[Federal Register Volume 71, Number 189 (Friday, September 29, 2006)]
[Rules and Regulations]
[Pages 57427-57428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16040]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 283

[DOD-2006-OS-133]
RIN 0790-AG90


Waiver of Debts Resulting From Erroneous Payments of Pay and 
Allowances

AGENCY: Department of Defense.

ACTION: Final rule.

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SUMMARY: This rule identifies policy and assigns responsibilities for 
considering applications for the waiver of debts resulting from 
erroneous payments of pay and allowances (including travel and 
transportation allowances) to or on behalf of members of the Uniformed 
Services and civilian Department of Defense (DoD) employees. The 
Legislative Branch Appropriations Act of 1996 transferred to the 
Director of the Office of Management and Budget (OMB) the Comptroller 
General's authority to settle claims. The OMB Director subsequently 
delegated some of these authorities to the Department of Defense. 
Later, the General Accounting Office Act of 1996 codified many of these 
delegations to the Secretary of Defense and others and transferred to 
the OMB Director the authority of the Comptroller General to waive 
uniformed service member and employee debts arising out of the 
erroneous payment of pay or allowances exceeding $1,500. The OMB 
Director subsequently delegated the authority to waive such debts of 
uniformed service members and DoD employees to the Secretary of 
Defense. The Secretary of Defense further delegated his claims 
settlement and waiver authorities to the General Counsel. This rule 
implements the reassignment of the Comptroller General's former duties 
within the Department of Defense with little impact on the public.
    On Thursday, November 14, 2002, the Department of Defense published 
appropriate proposed rules with request for public comments. Formatting 
and editorial changes were made to create this final document, 
including acknowledging that the Coast Guard is now part of the 
Department of Homeland Security rather than the Department of 
Transportation. Although these changes were made in 2003, a decision 
was made at that time to hold publication of these regulations so 
accompanying rules would be published at the same time. Addressing 
internal comments and coordinating numerous editorial changes 
throughout the Department of Defense on the accompanying rulemaking 
took until 2006.

DATES: Effective Date: September 29, 2006.

FOR FURTHER INFORMATION CONTACT: Michael Hipple, 703-696-8510.

SUPPLEMENTARY INFORMATION: On Thursday, November 14, 2002 (67 FR 
68964), the Department of Defense (DoD) published 32 CFR part 283 along 
with parts 281, 282, and 284 as proposed rules with request for public 
comments. No public comments were received on part 283. Formatting and 
editorial changes were made to create this final document. A decision 
was made in 2003 to publish the final rules for parts 283 and 284 at 
the same time. Addressing internal comments and coordinating numerous 
editorial changes throughout the Department of Defense on part 284 took 
until 2006.

Executive Order 12866, ``Regulatory Planning and Review''

    It has been determined that 32 CFR part 283 is not economically 
significant regulatory actions and will not significantly affect a 
substantial number of small entities.

Unfunded Mandates Reform Act (Sec. 202, Pub. L. 104-4)

    It has been certified that 32 CFR part 283 does not contain a 
Federal mandate that may result in the expenditure by State, local and 
tribal governments, in aggregate, or by the private sector, of $100 
million or more in any one year.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    It has been certified that 32 CFR part 283 is not subject to the 
``Regulatory Flexibility Act'' (5 U.S.C. 601) because, if promulgated, 
they would not have a significant economic impact on a substantial 
number of small entities. These rules affect members of the Uniformed 
Services, Federal employees and transportation carriers. 32 CFR part 
283 establishes policies and provide procedures for considering 
applications for waiver of debts resulting from erroneous pay and 
allowances to or on behalf of members and civilian DoD employees.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been certified that these parts do not impose any reporting 
or recordkeeping requirements under the Paperwork Reduction Act of 
1995.

Executive Order 13132, ``Federalism''

    It has been certified that these parts do not have federalism 
implications, as set forth in Executive Order 13132. These parts do not 
have substantial direct effects on: the States; The relationship 
between the National Government and the States; or the distribution of 
power and responsibilities among various levels of government.

List of Subjects in 32 CFR Part 283

    Administrative practice and procedure, Armed Forces, Waivers.

0
Accordingly, 32 CFR part 283 is added to read as follows:

PART 283--WAIVER OF DEBTS RESULTING FROM ERRONEOUS PAYMENTS OF PAY 
AND ALLOWANCES

Sec.
283.1 Purpose.
283.2 Applicability and scope.
283.3 Definitions.
283.4 Policy.
283.5. Responsibilities.


Sec.  283.1  Purpose.

    This part establishes policy and assigns responsibilities for 
considering applications for the waiver of debts resulting from 
erroneous payments of pay and allowances (including travel and 
transportation allowances) to or on behalf of members of the Uniformed 
Services and civilian DoD employees under 10 U.S.C. 2774, 32 U.S.C. 
716, 5 U.S.C. 5584.


Sec.  283.2  Applicability and scope.

    This part applies to:
    (a) The Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff, the Combatant 
Commands, the Office of Inspector General of the Department of

[[Page 57428]]

Defense, the Defense Agencies, the DoD Field Activities, and all other 
organizational entities in the Department of Defense (hereafter 
referred to collectively as the ``DoD Components'').
    (b) The Coast Guard, when it is not operating as a Service in the 
Navy under the agreement with the Department of Homeland Security, and 
the Commissioned Corps of the Public Health Service (PHS) and the 
National Oceanic and Atmospheric Administration (NOAA) under agreements 
with the Departments of Health and Human Services and Commerce 
(hereafter referred to collectively as the ``non-DoD Components'').


Sec.  283.3  Definitions.

    Debt. An amount an individual owes the Government as the result of 
erroneous payments of pay and allowances (including travel and 
transportation allowances) to or on behalf of members of the Uniformed 
Services or civilian DoD employees.
    Erroneous Payment. A payment that is not in strict conformity with 
applicable laws or regulations.
    Uniformed Services. The Army, the Navy, the Air Force, the Marine 
Corps, the Coast Guard, and the Commissioned Corps of the PHS and the 
NOAA.
    Waiver Application. A request that the United States relinquishes 
its claim against an individual for a debt resulting from erroneous 
payments of pay or allowances (including travel and transportation 
allowances) under 10 U.S.C. 2774, 32 U.S.C. 716, or 5 U.S.C. 5584.


Sec.  283.4  Policy.

    It is DoD policy that:
    (a) The officials designated in this part exercise waiver authority 
that, by statute or delegation, is vested in the Department of Defense.
    (b) Waiver applications shall be processed in accordance with all 
pertinent statutes and regulations, and after consideration of other 
relevant authorities.


Sec.  283.5  Responsibilities.

    (a) The General Counsel of the Department of Defense shall:
    (1) If the aggregate amount of the debt is more than $1,500, deny 
or grant all or part of a waiver application.
    (2) Decide appeals in accordance with procedures promulgated under 
paragraph (a)(3) of this section.
    (3) Develop overall waiver policies and promulgate procedures for 
considering waiver applications, including an initial determination 
process and a process to appeal an initial determination.
    (b) The Heads of the DoD Components shall:
    (1) Consistent with responsibilities promulgated under paragraph 
(a)(3) of this section, establish procedures within the DoD Component 
for the submission of waiver applications relating to debts resulting 
from the DoD Component's activity, which shall be referred to the 
appropriate official for consideration as set forth in paragraphs (a), 
(d), (e), or (f) of this section.
    (3) Ensure compliance with this part and policies and procedures 
promulgated under paragraph (a)(3) of this section.
    (c) The Heads of the Non-DoD Components concerning debts resulting 
from that Component's activity shall:
    (1) If the aggregate amount of the debt is $1,500 or less, deny or 
grant all or part of a waiver application pursuant to 10 U.S.C. 2774.
    (2) If the aggregate amount of the debt is more than $1,500:
    (i) Deny a waiver application in its entirety; or
    (ii) Refer a waiver application for consideration with a 
recommendation that all or part of the application be granted, in 
accordance with procedures promulgated under paragraph (a)(3) of this 
section.
    (d) The Under Secretary of Defense (Comptroller)/Chief Financial 
Officer concerning debts (except those described in paragraphs (e) and 
(f) of this section) resulting from DoD Component activity shall:
    (1) If the aggregate amount of the debt is $1,500 or less, deny or 
grant all or part of a waiver application pursuant to enclosure 2 of 
DoD Directive 5118.3.\1\
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    \1\ Available at http://www.dtic.mil/whs/directives/.
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    (2) If the aggregate amount of the debt is more than $1,500:
    (i) Deny a waiver application in its entirety; or
    (ii) Refer a waiver application for consideration with a 
recommendation that all or part of the application be granted, in 
accordance with procedures promulgated under paragraph (a)(3) of this 
section.
    (e) The Director, Department of Defense Education Activity, under 
the Under Secretary of Defense for Personnel and Readiness concerning 
debts of civilian employees resulting from that Component's activity 
shall:
    (1) If the aggregate amount of the debt is $1,500 or less, deny or 
grant all or part of a waiver application pursuant to enclosure 2 of 
DoD Directive 1342.6.\2\
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    \2\ Available at http://www.dtic.mil/whs/directives/.
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    (2) If the aggregate amount of the debt is more than $1,500:
    (i) Deny a waiver application in its entirety; or
    (ii) Refer a waiver application for consideration with a 
recommendation that all or part of the application be granted, in 
accordance with procedures promulgated under paragraph (a)(3) of this 
section.
    (f) The Director, National Security Agency, under the Under 
Secretary of Defense for Intelligence concerning debts resulting from 
that Component's activity shall:
    (1) If the aggregate amount of the debt is $1,500 or less, deny or 
grant all or part of a waiver application.
    (2) If the aggregate amount of the debt is more than $1,500:
    (i) Deny a waiver application in its entirety; or
    (ii) Refer a waiver application for consideration with a 
recommendation that all or part of the application be granted, in 
accordance with procedures promulgated under paragraph (a)(3) of this 
section.

    September 25, 2006.
L.M. Bynum,
OSD Federal Register Liaison Officer, DoD.
[FR Doc. E6-16040 Filed 9-28-06; 8:45 am]
BILLING CODE 5001-06-P