[Federal Register Volume 74, Number 137 (Monday, July 20, 2009)]
[Rules and Regulations]
[Pages 35116-35118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17036]


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DEPARTMENT OF JUSTICE

28 CFR Part 11

[A.G. Order No. 3089-2009]


Office of the Attorney General; Administration of Debt 
Collection; Salary and Administrative Offset; Treasury Offset Program

AGENCY: Department of Justice.

ACTION: Final rule.

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SUMMARY: This rule amends the regulations that govern administrative 
debt collection at the Department of Justice to bring the regulations 
into conformity with government-wide standards on salary offset 
procedures, to update or delete obsolete references and to make other 
clarifying or technical changes.

DATES: Effective Date: July 20, 2009.

FOR FURTHER INFORMATION CONTACT: Stuart Frisch, General Counsel, or 
Morton J. Posner, Attorney-Advisor, Justice Management Division, U.S. 
Department of Justice, Washington, DC 20530, (202) 514-3452.

SUPPLEMENTARY INFORMATION: This rule updates the Department's 
administrative debt collection regulations at 28 CFR Part 11, Subparts 
B and C, originally issued in 1992. This rule makes changes only to the 
Department's internal management and does not affect the rights or 
obligations of the general public. In particular, the rule makes four 
kinds of changes.
    First, the rule updates or deletes obsolete references. Sections 
11.4(a), (b)(4), 11.6(j), and 11.8(j) cite the Federal Claims 
Collection Standards (FCCS). Formerly in title 4, Code of Federal 
Regulations, the FCCS were substantially revised and reissued in 2000 
at 31 CFR Parts 900-904. Those references are updated. References to 
the former Immigration and Naturalization Service in Sec.  11.6(b), an 
outdated Department of Justice order in Sec.  11.6(e), and an outdated 
notification requirement in Sec.  11.8(a) are deleted. The title of 
Subpart C is revised with the updated name of the former IRS Tax Refund 
Offset Program.
    Second, the rule revises the Sec.  11.7 exemptions to the employee 
salary offset procedure in Sec.  11.8. The revisions bring the rule 
into conformity with the government-wide standard set out in 5 CFR 
Sec.  550.1104(c).
    Third, the rule makes clarifying changes. In Sec.  11.4(b)(3)(iii), 
the rule now more clearly states that the employee salary offset 
procedures of Sec.  11.8 do not apply to recovery of travel advances 
and employee training expenses. In Sec.  11.8(c)(4)(i) and (5), the 
rule is revised to clarify that the deadlines for hearing and decision 
of an employment-related debt review are triggered by the receipt of 
the hearing request by the hearing officer the Department designates. 
These clarifying changes are consistent with the Department's 
longstanding interpretation of the prior regulations.
    Fourth, the rule makes technical corrections. In Sec.  11.8(b)(2) 
and (3), the term ``salary offset coordination official'' is changed to 
``salary offset coordination officer,'' a term already defined in Sec.  
11.6(r). The rule corrects typographical errors in the prior version of 
Sec. Sec.  11.5(b) and 11.6(h)(1).

Administrative Procedure Act

    This rule relates to agency management or personnel and, pursuant 
to 5 U.S.C. 553(a)(2), it is exempt from the usual requirements of 5 
U.S.C. 553 pertaining to prior notice and comment and a 30-day delay in 
effective date.

Regulatory Flexibility Act

    The Attorney General, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 605(b)), has reviewed this regulation and by approving it 
certifies that this regulation will not have a significant economic 
impact on a substantial number of small entities because it pertains 
only to personnel and administrative matters affecting the Department. 
Further, a Regulatory Flexibility Analysis was not required to be 
prepared for this final rule because the Department was not required to 
publish a general notice of proposed rulemaking for this matter.

Executive Order 12866--Regulatory Planning and Review

    This action has been drafted and reviewed in accordance with 
Executive Order 12866 Regulatory Planning and Review, Sec.  1(b), 
Principles of Regulation. This rule is limited to agency organization, 
management, and personnel as described by Executive Order 12866 Sec.  
3(d)(3) and, therefore, is not a ``regulation'' as defined by that 
Executive Order. Accordingly, this action has not been reviewed by the 
Office of Management and Budget.

Executive Order 12988--Civil Justice Reform

    This regulation meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

Executive Order 13132--Federalism

    This regulation will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

[[Page 35117]]

Unfunded Mandates Reform Act of 1995

    As noted above, this is not a rule for which a general notice of 
proposed rulemaking was required or published. In addition, this rule 
will not result in the expenditure by State, local and tribal 
governments, in the aggregate, or by the private sector, of 
$100,000,000 or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

Congressional Review Act

    This action pertains to agency organization and management, and 
does not substantially affect the rights or obligations of non-agency 
parties and, accordingly, is not a ``rule'' as that term is used by the 
Congressional Review Act (Subtitle E of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA)). Therefore, the reporting 
requirement of 5 U.S.C. 801 does not apply.

List of Subjects in 28 CFR Part 11

    Administrative practice and procedure, Claims, Debt collection, 
Government contracts, Government employees, Income taxes, Lawyers, 
Wages.

0
Accordingly, by virtue of the authority vested in me as Attorney 
General, including 5 U.S.C. 301 and 28 U.S.C. 509 and 510, part 11 of 
title 28 of the Code of Federal Regulations is amended as follows:

PART 11--DEBT COLLECTION

0
1. The authority citation for part 11 is revised to read as follows:

    Authority:  5 U.S.C. 301, 5514; 28 U.S.C. 509, 510; 31 U.S.C. 
3711, 3718, 3720A.


0
2. Amend Sec.  11.4 by revising the last sentence of paragraph (a), and 
paragraphs (b)(3)(iii) and (b)(4) to read as follows:


Sec.  11.4  [Amended]

    (a) * * * This subpart is consistent with the Office of Personnel 
Management (OPM) regulations on salary offset, codified at 5 CFR part 
550, subpart K, and with regulations on administrative offset contained 
within the Federal Claims Collection Standards (FCCS), 31 CFR part 901.
    (b) * * *
    (3) * * *
    (iii) In the case where collection of a debt is explicitly provided 
for or prohibited by another statute. The provisions of Sec.  11.8 of 
this subpart do not apply to salary offset to recover travel advances 
under 5 U.S.C. 5705 or employee training expenses under 5 U.S.C. 4108.
    (4) Nothing in this subpart precludes the compromise, suspension, 
or termination of collection actions where appropriate under the FCCS.

* * * * *


Sec.  11.5  [Amended]

0
3. Amend Sec.  11.5(b) by removing the number ``311'' and adding the 
number ``31'' in its place in the citation.
0
4. Amend Sec.  11.6 by removing the phrase ``the Immigration and 
Naturalization Service,'' from paragraph (b); and revising paragraphs 
(e), (h)(1), and (j) to read as follows:


Sec.  11.6  [Amended]

* * * * *
    (e) Compromise means the forgiveness of a debt in accordance with 
31 U.S.C. 3711(a)(2) and Departmental order.
* * * * *
    (h) * * *
    (1) Amounts withheld from benefits payable under title II of the 
Social Security Act where the withholding is required by law;
* * * * *
    (j) Federal Claims Collection Standards (FCCS) means standards 
jointly published by the Secretary of the Treasury and the Attorney 
General at 31 CFR parts 900-904.


0
5. Revise Sec.  11.7 to read as follows:


Sec.  11.7  Salary adjustments.

    The following debts shall not be subject to the salary offset 
procedures of Sec.  11.8:
    (a) 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;
    (b) 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
    (c) 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.

0
6. Amend Sec.  11.8 by revising paragraphs (a) introductory text, 
(b)(2), and (b)(3), the second sentence of paragraph (c)(4)(i), the 
first sentence of paragraph (c)(5), and paragraph (j) to read as 
follows:


Sec.  11.8  [Amended]

    (a) Notice requirements before offset. Deductions under the 
authority of 5 U.S.C. 5514 will not be made unless the creditor agency 
provides the employee with a written Notice of Intent to Offset a 
minimum of 30 calendar days before salary offset is initiated. The 
Notice of Intent shall state:
* * * * *
    (b) * * *
    (2) In response to a timely request submitted by the debtor, the 
designated salary offset coordination officer will notify the employee 
of the location and time when the employee may inspect and copy records 
related to the debt.
    (3) If the employee is unable personally to inspect the records, 
due to geographical or other constraints, the salary offset 
coordination officer shall arrange to send copies of such records to 
the employee.
* * * * *
    (c) * * *
    (4) * * *
    (i) * * * If the hearing will be oral, the notice shall set forth 
the date, time, and location of the hearing, which must occur no more 
than 30 days after the request is received by the hearing officer. * * 
*
* * * * *
    (5) * * * The hearing officer shall issue a written opinion stating 
his or her decision, based upon all evidence and information developed 
at the hearing, as soon as practicable after the hearing, but not later 
than 60 days after the date on which the petition was received by the 
hearing officer, unless the hearing was delayed at the request of the 
employee, in which case the 60-day decision period shall be extended by 
the number of days by which the hearing was postponed. * * *
* * * * *
    (j) Interest, penalties, and administrative costs. Where the 
Department is the creditor agency, it shall assess interest, penalties, 
and administrative costs pursuant to 31 U.S.C. 3717 and 31 CFR 901.9.
* * * * *

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7. Revise the heading of subpart C to read as follows:

[[Page 35118]]

Subpart C--Treasury Offset Program for Collection of Debts

    Dated: July 13, 2009.
Eric H. Holder, Jr.,
Attorney General.
[FR Doc. E9-17036 Filed 7-17-09; 8:45 am]
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