[Federal Register Volume 67, Number 129 (Friday, July 5, 2002)]
[Rules and Regulations]
[Pages 44757-44765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16703]



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  Federal Register / Vol. 67, No. 129 / Friday, July 5, 2002 / Rules 
and Regulations  

[[Page 44757]]



NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

36 CFR Part 1201

RIN 3095-AA77


Debt Collection

AGENCY: National Archives and Records Administration (NARA).

ACTION: Interim final rule.

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SUMMARY: The National Archives and Records Administration (NARA) is 
issuing regulations governing the collection of debts owed to it and 
other Federal agencies. Federal agencies are required to try to collect 
debts owed to the Federal government. These regulations describe 
actions that NARA may take to collect debts, and apply, with certain 
exceptions, to any person or entity. These regulations also provide 
that NARA may enter into a cross-servicing agreement with the U.S. 
Department of the Treasury (Treasury) under which the Treasury will 
take authorized action to collect amounts owed to NARA.

DATES: This rule is effective on: August 5, 2002. Comments are due by 
September 3, 2002.

ADDRESSES: Comments must be sent to Regulation Comments Desk (NPOL), 
Room 4100, Policy and Communications Staff, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001. 
They may be faxed to 301-837-0319. You may also comment via the 
Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Kim Richardson at telephone number 
301-837-2902, or fax number 301-837-0319.

SUPPLEMENTARY INFORMATION: Under these regulations, NARA may collect 
debts owed to it through a number of actions, including the following:
     Making offsets against amounts, including salary payments, 
owed to the debtor by NARA or other Federal agencies;
     Referring the debt to a private collection contractor; and
     Referring the matter to the U.S. Department of Justice 
(DOJ) for initiation of a judicial proceeding against the debtor.

In addition, these regulations describe the actions necessary for NARA 
to take collection actions on behalf of another Federal agency. These 
actions could include making offsets against the salary of a NARA 
employee or any other amounts owed by NARA to the debtor. These 
regulations also provide that NARA may enter into a cross-servicing 
agreement with the Department of the Treasury (Treasury) to take all of 
the above-listed actions to collect debts for NARA, or refer debts to a 
private debt collection agency.
    These regulations implement the requirements of the Federal Claims 
Collection Act of 1966 (Pub. L. 89-508, 80 Stat. 308) as amended by the 
Debt Collection Act of 1982 (Pub. L. 97-365, 96 Stat. 1749) and the 
Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110 Stat. 
1321). These regulations are issued in conformity with the Federal 
Claims Collection Standards issued by DOJ and the Treasury (31 CFR 
Chapter IX, parts 900-904, 65 FR 70390 (11/22/2000)). The regulations 
in this part are also issued in conformity with the regulations of the 
Office of Personnel Management (OPM) on offsets against Federal 
employee salaries (5 CFR part 550, subpart K), and the Treasury 
regulations on Administrative Wage Garnishment (31 CFR 285.11).
    NARA has determined that these interim regulations pertain to 
agency practice and procedure and are interpretative in nature. The 
procedures contained in these regulations for salary, tax refund, and 
administrative offsets are mandated by law and by regulations 
promulgated by OPM, the Financial Management Service, and jointly by 
the DOJ and the Treasury. Therefore, under 5 U.S.C. 553(b)-(d), these 
regulations are not subject to the Administrative Procedures Act (APA) 
and the requirements of the APA for a notice and comment period and a 
delayed effective date. Nonetheless, NARA is delaying the effective 
date until 30 days following publication of these interim regulations, 
and will modify the regulations, if appropriate, in response to 
comments received within the comment period.
    This interim rule is a significant regulatory action for the 
purpose of Executive Order 12866 and has been reviewed by the Office of 
Management and Budget. As required by the Regulatory Flexibility Act, I 
certify that these regulations will not have a significant economic 
impact on a substantial number of small entities. This rule has no 
federalism implications. This rule is not a major rule.
    Please submit Internet comments within the body of your email 
message or as an attachment. Please also include ``Attn: 3095-AA76'' 
and your name and return address in your Internet message. If you do 
not receive a confirmation from the system that we have received your 
Internet message, contact the Regulation Comment desk at 301-713-7360, 
ext. 240.

List of Subjects in 36 CFR Part 1201

    Administrative practice and procedures; Claims; Debts; Government 
employees; Wages.


    For the reasons set forth in the preamble, NARA is adding part 1201 
to subchapter A of chapter XII, title 36, Code of Federal Regulations, 
as follows:

PART 1201--COLLECTION OF CLAIMS

Subpart A--Introduction
Sec.
1201.1  Why is NARA issuing these regulations?
1201.2  Under what authority does NARA issue these regulations?
1201.3  What definitions apply to the regulations in this part?
1201.4  What types of claims are excluded from these regulations?
1201.5  If a claim is not excluded from these regulations, may it be 
compromised, suspended, terminated, or waived?
1201.6  What is a claim or debt?
1201.7  Why does NARA have to collect debts?
1201.8  What action might NARA take to collect debts?
1201.9  What rights do I have as a debtor?
Subpart B--General Provisions
1201.10   Will NARA use a cross-servicing agreement with the 
Department of the Treasury to collect its claims?
1201.11  Will NARA refer claims to the Department of Justice?
1201.12  Will NARA provide information to credit reporting agencies?
1201.13  How will NARA contract for collection services?

[[Page 44758]]

1201.14  What should I expect to receive from NARA if I owe a debt 
to NARA?
1201.15  What will the notice tell me regarding collection actions 
that might be taken if the debt is not paid within 60 days of the 
notice, or arrangements to pay the debt are not made within 60 days 
of the notice?
1201.16  What will the notice tell me about my opportunity for 
review of my debt?
1201.17  What must I do to obtain a review of my debt, and how will 
the review process work?
1201.18  What interest, penalty charges, and administrative costs 
will I have to pay on a debt owed to NARA?
1201.19  How can I resolve my debt through voluntary repayment?
1201.20  What is the extent of the Archivist's authority to 
compromise debts owed to NARA, or to suspend or terminate collection 
action on such debts?
1201.21  May NARA's failure to comply with these regulations be used 
as a defense to a debt?
Subpart C--Salary Offset
1201.30   What debts are included or excluded from coverage of these 
regulations on salary offset?
1201.31  May I ask NARA to waive an overpayment that otherwise would 
be collected by offsetting my salary as a Federal employee?
1201.32  What are NARA's procedures for salary offset?
1201.33  How will NARA coordinate salary offsets with other 
agencies?
1201.34  Under what conditions will NARA make a refund of amounts 
collected by salary offset?
1201.35  Will the collection of a claim by salary offset act as a 
waiver of my rights to dispute the claimed debt?
Subpart D--Tax Refund Offset
1201.40   Which debts can NARA refer to the Department of the 
Treasury for collection by offsetting tax refunds?
1201.41  What are NARA's procedures for collecting debts by tax 
refund offset?
Subpart E--Administrative Offset
1201.50   Under what circumstances will NARA collect amounts that I 
owe to NARA (or some other Federal agency) by offsetting the debt 
against payments that NARA (or some other Federal agency) owes me?
1201.51  How will NARA request that my debt to NARA be collected by 
offset against some payment that another Federal agency owes me?
1201.52  What procedures will NARA use to collect amounts I owe to a 
Federal agency by offsetting a payment that NARA would otherwise 
make to me?
1201.53  When may NARA make an offset in an expedited manner?
1201.54  Can a judgment I have obtained against the United States be 
used to satisfy a debt that I owe to NARA?
Subpart F--Administrative Wage Garnishment
1201.55   How will NARA collect debts through Administrative Wage 
Garnishment?

    Authority: 5 U.S.C. 5514; 31 U.S.C. 3701-3720A, 3720D; 44 U.S.C. 
2104(a).

Subpart A--Introduction


Sec. 1201.1  Why is NARA issuing these regulations?

    (a) NARA is issuing these regulations to inform the public of 
procedures that may be used by NARA for the collection of debt.
    (b) These regulations provide that NARA will attempt to collect 
debts owed to it or other Government agencies either directly, or by 
other means including salary, administrative, tax refund offsets, or 
administrative wage garnishment.
    (c) These regulations also provide that NARA may enter a cross-
servicing agreement with the U.S. Department of the Treasury (Treasury) 
under which the Treasury will take authorized action to collect amounts 
owed to NARA.


Sec. 1201.2  Under what authority does NARA issue these regulations?

    (a) NARA is issuing the regulations in this part under the 
authority of 31 U.S.C. Chapter 37, 3701-3720A and 3720D. These sections 
implement the requirements of the Federal Claims Collection Act of 
1966, as amended by the Debt Collection Act of 1982 and the Debt 
Collection Improvement Act of 1996.
    (b) NARA is also issuing the regulations in this part to conform to 
the Federal Claims Collection Standards (FCCS), which prescribe 
standards for handling the Federal Government's claims for money or 
property. The FCCS are issued by the Department of Justice (DOJ) and 
the Treasury at 31 CFR Chapter IX, Parts 900-904. NARA adopts those 
standards without change. The regulations in this part supplement the 
FCCS by prescribing procedures necessary and appropriate for NARA 
operations.
    (c) NARA is also issuing the regulations in this part to conform to 
the standards for handling Administrative Wage Garnishment processing 
by the Federal Government. The standards are issued by the Treasury at 
31 CFR 285.11. NARA adopts those standards without change. The 
regulations in this part supplement the standards by prescribing 
procedures necessary and appropriate for NARA operations.
    (d) NARA is further issuing the regulations in this part under the 
authority of 5 U.S.C. 5514, and the salary offset regulations published 
by the Office of Personnel and Management at 5 CFR part 550, subpart K.
    (e) All of these claims collection regulations are issued under 
NARA's authority under 44 U.S.C. 2104(a).


Sec. 1201.3  What definitions apply to the regulations in this part?

    As used in this part:
    Administrative 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 claim.
    Administrative Wage Garnishment means a process whereby a Federal 
agency may, without first obtaining a court order, order an employer to 
withhold up to 15 percent of your wages for payment to the Federal 
agency to satisfy a delinquent non-tax debt.
    Agency means a department, agency, court, court administrative 
office, or instrumentality in the executive, judicial, or legislative 
branch of government, including a government corporation.
    Archivist means the Archivist of the United States, or his or her 
designee.
    Certification means a written statement received by a paying agency 
or disbursing official from a creditor agency that requests the paying 
agency or disbursing official to offset the salary of an employee and 
specifies that required procedural protections have been afforded the 
employee.
    Claim (see definition of debt in this section).
    Compromise means the settlement or forgiveness of a debt.
    Creditor agency means the agency to which the debt is owed, 
including a debt collection center when acting on behalf of the 
creditor agency.
    Day means calendar day. To count days, include the last day of the 
period unless it is a Saturday, a Sunday, or a Federal legal holiday.
    Debt collection center means the Treasury or any other agency or 
division designated by the Secretary of the Treasury with authority to 
collect debts on behalf of creditor agencies.
    Debt and claim are deemed synonymous and interchangeable. These 
terms mean an amount of money, funds, or property that has been 
determined by an agency official to be due the United States from any 
person, organization, or entity except another Federal agency. For the 
purpose of administrative offset under 31 U.S.C. 3716 and subpart E of 
these regulations, the terms, ``debt'' and ``claim'' also include 
money, funds or property owed by a person to a State (including past-
due support being

[[Page 44759]]

enforced by a State); the District of Columbia; American Samoa; Guam; 
the United States Virgin Islands; the Commonwealth of the Northern 
Marina Islands; or the Commonwealth of Puerto Rico.
    Debtor means a person, organization, or entity, except another 
Federal agency, who owes a debt. Use of the terms ``I,'' ``you,'' 
``me,'' and similar references to the reader of the regulations in this 
part are meant to apply to debtors as defined in this paragraph.
    Delinquent debt means a debt that has not been paid by the date 
specified in NARA'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.
    Disposable pay means the part of an employee's pay that remains 
after deductions that are required to be withheld by law have been 
made.
    Employee means a current employee of an agency, including a current 
member of the Armed Forces or Reserve of the Armed Forces of the United 
States.
    Federal Claims Collection Standards (FCCS) means the standards 
currently published by DOJ and the Treasury at 31 CFR parts 900-904.
    NARA means the National Archives and Records Administration.
    Paying agency means any agency that is making payments of any kind 
to a debtor. In some cases, NARA may be both the creditor agency and 
the paying agency.
    Payroll office means the office that is primarily responsible for 
payroll records and the coordination of pay matters with the 
appropriate personnel office.
    Person includes a natural person or persons, profit or non-profit 
corporation, partnership, association, trust, estate, consortium, state 
or local government, or other entity that is capable of owing a debt to 
the United States; however, agencies of the United States are excluded.
    Private collection contractor means a private debt collector under 
contract with an agency to collect a non-tax debt owed to the United 
States.
    Salary offset means a payroll procedure to collect a debt under 5 
U.S.C. 5514 and 31 U.S.C. 3716 by deduction(s) at one or more 
officially established pay intervals from the current pay account of an 
employee, without his or her consent.
    Tax refund offset means the reduction of a tax refund by the amount 
of a past-due legally enforceable debt owed to NARA or any other 
Federal agency.
    Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt.
    Withholding order means any order for withholding or garnishment of 
pay issued by an agency, or judicial or administrative body.


Sec. 1201.4  What types of claims are excluded from these regulations?

    The following types of claims are excluded:
    (a) Debts or claims arising under the Internal Revenue Code (26 
U.S.C. 1 et seq.) or the tariff laws of the United States, or the 
Social Security Act (42 U.S.C. 301 et seq.); except as provided under 
sec. 204(f) and 1631 (42 U.S.C. 404(f) and 1383(b)(4)(A)).
    (b) Any case to which the Contract Disputes Act (41 U.S.C. 601 et 
seq.) applies;
    (c) Any case where collection of a debt is explicitly provided for 
or provided by another statute, e.g., travel advances under 5 U.S.C. 
5705 and employee training expenses under 5 U.S.C. 4108, or, as 
provided for by title 11 of the United States Code, when the claims 
involve bankruptcy;
    (d) Any debt based in whole or in part on conduct in violation of 
the antitrust laws or involving fraud, the presentation of a false 
claim, or misrepresentation on the part of the debtor or any party 
having an interest in the claim, as described in the FCCS, unless DOJ 
authorizes NARA to handle the collection;
    (e) Claims between Federal agencies;
    (f) Unless otherwise provided by law, administrative offset of 
payments under the authority of 31 U.S.C. 3716 to collect a debt may 
not be initiated more than 10 years after the Government's right to 
collect the debt first accrued. (Exception: The 10-year limit does not 
apply if facts material to the Federal 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.) The 10-year 
limitation also does not apply to debts reduced to a judgement; and
    (g) Unless otherwise stated, claims which have been transferred to 
Treasury or referred to the Department of Justice will be collected in 
accordance with the procedures of those agencies.


Sec. 1201.5  If a claim is not excluded from these regulations, may it 
be compromised, suspended, terminated, or waived?

    Nothing in this part precludes:
    (a) The compromise, suspension, or termination of collection 
actions, where appropriate under the FCCS, or the use of alternative 
dispute resolution methods if they are consistent with applicable law 
and regulations.
    (b) An employee from requesting waiver of an erroneous payment 
under 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 716, or from 
questioning the amount or validity of a debt, in the manner set forth 
in this part.


Sec. 1201.6  What is a claim or debt?

    A claim or debt is an amount of money, funds, or property that has 
been determined by an agency official to be due the United States from 
any person, organization, or entity except another Federal agency (see 
Sec. 1201.3).


Sec. 1201.7  Why does NARA have to collect debts?

    Federal agencies are required to try to collect claims of the 
Federal Government for money, funds, or property arising out of the 
agency's activities.


Sec. 1201.8  What action might NARA take to collect debts?

    (a) There are a number of actions that NARA is permitted to take 
when attempting to collect debts. These actions include:
    (1) Salary, tax refund or administrative offset, or administrative 
wage garnishment (see subparts C, D, E, and F of this part 
respectively); or
    (2) Using the services of private collection contractors.
    (b) In certain instances, usually after collection efforts have 
proven unsuccessful, NARA transfers debts to the Treasury for 
collection or refers them to the DOJ for litigation (see Secs. 1201.10 
and 1201.11).


Sec. 1201.9  What rights do I have as a debtor?

    As a debtor you have several basic rights. You have a right to:
    (a) Notice as set forth in these regulations (see Sec. 1201.14);
    (b) Inspect the records that NARA has used to determine that you 
owe a debt (see Sec. 1201.14);
    (c) Request review of the debt and possible payment options (see 
Sec. 1201.17);
    (d) Propose a voluntary repayment agreement (see Sec. 1201.19); 
and/or
    (e) Question if the debt is excluded from these regulations (see 
Sec. 1201.5(b)).

Subpart B--General Provisions.


Sec. 1201.10  Will NARA use a cross-servicing agreement with the 
Department of the Treasury to collect its claims?

    (a) NARA may enter into a cross-servicing agreement that authorizes 
the

[[Page 44760]]

Treasury to take the collection actions described in this part on 
behalf of NARA. This agreement will describe procedures that the 
Treasury uses to collect debts. The debt collection procedures that the 
Treasury uses are based on 31 U.S.C. chapter 37.
    (b) NARA must transfer to the Treasury any debt that has been 
delinquent for a period of 180 days or more so that the Secretary of 
the Treasury may take appropriate action to collect the debt or 
terminate collection action. NARA may also transfer to the Treasury any 
debt that is less than 180 days delinquent.
    (c) Paragraph (b) of this section will not apply to any debt or 
claim that:
    (1) Is in litigation or foreclosure;
    (2) Will be disposed of under an approved asset sales program;
    (3) Has been referred to a private collection contractor for 
collection for a period of time acceptable to the Secretary of the 
Treasury;
    (4) Is at a debt collection center for a period of time acceptable 
to the Secretary of the Treasury;
    (5) Will be collected under internal offset procedures within 3 
years after the date the debt or claim is first delinquent; or
    (6) Is exempt from this requirement based on a determination by the 
Secretary of the Treasury.


Sec. 1201.11  Will NARA refer claims to the Department of Justice?

    NARA will refer to DOJ for litigation claims on which aggressive 
collection actions have been taken, but which could not be collected, 
compromised, suspended, or terminated. Referrals will be made as early 
as possible, consistent with aggressive NARA collection action, and 
within the period for bringing a timely suit against the debtor.


Sec. 1201.12  Will NARA provide information to credit reporting 
agencies?

    (a) NARA will report certain delinquent debts to appropriate 
consumer credit reporting agencies by providing the following 
information:
    (1) A statement that the debt is valid and overdue;
    (2) The name, address, taxpayer identification number, and any 
other information necessary to establish the identity of the debtor;
    (3) The amount, status, and history of the debt; and
    (4) The program or pertinent activity under which the debt arose.
    (b) Before disclosing debt information to a credit reporting 
agency, NARA:
    (1) Takes reasonable action to locate the debtor if a current 
address is not available;
    (2) Provides the notice required under Sec. 1201.14 if a current 
address is available; and
    (3) Obtains satisfactory assurances from the credit reporting 
agency that it complies with the Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) and other Federal laws governing the provision of credit 
information.
    (c) At the time debt information is submitted to a credit reporting 
agency, NARA provides a written statement to the reporting agency that 
all required actions have been taken. In addition, NARA thereafter 
ensures that the credit reporting agency is promptly informed of any 
substantive change in the conditions or amount of the debt, and 
promptly verifies or corrects information relevant to the debt.
    (d) If a debtor disputes the validity of the debt, the credit 
reporting agency refers the matter to the appropriate NARA official. 
The credit reporting agency excludes the debt from its reports until 
NARA certifies in writing that the debt is valid.
    (e) NARA may disclose to a commercial credit bureau information 
concerning a commercial debt, including the following:
    (1) Information necessary to establish the name, address, and 
employer identification number of the commercial debtor;
    (2) The amount, status, and history of the debt; and
    (3) The program or pertinent activity under which the debt arose.


Sec. 1201.13  How will NARA contract for collection services?

    NARA uses the services of a private collection contractor where it 
determines that such use is in NARA's best interest. When NARA 
determines that there is a need to contract for collection services, 
NARA:
    (a) Retains sole authority to:
    (1) Resolve any dispute with the debtor regarding the validity of 
the debt;
    (2) Compromise the debt;
    (3) Suspend or terminate collection action;
    (4) Refer the debt to the DOJ for litigation; and
    (5) Take any other action under this part;
    (b) Requires the contractor to comply with the:
    (1) Privacy Act of 1974, as amended, to the extent specified in 5 
U.S.C. 552a(m);
    (2) Fair Debt Collection Practices Act (15 U.S.C. 1692-1692o); and
    (3) Other applicable Federal and State laws pertaining to debt 
collection practices and applicable regulations of NARA in this part;
    (c) Requires the contractor to account accurately and fully for all 
amounts collected; and
    (d) Requires the contractor to provide to NARA, upon request, all 
data and reports contained in its files related to its collection 
actions on a debt.


Sec. 1201.14  What should I expect to receive from NARA if I owe a debt 
to NARA?

    (a) NARA will send you a written notice when we determine that you 
owe a debt to NARA. The notice will be hand-delivered or sent to you at 
the most current address known to NARA. The notice will inform you of 
the following:
    (1) The amount, nature, and basis of the debt;
    (2) That a designated NARA official has reviewed the claim and 
determined that it is valid;
    (3) That payment of the debt is due as of the date of the notice, 
and that the debt will be considered delinquent if you do not pay it 
within 30 days of the date of the notice;
    (4) NARA's policy concerning interest, penalty charges, and 
administrative costs (see Sec. 1201.18), including a statement that 
such assessments must be made against you unless excused in accordance 
with the FCCS and this part;
    (5) That you have the right to inspect and copy disclosable NARA 
records pertaining to your debt, or to receive copies of those records 
if personal inspection is impractical;
    (6) That you have the opportunity to enter into an agreement, in 
writing and signed by both you and the designated NARA official, for 
voluntary repayment of the debt (see Sec. 1201.19);
    (7) The address, telephone number, and name of the NARA official 
available to discuss the debt;
    (8) Possible collection actions that might be taken if the debt is 
not paid within 60 days of the notice, or arrangements to pay the debt 
are not made within 60 days of the notice (see Sec. 1201.15 for a 
fuller description of possible actions);
    (9) That NARA may suspend or revoke any licenses, permits, or other 
privileges for failure to pay a debt; and
    (10) Information on your opportunity to obtain a review of the debt 
(see Sec. 1201.16).
    (b) NARA will respond promptly to communications from you.
    (c) Exception to entitlement to notice, hearing, written responses, 
and final decisions. With respect to the regulations covering internal 
salary offset collections (see Sec. 1230.32), NARA excepts from the 
provisions of paragraph (a) of this section--

[[Page 44761]]

    (1) Any adjustment to pay arising out of an 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 4 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 4 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
    (3) Any adjustment to collect a 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.


Sec. 1201.15  What will the notice tell me regarding collection actions 
that might be taken if the debt is not paid within 60 days of the 
notice, or arrangements to pay the debt are not made within 60 days of 
the notice?

    The notice provided under Sec. 1201.14 will advise you that within 
60 days of the date of the notice, your debt (including any interest, 
penalty charges, and administrative costs) must be paid or you must 
enter into a voluntary repayment agreement. If you do not pay the debt 
or enter into the agreement within that deadline, NARA may enforce 
collection of the debt by any or all of the following methods:
    (a) By referral to a credit reporting agency (see Sec. 1201.12), 
private collection contractor (see Sec. 1201.13), or the DOJ (see 
Sec. 1201.11).
    (b) By transferring any debt to the Treasury for collection, 
including under a cross-servicing agreement with the Treasury (see 
Sec. 1201.10).
    (c) If you are a NARA employee, by deducting money from your 
disposable pay account until the debt (and all accumulated interest, 
penalty charges, and administrative costs) is paid in full (see subpart 
C of this part). NARA will specify the amount, frequency, approximate 
beginning date, and duration of the deduction. 5 U.S.C. 5514 and 31 
U.S.C. 3716 govern such proceedings;
    (d) If you are an employee of a Federal agency other than NARA, by 
initiating certification procedures to implement a salary offset by 
that Federal agency (see subpart C of this part). 5 U.S.C. 5514 governs 
such proceedings;
    (e) By referring the debt to the Treasury for offset against any 
refund of overpayment of tax (see subpart D of this part);
    (f) By administrative offset (see subpart E of this part);
    (g) By administrative wage garnishment (see subpart F of this 
part); or
    (h) By liquidation of security or collateral. NARA has the right to 
hold security or collateral, liquidate it, and apply the proceeds to 
your debt through the exercise of a power of sale in the security 
instrument or a foreclosure. NARA will not follow the procedures in 
this paragraph (h) if the cost of disposing the collateral will be 
disproportionate to its value.


Sec. 1201.16  What will the notice tell me about my opportunity for 
review of my debt?

    The notice provided by NARA under Secs. 1201.14 and 1201.15 will 
also advise you of the opportunity to obtain a review within NARA 
concerning the existence or amount of the debt or the proposed schedule 
for offset of Federal employee salary payments. The notice will also 
advise you of the following:
    (a) The name, address, and telephone number of a NARA official whom 
you may contact concerning procedures for requesting a review;
    (b) The method and time period for requesting a review;
    (c) That the filing of a request for a review on or before the 60th 
day following the date of the notice will stay the commencement of 
collection proceedings;
    (d) The name and address of the NARA official to whom you should 
send the request for a review;
    (e) That a final decision on the review (if one is requested) will 
be issued in writing at the earliest practical date, but not later than 
60 days after the receipt of the request for a review, unless you 
request, and the review official grants, a delay in the proceedings;
    (f) That any knowingly false or frivolous statements, 
representations, or evidence may subject you to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. Chapter 75, 
5 CFR part 752, or any other applicable statute or regulations;
    (2) Penalties under the False Claims Act (31 U.S.C. 3729-3733) or 
any other applicable statutory authority; and
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority;
    (g) Any other rights available to you to dispute the validity of 
the debt or to have recovery of the debt waived, or remedies available 
to you under statutes or regulations governing the program for which 
the collection is being made; and
    (h) That unless there are applicable contractual or statutory 
provisions to the contrary, amounts paid on or deducted for the debt 
that are later waived or found not owed will be promptly refunded to 
you.


Sec. 1201.17  What must I do to obtain a review of my debt, and how 
will the review process work?

    (a) Request for review. (1) You have the right to request a review 
by NARA of the existence or amount of your debt, the proposed schedule 
for offset of Federal employee salary payments, or whether the debt is 
past due or legally enforceable. If you want a review, you must send a 
written request to the NARA official designated in the notice (see 
Sec. 1201.16(d)).
    (2) You must sign your request for review and fully identify and 
explain with reasonable specificity all the facts, evidence, and 
witnesses that support your position. Your request for review should be 
accompanied by available evidence to support your contentions.
    (3) Your request for review must be received by the designated 
officer or employee of NARA on or before the 60th calendar day 
following the date of the notice. Timely filing will stay the 
commencement of collection procedures. NARA may consider requests filed 
after the 60-day period provided for in this section if you:
    (i) Can show that the delay was the result of circumstances beyond 
your control; or
    (ii) Did not receive notice of the filing deadline (unless you had 
actual notice of the filing deadline).
    (b) Inspection of NARA records related to the debt. (1) If you want 
to inspect or copy NARA records related to the debt (see 
Sec. 1201.14(a)(5)), you must send a letter to the NARA official 
designated in the notice. Your letter must be received within 30 days 
of the date of the notice.
    (2) In response to the timely request described in paragraph (b)(1) 
of this section, the designated NARA official will notify you of the 
location and time when you may inspect and copy records related to the 
debt.
    (3) If personal inspection of NARA records related to the debt is 
impractical, reasonable arrangements will be made to send you copies of 
those records.
    (c) Review official. (1) When required by Federal law or 
regulation, such as in a salary offset situation, NARA will request an 
administrative law judge, or hearing official from another agency who 
is not under the supervision or

[[Page 44762]]

control of the Archivist, to conduct the review. In these cases, the 
hearing official will, following the review, submit the review decision 
to the Archivist for the issuance of NARA's final decision (see 
paragraph (f) of this section for content of the review decision).
    (2) When Federal law or regulation does not require NARA to have 
the review conducted by an administrative law judge, or by a hearing 
official from another agency who is not under the supervision or 
control of the Archivist, NARA has the right to appoint a hearing 
official to conduct the review. In these cases, the hearing official 
will, following the review, submit the review decision to the Archivist 
for the issuance of NARA's final decision (see paragraph (f) of this 
section for the content of the review decision).
    (d) Review procedure. If you request a review, the review official 
will notify you of the form of the review to be provided. The review 
official will determine whether an oral hearing is required, or if a 
review of the written record is sufficient, in accordance with the 
FCCS. Although you may request an oral hearing, such a hearing is 
required only when a review of the documentary evidence cannot 
determine the question of indebtedness, such as when the validity of 
the debt turns on an issue of credibility or truthfulness. In either 
case, the review official will conduct the review in accordance with 
the FCCS. If the review will include an oral hearing, the notice sent 
to you by the review official will set forth the date, time, and 
location of the hearing.
    (e) Date of decision. (1) The review official will issue a written 
decision, based upon either the written record or documentary evidence 
and information developed at an oral hearing. This decision will be 
issued as soon as practical, but not later than 60 days after the date 
on which NARA received your request for a review, unless you request, 
and the review official grants, a delay in the proceedings.
    (2) If NARA is unable to issue a decision within 60 days after the 
receipt of the request for a hearing:
    (i) NARA may not issue a withholding order or take other action 
until the hearing (in whatever form) is held and a decision is 
rendered; and
    (ii) If NARA previously issued a withholding order to the debtor's 
employer, NARA must suspend the withholding order beginning on the 61st 
day after the receipt of the hearing request and continuing until a 
hearing (in whatever form) is held and a decision is rendered.
    (f) Content of review decision. The review official will prepare a 
written decision that includes:
    (1) A statement of the facts presented to support the origin, 
nature, and amount of the debt;
    (2) The review official's findings, analysis, and conclusions; and
    (3) The terms of any repayment schedule, if applicable.
    (g) Interest, penalty charge, and administrative cost accrual 
during review period. Interest, penalty charges, and administrative 
costs authorized by law will continue to accrue during the review 
period.


Sec. 1201.18  What interest, penalty charges, and administrative costs 
will I have to pay on a debt owed to NARA?

    (a) Interest. (1) NARA will assess interest on all delinquent debts 
unless prohibited by statute, regulation, or contract.
    (2) Interest begins to accrue on all debts from the date that the 
debt becomes delinquent. NARA will not recover interest if you pay the 
debt within 30 days of the date on which interest begins to accrue. 
NARA will assess interest at the rate established annually by the 
Secretary of the Treasury under 31 U.S.C. 3717, unless a different rate 
is either necessary to protect the interests of NARA or established by 
a contract, repayment agreement, or statute. NARA will notify you of 
the basis for its finding when a different rate is necessary to protect 
the interests of NARA.
    (3) The Archivist may extend the 30-day period for payment without 
interest where he or she determines that such action is in the best 
interest of NARA. A decision to extend or not to extend the payment 
period is final and is not subject to further review.
    (b) Penalty. NARA will assess a penalty charge of 6 percent a year 
on any portion of a debt that is delinquent for more than 90 days.
    (c) Administrative costs. NARA will assess charges to cover 
administrative costs incurred as a result of your failure to pay a debt 
before it becomes delinquent. Administrative costs include the 
additional costs incurred in processing and handling the debt because 
it became delinquent, such as costs incurred in obtaining a credit 
report or in using a private collection contractor, or service fees 
charged by a Federal agency for collection activities undertaken on 
behalf of NARA.
    (d) Allocation of payments. A partial or installment payment by a 
debtor will be applied first to outstanding penalty assessments, second 
to administrative costs, third to accrued interest, and fourth to the 
outstanding debt principal.
    (e) Additional authority. NARA may assess interest, penalty 
charges, and administrative costs on debts that are not subject to 31 
U.S.C. 3717 to the extent authorized under common law or other 
applicable statutory authority.
    (f) Waiver. (1) The Archivist may (without regard to the amount of 
the debt) waive collection of all or part of accrued interest, penalty 
charges, or administrative costs, if he or she determines that 
collection of these charges would be against equity and good conscience 
or not in the best interest of NARA.
    (2) A decision to waive interest, penalty charges, or 
administrative costs may be made at any time before a debt is paid. 
However, and unless otherwise stated in these regulations, where these 
charges have been collected before the waiver decision, they will not 
be refunded. The Archivist's decision to waive or not waive collection 
of these charges is final and is not subject to further review.


Sec. 1201.19  How can I resolve my debt through voluntary repayment?

    (a) In response to a notice of debt, you may propose to NARA that 
you be allowed to repay the debt through a voluntary repayment 
agreement in lieu of NARA taking other collection actions under this 
part.
    (b) Your request to enter into a voluntary repayment agreement 
must:
    (1) Be in writing;
    (2) Admit the existence of the debt; and
    (3) Either propose payment of the debt (together with interest, 
penalty charges, and administrative costs) in a lump sum, or set forth 
a proposed repayment schedule.
    (c) NARA will collect claims in one lump sum whenever feasible. 
However, if you are unable to pay your debt in one lump sum, NARA may 
accept payment in regular installments that bear a reasonable 
relationship to the size of the debt and your ability to pay.
    (d) NARA will consider a request to enter into a voluntary 
repayment agreement in accordance with the FCCS. The Archivist may 
request additional information from you, including financial statements 
if you request to make payments in installments, in order to determine 
whether to accept a voluntary repayment agreement. It is within the 
Archivist's discretion to accept a repayment agreement instead of 
proceeding with other collection actions under this part, and to set 
the necessary terms of any voluntary repayment agreement. No repayment 
agreement

[[Page 44763]]

will be binding on NARA unless it is in writing and signed by both you 
and the Archivist. At NARA's option, you may be required to provide 
security as part of the agreement to make payments in installments. 
Notwithstanding the provisions of this section, 31 U.S.C. 3711 will 
govern any reduction or compromise of a claim.


Sec. 1201.20  What is the extent of the Archivist's authority to 
compromise debts owed to NARA, or to suspend or terminate collection 
action on such debts?

    (a) The Archivist may compromise, suspend, or terminate collection 
action on those debts owed to NARA that do not exceed $100,000 
excluding interest, in conformity with the Federal Claims Collection 
Act of 1966, as amended. NARA will follow the policies in Sec. 902.2 of 
the FCCS.
    (b) The uncollected portion of a debt owed to NARA that is not 
recovered as the result of a compromise will be reported to the 
Internal Revenue Service (IRS) as income to the debtor in accordance 
with IRS procedures if the debt is at least $600.00.


Sec. 1201.21  May NARA's failure to comply with these regulations be 
used as a defense to a debt?

    No, the failure of NARA to comply with any standard in the FCCS or 
these regulations will not be available to any debtor as a defense.

Subpart C--Salary Offset


Sec. 1201.30  What debts are included or excluded from coverage of 
these regulations on salary offset?

    (a) The regulations in this subpart provide NARA procedures for the 
collection by salary offset of a Federal employee's pay to satisfy 
certain debts owed to NARA or to other Federal agencies.
    (b) The regulations in this subpart do not apply to any case where 
collection of a debt by salary offset is explicitly provided for or 
prohibited by another statute.
    (c) Nothing in the regulations in this subpart precludes the 
compromise, suspension, or termination of collection actions under the 
Federal Claims Collection Act of 1966, as amended, or the FCCS.
    (d) A levy imposed under the Internal Revenue Code takes precedence 
over a salary offset under this subpart, as provided in 5 U.S.C. 
5514(d).


Sec. 1201.31  May I ask NARA to waive an overpayment that otherwise 
would be collected by offsetting my salary as a Federal employee?

    Yes, the regulations in this subpart do not preclude you 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 provisions pertaining to 
the particular debts being collected.


Sec. 1201.32  What are NARA's procedures for salary offset?

    (a) NARA will coordinate salary deductions under this subpart as 
appropriate.
    (b) If you are a NARA employee who owes a debt to NARA, NARA's 
payroll office will determine the amount of your disposable pay and 
will implement the salary offset.
    (c) Deductions will begin within three official pay periods 
following receipt by NARA's payroll office of certification of debt 
from the creditor agency.
    (d) The Notice provisions of these regulations do not apply to 
certain debts arising under this section (see Sec. 1201.14(c)).
    (e) Types of collection. (1) Lump-sum offset. If the amount of the 
debt is equal to or less than 15 percent of disposable pay, the debt 
generally will be collected through one lump-sum offset.
    (2) Installment deductions. Installment deductions will be made 
over a period not greater than the anticipated period of employment. 
The size and frequency of installment deductions will bear a reasonable 
relation to the size of the debt and your ability to pay. However, the 
amount deducted from any period will not exceed 15 percent of the 
disposable pay from which the deduction is made unless you have agreed 
in writing to the deduction of a greater amount. If possible, 
installment payments will be sufficient in size and frequency to 
liquidate the debt in three years or less.
    (3) Deductions from final check. A deduction exceeding the 15 
percent of disposable pay limitation may be made from any final salary 
payment under 31 U.S.C. 3716 and the FCCS in order to liquidate the 
debt, whether the employee is being separated voluntarily or 
involuntarily.
    (4) Deductions from other sources. If an employee subject to salary 
offset is separated from NARA and the balance of the debt cannot be 
liquidated by offset of the final salary check, NARA may offset later 
payments of any kind against the balance of the debt, as allowed by 31 
U.S.C. 3716 and the FCCS.
    (f) Multiple debts. In instances where two or more creditor 
agencies are seeking salary offsets, or where two or more debts are 
owed to a single creditor agency, NARA's payroll office may, at its 
discretion, determine whether one or more debts should be offset 
simultaneously within the 15 percent limitation.


Sec. 1201.33  How will NARA coordinate salary offsets with other 
agencies?

    (a) Responsibilities of NARA as the creditor agency (i.e. when the 
debtor owes a debt to NARA and is an employee of another agency). Upon 
completion of the procedures established in this subpart and pursuant 
to 5 U.S.C. 5514 and 31 U.S.C. 3716, NARA must submit a claim to a 
paying agency or disbursing official.
    (1) In its claim, NARA must certify, in writing, the following:
    (i) That the employee owes the debt;
    (ii) The amount and basis of the debt;
    (iii) The date NARA's right to collect the debt first accrued;
    (iv) That NARA's regulations in this subpart have been approved by 
OPM under 5 CFR part 550, subpart K; and
    (v) That NARA has met the certification requirements of the paying 
agency.
    (2) If the collection must be made in installments, NARA's claim 
will also advise the paying agency of the amount or percentage of 
disposable pay to be collected in each installment. NARA may also 
advise the paying agency of the number of installments to be collected 
and the date of the first installment, if that date is other than the 
next officially established pay period.
    (3) NARA will also include in its claim:
    (i) The employee's written consent to the salary offset;
    (ii) The employee's signed statement acknowledging receipt of the 
procedures required by 5 U.S.C. 5514; or
    (iii) Information regarding the completion of procedures required 
by 5 U.S.C. 5514, including the actions taken and the dates of those 
actions.
    (4) If the employee is in the process of separating and has not 
received a final salary check or other final payment(s) from the paying 
agency, NARA must submit its claim to the paying agency or disbursing 
official for collection under 31 U.S.C. 3716. The paying agency will 
(under its regulations adopted under 5 U.S.C. 5514 and 5 CFR part 550, 
subpart K), certify the total amount of its collection on the debt and 
notify the employee and NARA. If the paying agency's collection does 
not fully satisfy the debt, and the paying agency is aware that the 
debtor is entitled to payments from the Civil Service Retirement and 
Disability Fund or other similar payments that may be due the debtor 
employee from other Federal government sources, then (under its 
regulations adopted under 5 U.S.C. 5514 and 5 CFR part 550, subpart

[[Page 44764]]

K), the paying agency will provide written notice of the outstanding 
debt to the agency responsible for making the other payments to the 
debtor employee. The written notice will state that the employee owes a 
debt, the amount of the debt, and that the provisions of this section 
have been fully complied with. However, NARA must submit a properly 
certified claim under this paragraph (a)(4) to the agency responsible 
for making the other payments before the collection can be made.
    (5) If the employee is already separated and all payments due from 
his or her former paying agency have been paid, NARA may request, 
unless otherwise prohibited, that money due and payable to the employee 
from the Civil Service Retirement and Disability Fund or other similar 
funds be administratively offset to collect the debt.
    (6) Employee transfer. When an employee transfers from one paying 
agency to another paying agency, NARA will not repeat the due process 
procedures described in 5 U.S.C. 5514 and this subpart to resume the 
collection. NARA will submit a properly certified claim to the new 
paying agency and will subsequently review the debt to ensure that the 
collection is resumed by the new paying agency.
    (b) Responsibilities of NARA as the paying agency (i.e. when the 
debtor owes a debt to another agency and is an employee of NARA). (1) 
Complete claim. When NARA receives a certified claim from a creditor 
agency (under the creditor agency's regulations adopted under 5 U.S.C. 
5514 and 5 CFR part 550, subpart K), deductions should be scheduled to 
begin within three officially established pay intervals. Before 
deductions can begin, NARA sends the employee a written notice 
containing:
    (i) A statement that NARA has received a certified claim from the 
creditor agency;
    (ii) The amount of the claim;
    (iii) The date salary offset deductions will begin; and
    (iv) The amount of such deductions.
    (2) Incomplete claim. When NARA receives an incomplete 
certification of debt from a creditor agency, NARA will return the 
claim with a notice that the creditor agency must:
    (i) Comply with the procedures required under 5 U.S.C. 5514 and 5 
CFR part 550, subpart K, and
    (ii) Properly certify a claim to NARA before NARA will take action 
to collect from the employee's current pay account.
    (3) NARA 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.
    (4) Employees who transfer from NARA to another paying agency. If, 
after the creditor agency has submitted the claim to NARA, the employee 
transfers from NARA to a different paying agency before the debt is 
collected in full, NARA will certify the total amount collected on the 
debt and notify the employee and the creditor agency in writing. The 
notification to the creditor agency will include information on the 
employee's transfer.


Sec. 1201.34  Under what conditions will NARA make a refund of amounts 
collected by salary offset?

    (a) If NARA is the creditor agency, it will promptly refund any 
amount deducted under the authority of 5 U.S.C. 5514, when:
    (1) The debt is waived or all or part of the funds deducted are 
otherwise found not to be owed (unless expressly prohibited by statute 
or regulation); or
    (2) An administrative or judicial order directs NARA to make a 
refund.
    (b) Unless required or permitted by law or contract, refunds under 
this section will not bear interest.


Sec. 1201.35  Will the collection of a claim by salary offset act as a 
waiver of my rights to dispute the claimed debt?

    No, your involuntary payment of all or any portion of a debt under 
this subpart will not be construed as a waiver of any rights that you 
may have under 5 U.S.C. 5514 or other provisions of a law or written 
contract, unless there are statutory or contractual provisions to the 
contrary.

Subpart D--Tax Refund Offset


Sec. 1201.40  Which debts can NARA refer to the Treasury for collection 
by offsetting tax refunds?

    (a) The regulations in this subpart implement 31 U.S.C. 3720A, 
which authorizes the Treasury to reduce a tax refund by the amount of a 
past-due, legally enforceable debt owed to a Federal agency.
    (b) For purposes of this section, a past-due, legally enforceable 
debt referrable to the Treasury for tax refund offset is a debt that is 
owed to NARA and:
    (1) Is at least $25.00;
    (2) Except in the case of a judgment debt, has been delinquent for 
at least three months and will not have been delinquent more than 10 
years at the time the offset is made;
    (3) With respect to which NARA has:
    (i) Given the debtor at least 60 days to present evidence that all 
or part of the debt is not past due or legally enforceable;
    (ii) Considered evidence presented by the debtor; and
    (iii) Determined that an amount of the debt is past due and legally 
enforceable;
    (4) With respect to which NARA has notified or has made a 
reasonable attempt to notify the debtor that:
    (i) The debt is past due, and
    (ii) Unless repaid within 60 days of the date of the notice, the 
debt may be referred to the Treasury for offset against any refund of 
overpayment of tax; and
    (5) All other requirements of 31 U.S.C. 3720A and the Treasury 
regulations relating to the eligibility of a debt for tax return offset 
(31 CFR 285.2) have been satisfied.


Sec. 1201.41  What are NARA's procedures for collecting debts by tax 
refund offset?

    (a) NARA's Financial Services Division will be the point of contact 
with the Treasury for administrative matters regarding the offset 
program.
    (b) NARA will ensure that the procedures prescribed by the Treasury 
are followed in developing information about past-due debts and 
submitting the debts to the Treasury.
    (c) NARA will submit to the Treasury a notification of a taxpayer's 
liability for past-due legally enforceable debt. This notification will 
contain the following:
    (1) The name and taxpayer identification number of the debtor;
    (2) The amount of the past-due and legally enforceable debt;
    (3) The date on which the original debt became past due;
    (4) A statement certifying that, with respect to each debt 
reported, all of the requirements of Sec. 1201.40(b) have been 
satisfied; and
    (5) Any other information as prescribed by Treasury.
    (d) For purposes of this section, notice that collection of the 
debt is stayed by a bankruptcy proceeding involving the debtor will bar 
referral of the debt to the Treasury.
    (e) NARA will promptly notify the Treasury to correct data when 
NARA:
    (1) Determines that an error has been made with respect to a debt 
that has been referred;
    (2) Receives or credits a payment on the debt; or
    (3) Receives notice that the person owing the debt has filed for 
bankruptcy under Title 11 of the United States Code and the automatic 
stay is in effect or has been adjudicated bankrupt and the debt has 
been discharged.
    (f) When advising debtors of NARA's intent to refer a debt to the 
Treasury for offset, NARA will also advise debtors of remedial actions 
(see Secs. 1201.9 and

[[Page 44765]]

1201.14 through 1201.16 of this part) available to defer the offset or 
prevent it from taking place.

Subpart E--Administrative Offset


Sec. 1201.50  Under what circumstances will NARA collect amounts that I 
owe to NARA (or some other Federal agency) by offsetting the debt 
against payments that NARA (or some other Federal agency) owes me?

    (a) The regulations in this subpart apply to the collection of any 
debts you owe to NARA, or to any request from another Federal agency 
that NARA collect a debt you owe by offsetting your debt against a 
payment NARA owes you. Administrative offset is authorized under 
section 5 of the Federal Claims Collection Act of 1966, as amended (31 
U.S.C. 3716). NARA will carry out administrative offset in accordance 
with the provisions of the FCCS. The regulations in this subpart are 
intended only to supplement the provisions of the Federal Claims 
Collection Standards.
    (b) The Archivist, after attempting to collect a debt you owe to 
NARA under Section 3(a) of the Federal Claims Collection Act of 1966, 
as amended (31 U.S.C. 3711(a)), may collect the debt by administrative 
offset only after giving you:
    (1) Written notice of the type and amount of the claim, the 
intention of the head of the agency to collect the claim by 
administrative offset, and an explanation of the rights of the debtor;
    (2) An opportunity to inspect and copy the records of the agency 
related to the claim;
    (3) An opportunity for a review within the agency of the decision 
of the agency related to the claim; and
    (4) An opportunity to make a written agreement with the head of the 
agency to repay the amount of the claim.
    (c) No collection by administrative offset will be made on any debt 
that has been outstanding for more than 10 years, unless facts material 
to NARA or a Federal agency's right to collect the debt were not known, 
and reasonably could not have been known, by the official or officials 
responsible for discovering and collecting the debt.
    (d) The regulations in this subpart do not apply to:
    (1) A case in which administrative offset of the type of debt 
involved is explicitly prohibited by statute; or
    (2) Debts owed to NARA by Federal agencies.


Sec. 1201.51  How will NARA request that my debt to NARA be collected 
by offset against some payment that another Federal agency owes me?

    The Archivist may request that funds due and payable to you by 
another Federal agency instead be paid to NARA to satisfy a debt you 
owe to NARA. NARA will refer debts to the Treasury for centralized 
administrative offset in accordance with the FCCS and the procedures 
established by the Treasury. Where centralized offset is not available 
or appropriate, NARA may request offset directly from the Federal 
agency that is holding funds for you. In requesting administrative 
offset, NARA will certify in writing to the Federal agency that is 
holding funds for you:
    (a) That you owe the debt;
    (b) The amount and basis of the debt; and
    (c) That NARA has complied with the requirements of 31 U.S.C. 3716, 
its own administrative offset regulations in this subpart, the 
applicable administrative offset regulations of the agency holding the 
funds, and the applicable provisions of the FCCS with respect to 
providing you with due process.


Sec. 1201.52  What procedures will NARA use to collect amounts I owe to 
a Federal agency by offsetting a payment that NARA would otherwise make 
to me?

    (a) Any Federal agency may request that NARA administratively 
offset funds due and payable to you in order to collect a debt you owe 
to that agency. NARA will initiate the requested offset only upon:
    (1) Receipt of written certification from the creditor agency 
stating:
    (i) That you owe the debt;
    (ii) The amount and basis of the debt;
    (iii) That the agency has prescribed regulations for the exercise 
of administrative offset; and
    (iv) That the agency has complied with its own administrative 
offset regulations and with the applicable provisions of the FCCS, 
including providing you with any required hearing or review; and
    (2) A determination by the Archivist that offsetting funds payable 
to you by NARA in order to collect a debt owed by you would be in the 
best interest of the United States as determined by the facts and 
circumstances of the particular case, and that such an offset would not 
otherwise be contrary to law.
    (b) Multiple debts. In instances where two or more creditor 
agencies are seeking administrative offsets, or where two or more debts 
are owed to a single creditor agency, NARA may, in its discretion, 
allocate the amount it owes to you to the creditor agencies in 
accordance with the best interest of the United States as determined by 
the facts and circumstances of the particular case, paying special 
attention to applicable statutes of limitations.


Sec. 1201.53  When may NARA make an offset in an expedited manner?

    NARA may effect an administrative offset against a payment to be 
made to you before completion of the procedures required by 
Secs. 1201.51 and 1201.52 if failure to take the offset would 
substantially jeopardize NARA's ability to collect the debt and the 
time before the payment is to be made does not reasonably permit the 
completion of those procedures. An expedited offset will be followed 
promptly by the completion of those procedures. Amounts recovered by 
offset, but later found not to be owed to the United States, will be 
promptly refunded.


Sec. 1201.54  Can a judgment I have obtained against the United States 
be used to satisfy a debt that I owe to NARA?

    Collection by offset against a judgment obtained by a debtor 
against the United States will be accomplished in accordance with 31 
U.S.C. 3728 and 31 U.S.C. 3716.

Subpart F--Administrative Wage Garnishment


Sec. 1201.55  How will NARA collect debts through Administrative Wage 
Garnishment?

    NARA will collect debts through Administrative Wage Garnishment in 
accordance with the Administrative Wage Garnishment regulations issued 
by the Treasury. NARA adopts, for the purposes of this subpart, the 
Treasury's Administrative Wage Garnishment regulations in 31 CFR 
285.11.

    Dated: June 27, 2002.
John W. Carlin,
Archivist of the United States.
[FR Doc. 02-16703 Filed 7-3-02; 8:45 am]
BILLING CODE 7515-01-P