to be deducted
from the employee's pay each pay period. The employee must send any
request for hearing, in writing, to the office designated in the notice
described in Sec. 19.4. See Sec. 19.4(a)(11). The request must be
received by the designated office on or before the 15th day following
the employee's receipt of the notice. The employee must sign the
request and specify whether an oral or paper hearing is requested. If
an oral hearing is requested, the employee must explain why the matter
cannot be resolved by review of the documentary evidence alone. All
travel expenses incurred by the Federal employee in connection with an
in-person hearing will be borne by the employee. See 31 CFR
901.3(a)(7).
(2) Failure to submit timely request for hearing. If the employee
fails to submit a request for hearing within the time period described
in paragraph (e)(1) of this section, the employee will have waived the
right to a hearing, and salary offset may be initiated. However,
Commerce entities should accept a late request for hearing if the
employee can show that the late request was the result of circumstances
beyond the employee's control or because of a failure to receive actual
notice of the filing deadline.
(3) Hearing official. Commerce entities must obtain the services of
a hearing official who is not under the supervision or control of the
Secretary. Commerce entities may contact the Deputy Chief Financial
Officer as described in Sec. 19.20(c) of this part or an agent of any
Commerce agency designated in Appendix A to 5 CFR part 581 (List of
Agents Designated to Accept Legal Process) to request a hearing
official.
(4) Notice of hearing. After the employee requests a hearing, the
designated hearing official shall inform the employee of the form of
the hearing to be provided. For oral hearings, the notice shall set
forth the date, time and location of the hearing. For paper hearings,
the notice shall notify the employee of the date by which he or she
should submit written arguments to the designated hearing official. The
hearing official shall give the employee reasonable time to submit
documentation in support of the employee's position. The hearing
official shall schedule a new hearing date if requested by both
parties. The hearing official shall give both parties reasonable notice
of the time and place of a rescheduled hearing.
(5) Oral hearing. The hearing official will conduct an oral hearing
if he or she determines that the matter cannot be resolved by review of
documentary evidence alone (for example, when an issue of credibility
or veracity is involved). The hearing need not take the form of an
evidentiary hearing, but may be conducted in a manner determined by the
hearing official, including but not limited to:
(i) Informal conferences with the hearing official, in which the
employee and agency representative will be given full opportunity to
present evidence, witnesses and argument;
(ii) Informal meetings with an interview of the employee by the
hearing official; or
(iii) Formal written submissions, with an opportunity for oral
presentation.
(6) Paper hearing. If the hearing official determines that an oral
hearing is not necessary, he or she will make the determination based
upon a review of the available written record, including any
documentation submitted by the employee in support of his or her
position. See 31 CFR 901.3(a)(7).
(7) Failure to appear or submit documentary evidence. In the
absence of good cause shown (for example, excused illness), if the
employee fails to appear at an oral hearing or fails to submit
documentary evidence as required for a paper hearing, the employee will
have waived the right to a hearing, and salary offset may be initiated.
Further, the employee will have been deemed to admit the existence and
amount of the Commerce debt as described in the notice of intent to
offset. If the Commerce entity representative fails to appear at an
oral hearing, the hearing official shall proceed with the hearing as
scheduled, and make his or her determination based upon the oral
testimony presented and the documentary evidence submitted by both
parties.
(8) Burden of proof. Commerce entities will have the initial burden
to prove the existence and amount of the Commerce debt. Thereafter, if
the employee disputes the existence or amount of the Commerce debt, the
employee must prove by a preponderance of the evidence that no such
Commerce debt exists or that the amount of the Commerce debt is
incorrect. In addition, the employee may present evidence that the
proposed terms of the repayment schedule are unlawful, would cause a
financial hardship to the employee, or that collection of the Commerce
debt may not be pursued due to operation of law.
(9) Record. The hearing official shall maintain a summary record of
any hearing provided by this part. Witnesses will testify under oath or
affirmation in oral hearings. See 31 CFR 901.3(a)(7).
(10) Date of decision. The hearing official shall issue a written
opinion stating his or her decision, based upon documentary evidence
and information developed at the hearing, as soon as practicable after
the hearing, but not later than 60 days after the date on which the
request for hearing was received by the Commerce entity. If the
employee requests a delay in the proceedings, the deadline for the
decision may be postponed by the number of days by which the hearing
was postponed. When a decision is not timely rendered, the Commerce
entity shall waive interest and penalties applied to the Commerce debt
for the period beginning with the date the decision is due and ending
on the date the decision is issued.
(11) Content of decision. The written decision shall include:
(i) A statement of the facts presented to support the origin,
nature, and amount of the Commerce debt;
(ii) The hearing official's findings, analysis, and conclusions;
and
(iii) The terms of any repayment schedules, if applicable.
(12) Final agency action. The hearing official's decision shall be
final.
(f) Waiver not precluded. Nothing in this part precludes an
employee from requesting waiver of an overpayment under 5 U.S.C. 5584
or 8346(b), 10 U.S.C. 2774, 32 U.S.C. 716, or other statutory
authority. Commerce entities may grant such waivers when it would be
against equity and good conscience or not in the United States' best
interest to collect such Commerce debts, in accordance with those
authorities, 5 CFR 550.1102(b)(2), and Commerce policies and
procedures. (See Commerce Department Credit and Debt Management
Operating Standards and Procedures Handbook, available at https://www.osec.doc.gov/ofm/credit/cover.html.)
(g) Salary offset process--(1) Determination of disposable pay. The
Deputy Chief Financial Officer will consult with the appropriate
Commerce
[[Page 12818]]
entity payroll office to determine the amount of a Commerce Department
employee's disposable pay (as defined in Sec. 19.1 of this part) and
will implement salary offset when requested to do so by a Commerce
entity, as described in paragraph (c) of this section, or another
agency, as described in Sec. 19.20 of this part. If the debtor is not
employed by Commerce Department, the agency employing the debtor will
determine the amount of the employee's disposable pay and will
implement salary offset upon request.
(2) When salary offset begins. Deductions shall begin within three
official pay periods following receipt of the creditor agency's request
for offset.
(3) Amount of salary offset. The amount to be offset from each
salary payment will be up to 15 percent of a debtor's disposable pay,
as follows:
(i) If the amount of the Commerce debt is equal to or less than 15
percent of the disposable pay, such Commerce debt generally will be
collected in one lump sum payment;
(ii) Installment deductions will be made over a period of no
greater than the anticipated period of employment. An installment
deduction will not exceed 15 percent of the disposable pay from which
the deduction is made unless the employee has agreed in writing to the
deduction of a greater amount or the creditor agency has determined
that smaller deductions are appropriate based on the employee's ability
to pay.
(4) Final salary payment. After the employee has separated either
voluntarily or involuntarily from the payment agency, the payment
agency may make a lump sum deduction exceeding 15 percent of disposable
pay from any final salary or other payments pursuant to 31 U.S.C. 3716
in order to satisfy a Commerce debt.
(h) Payment agency's responsibilities. (1) As required by 5 CFR
550.1109, if the employee separates from the payment agency from which
a Commerce entity has requested salary offset, the payment agency must
certify the total amount of its collection and notify the Commerce
entity and the employee of the amounts collected. If the payment agency
is aware that the employee is entitled to payments from the Civil
Service Retirement Fund and Disability Fund, the Federal Employee
Retirement System, or other similar payments, it must provide written
notification to the payment agency responsible for making such payments
that the debtor owes a Commerce debt, the amount of the Commerce debt,
and that the Commerce entity has complied with the provisions of this
section. Commerce entities must submit a properly certified claim to
the new payment agency before the collection can be made.
(2) If the employee is already separated from employment and all
payments due from his or her former payment agency have been made,
Commerce entities may request that money due and payable to the
employee from the Civil Service Retirement Fund and Disability Fund,
the Federal Employee Retirement System, or other similar funds, be
administratively offset to collect the Commerce debt. Generally,
Commerce entities will collect such monies through the Treasury Offset
Program as described in Sec. 19.9(c) of this part.
(3) When an employee transfers to another agency, Commerce entities
should resume collection with the employee's new payment agency in
order to continue salary offset.
Sec. 19.13 How will Commerce entities use administrative wage
garnishment to collect a Commerce debt from a debtor's wages?
(a) Commerce entities are authorized to collect Commerce debts from
an individual debtor's wages by means of administrative wage
garnishment in accordance with the requirements of 31 U.S.C. 3720D and
31 CFR 285.11. This part adopts and incorporates all of the provisions
of 31 CFR 285.11 concerning administrative wage garnishment, including
the hearing procedures described in 31 CFR 285.11(f). Commerce entities
may use administrative wage garnishment to collect a delinquent
Commerce debt unless the debtor is making timely payments under an
agreement to pay the Commerce debt in installments (see Sec. 19.6 of
this part). At least thirty (30) days prior to initiating an
administrative wage garnishment, Commerce entities will send notice to
the debtor in accordance with the requirements of Sec. 19.4 of this
part, including the requirements of Sec. 19.4(a)(10) of this part. For
Commerce debts referred to the Bureau of the Fiscal Service under Sec.
19.9 of this part, Commerce entities may authorize the Bureau of the
Fiscal Service to send a notice informing the debtor that
administrative wage garnishment will be initiated and how the debtor
may request a hearing as described in Sec. 19.4(a)(10) of this part.
If a debtor makes a timely request for a hearing, administrative wage
garnishment will not begin until a hearing is held and a decision is
sent to the debtor. See 31 CFR 285.11(f)(4). Even if a debtor's hearing
request is not timely, Commerce entities may suspend collection by
administrative wage garnishment in accordance with the provisions of 31
CFR 285.11(f)(5). All travel expenses incurred by the debtor in
connection with an in-person hearing will be borne by the debtor.
(b) This section does not apply to Federal salary offset, the
process by which Commerce entities collect Commerce debts from the
salaries of Federal employees (see Sec. 19.12 of this part).
Sec. 19.14 How will Commerce entities report Commerce debts to credit
bureaus?
Commerce entities shall report delinquent Commerce debts to credit
bureaus in accordance with the provisions of 31 U.S.C. 3711(e), 31 CFR
901.4, and the Office of Management and Budget Circular A-129,
``Policies for Federal Credit Programs and Non-tax Receivables.'' For
additional information, see Bureau of the Fiscal Service's ``Guide to
the Federal Credit Bureau Program,'' available at https://www.fiscal.treasury.gov/fsreports/fs_reference.htm. At least sixty (60)
days prior to reporting a delinquent Commerce debt to a consumer
reporting agency, Commerce entities will send notice to the debtor in
accordance with the requirements of Sec. 19.4 of this part. Commerce
entities may authorize the Bureau of the Fiscal Service to report to
credit bureaus those delinquent Commerce debts that have been
transferred to the Bureau of the Fiscal Service under Sec. 19.9 of
this part.
Sec. 19.15 How will Commerce entities refer Commerce debts to private
collection agencies?
Commerce entities will transfer delinquent Commerce debts to the
Bureau of the Fiscal Service to obtain debt collection services
provided by private collection agencies. See Sec. 19.9 of this part.
Sec. 19.16 When will Commerce entities refer Commerce debts to the
Department of Justice?
(a) Compromise or suspension or termination of collection activity.
Commerce entities shall refer Commerce debts having a principal balance
over $100,000, or such higher amount as authorized by the Attorney
General, to the Department of Justice for approval of any compromise of
a Commerce debt or suspension or termination of collection activity.
See Sec. Sec. 19.7 and 19.8 of this part; 31 CFR 902.1; 31 CFR 903.1.
(b) Litigation. Commerce entities shall promptly refer to the
Department of Justice for litigation delinquent Commerce debts on which
aggressive collection activity has been taken in accordance with this
part and that should not be compromised, and on
[[Page 12819]]
which collection activity should not be suspended or terminated. See 31
CFR part 904. Commerce entities may authorize the Bureau of the Fiscal
Service to refer to the Department of Justice for litigation those
delinquent Commerce debts that have been transferred to the Bureau of
the Fiscal Service under Sec. 19.9 of this part.
Sec. 19.17 Will a debtor who owes a Commerce or other Federal agency
debt, and persons controlled by or controlling such debtors, be
ineligible for Federal loan assistance, grants, cooperative agreements,
or other sources of Federal funds or for Federal licenses, permits, or
privileges?
(a) Delinquent debtors are ineligible for and barred from obtaining
Federal loans or loan insurance or guaranties. As required by 31 U.S.C.
3720B and 31 CFR 901.6, Commerce entities will not extend financial
assistance in the form of a loan, loan guarantee, or loan insurance to
any person delinquent on a debt owed to a Federal agency. Commerce
Department may issue standards under which Commerce Department may
determine that persons controlled by or controlling such delinquent
debtors are similarly ineligible in accordance with 31 CFR
285.13(c)(2). This prohibition does not apply to disaster loans.
Commerce entities may extend credit after the delinquency has been
resolved. See 31 CFR 285.13. Waivers of ineligibility may be granted by
the Secretary or designee on a person by person basis in accordance
with 31 CFR 285.13(g). However, such authority may not be delegated
below the Deputy Chief Financial Officer.
(b) A debtor who has a judgment lien against the debtor's property
for a debt to the United States is not eligible to receive grants,
loans or funds directly or indirectly from the United States until the
judgment is paid in full or otherwise satisfied. This prohibition does
not apply to funds to which the debtor is entitled as beneficiary.
Commerce Department may promulgate regulations to allow for waivers of
this ineligibility. See 28 U.S.C. 3201(e).
(c) Suspension or revocation of eligibility for licenses, permits,
or privileges. Unless prohibited by law, Commerce entities with the
authority to do so under the circumstances should deny, suspend or
revoke licenses, permits, or other privileges for any inexcusable or
willful failure of a debtor to pay a debt. The Commerce entity
responsible for distributing the licenses, permits, or other privileges
will establish policies and procedures governing suspension and
revocation for delinquent debtors. If applicable, Commerce entities
will advise the debtor in the notice required by Sec. 19.4 of this
part of the Commerce entities' ability to deny, suspend or revoke
licenses, permits or privileges. See Sec. 19.4(a)(16) of this part.
(d) To the extent that a person delinquent on a Commerce debt is
not otherwise barred under Sec. 19.17(a) and Sec. 19.17 (c) of this
part from becoming or remaining a recipient of a Commerce Department
grant or cooperative agreement, it is Commerce Department policy that
no award of Federal funds shall be made to a Commerce Department grant
or cooperative agreement applicant who has an outstanding delinquent
Commerce debt until:
(1) The delinquent Commerce debt is paid in full,
(2) A negotiated repayment schedule acceptable to Commerce
Department is established and at least one payment is received, or
(3) Other arrangements satisfactory to Commerce Department are
made.
Sec. 19.18 How does a debtor request a special review based on a
change in circumstances such as catastrophic illness, divorce, death,
or disability?
(a) Material change in circumstances. A debtor who owes a Commerce
debt may, at any time, request a special review by the applicable
Commerce entity of the amount of any offset, administrative wage
garnishment, or voluntary payment, based on materially changed
circumstances beyond the control of the debtor such as, but not limited
to, catastrophic illness, divorce, death, or disability.
(b) Inability to pay. For purposes of this section, in determining
whether an involuntary or voluntary payment would prevent the debtor
from meeting essential subsistence expenses (e.g., costs incurred for
food, housing, clothing, transportation, and medical care), the debtor
shall submit a detailed statement and supporting documents for the
debtor, his or her spouse, and dependents, indicating:
(1) Income from all sources;
(2) Assets;
(3) Liabilities;
(4) Number of dependents;
(5) Expenses for food, housing, clothing, and transportation;
(6) Medical expenses;
(7) Exceptional expenses, if any; and
(8) Any additional materials and information that the Commerce
entity may request relating to ability or inability to pay the
amount(s) currently required.
(c) Alternative payment arrangement. If the debtor requests a
special review under this section, the debtor shall submit an
alternative proposed payment schedule and a statement to the Commerce
entity collecting the Commerce debt, with supporting documents, showing
why the current offset, garnishment or repayment schedule imposes an
extreme financial hardship on the debtor. The Commerce entity will
evaluate the statement and documentation and determine whether the
current offset, garnishment, or repayment schedule imposes extreme
financial hardship on the debtor. The Commerce entity shall notify the
debtor in writing of such determination, including, if appropriate, a
revised offset, garnishment, or payment schedule. If the special review
results in a revised offset, garnishment, or repayment schedule, the
Commerce entity will notify the appropriate Federal agency or other
persons about the new terms.
Sec. 19.19 Will Commerce entities issue a refund if money is
erroneously collected on a Commerce debt?
Commerce entities shall promptly refund to a debtor any amount
collected on a Commerce debt when the Commerce debt is waived or
otherwise found not to be owed to the United States, or as otherwise
required by law. Refunds under this part shall not bear interest unless
required by law.
Subpart C--Procedures for Offset of Commerce Department Payments To
Collect Debts Owed to Other Federal Agencies
Sec. 19.20 How do other Federal agencies use the offset process to
collect debts from payments issued by a Commerce entity?
(a) Offset of Commerce entity payments to collect debts owed to
other Federal agencies. (1) In most cases, Federal agencies submit
debts to the Treasury Offset Program to collect delinquent debts from
payments issued by Commerce entities and other Federal agencies, a
process known as ``centralized offset.'' When centralized offset is not
available or appropriate, any Federal agency may ask a Commerce entity
(when acting as a ``payment agency'') to collect a debt owed to such
agency by offsetting funds payable to a debtor by the Commerce entity,
including salary payments issued to Commerce entity employees. This
section and Sec. 19.21 of this subpart C apply when a Federal agency
asks a Commerce entity to offset a payment issued by the Commerce
entity to a person who owes a debt to the United States.
(2) This subpart C does not apply to Commerce debts. See Sec. Sec.
19.10 through
[[Page 12820]]
19.12 of this part for offset procedures applicable to Commerce debts.
(3) This subpart C does not apply to the collection of non-Commerce
debts through tax refund offset. See 31 CFR 285.2 for tax refund offset
procedures.
(b) Administrative offset (including salary offset); certification.
A Commerce entity will initiate a requested offset only upon receipt of
written certification from the creditor agency that the debtor owes the
past-due, legally enforceable debt in the amount stated, and that the
creditor agency has fully complied with all applicable due process and
other requirements contained in 31 U.S.C. 3716, 5 U.S.C. 5514, and the
creditor agency's regulations, as applicable. Offsets will continue
until the debt is paid in full or otherwise resolved to the
satisfaction of the creditor agency.
(c) Where a creditor agency makes requests for offset. Requests for
offset under this section shall be sent to the Department of Commerce,
ATTN: Deputy Chief Financial Officer, 1401 Constitution Avenue NW.,
Room D200, Washington, DC 20230. The Deputy Chief Financial Officer
will forward the request to the appropriate Commerce entity for
processing in accordance with this subpart C.
(d) Incomplete certification. A Commerce entity will return an
incomplete debt certification to the creditor agency with notice that
the creditor agency must comply with paragraph (b) of this section
before action will be taken to collect a debt from a payment issued by
a Commerce entity.
(e) Review. A Commerce entity is not authorized to review the
merits of the creditor agency's determination with respect to the
amount or validity of the debt certified by the creditor agency.
(f) When Commerce entities will not comply with offset request. A
Commerce entity will comply with the offset request of another agency
unless the Commerce entity determines that the offset would not be in
the best interests of the United States, or would otherwise be contrary
to law.
(g) Multiple debts. When two or more creditor agencies are seeking
offsets from payments made to the same person, or when two or more
debts are owed to a single creditor agency, the Commerce entity that
has been asked to offset the payments may determine the order in which
the debts will be collected or whether one or more debts should be
collected by offset simultaneously.
(h) Priority of debts owed to Commerce entity. For purposes of this
section, debts owed to a Commerce entity generally take precedence over
debts owed to other agencies. The Commerce entity that has been asked
to offset the payments may determine whether to pay debts owed to other
agencies before paying a debt owed to a Commerce entity. The Commerce
entity that has been asked to offset the payments will determine the
order in which the debts will be collected based on the best interests
of the United States.
Sec. 19.21 What does a Commerce entity do upon receipt of a request
to offset the salary of a Commerce entity employee to collect a debt
owed by the employee to another Federal agency?
(a) Notice to the Commerce employee. When a Commerce entity
receives proper certification of a debt owed by one of its employees,
the Commerce entity will begin deductions from the employee's pay at
the next officially established pay interval. The Commerce entity will
send a written notice to the employee indicating that a certified debt
claim has been received from the creditor agency, the amount of the
debt claimed to be owed by the creditor agency, the date deductions
from salary will begin, and the amount of such deductions.
(b) Amount of deductions from Commerce employee's salary. The
amount deducted under Sec. 19.20(b) of this part will be the lesser of
the amount of the debt certified by the creditor agency or an amount up
to 15 percent of the debtor's disposable pay. Deductions shall continue
until the Commerce entity knows that the debt is paid in full or until
otherwise instructed by the creditor agency. Alternatively, the amount
offset may be an amount agreed upon, in writing, by the debtor and the
creditor agency. See Sec. 19.12(g) (salary offset process).
(c) When the debtor is no longer employed by the Commerce entity--
(1) Offset of final and subsequent payments. If a Commerce entity
employee retires or resigns or if his or her employment ends before
collection of the debt is complete, the Commerce entity will continue
to offset, under 31 U.S.C. 3716, up to 100 percent of an employee's
subsequent payments until the debt is paid or otherwise resolved. Such
payments include a debtor's final salary payment, lump-sum leave
payment, and other payments payable to the debtor by the Commerce
entity. See 31 U.S.C. 3716 and 5 CFR 550.1104(l) and 550.1104(m).
(2) Notice to the creditor agency. If the employee is separated
from the Commerce entity before the debt is paid in full, the Commerce
entity will certify to the creditor agency the total amount of its
collection. If the Commerce entity is aware that the employee is
entitled to payments from the Civil Service Retirement and Disability
Fund, Federal Employee Retirement System, or other similar payments,
the Commerce entity will provide written notice to the agency making
such payments that the debtor owes a debt (including the amount) and
that the provisions of 5 CFR 550.1109 have been fully complied with.
The creditor agency is responsible for submitting a certified claim to
the agency responsible for making such payments before collection may
begin. Generally, creditor agencies will collect such monies through
the Treasury Offset Program as described in Sec. 19.9(c) of this part.
(3) Notice to the debtor. The Commerce entity will provide to the
debtor a copy of any notices sent to the creditor agency under
paragraph (c)(2) of this section.
(d) When the debtor transfers to another Federal agency--(1) Notice
to the creditor agency. If the debtor transfers to another Federal
agency before the debt is paid in full, the Commerce entity will notify
the creditor agency and will certify the total amount of its collection
on the debt. The Commerce entity will provide a copy of the
certification to the creditor agency. The creditor agency is
responsible for submitting a certified claim to the debtor's new
employing agency before collection may begin.
(2) Notice to the debtor. The Commerce entity will provide to the
debtor a copy of any notices and certifications sent to the creditor
agency under paragraph (d)(1) of this section.
(e) Request for hearing official. A Commerce entity will provide a
hearing official upon the creditor agency's request with respect to a
Commerce entity employee. See 5 CFR 550.1107(a).
[FR Doc. 2016-05341 Filed 3-10-16; 8:45 am]
BILLING CODE 3510-DP-P