[Federal Register Volume 66, Number 194 (Friday, October 5, 2001)]
[Proposed Rules]
[Pages 50860-50870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25000]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 66, No. 194 / Friday, October 5, 2001 / 
Proposed Rules  

[[Page 50860]]



NUCLEAR REGULATORY COMMISSION

10 CFR Part 15

RIN 3150-AG80


Debt Collection Procedures

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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

SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
its regulations concerning the procedures used to collect debts that 
are owed to NRC. The proposed amendment would conform NRC regulations 
to the legislative changes enacted in the Debt Collection Improvement 
Act of 1996 (DCIA) and the amended procedures presented in the Federal 
Claims Collection Standards (FCCS) issued by the Department of the 
Treasury (Treasury) and the Department of Justice (DOJ). The proposed 
action is intended to allow the NRC to improve its collection of debts 
due the United States.

DATES: The comment period expires December 19, 2001. Comments received 
after this date will be considered if it is practical to do so, but the 
Commission is able to ensure consideration only for comments received 
on or before this date.

ADDRESSES: Submit comments to the Secretary, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and 
Adjudications Staff. Deliver comments to: 11555 Rockville Pike, 
Rockville, Maryland, between 7:30 am and 4:15 pm Federal workdays 
(Telephone 301-415-1678).
    Comments may also be submitted via the NRC's interactive rulemaking 
Web site at (http://ruleforum.llnl.gov). This site provides the 
capability to upload comments as files (any format), if your Web 
browser supports that function. For information about the interactive 
rulemaking Website, contact Ms. Carol Gallagher, 301-415-5905 (e-mail 
[email protected]). Comments received may also be viewed and downloaded 
electronically via this interactive rulemaking website.
    With the exception of restricted information, documents created or 
received at the NRC, after November 1, 1999, are also available 
electronically at the NRC's Public Electronic Reading Room on the 
Internet at http://www.nrc.gov/NRC/ADAMS/index.html. From this site, 
the public can gain entry into the NRC's Agencywide Document Access and 
Management System (ADAMS), which provides text and image files of NRC's 
public documents. For more information, contact the NRC Public Document 
Room (PDR) Reference staff at 1-800-397-4209 or 301-415-4737 
[email protected].

FOR FURTHER INFORMATION CONTACT: Leah Tremper, Office of the Chief 
Financial Officer, U.S. Nuclear Regulatory Commission, 11545 Rockville 
Pike, Rockville, MD 20852-2738, Telephone 301-415-7347.

SUPPLEMENTARY INFORMATION:   

I. Background
II. Section by Section Analysis
III. Plain Language
IV. Voluntary Consensus Standards
V. Finding of No Significant Environmental Impact
VI. Paperwork Reduction Act
VII. Regulatory Analysis
VIII. Regulatory Flexibility Certification
IX. Backfit Analysis

I. Background

    On August 9, 1990 (55 FR 32375), the Nuclear Regulatory Commission 
(NRC) published a final rule concerning debt collection procedures. 
Since then, the Debt Collection Improvement Act (DCIA) of 1996 (Pub. L. 
104-134), was enacted on April 26, 1996. This Act enhances debt 
collection Government-wide. The purposes of this Act are--
    (1) To maximize collections of delinquent debts owed to the 
Government by ensuring quick action to enforce recovery of debts and 
the use of all appropriate collection tools,
    (2) To minimize the costs of debt collection by consolidating 
related functions and activities and utilizing interagency teams,
    (3) To reduce losses arising from debt management activities by 
requiring proper screening of potential borrowers, aggressive 
monitoring of all accounts, and sharing of information within and among 
Federal agencies,
    (4) To ensure that the public is fully informed of the Federal 
Government's debt collection policies and that debtors are cognizant of 
their obligations to repay amounts owed to the Federal government,
    (5) To ensure that debtors have all appropriate due process rights, 
including the ability to verify, challenge, and compromise claims, and 
access to administrative appeals procedures which are both reasonable 
and protect the interests of the United States.
    (6) To encourage agencies, when appropriate, to sell delinquent 
debt, particularly debts with underlying collateral, and
    (7) To rely on the experience and expertise of private sector 
professionals to provide debt collection services to Federal agencies.
    This Act provides that any nontax debt or claim owed to the United 
States that has been delinquent for a period of 180 days shall be 
referred to the Treasury or Treasury-designated collection center for 
appropriate action to collect or terminate collection action on the 
debt or claim. The DCIA of 1996 has expanded the collection tools 
available through administrative offset.
    One of the most significant provisions of the DCIA of 1996 is the 
requirement that most agency debt over 180 days delinquent be referred 
to the Department of the Treasury for collection. The DCIA of 1996 
provides Treasury with new collection tools, including the authority to 
offset any Federal agency's payment to a vendor to satisfy that 
vendor's debt to a different Federal agency. This capability can 
improve our collection efforts as follows:
    (1) It limits the amount of time spent on trying to collect from 
delinquent debtors by referring a debt to Treasury when it becomes 180 
days delinquent;
    (2) It provides a powerful collection tool, offset of Federal 
payments, that is otherwise unavailable to NRC; and
    (3) It puts the debt in the hands of a professional staff that is 
dedicated to handling collections.
    The Federal Claims Collection Standards (FCCS) (31 CFR Chapter IX 
and parts 900, 901, 902, 903, and 904) were revised on November 22, 
2000 (65 FR 70390). The revised FCCS clarify and simplify Federal debt 
collection procedures and reflect changes under

[[Page 50861]]

the DCIA of 1996 and the General Accounting Office Act of 1996. The 
revised FCCS reflect legislative changes to Federal debt collection 
procedures enacted under the Debt Collection Improvement Act of 1996 
(DCIA), Public Law 104-134, 110 Stat. 1321-358, as part of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996. The revised 
FCCS provide agencies with greater latitude to adopt agency-specific 
regulations, tailored to the legal and policy requirements applicable 
to the various types of Federal debt, to maximize the effectiveness of 
Federal debt collection procedures. The Secretary of the Treasury has 
been added as a co-promulgator of the FCCS in accordance with section 
31001(g)(1)(C) of the DCIA of 1996. The Comptroller General has been 
removed as a co-promulgator in accordance with section 115(g) of the 
General Accounting Office Act of 1996, Public Law 104-316, 110 Stat. 
3826 (October 19, 1996), (65 FR 70390 (2000)). The Department of the 
Treasury and DOJ have published the revised FCCS as a joint final rule 
under new Chapter IX, Title 31, Code of Federal Regulations. The 
revised FCCS supersede the current FCCS codified at 4 CFR parts 101-
105.
    The revised FCCS prescribe standards for Federal agency use in the 
administrative collection, offset, compromise, and the suspension or 
termination of collection activity for civil claims for money, funds, 
or property, as defined by 31 U.S.C. 3701(b), unless specific Federal 
agency statutes or regulations apply to such activities, or as provided 
for by Title 11 of the United States Code when the claims involve 
bankruptcy. The revised FCCS also prescribe standards for referring 
debts to the Department of Justice for litigation.

II. Section by Section Analysis

Section 15.1  Application

    The DCIA of 1996 requires all Federal agencies to refer delinquent 
debt that is over 180 days old to Treasury for offset and collection. 
This section would be amended to reflect that the NRC is not limited to 
collection remedies contained in the revised FCCS, and eliminate the 
GAO's role as co-promulgator of the FCCS.

Section 15.2  Definitions

    This section would be amended to expand the definition of ``claim 
or debt'' to conform with the DCIA of 1996. Other definitions such as 
``administrative wage garnishment,'' ``cross-servicing,'' ``Federal 
agencies,'' ``recoupment,'' ``tax refund offset,'' ``Treasury,'' and 
``withholding order'' have been added to conform to the definitions in 
the DCIA of 1996.

Section 15.5  Claims That Are Covered

    This section would be amended to include reference to Executive 
Order 12146, which references interagency resolution of disputes, to 
exclude specifically from coverage a claim under the Internal Revenue 
Code of 1986, and to add claims that involve bankruptcy are covered by 
Title 11 of the United States Code.

Section 15.7  Monetary Limitation on NRC's Authority

    This section would be amended to increase NRC's authority to 
compromise a claim or to terminate or suspend collection action on a 
claim covered by these procedures to $100,000 to reflect the ceiling 
change established by 31 U.S.C. 3711(a)(2) and to delete reference to 
the GAO.

Section 15.8  Information Collection Requirements: OMB Approval

    This section would be added to state that this part contains no 
information collection requirements and is not subject to the 
requirements of the Paperwork Reduction Act.

Section 15.9  No Private Rights Created

    This section would be amended to change the section heading from 
``Omission not a defense'' to ``No private rights created'' and delete 
the reference to 4 CFR part 101-105 and substitute the reference to 31 
CFR Chapter IX, parts 900-904.

Section 15.11  Form of Payment

    This section would be amended to change the section heading from 
``Conversion claims'' to ``Form of payment'' and allow claims to be 
paid in money or property, if contractually authorized.

Section 15.20  Aggressive Agency Collection Action

    This section would be added to include DCIA debt collection 
provisions for referral of delinquent debt to Treasury for cross-
servicing, and mandate cooperation among Federal agencies as required 
by the DCIA of 1996.

Section 15.21  Written Demand for Payment

    This section would be amended to change the number of demand 
letters to be sent for each debt from three to two. The revised FCCS 
allows agencies latitude to adopt agency-specific regulations and this 
change in the number of demand letters reflects the latitude allowed. 
In addition, the noticing requirements would be amended to include the 
name, address and phone number of an NRC contact for each demand 
letter, to delete the reference to 4 CFR 102.13 and 102.5 and to 
substitute the reference to 31 CFR Chapter IX part 901.9 and 901.4, and 
to add procedures to follow when a bankruptcy petition is filed by a 
debtor. The DCIA of 1996 allows agencies greater latitude to adopt 
agency specific regulations and the change in the number of demand 
letters reflects the latitude allowed.

Section 15.23  Telephone or Internet Inquiries and Investigations

    This section would be amended to include the use of the internet as 
a means of contacting a debtor.

Section 15.26  Reporting Claims

    The section heading would be changed from ``Use of consumer 
reporting agencies'' to ``Reporting claims.'' This section would be 
amended to include the due process notification to the individual 
debtor with the second demand letter, and delete the requirement for 
sending at least one demand letter by registered or certified mail.

Section 15.29  Suspension or Revocation of License

    This section would be amended in its entirety to:
    (1) State that the suspension or revocation of a license, permit, 
or approval is also applicable to Federal programs or activities that 
are administered by the states on behalf of the Federal government; and
    (2) Include that NRC will seek legal advice from its Office of the 
General Counsel for those debts that involve bankruptcy before 
suspending or revoking a license.

Section 15.32  Contracting for Collection Services

    This section would be amended to include that NRC may contract for 
collection services in order to recover delinquent debts if the debts 
are not subject to the DCIA requirement to transfer debts to Treasury 
for debt collection services and delete the reference to 4 CFR 102.6 
and substitute the reference to 31 CFR Chapter IX, part 901.5.

Section 15.33  Collection by Administrative Offset

    This section would be amended in its entirety to include several 
new debt

[[Page 50862]]

collection procedures under the DCIA of 1996, including but not limited 
to--
    (1) Transfer or referral of delinquent debt to the Department of 
the Treasury or Treasury-designated debt collection center for 
collection, known as ``cross-servicing;''
    (2) Centralized administrative offset by disbursing officials;
    (3) Credit bureau reporting; and
    (4) Prohibition against extending Federal financial assistance in 
the form of a loan or loan guarantee to delinquent debtors.
    Included in this section are NRC administrative offset procedures 
to be followed prior to initiating centralized and non-centralized 
offsets.

Section 15.35  Payments

    This section would be amended to delete confess-judgment notes, 
delete how payments are to be applied when there are multiple debts, 
include credit cards as a payment method, and change the address where 
payments are to be sent.

Section 15.37  Interest, Penalties, and Administrative Charges

    This section would be amended to delete reference to 4 CFR 102.2 
and 102.13 and substitute the reference to 31 CFR Chapter IX, part 
901.2 and 901.9 and add that NRC is authorized to impose interest and 
related charges on debts not subject to 31 U.S.C. 3717, in accordance 
with common law.

Section 15.39  Bankruptcy Claims

    This section would be added to include procedures the NRC would 
follow when notified that a debtor has filed for bankruptcy protection.

Section 15.41  When a Claim May Be Compromised

    This section would be amended to delete reference to the GAO, 
clarify that the FCCS applies to debt referred to Treasury for 
collection (cross-servicing), and include procedures for referring 
claims that exceed $100,000 to the DOJ for acceptance of the compromise 
offer.

Section 15.43  Reasons for Compromising a Claim

    This section would be amended to delete reference to 4 CFR 103 and 
103.4 and substitute the reference to 31 CFR Chapter IX, part 902 and 
902.2.

Section 15.45  Consideration of Tax Consequences to the Government

    This section heading would be changed from ``Restrictions on the 
compromise of a claim'' to ``Consideration of tax consequences to the 
Government.'' This section would be amended to allow acceptance of a 
percentage of a debtor's profits or stock in a debtor corporation in 
compromise of a claim and reword the remainder of the section.

Section 15.49  Mutual Release of the Debtor and the Government

    This section would be added to include the requirement that 
compromises be implemented by means of mutual release, when 
appropriate.

Section 15.51  When Collection Action May Be Suspended or Terminated

    This section would be amended to include procedures for suspending 
or terminating collection action on claims over $100,000 and to 
eliminate GAO's debt collection role.

Section 15.53  Reasons for Suspending Collection Action

    This section would be amended to prescribe factors to consider when 
determining that collection action should be suspended, and when 
collection activity should be suspended pending waiver or 
administrative review, and to include consideration of the impact of 
the Bankruptcy Code in bankruptcy cases.

Section 15.55  Reasons for Terminating Collection Action

    This section would be amended to combine paragraphs (a) through (c) 
and add that NRC may terminate collection activity on a debt that has 
been discharged in bankruptcy.

Section 15.57  Termination of Collection Action

    This section would be amended to add that termination does not 
preclude retention of debt record for purposes of selling the debt, 
pursuing collection at a subsequent date, offsetting against future 
income or assets, and screening future applicants for prior 
indebtedness; and add that collection activity may be terminated for 
debts that have been discharged in bankruptcy.

Section 15.60  Discharge of Indebtedness; Reporting Requirements

    This section would be added to require the NRC to take all 
appropriate collection actions and make a determination that further 
collection action is not warranted before making a determination to 
discharge a debt, provide that the NRC may not discharge a debt until 
the requirements of 31 U.S.C. 3711(i) (sale of debt) have been met, and 
provide that the NRC will report discharge of debt to the IRS on Form 
1099-C.

Section 15.61  Prompt Referral

    This section would be amended to include revised procedures for 
referring debts that are over $1,000,000 to the DOJ for litigation, 
include requirements that the NRC refrain from debtor contact after 
referral to DOJ, and add provisions that DOJ shall notify the NRC of 
any payments received from the debtor.

Section 15.65  Referral of a Compromise Offer

    This section would be amended to delete reference to the GAO and 
include the requirement that a written offer of compromise that is 
substantial in amount be referred to DOJ using a Claims Collection 
Litigation Report (CCLR) accompanied by supporting data and particulars 
concerning the debt.

Section 15.67  Referral to the Department of Justice

    This section would be amended to add the requirement that certified 
copies of documents be forwarded to DOJ with litigation referrals, 
increase the minimum amount of claims to be referred to DOJ to $2,500, 
and add exception for claims being referred solely to secure a judgment 
for lien filing purposes.

III. Plain Language

    The Presidential Memorandum dated June 1, 1998, entitled ``Plain 
Language in Government Writing'' directed that the Government's writing 
be in plain language. This memorandum was published on June 10, 1998 
(63 FR 31883). The NRC requests comments on this proposed rule 
specifically with respect to the clarity and effectiveness of the 
language used. Comments should be sent to the address listed under the 
ADDRESSES caption of the preamble.

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires that Federal agencies use technical 
standards that are developed or adopted by voluntary consensus 
standards bodies unless using such a standard is inconsistent with 
applicable law or otherwise impractical. In this proposed rule, the NRC 
is amending Part 15 to reflect the current requirements of the revised 
Debt Collection Improvement Act of 1996 and the revised Federal Claims 
Collection Standards. This action does not constitute the establishment 
of a standard that contains generally applicable requirements.

[[Page 50863]]

V. Finding of No Significant Environmental Impact

    The Commission has determined, under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 
subpart A of 10 CFR part 51, that this rule, if adopted, would not be a 
major Federal action significantly affecting the quality of the human 
environment and, therefore, an environmental impact statement is not 
required. This proposed rule is necessary to conform the NRC 
regulations to the amended procedures presented in the Federal Claims 
Collection Standards. Amending the procedures that the NRC uses to 
collect debts which are owed to it will not have any radiological 
environmental impact offsite and no impact on occupational radiation 
exposure onsite. The rule does not affect nonradiological plant 
effluents and has no other environmental impact. The environmental 
assessment and finding of no significant impact, on which this 
determination is based, are available for inspection at the NRC Public 
Document Room, 11555 Rockville Pike, Rockville, Maryland, between 7:30 
am and 4:15 pm except on Federal holidays.

VI. Paperwork Reduction Act

    This proposed rule contains no information collection requirements 
and, therefore, is not subject to the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

    The proposed rule will conform NRC procedures for collecting debts 
owed it with the amended procedures presented in the Federal Claims 
Collection Standards and the revised Debt Collection Improvement Act of 
1996, and, as such, will not have a significant impact on state and 
local governments and geographical regions; health, safety, and the 
environment; nor will it represent substantial costs to licensees, the 
NRC, or other Federal agencies. This constitutes the regulatory 
analysis for this proposed rule.

VIII. Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), the Commission certifies that this rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities. As a result, a regulatory flexibility analysis has 
not been prepared. Interest and late payment charges imposed on a small 
entity will ordinarily not exceed $100 per year. This rule affects 
small entities billed for byproduct materials inspection fees, 
byproduct materials licensing fees, and materials annual fees 
established under 10 CFR 170.31, Category 3, and 10 CFR 171.16, 
Category 3, and for Freedom of Information Act processing costs. The 
NRC issues approximately 1,100 billings annually to small entities 
including physicians in private practice, small hospitals, 
universities, small consulting firms, public interest groups, and other 
entities involved with radiography and research. The total annual 
billing to any one small entity is $2,300 per fee category. Past 
experience shows that 97-98% of billings are paid within 90 days after 
the billing date. The late payment charges imposed for a small entity 
that pays the debt of $2,300, 90 days after the billing date, will be 
$84.12 assuming a Treasury annual interest rate of 6%, penalty at 6%, 
and administrative charges at $5 per month.
    The rule allows a small entity to pay a debt on an installment 
basis if it is unable to pay a debt in full prior to the due date 
(ordinarily 30 days after the billing date). This arrangement requires 
the payment of interest on the unpaid debt and the administrative 
charge for each month the installment is in effect. The annual interest 
charges imposed on a small entity will be less than $140 assuming a 
maximum billing of $2,300 paid in 12 monthly installments at an annual 
interest rate of 6% and $60 in administrative charges.

IX. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109 does 
not apply to this proposed rule; therefore, a backfit analysis is not 
required for this proposed rule because these amendments are mandated 
by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110 
Stat. 1321-358 (April 26, 1996)).

List of Subjects in 10 CFR Part 15

    Administrative practice and procedures, debt collection.
    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; and 5 U.S.C. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR part 15.

PART 15--DEBT COLLECTION PROCEDURES

    1. The authority citation for Part 15 is revised to read as 
follows:

    Authority: Secs. 161, 186, 68 Stat. 948, 955, as amended (42 
U.S.C. 2201, 2236); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
5841); sec. 1, Pub. L. 97-258, 96 Stat. 972 (31 U.S.C. 3713); sec 5, 
Pub. L. 89-508, 80 Stat. 308, as amended (31 U.S.C. 3716); Pub. L. 
97-365, 96 Stat. 1749 (31 U.S.C. 3719); Federal Claims Collection 
Standards, 31 CFR Title IX, parts 900-904; 31 U.S.C. Secs. 3701, 
3716; 31 CFR Sec 285; 26 U.S.C. Sec 6402(d); 31 U.S.C. Sec. 3720A; 
26 U.S.C. Sec. 6402(c); 42 U.S.C. Sec. 664; Pub. L. 104-134, as 
amended (31 U.S.C. 3713); 5 U.S.C. 5514; Executive Order 12146 (3 
CFR 1980 Comp. pp. 409-412); Executive Order 12988 (3 CFR, 1996 
Comp., pp. 157-163).

    2. In Sec. 15.1 paragraphs (a)(1) and (a)(3) are revised and 
paragraph (c) is added to read as follows:


Sec. 15.1  Application.

    (a) * * *
    (1) Collects, compromises, suspends, offsets, and terminates 
collection action for claims:
* * * * *
    (3) Refers unpaid claims over 180 days delinquent to Treasury for 
offset and collection and to the DOJ for litigation.
* * * * *
    (c) The NRC is not limited to collection remedies contained in the 
revised Federal Claims Collection Standards (FCCS). The FCCS is not 
intended to impair common law remedies.
    3. In Sec. 15.2, the definition of Claim and debt is revised, and 
the definitions of Administrative wage garnishment, Cross-servicing, 
Federal agencies, Recoupment, Tax refund, Treasury, and Withholding 
order, are added in alphabetical order to read as follows:


Sec. 15.2  Definitions.

* * * * *
    Administrative wage garnishment is the process of withholding 
amounts from an employee's disposable pay and the paying of those 
amounts to a creditor in satisfaction of a withholding order.
    Claim and debt are used synonymously to refer to an amount of 
money, funds, or property that has been determined by an agency 
official to be owed to the United States from any person, organization, 
or entity, except another Federal agency. For the purposes of 
administrative offset under 31 U.S.C. 3716, the terms claim and debt 
include an amount of money, funds, or property owed by a person to a 
State (including past-due support being enforced by a State), the 
District of Columbia, American Samoa, Guam, the United States Virgin 
Islands, the Commonwealth of the Northern Mariana Islands, or the 
Commonwealth of Puerto Rico.
    Cross-servicing means that the Department of the Treasury or 
another

[[Page 50864]]

debt collection center is taking appropriate debt collection action on 
behalf of one or more Federal agencies or a unit or subagency thereof.
* * * * *
    Federal agencies include agencies of the executive, legislative, 
and judicial branches of the Government, including Government 
corporations.
* * * * *
    Recoupment is a special method for adjusting debts arising under 
the same transaction or occurrence. For example, obligations arising 
under the same contract generally are subject to recoupment.
* * * * *
    Tax refund offset means withholding or reducing a tax refund 
payment by an amount necessary to satisfy a debt owed by the payee(s) 
of a tax refund payment.
    Treasury as used in 10 CFR Part 15 means the Department of the 
Treasury.
    Withholding order means any order for withholding or garnishment of 
pay issued by an agency, or judicial or administrative body.
    4. In Sec. 15.5, paragraphs (b)(4) and (b)(5) are revised and 
(b)(7) is added to read as follows:


Sec. 15.5  Claims that are covered.

* * * * *
    (b) * * *
    (4) A claim under the Internal Revenue Code of 1986.
    (5) A claim between Federal agencies. Federal agencies should 
attempt to resolve interagency claims as referenced in Executive Order 
12146 (3 CFR, 1980 Comp., pp. 409-412).
* * * * *
    (7) A claim involving bankruptcy is covered by Title 11 of the 
United States Code.
    5. In Sec. 15.7, paragraphs (a) and (b) are revised to read as 
follows:


Sec. 15.7  Monetary limitation on NRC's authority.

* * * * *
    (a) Have not been referred to another Federal Agency for further 
collection actions; and
    (b) Do not exceed $100,000 (exclusive of interest, penalties, and 
administrative charges) or such higher amount as the Attorney General 
shall from time to time prescribe for purposes of compromise or 
suspension or termination of collection activity.
    6. Section 15.8 is added to read as follows:


Sec. 15.8  Information Collection Requirements: OMB approval.

    This part contains no information collection requirements, and 
therefore, is not subject to the requirements of the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.).
    7. Section 15.9 is amended by revising the section heading and 
paragraph (a) to read as follows:


Sec. 15.9  No private rights created.

    (a) The failure of NRC to include in this part any provision of the 
Federal Claims Collection Standards, 31 CFR Chapter IX, parts 900-904, 
does not prevent the NRC from applying these provisions.
* * * * *
    8. Section 15.11 is amended by revising the section heading and 
paragraphs (a) and (b) to read as follows:


Sec. 15.11  Form of payment.

* * * * *
    (a) The return of specific property; or
    (b) The performance of specific services.
    9. Section Sec. 15.20 is added under Subpart B to read as follows:


Sec. 15.20  Aggressive agency collection activity.

    (a) The NRC shall take aggressive action to collect all debts. 
These collection activities will be undertaken promptly and follow-up 
action will be taken as appropriate. These regulations do not require 
the Department of Justice (DOJ), the Department of the Treasury 
(Treasury), or any other Treasury-designated collection center to 
duplicate collection activities previously undertaken by NRC.
    (b) Debt referred or transferred to Treasury or to a Treasury-
designated debt collection center under the authority of 31 U.S.C. 
3711(g) must be serviced, collected, or compromised, or the collection 
action will be suspended or terminated, in accordance with the 
statutory requirements and authorities applicable to the collection of 
the debts.
    (c) The NRC shall cooperate with other agencies in their debt 
collection activities.
    (d) The NRC will consider referring debts that are less than 180 
days delinquent to Treasury or to a Treasury-designated debt collection 
center to accomplish efficient, cost-effective debt collection. 
Referrals to debt collection centers are at the discretion of, and for 
a time period acceptable to, Treasury.
    (e) The NRC shall transfer any debt that has been delinquent for 
180 days or more to Treasury so that it may take appropriate action to 
collect the debt or terminate collection actions. This requirement does 
not apply to any debt that--
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sale program;
    (3) Has been referred to a private collection contractor for a 
period of time acceptable to Treasury;
    (4) Is at a debt collection center for a period of time acceptable 
to Treasury;
    (5) Will be collected under internal offset procedures within 3 
years after the date the debt first became delinquent; or
    (6) Is exempt from this requirement based on a determination by 
Treasury that exemption for a certain class of debt is in the best 
interest of the United States.
    (f) Agencies operating Treasury-designated debt collection centers 
are authorized to charge a fee for services rendered regarding referred 
or transferred debts. The fee may be paid out of amounts collected and 
may be added to the debt as an administrative cost.
    10. In Sec. 15.21 paragraphs (a)(5), (a)(6), the introductory text 
of paragraph (b), paragraphs (b)(3)(ii), (b)(3)(iii), and (b)(3)(vi) 
are revised and paragraphs (a)(7) and (e) are added to read as follows:


Sec. 15.21  Written demands for payment.

    (a) * * *
    (5) The applicable standards for assessing interest, penalties, and 
administrative costs under 31 CFR Chapter IX, 901.9;
    (6) The applicable policy for reporting the delinquent debt to 
consumer reporting agencies; and
    (7) The name, address, and phone number of a contact person or 
office within the NRC will be included with each demand letter.
    (b) The NRC shall normally send two demand letters to debtors. The 
initial demand letter will be followed approximately 30 days later with 
a second demand letter, unless circumstances indicate that alternative 
remedies better protect the Government's interest, that the debtor has 
explicitly refused to pay, or that sending a further demand letter is 
futile. Depending upon the circumstances, the first and second demand 
letters may--
* * * * *
    (3) * * *
    (ii) The NRC may report debts to credit bureaus, refer debts to 
debt collection centers and collection agencies for cross-servicing 
(including wage garnishment), tax refund offset, administrative offset, 
and litigation. Any eligible debt that is delinquent for 180 days or 
more will be transferred to the Department of the Treasury for 
collection. Credit bureau reporting for transferred debts will be 
handled by Treasury or a Treasury-designed center.

[[Page 50865]]

    (iii) Possible reporting of the delinquent debt to consumer 
reporting agencies in accordance with the guidance and standards 
contained in 31 CFR Chapter IX, part 901.4.
* * * * *
    (vi) The right to refer the claim to DOJ for litigation.
* * * * *
    (e) When the NRC learns that a bankruptcy petition has been filed 
with respect to a debtor, the NRC will cease collection action 
immediately unless it has been determined that under 11 U.S.C. 362, the 
automatic stay has been lifted or is no longer in effect.
    11. In Sec. 15.23, paragraph (a) is revised to read as follows:


Sec. 15.23  Telephone or internet inquiries and investigations.

    (a) If a debtor has not responded to one or more demands, the NRC 
shall make reasonable efforts by telephone or internet to determine the 
debtor's intentions.
* * * * *
    12. Section 15.26 is amended by revising the section heading and 
paragraph (a)(2), removing paragraph (a)(3), and redesignating 
paragraphs (a)(4) and (a)(5) as (a)(3) and (a)(4).


Sec. 15.26  Reporting claims.

    (a) * * *
    (2) The NRC has included a notification in the second written 
demand (see Sec. 15.21(b)) to the individual debtor stating--
    (i) That the payment of the debt is delinquent;
    (ii) That within not less than 60 days after the date of the 
notification, the NRC intends to disclose to a consumer reporting 
agency that the individual debtor is responsible for the debt;
    (iii) The specific information to be disclosed to the consumer 
reporting agency; and
    (iv) That the debtor has a right to a complete explanation of the 
debt (if that has not already been given), to dispute information in 
NRC records about the debt, and to request reconsideration of the debt 
by administrative appeal or review of the debt.
* * * * *
    13. Section 15.29 is revised to read as follows:


Sec. 15.29  Suspension or revocation of license.

    In non-bankruptcy cases, the NRC may suspend or revoke any license, 
permit, or approval which the NRC has granted to the debtor for any 
inexcusable, prolonged, or repeated failure of the debtor to pay a 
delinquent debt. Before suspending or revoking any license, permit, or 
approval for failure to pay a debt, the NRC shall issue to the debtor 
(by certified mail) an order or a demand for information as to why the 
license, permit, or approval should not be suspended or revoked. The 
NRC shall allow the debtor no more than 30 days to pay the debt in 
full, including applicable interest, penalties, and administrative 
costs of collection of the delinquent debt. The NRC may revoke the 
license, permit, or approval at the end of this period. If a license is 
revoked under authority of this part, a new application, with 
appropriate fees, must be made to the NRC. The NRC may not consider an 
application unless all previous delinquent debts of the debtor to the 
NRC have been paid in full. The suspension or revocation of a license, 
permit, or approval is also applicable to Federal programs or 
activities that are administered by the states on behalf of the Federal 
government to the extent that they affect the Federal government's 
ability to collect money or funds owed by debtors. In bankruptcy cases, 
before advising the debtor of NRC's intention to suspend or revoke 
licenses, permits, or approvals, the NRC will seek legal advice from 
its Office of the General Counsel concerning the impact of the 
Bankruptcy Code which may restrict such action.
    14. Section 15.32 is revised to read as follows:


Sec. 15.32  Contracting for collection services.

    The NRC may contract for collection services in order to recover 
delinquent debts only if the debts are not subject to the DCIA 
requirement to transfer debts to Treasury for debt collection services, 
e.g. debts that are less than 180 days delinquent. However, the NRC 
retains the authority to resolve disputes, compromise claims, suspend 
or terminate collection action, and initiate enforced collection 
through litigation. When appropriate, the NRC shall contract for 
collection services in accordance with the guidance and standards 
contained in 31 CFR Chapter IX, parts 900-904.
    15. Section 15.33 is revised to read as follows:


Sec. 15.33  Collection by administrative offset.

    (a) Application.
    (1) The NRC may administratively undertake collection by 
centralized offset on each claim which is liquidated or certain in 
amount in accordance with the guidance and standards in 31 CFR Chapter 
IX, parts 900-904 and 5 U.S.C. 5514.
    (2) This section does not apply to:
    (i) Debts arising under the Social Security Act, except as provided 
in 42 U.S.C. 404;
    (ii) Payments made under the Social Security Act, except as 
provided for in 31 U.S.C. 3716(c) (see 31 CFR 285.4, Federal Benefit 
Offset);
    (iii) Debts arising under, or payments made under, the Internal 
Revenue Code (see 31 CFR 285.2, Tax Refund Offset) or the tariff laws 
of the United States;
    (iv) Offsets against Federal salaries to the extent these standards 
are inconsistent with regulations published to implement such offsets 
under 5 U.S.C. 5514 and 31 U.S.C. 3716 (see 5 CFR part 550, subpart K, 
and 31 CFR 285.7, Federal Salary Offset);
    (v) Offsets under 31 U.S.C. 3728 against a judgment obtained by a 
debtor against the United States;
    (vi) Offsets or recoupments under common law, State law, or Federal 
statutes specifically prohibiting offsets or recoupments of particular 
types of debts; or
    (vii) Offsets in the course of judicial proceedings, including 
bankruptcy.
    (3) Unless otherwise provided for by contract or law, debts or 
payments that are not subject to administrative offset under 31 U.S.C. 
3716 may be collected by administrative offset under the common law or 
their applicable statutory authority.
    (4) Unless otherwise provided by law, the NRC may not initiate 
administrative offset of payments under the authority of 31 U.S.C. 3716 
to collect a debt more than 10 years after the Government's right to 
collect 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 to the NRC, or collection of ``approval'' 
fees has been deferred under 10 CFR part 170. If the collection of 
``approval'' fees has been deferred, the ten-year period begins to run 
at the end of the deferral period.
    (5) In bankruptcy cases, the NRC will seek legal advice from its 
Office of the General Counsel concerning the impact of the Bankruptcy 
Code on pending or contemplated collections by offset.
    (b) Mandatory centralized offset.
    (1) The NRC is required to refer past due, legally enforceable, 
nontax debts that are over 180 days delinquent to Treasury for 
collection by centralized administrative offset. A debt is legally 
enforceable if there has been a final NRC determination that the debt, 
in the amount stated, is due and there are no legal bars to collection 
action. Debts that are less than 180 days delinquent also may be 
referred to Treasury for this purpose.

[[Page 50866]]

    (2) The names and taxpayer identifying numbers (TINs) of debtors 
who owe debts referred to Treasury as described in paragraph(b)(1) of 
this section must be compared to the names and TINs on payments to be 
made by Federal disbursing officials. Federal disbursing officials 
include disbursing officials of Treasury, the Department of Defense, 
the United States Postal Service, other Government corporations, and 
disbursing officials of the United States designated by Treasury. When 
the name and TIN of a debtor match the name and TIN of a payee and all 
other requirements for offset have been met, the payment will be offset 
to satisfy the debt.
    (3) Federal disbursing officials will notify the debtor/payee in 
writing that an offset has occurred to satisfy, in part or in full, a 
past due, legally enforceable delinquent debt. The notice must include 
a description of the type and amount of the payment from which the 
offset was taken, the amount of offset that was taken, the identity of 
the creditor agency (NRC) requesting the offset, and a contact point 
within NRC who will respond to questions regarding the offset
    (c) NRC administrative offset.
    (1) Before referring a delinquent debt to Treasury for 
administrative offset, the NRC adopts the following administrative 
offset procedures:
    (i) Offsets may be initiated only after the debtor--
    (A) Has been sent written notice of the type and amount of the 
debt, the intention of the NRC to use administrative offset to collect 
the debt, and an explanation of the debtor's rights under 31 U.S.C. 
3716; and
    (ii) The debtor has been given--
    (A) The opportunity to inspect and copy NRC records related to the 
debt;
    (B) The opportunity for a review within the NRC of the 
determination of indebtedness; and
    (C) The opportunity to make a written agreement to repay the debt.
    (iii) The procedures set forth in paragraph (c)(1)(i) of this 
section may be omitted when--
    (A) The offset is in the nature of a recoupment;
    (B) The debt arises under a contract as set forth in Cecile 
Industries, Inc. v. Cheney, 995 F.2d 1052 (Fed. Cir. 1993) (notice and 
other procedural protections set forth in 31 U.S.C. 3716(a) do not 
supplant or restrict established procedures for contractual offsets 
accommodated by the Contracts Disputes Act); or
    (C) The NRC first learns of the existence of the amount owed by the 
debtor when there is insufficient time before payment would be made to 
the debtor/payee to allow for prior notice and an opportunity for 
review. This applies to non-centralized offsets conducted under 
paragraph (d) of this section. When prior notice and an opportunity for 
review are omitted, the NRC shall give the debtor notice and an 
opportunity for review as soon as practicable and shall refund any 
money ultimately found not to have been owed to the NRC.
    (iv) When an agency previously has given a debtor any of the 
required notice and review opportunities with respect to a particular 
debt (10 CFR Chapter IX, part 901.2), the NRC need not duplicate the 
notice and review opportunities before administrative offset may be 
initiated.
    (2) When referring delinquent debts to Treasury, the NRC shall 
certify, in a form acceptable to Treasury, that:
    (i) The debt is past due and legally enforceable; and
    (ii) The NRC has complied with all due process requirements under 
31 U.S.C. 3716(a) and the NRC's regulations.
    (3) Payments that are prohibited by law from being offset are 
exempt from centralized administrative offset. The Treasury shall 
exempt payments under means-tested programs from centralized 
administrative offset when requested in writing by the head of the 
payment-certifying or authorizing agency. Also, the Treasury may exempt 
other classes of payments from centralized offset upon the written 
request of the head of the payment-certifying or authorizing agency.
    (4) Benefit payments made under the Social Security Act (42 U.S.C. 
301 et seq.), part B of the Black Lung Benefits Act (30 U.S.C. 921 et 
seq.), and any law administered by the Railroad Retirement Board (other 
than tier 2 benefits), may be offset only in accordance with Treasury 
regulations, issued in consultation with the Social Security 
Administration, the Railroad Retirement Board, and the Office of 
Management and Budget (31 CFR 285.4).
    (5) In accordance with 31 U.S.C. 3716(f), the Treasury may waive 
the provisions of the Computer Matching and Privacy Protection Act of 
1988 concerning matching agreements and post-match notification and 
verification (5 U.S.C. 552a(o) and (p)) for centralized administrative 
offset upon receipt of a certification from the NRC that the due 
process requirements enumerated in 31 U.S.C. 3716(a) have been met. The 
certification of a debt in accordance with paragraph (b)(5) of this 
section will satisfy this requirement. If a waiver is granted, only the 
Data Integrity Board of the Department of the Treasury is required to 
oversee any matching activities, in accordance with 31 U.S.C. 3716(g). 
This waiver authority does not apply to offsets conducted under 
paragraphs (c) and (d) of this section.
    (d) Non-centralized administrative offset.
    (1) Generally, non-centralized administrative offsets are ad hoc 
case-by-case offsets that NRC would conduct, at its discretion, 
internally or in cooperation with the agency certifying or authorizing 
payments to the debtor. Unless otherwise prohibited by law, when 
centralized administrative offset is not available or appropriate, past 
due, legally enforceable, nontax delinquent debts may be collected 
through non-centralized administrative offset. In these cases, the NRC 
may make a request directly to a payment-authorizing agency to offset a 
payment due a debtor to collect a delinquent debt. For example, the NRC 
will request the Office of Personnel Management (OPM) to offset a 
Federal employee's lump sum payment upon leaving Government service to 
satisfy an unpaid advance.
    (2) Before requesting Treasury to conduct a non-centralized 
administrative offset, the NRC adopts the following procedures, which 
provide that such offsets may occur only after:
    (i) The debtor has been provided due process as set forth in 
paragraph (c)(1) of this section; and
    (ii) The Treasury has received written certification from NRC that 
the debtor owes the past due, legally enforceable delinquent debt in 
the amount stated, and that the NRC has fully complied with its 
regulations concerning administrative offset.
    (3) Treasury shall comply with offset requests by NRC to collect 
debts owed to the United States, unless the offset would not be in the 
best interests of the United States with respect to the Treasury's 
program, or would otherwise be contrary to law. Appropriate use should 
be made of the cooperative efforts of other agencies in effecting 
collection by administrative offset.
    (4) When collecting multiple debts by non-centralized 
administrative offset, the NRC will apply the recovered amounts to 
those debts in accordance with the best interests of the United States, 
as determined by the facts and circumstances of the particular case, 
particularly the applicable statute of limitations.
    (e) Requests to OPM to offset a debtor's anticipated or future 
benefit payment under the Civil Service Retirement and Disability Fund. 
Upon

[[Page 50867]]

providing OPM written certification that a debtor has been afforded the 
procedures provided in paragraph (c)(1) of this section, the NRC will 
request OPM to offset a debtor's anticipated or future benefit payments 
under the Civil Service Retirement and Disability Fund (Fund) in 
accordance with regulations codified at 5 CFR 831.1801-831.1808. Upon 
receipt of such a request, OPM will identify and ``flag'' a debtor's 
account in anticipation of the time when the debtor requests, or 
becomes eligible to receive, payments from the Fund. This will satisfy 
any requirement that offset be initiated prior to the expiration of the 
time limitations referenced in paragraph (a)(4) of this section.
    (f) Review requirements. (1) For purposes of this section, whenever 
the NRC is required to afford a debtor a review within the agency, the 
NRC shall provide the debtor with a reasonable opportunity for an oral 
hearing in accordance with 10 CFR 16.9, when the debtor requests 
reconsideration of the debt, and the NRC determines that the question 
of the indebtedness cannot be resolved by review of the documentary 
evidence, for example, when the validity of the debt turns on an issue 
of credibility or veracity.
    (2) Unless otherwise required by law, an oral hearing under this 
section is not required to be a formal evidentiary hearing, although 
the NRC should carefully document all significant matters discussed at 
the hearing.
    (3) This section does not require an oral hearing with respect to 
debt collection systems in which a determination of indebtedness rarely 
involves issues of credibility or veracity, and the NRC has determined 
that review of the written record is ordinarily an adequate means to 
correct prior mistakes.
    (4) In those cases in which an oral hearing is not required by this 
section, the NRC shall accord the debtor a ``paper hearing,'' that is, 
a determination of the request for reconsideration based upon a review 
of the written record.
    16. In Sec. 15.35, paragraph (b), the introductory text of 
paragraph (c), and paragraph (c)(1) are revised to read as follows:


Sec. 15.35  Payments.

* * * * *
    (b) Payment by installment. If a debtor furnishes satisfactory 
evidence of inability to pay a claim in one lump sum, payment in 
regular installments may be arranged. Evidence may consist of a 
financial statement or a signed statement that the debtor's application 
for a loan to enable the debtor to pay the claim in full was rejected. 
Except for a claim described in 5 U.S.C. 5514 and codified in 10 CFR 
part 16, all installment payment arrangements must be in writing and 
require the payment of interest and administrative charges.
    (1) Installment note forms may be used. The written installment 
agreement must contain a provision accelerating the debt payment in the 
event the debtor defaults. If the debtor's financial statement 
discloses the ownership of assets which are free and clear of liens or 
security interests, or assets in which the debtor owns an equity, the 
debtor may be asked to secure the payment of an installment note by 
executing a Security Agreement and Financing Statement transferring to 
the United States a security interest in the asset until the debt is 
discharged.
    (2) If the debtor owes more than one debt, the NRC will apply the 
payment to the various debts in accordance with the best interests of 
the United States, as determined by the facts and circumstances of the 
particular case.
    (c) To whom payment is made. Payment of a debt is made by check, 
electronic transfer, draft, credit card, or money order and should be 
payable to the United States Nuclear Regulatory Commission, License Fee 
and Accounts Receivable Branch, P.O. Box 954514, St. Louis, MO. 63195-
4514, unless payment is--
    (1) Made pursuant to arrangements with DOJ;
* * * * *
    17. In Sec. 15.37, paragraphs (a) and (b) are revised and paragraph 
(l) is added to read as follows:


Sec. 15.37  Interest, penalties, and administrative costs.

    (a) The NRC shall assess interest, penalties, and administrative 
costs on debts owed to the United States Government in accordance with 
the guidance provided under the Federal Claims Collection Standards, 31 
CFR Chapter IX, part 901.9.
    (b) Before assessing any charges on delinquent debt, the NRC shall 
mail or hand-deliver a written notice to the debtor explaining its 
requirements concerning these charges under 31 CFR Chapter IX, part 
901.2 and 901.9, except where these charges are included in a 
contractual or repayment agreement.
* * * * *
    (l) The NRC is authorized to impose interest and related charges on 
debts not subject to 31 U.S.C. 3717, in accordance with common law.
    18. Section 15.39 is revised to read as follows:


Sec. 15.39  Bankruptcy claims.

    When the NRC learns that a bankruptcy petition has been filed with 
respect to a debtor, before proceeding with further collection action, 
the NRC will immediately seek legal advice from its Office of the 
General Counsel concerning the impact of the Bankruptcy Code on any 
pending or contemplated collection activities. Unless the NRC 
determines that the automatic stay imposed at the time of filing 
pursuant to 11 U.S.C. 362 has been lifted or is no longer in effect, 
collection activity against the debtor will in most cases stop 
immediately.
    (a) After seeking legal advice from its Office of the General 
Counsel, a proof of claim usually will be filed with the bankruptcy 
court or the Trustee.
    (b) If the NRC is a secured creditor, it may seek relief from the 
automatic stay regarding its security, subject to the provisions and 
requirements of 11 U.S.C. 362.
    (c) Offset is stayed in most cases by the automatic stay. However, 
the NRC will seek legal advice from its Office of the General Counsel 
to determine whether its payments to the debtor and payments of other 
agencies available for offset may be frozen by the agency until relief 
from the automatic stay can be obtained from the bankruptcy court. The 
NRC will seek legal advice from its Office of the General Counsel to 
determine if recoupment is available.
    19. Section 15.41 is revised to read as follows:


Sec. 15.41  When a claim may be compromised.

    (a) The NRC may compromise a claim not in excess of the monetary 
limitation if it has not been referred to DOJ for litigation.
    (b) Unless otherwise provided by law, when the principal balance of 
a debt, exclusive of interest, penalties, and administrative costs, 
exceeds $100,000 or any higher amount authorized by the Attorney 
General, the authority to accept the compromise rests with the DOJ. The 
NRC will evaluate the compromise offer, using the factors set forth in 
this part. If an offer to compromise any debt in excess of $100,000 is 
acceptable to the NRC, the NRC shall refer the debt to the Civil 
Division or other appropriate litigating division in the DOJ using a 
CCLR. The referral must include appropriate financial information and a 
recommendation for the acceptance of the compromise offer. Justice 
Department approval is not required if the compromise offer is rejected 
by NRC.

[[Page 50868]]

    20. In Sec. 15.43, paragraphs (c) and (d) are revised to read as 
follows:


Sec. 15.43  Reasons for compromising a claim.

* * * * *
    (c) The cost of collecting the claim does not justify the enforced 
collection of the full amount. The NRC shall apply this reason for 
compromise in accordance with the guidance in 31 CFR Chapter IX, part 
902.2.
    (d) The NRC shall determine the debtor's inability to pay, the 
Government's ability to enforce collection, and the amounts that are 
acceptable in compromise in accordance with the Federal Claims 
Collection Standards, 31 CFR Chapter IX, part 902.
* * * * *
    21. Section 15.45 is revised to read as follows:


Sec. 15.45  Consideration of tax consequences to the Government.

    (a) The NRC may accept a percentage of a debtor's profits or stock 
in a debtor corporation in compromise of a claim. In negotiating a 
compromise with a business concern, the NRC should consider requiring a 
waiver of tax-loss-carry-forward and tax-loss-carry-back rights of the 
debtor. For information on reporting requirements, see Sec. 15.60.
    (b) When two or more debtors are jointly and severally liable, the 
NRC will pursue collection activity against all debtors, as 
appropriate. The NRC will not attempt to allocate the burden of payment 
between the debtors but will proceed to liquidate the indebtedness as 
quickly as possible. The NRC will ensure that a compromise agreement 
with one debtor does not release the NRC's claim against the remaining 
debtors. The amount of a compromise with one debtor shall not be 
considered a precedent or binding in determining the amount that will 
be required from other debtors jointly and severally liable on the 
claim.
    22. Section 15.49 is added to read as follows:


Sec. 15.49  Mutual releases of the debtor and the Government.

    (a) In all appropriate instances, a compromise that is accepted by 
NRC should be implemented by means of a mutual release.
    (1) The debtor is released from further non-tax liability on the 
compromised debt in consideration of payment in full of the compromise 
amount.
    (2) The Government and its officials, past and present, are 
released and discharged from any and all claims and causes of action 
arising from the same transaction held by the debtor.
    (b) If a mutual release is not executed when a debt is compromised, 
unless prohibited by law, the debtor is still deemed to have waived any 
and all claims and causes of action against the Government and its 
officials related to the transaction giving rise to the compromised 
debt.
    23. Section 15.51 is revised to read as follows:


Sec. 15.51  When collection action may be suspended or terminated.

    The NRC may suspend or terminate collection action on a claim not 
in excess of the monetary limitation of $100,000 or such other amount 
as the Attorney General may direct, exclusive of interest, penalties, 
and administrative costs, after deducting the amount of partial 
payments or collections, if any of the debt has not been referred to 
the DOJ for litigation. If, after deducting the amount of any partial 
payments or collections, the principal amount of a debt exceeds 
$100,000, or such other amount as the Attorney General may direct, 
exclusive of interest, penalties, and administrative costs, the 
authority to suspend or terminate rests solely with the DOJ. If the NRC 
believes that suspension or termination of any debt in excess of 
$100,000 may be appropriate, the NRC shall refer the debt to the Civil 
Division or other appropriate litigating division in the DOJ, using the 
CCLR. The referral should specify the reasons for the NRC's 
recommendation. If, prior to referral to the DOJ, the NRC determines 
that a debt is plainly erroneous or clearly without legal merit, the 
NRC may terminate collection activity, regardless of the amount 
involved, without obtaining DOJ concurrence.
    24. Section15.53 is revised to read as follows:


Sec. 15.53  Reasons for suspending collection action.

    The NRC may suspend collection activity when:
    (a) The NRC cannot locate the debtor;
    (b) The debtor's financial condition is not expected to improve; or
    (c) The debtor has requested a waiver or review of the debt.
    (d) Based on the current financial condition of the debtor, the NRC 
may suspend collection activity on a debt when the debtor's future 
prospects justify retention of the debt for periodic review and 
collection activity and:
    (1) The applicable statute of limitations has not expired; or
    (2) Future collection can be effected by administrative offset, 
notwithstanding the expiration of the applicable statute of limitations 
for litigation of claims, with due regard to the 10-year limitation for 
administrative offset prescribed by 31 U.S.C. 3716(e)(1); or
    (3) The debtor agrees to pay interest on the amount of the debt on 
which collection will be suspended, and such suspension is likely to 
enhance the debtor's ability to pay the full amount of the principal of 
the debt with interest at a later date.
    (e)(1) The NRC shall suspend collection activity during the time 
required for consideration of the debtor's request for waiver or 
administrative review of the debt, if the statute under which the 
request is sought prohibits the NRC from collecting the debt during 
that time.
    (2) If the statute under which the request is sought does not 
prohibit collection activity pending consideration of the request, the 
NRC may use discretion, on a case-by-case basis, to suspend collection. 
Further, the NRC ordinarily should suspend collection action upon a 
request for waiver or review, if the NRC is prohibited by statute or 
regulation from issuing a refund of amounts collected prior to NRC 
consideration of the debtor's request. However, the NRC should not 
suspend collection when the NRC determines that the request for waiver 
or review is frivolous or was made primarily to delay collection.
    (f) When the NRC learns that a bankruptcy petition has been filed 
with respect to a debtor, in most cases, the collection activity on a 
debt must be suspended, pursuant to the provisions of 11 U.S.C. 362, 
1201, and 1301, unless the NRC can clearly establish that the automatic 
stay has been lifted or is no longer in effect. The NRC should seek 
legal advice immediately from its Office of the General Counsel and, if 
legally permitted, take the necessary steps to ensure that no funds or 
money are paid by the NRC to the debtor until relief from the automatic 
stay is obtained.
    25. Section 15.55 is revised to read as follows:


Sec. 15.55  Reasons for terminating collection action.

    The NRC may terminate collection activity when:
    (a) The NRC is unable to collect any substantial amount through its 
own efforts or through the efforts of others;
    (b) The NRC is unable to locate the debtor;
    (c) Costs of collection are anticipated to exceed the amount 
recoverable,
    (d) The debt is legally without merit or enforcement of the debt is 
barred by any applicable statute of limitations;

[[Page 50869]]

    (e) The debt cannot be substantiated; or
    (f) The debt against the debtor has been discharged in bankruptcy.
    26. Section 15.57 is revised to read as follows:


Sec. 15.57  Termination of collection action.

    (a) Before terminating collection activity, the NRC should have 
pursued all appropriate means of collection and determined, based upon 
the results of the collection activity, that the debt is uncollectible. 
Termination of collection activity ceases active collection of the 
debt. The termination of collection activity does not preclude the NRC 
from retaining a record of the account for purposes of:
    (1) Selling the debt, if the Treasury determines that such sale is 
in the best interests of the United States;
    (2) Pursuing collection at a subsequent date in the event there is 
a change in the debtor's status or a new collection tool becomes 
available;
    (3) Offsetting against future income or assets not available at the 
time of termination of collection activity; or
    (4) Screening future applicants for prior indebtedness.
    (b) Generally, the NRC will terminate collection activity on a debt 
that has been discharged in bankruptcy, regardless of the amount. 
However, the NRC may continue collection activity, subject to the 
provisions of the Bankruptcy Code, for any payments provided under a 
plan of reorganization.
    27. Section 15.59 is revised to read as follows:


Sec. 15.59  Exception to termination.

    When a significant enforcement policy is involved, or recovery of a 
judgment is a prerequisite to the imposition of administrative 
sanctions, the NRC may refer debts for litigation, although termination 
of collection activity may be appropriate.
    28. Section 15.60 is added to read as follows:


Sec. 15.60  Discharge of indebtedness; reporting requirements.

    (a) Before discharging a delinquent debt (also referred to as a 
close out of the debt), the NRC shall take all appropriate steps to 
collect the debt in accordance with 31 U.S.C. 3711(g), including, as 
applicable, administrative offset; tax refund offset; Federal salary 
offset; referral to Treasury, Treasury-designated debt collection 
centers, or private collection contractors; credit bureau reporting; 
wage garnishment; litigation; and foreclosure. Discharge of 
indebtedness is distinct from termination or suspension of collection 
activity under Sec. 15.55 and Sec. 15.57 and is governed by the 
Internal Revenue Code. When collection action on a debt is suspended or 
terminated, the debt remains delinquent, and further collection action 
may be pursued at a later date. When the NRC discharges a debt in full 
or in part, further collection action is prohibited. Therefore, the NRC 
will make the determination that collection action is no longer 
warranted before discharging a debt. Before discharging a debt, the NRC 
must terminate debt collection action.
    (b) Section 3711(i), title 31, United States Code, requires 
agencies to sell a delinquent nontax debt upon termination of 
collection action if Treasury determines such a sale is in the best 
interests of the United States. Since the discharge of a debt precludes 
any further collection action (including the sale of a delinquent 
debt), the NRC may not discharge a debt until the requirements of 31 
U.S.C. 3711(i) have been met.
    (c) Upon discharge of an indebtedness, the NRC shall report the 
discharge to the IRS in accordance with the requirements of 26 U.S.C. 
6050P and 26 CFR 1.6050P-1. The NRC may request Treasury or a Treasury-
designated debt collection center to file a discharge report to the IRS 
on the NRC's behalf.
    (d) When discharging a debt, the NRC shall request that litigation 
counsel release any liens of record securing the debt.
    29. Section 15.61 is revised to read as follows:


Sec. 15.61  Prompt referral.

    (a) The NRC shall promptly refer debts that are subject to 
aggressive collection activity (as described in subpart B of 10 CFR 
part 15) and that cannot be compromised, or debts on which collection 
activity cannot be suspended or terminated, to DOJ for litigation. 
Debts for which the principal amount exceeds $1,000,000, or such other 
amount as the Attorney General may direct, exclusive of interest and 
penalties, must be referred to the Civil Division or other division 
responsible for litigating such debts at DOJ, Washington, D.C. Debts 
for which the principal amount is $1,000,000 or less, or such other 
amount as the Attorney General may direct, exclusive of interest or 
penalties, must be referred to the Department of Justice's Nationwide 
Central Intake Facility, as required by the CCLR instructions. Debts 
will be referred as early as possible, consistent with the NRC's 
aggressive collection activity and well within the one year of the 
NRC's final determination of the fact and the amount of the debt.
    (b) DOJ has exclusive jurisdiction over the debts referred to in 
paragraph (a) of this section. The NRC shall terminate the use of any 
administrative collection activities to collect a debt when the debt is 
referred to DOJ. The NRC shall advise the DOJ of the collection 
activities it used and the results. The NRC shall refrain from having 
any contact with the debtor and shall direct all inquiries to DOJ. The 
NRC shall immediately notify DOJ of any payments credited to the 
debtor's account after the account has been referred to DOJ. DOJ shall 
notify NRC in a timely manner of any payments it receives from the 
debtor.
    30. Section 15.65 is revised to read as follows:


Sec. 15.65  Referral of a compromise offer.

    The NRC may refer a debtor's firm written offer of compromise, 
which is substantial in amount, to the Civil Division or other 
appropriate litigating division in DOJ using a CCLR accompanied by 
supporting data and particulars concerning the debt.
    31. Section 15.67 is revised to read as follows:


Sec. 15.67  Referral to the Department of Justice.

    (a) Unless excepted by DOJ, the NRC shall complete the CCLR 
accompanied by a Certificate of Indebtedness, to refer all 
administratively uncollectible claims to the DOJ for litigation.
    (b) The NRC shall indicate the actions it wishes DOJ to take 
regarding the referred claim on the CCLR.
    (c) Before referring a debt to DOJ for litigation, the NRC shall 
notify each person determined to be liable for the debt that, unless 
the debt can be collected administratively, litigation may be 
initiated. This notification must comply with Executive Order 12988 (3 
CFR, 1996 Comp., pp 157-163) and may be given as part of a demand 
letter or as a separate document.
    (d) The NRC shall preserve all files and records that DOJ may need 
to prove the claim in court.
    (e) The NRC may ordinarily not refer for litigation claims of less 
than $2,500, exclusive of interest, penalties, and administrative 
charges, or such other amount as the Attorney General shall from time 
to time prescribe.
    (f) The NRC may not refer claims of less than the minimum amount 
unless:
    (1) Litigation to collect a smaller claim is important to ensure 
compliance with NRC's policies and programs;
    (2) The claim is being referred solely to secure a judgment against 
the debtor, which will be filed as a lien against the

[[Page 50870]]

debtor's property under 28 U.S.C.3201 and returned to the NRC for 
enforcement, or
    (3) The debtor has the clear ability to pay the claim, and the 
Government effectively can enforce payment, with due regard for the 
exemptions available to the debtor under state and Federal law and the 
judicial remedies available to the Government.

    Dated at Rockville, Maryland, this 26th day of September 2001.

    For the Nuclear Regulatory Commission.
Jesse L. Funches,
Chief Financial Officer.
[FR Doc. 01-25000 Filed 10-4-01; 8:45 am]
BILLING CODE 7590-01-P