[Federal Register Volume 62, Number 76 (Monday, April 21, 1997)]
[Rules and Regulations]
[Pages 19219-19220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10191]


=======================================================================
-----------------------------------------------------------------------

RAILROAD RETIREMENT BOARD

20 CFR Part 367

RIN 3220-AB26


Collection of Debts

AGENCY: Railroad Retirement Board.

ACTION: Interim final rule.

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

SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
pertaining to the collection of debts by offset against Federal 
payments to reflect amendments to section 3716 of Title 31 by the Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134).

DATES: Effective Date: This regulation will be effective April 21, 
1997.
    Comment Date: Comments due on or before June 20, 1997.

ADDRESSES: Comments may be mailed to the Secretary to the Board, 
Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 
60611.

FOR FURTHER INFORMATION CONTACT: Ann L. Chaney, General Attorney, 
Bureau of Law, Railroad Retirement Board, 844 North Rush Street, 
Chicago, Illinois 60611, (312) 751-7131, TDD (312) 751-4701.

SUPPLEMENTARY INFORMATION: Part 367 of the Board's regulations provides 
for the collection of debts by administrative offset under the 
authority of the Debt Collection Act of 1982, 31 U.S.C. 3716. The Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134) amended 31 U.S.C. 
3716 to provide for referral of delinquent Federal nontax debts to the 
Department of Treasury for administrative offset (``Treasury Offset 
Program''), and to provide for the mandatory referral of such debts 
over 180 days delinquent to the Treasury Offset Program, subject to 
certain exceptions. Accordingly, the Board amends this part to 
implement the provisions of Pub. L. 104-134.
    Section 367.1 is revised to cite the authority of Pub. L. 104-134 
and its provision for the referral of delinquent Federal nontax debts 
to the Treasury Offset Program.

[[Page 19220]]

    Section 367.2 is amended to provide that only nontax debts will be 
referred to the Treasury Offset Program, and that a debt will not be 
referred if the Board's records show that foreclosure is pending on 
collateral securing the debt or if the debt has been referred to the 
Department of Justice or is otherwise in litigation with the Board.
    Section 367.3 is amended to provide that the Board shall refer 
nontax debts over 180 days delinquent to the Treasury Offset Program 
and that in cases of mandatory referral of delinquent debt, unless 
otherwise directed by the Secretary of Treasury, the Board is not 
required to determine whether administrative offset is feasible, 
allowable, and appropriate.
    Because all Federal agencies must comply with the Debt Collection 
Improvement Act of 1996, the Board is publishing this rule as an 
interim final rule rather than as a proposed rule. However, any person 
wishing to comment on this rule may do so within 60 days of the date of 
this publication in the Federal Register.
    The Board, with the concurrence of the Office of Management and 
Budget, has determined that this is not a significant regulatory action 
under Executive Order 12866. Therefore, no regulatory impact analysis 
is required. There are no new information collections associated with 
this rule.

List of Subjects in 20 CFR Part 367

    Railroad employees, Railroad retirement, Railroad unemployment 
insurance.

    For the reasons set out in the preamble, part 367 of title 20, 
chapter II of the Code of Federal Regulations is amended as follows:

PART 367--RECOVERY OF DEBTS OWED TO THE UNITED STATES GOVERNMENT BY 
ADMINISTRATIVE OFFSET

    1. The authority citation for part 367 continues to read as 
follows:

    Authority: 45 U.S.C. 231f(b)(5); 31 U.S.C. 3716.

    2. Section 367.1 is revised to read as follows:


Sec. 367.1  Purpose and scope.

    The regulations in this part establish procedures to implement the 
Debt Collection Act of 1982 (Pub. L. 97-365), as amended by the Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134), 31 U.S.C. 3716. 
The statute authorizes the Board to collect a claim arising under an 
agency program by means of administrative offset, and requires the 
Board to refer nontax debts over 180 days delinquent to the Department 
of Treasury for administrative offset (the ``Treasury Offset 
Program''). No claim may be collected by such means if outstanding for 
more than 10 years after the Board's right to collection of the debt 
first accrued, unless facts material to the Government's right to 
collect the debt were not known and could not reasonably have been 
known by the official or officials of the government who were charged 
with the responsibility to discover and collect such debts. This part 
specifies the agency procedures that will be followed by the Board for 
referral and collection by administrative offset.
    3. Section 367.2 is amended by revising paragraph (a), the 
introductory text of paragraph (f), paragraphs (f)(2) and (j), and by 
adding new paragraphs (f)(3) and (k) to read as follows:


Sec. 367.2  Past-due legally enforceable debt.

* * * * *
    (a) Which arose under any statute administered by the Board or 
under any contract; and with respect to debts referred to the 
Department of Treasury, is a nontax debt;
* * * * *
    (f) With respect to which:
* * * * *
    (2) The Board can clearly establish at the time of the referral 
that the automatic stay under section 362 of the Bankruptcy Code has 
been lifted or is no longer in effect with respect to the debtor (or, 
if an individual, his or her spouse) and the debt was not discharged in 
the bankruptcy proceeding; or
    (3) The Board's records do not contain evidence that foreclosure is 
pending on collateral securing the debt.
* * * * *
    (j) With respect to which the Board has given the debtor at least 
60 days from the date of the notification required in paragraph (i) of 
this section to present evidence that all or part of the debt is not 
past due or legally enforceable, has considered evidence, if any, 
presented by the debtor, and has determined that the amount of such 
debt is past due and legally enforceable; and
    (k) Which has not been referred to the Department of Justice or 
which is not otherwise in litigation with the Board.
    4. Section 367.3 is amended by revising paragraphs (a) and (b) and 
the first sentence of paragraph (c) to read as follows:


Sec. 367.3  Board responsibilities.

    (a) The Board may delegate to an employee or employees the 
responsibility for collecting any claims owed the Board by means of 
administrative offset, except that all nontax debts over 180 days 
delinquent shall be referred to the Department of Treasury for 
administrative offset through the Treasury Offset Program as required 
by 31 U.S.C. 3716;
    (b) Except for mandatory referral of claims to the Department of 
Treasury or as otherwise directed by the Secretary of Treasury, before 
collecting a claim by means of administrative offset, the Board must 
ensure that administrative offset is feasible, allowable, and 
appropriate, and must notify the debtor of the Board's policies for 
collecting a claim by means of administrative offset.
    (c) Except for mandatory referral of claims to the Department of 
Treasury or as otherwise directed by the Secretary of Treasury, whether 
collection by administrative offset is feasible is a determination to 
be made on a case-by-case basis, in the exercise of its sound 
discretion. * * *
* * * * *
    Dated: April 10, 1997.

    By Authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 97-10191 Filed 4-18-97; 8:45 am]
BILLING CODE 7905-01-P