[Federal Register Volume 60, Number 155 (Friday, August 11, 1995)]
[Rules and Regulations]
[Pages 41016-41017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19876]



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DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 20


Federal Claims Collection; Collection of Debts by Federal Income 
Tax Refund Offset

AGENCY: Office of the Secretary, Labor.

ACTION: Final rule; interim rule adopted as final with changes.

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SUMMARY: The Department of Labor is completing its rulemaking to 
implement the requirement of the Cash Management Improvement Act 
Amendments of 1992 that Federal agencies refer delinquent debt to the 
Internal Revenue Service (IRS) for collection by offset from a Federal 
income tax refund that may be due to the delinquent debtor. These 
regulations are necessary for the Department's participation in the IRS 
offset program. The IRS offset program has proven to be a cost-
effective mechanism for collection of delinquent debt.

EFFECTIVE DATE: These regulations are effective September 11, 1995.

FOR FURTHER INFORMATION CONTACT:
Robert Barnhard, Division of Planning and Internal Control, Office of 
Financial Integrity, Office of the Chief Financial Officer, Department 
of Labor, Room S-4502, 200 Constitution Avenue, NW., Washington, DC 
20210, telephone number 202/219-8184.

SUPPLEMENTARY INFORMATION: In 1992 the Congress passed and the 
President signed into law the Cash Management Improvement Act 
Amendments of 1992, which requires Federal agencies to participate in 
the IRS income tax refund offset program. On September 15, 1994 the 
Department of Labor published in the Federal Register an interim rule 
with request for comments implementing the IRS income tax refund offset 
program. The interim rule established a new Subpart E which specifies 
the procedures the Department of Labor will follow with regard to 
referral by its constituent offices, administrations and bureaus of 
past-due legally enforceable debts to IRS for collection by income tax 
refund offset.
    The interim rule also established a new title for 29 CFR part 20: 
Federal Claims Collection. In addition to the new subpart E, part 20 
contains the Department's regulations implementing the Debt Collection 
Act of 1982 (DCA). Subpart A implements the credit reporting provisions 
of the DCA; Subpart B, adminstrative offset; Subpart C, assessment of 
interest, penalties and administrative costs; and Subpart D, salary 
offset.
    No comments were received in response to the notice of interim 
rulemaking with request for comments. Comments were to be submitted on 
or before November 14, 1994. However, two changes are made with the 
adoption of the interim rule as final due to changes in IRS 
requirements for participation in the offset program. In Sec. 20.105 
the specified minimum amounts for individual debts and business debts 
otherwise eligible for referral have been deleted. Section 10.106(b) is 
amended to delete reference to the requirement that business debts be 
referred to a commercial credit reporting agency.

Publication in Final

    The Department of Labor has determined pursuant to 5 U.S.C. 
553(b)(B) that good cause exists for waiving public comment on the 
changes to Sec. 20.105 and Sec. 20.106(b) set forth in this document. 
These changes merely reflect the change or elimination of certain IRS 
requirements for participation in the offset program. Therefore, public 
comment is unnecessary.

Executive Order 12866

    This final rule is not classified as a ``significant rule'' under 
Executive Order 12866 on Federal regulations, because it will not 
result in (1) an annual effect on the economy of $100 million or more; 
(2) a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or (3) significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign-based enterprises in 
domestic or foreign markets. Accordingly, no regulatory impact 
assessment is required.
Regulatory Flexibility Act

    Because no notice of proposed rulemaking has occurred during this 
rulemaking, the requirements of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) pertaining to regulatory analyses do not apply.

Paperwork Reduction Act

    This final rule is not subject to Section 3504(h) of the Paperwork 
Reduction Act (44 U.S.C. 3501) since it does not contain any new 
information collection requirements.

List of Subjects in 19 CFR Part 20

    Government employees, Loan programs, Credit, Administrative 
practice and procedure, Claims.

    Accordingly, the interim rule amending part 20 of title 29 of the 
Code of Federal Regulations which was published at 59 FR 47249 on 
September 15, 1994 is adopted as a final rule with the following 
changes:

PART 20--FEDERAL CLAIMS COLLECTION

    1. The authority citation for Part 20 continues to read as follows:

    Authority: 31 U.S.C. 3711 et seq.; Subpart D is also issued 
under 5 U.S.C. 5514; Subpart E is also issued under 31 U.S.C. 3720A.

    2. Section 20.105 is revised to read as follows:

[[Page 41017]]



Sec. 20.105  Minimum referral amount.

    The IRS annually establishes the minimum amount for debts otherwise 
eligible for referral. Minimum referral amounts are established 
separately for individual debts and business debts, as set forth in the 
memorandum of understanding. The amount referred may include the 
principal portion of the debt, as well as any accrued interest, 
penalties and/or administrative cost charges.
    3. Section 20.106(b) is revised to read as follows:


Sec. 20.106  Relation to other collection efforts.

* * * * *
    (b) The debts of individuals of $100 or more will be reported to a 
consumer credit reporting agency before referral for tax refund offset.
* * * * *
    Signed at Washington, DC, this 27th day of July, 1995.
Robert B. Reich,
Secretary of Labor.
[FR Doc. 95-19876 Filed 8-10-95; 8:45 am]
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