[Federal Register Volume 90, Number 114 (Monday, June 16, 2025)]
[Rules and Regulations]
[Pages 25143-25148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-10935]
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RAILROAD RETIREMENT BOARD
20 CFR Part 355
RIN 3220-AB88
Regulations Under the Administrative False Claims Act
AGENCY: Railroad Retirement Board.
ACTION: Direct final rule; request for comments.
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SUMMARY: The Railroad Retirement Board amends its regulations to
implement statutory amendments to the Administrative False Claims Act.
These amendments revise and remove procedures under the Administrative
False Claims Act that are no longer applicable due to statutory changes
and implement new procedures allowing administrative false claims to be
referred to the Civilian Board of Contract Appeals for adjudication.
DATES: This rule is effective August 15, 2025, without further action,
unless adverse comment is received by July 16, 2025. If adverse comment
is received, the Railroad Retirement Board will publish a timely
withdrawal of the rule in the Federal Register.
ADDRESSES: You may submit comments, identified by RIN 3320-AB88,
through any of the following methods:
1. Internet--Send inquiries via email to
[email protected].
2. Fax--(312) 751-7102.
3. Mail--Secretary to the Board, Railroad Retirement Board, 844 N
Rush Street, Chicago, Illinois 60611-1275. Mailed comments must be
received by the close of the comment period.
Do not submit the same comment multiple times or by more than one
method. Do not include any personally identifiable information (such as
name, address, or other contact information) or confidential business
information that you do not want publicly disclosed. All comments are
public records; they are publicly displayed exactly as received, and
will not be deleted, modified, or redacted. Comments may be submitted
anonymously. Regardless of which method you choose, please indicate
that your comments refer to RIN number 3320-AB88.
FOR FURTHER INFORMATION CONTACT: Peter J. Orlowicz, Senior Counsel,
Railroad Retirement Board, 844 North Rush Street, Chicago, IL 60611-
1275, (312) 751-4922.
SUPPLEMENTARY INFORMATION: The Administrative False Claims Act, 31
U.S.C. chapter 38, establishes administrative procedures for imposing
civil penalties and assessments against individuals who make, submit,
or present, or cause to be made, submitted or presented, claims or
written statements that are made to authorities or their agency and are
false, fictitious or fraudulent. The purpose of this Act is twofold:
(1) to provide federal agencies that are the victims of false,
fictitious, and fraudulent claims and statements with an administrative
remedy to recompense such agencies for losses resulting from such
claims and statements, to permit administrative proceedings to be
brought against persons who make, present, or submit such claims and
statements, and to deter the making, presenting, and submitting of such
claims and statements in the future; and (2) to provide due process
protections to all persons who are subject to the administrative
adjudication of false, fictitious, or fraudulent claims or statements.
In section 5203 of the Servicemember Quality of Life Improvement and
National Defense Authorization Act for Fiscal Year 2025, Congress made
substantial amendments to the Administrative False Claims Act. Public
Law 118-159, sec. 5203 (Dec. 23, 2024). First, Congress amended the
definition of a presiding officer to allow agencies who do not employ
administrative law judges appointed under 5 U.S.C. 3105 to submit
appropriate cases to a member of a board of contract appeals
established by 41 U.S.C. 7105 as a presiding officer. In such cases,
Congress provided that the required hearing shall be conducted by the
presiding officer according to rules and procedures promulgated by the
board of contract appeals, rather than the referring agency. Second,
Congress increased the maximum value of disputed claims that may be
heard by a presiding officer to $1,000,000 and mandated that this
ceiling be adjusted annually for inflation in the same manner as civil
monetary penalties under the Federal Civil Penalties Inflation
Adjustment Act. Third, Congress amended the collection of civil
penalties under 31 U.S.C. chapter 38 to permit agencies to be
reimbursed for any expended costs in support of the investigation or
prosecution of the action from the recovered amounts, with such
recovered amounts remaining available to the agency until expended.
Finally, Congress modified the statute of limitations for bringing an
action to the later of 6 years after the date of violation or 3 years
after the date on which facts material to the action are known or
reasonably should have been known by the agency head, but in no event
more than 10 years after the violation. Congress then directed agencies
to revise and promulgate regulations to carry out the amended Act
within 180 days of the amendments being enacted.
Accordingly, the Railroad Retirement Board (Board) has
comprehensively revised its implementing regulations at 20 CFR part
355. In doing so, the Board is withdrawing regulatory definitions in
Sec. 355.2 that are no longer necessary or are inconsistent with the
amendments in the Servicemember Quality of Life Improvement and
National Defense Authorization Act for Fiscal Year 2025. As the Board
does not employ administrative law judges, the definition of presiding
officer is being revised to mean a member of a board of contract
appeals established by 41 U.S.C. 7105, and the Board will now refer to
a person alleged to be liable for a false claim under this part as a
respondent instead of a defendant. The Board's definitions will also
note that the terms ``material'' and ``obligation'' have the same
meaning as in 31 U.S.C. 3729(b), and materiality is determined in the
same manner as under that statute.
In Sec. 355.3, the Board clarifies that liability attaches to any
person that makes, presents, or submits or causes to be made,
presented, or submitted a claim, and with respect to benefits under the
Railroad Retirement Act, who has actual knowledge that the claim is
false, fictitious, or fraudulent, acts in deliberate indifference of
the claim's truth or falsity, or acts in reckless disregard of the
truth or falsity of the claim.
In Sec. 355.6, the Board is revising the maximum amount of a claim
that may be submitted to a presiding officer and
[[Page 25144]]
providing that the amount shall be adjusted annually for inflation.
Section 355.10 is being removed and reserved because this section
will be superseded by the rules of the presiding officer's board of
contract appeals.
Section 355.11 is being revised to reflect the process for
referring a request for hearing to a board of contract appeals for
assignment of a presiding officer and the use of the rules and
procedures promulgated by the board of contract appeals.
Sections 355.12 through 355.19 are being removed and reserved
because these procedures will be superseded by the rules of the
presiding officer's board of contract appeals.
Sections 355.21 through 355.39 are being removed and reserved
because these procedures will be superseded by the rules of the
presiding officer's board of contract appeals.
Section 355.41 is being removed and reserved because this section
will be superseded by the rules of the presiding officer's board of
contract appeals.
Section 355.45 is being revised to reflect the agency's right to
receive reimbursement for costs expended in the investigation and
prosecution of an action from any collection under this part to its
appropriations account, to remain available until expended, with any
remaining amount being deposited as miscellaneous receipts in the
Treasury of the United States.
Section 355.46 is being revised to reflect statutory requirements
for compromise or settlement at each stage of the proceeding and remove
provisions that are no longer supported by the statutory language.
Section 355.47 is being revised to include the second element of
the statute of limitations, allowing complaints to be served not later
than 6 years after the date on which the claim was made or 3 years
after the date on which facts material to the action are known or
reasonably should have been known by the agency head, whichever is
later, but not more than 10 years after the date on which the claim was
made.
This direct final rule is being issued without prior public notice
or opportunity for public comments. The Board does not anticipate this
rule will generate adverse comment, and the effective date of the rule
is conditional on the non-receipt of adverse comments. Furthermore, the
statutory timeline established by Congress to issue implementing
regulations precludes the issuance of a notice of proposed rulemaking
and public comment prior to the final rule. If the Board receives
significant adverse comments prior to the effective date of this direct
final rule, the Board will publish a timely notification in the Federal
Register to withdraw the rule.
Regulatory Analysis
Executive Order 12866, as Supplemented by Executive Order 13563
The Board, with the Office of Management and Budget, has determined
that this is not a significant regulatory action under Executive Order
12866, as supplemented by Executive Order 13563. Therefore, no
regulatory impact analysis is required.
Regulatory Flexibility Act
The Board certifies that this direct final rule would not have a
significant economic impact on a substantial number of small entities
because it affects only individuals.
Paperwork Reduction Act
This direct final rule imposes no reporting or recordkeeping
requirements subject to Office of Management and Budget clearance.
List of Subjects in 20 CFR Part 355
Administrative practice and procedure, Claims, Fraud, Penalties.
0
For the reasons set out in the preamble, the Railroad Retirement Board
amends title 20, chapter II, subchapter E, of the Code of Federal
Regulations by revising and republishing part 355 to read as follows:
PART 355--REGULATIONS UNDER THE ADMINISTRATIVE FALSE CLAIMS ACT
Sec.
355.1 Basis and purpose.
355.2 Definitions.
355.3 Basis for civil penalties and assessments.
355.4 Investigation.
355.5 Review by the reviewing official.
355.6 Prerequisites for issuing a complaint.
355.7 Complaint.
355.8 Service of complaint.
355.9 Requesting a hearing.
355.10 [Reserved]
355.11 Referral of request for hearing to the presiding officer.
355.12-355.19 [Reserved]
355.20 Disclosure of documents.
355.21-355.39 [Reserved]
355.40 Stays ordered by the Department of Justice.
355.41 [Reserved]
355.42 Judicial review.
355.43 Collection of civil penalties and assessments.
355.44 Right to administrative offset.
355.45 Deposit in Treasury of the United States.
355.46 Compromise or settlement.
355.47 Limitations.
Authority: 31 U.S.C. 3809; sec. 5203, Pub. L. 118-159, 138 Stat.
1773.
Sec. 355.1 Basis and purpose.
(a) Basis. This part implements the Administrative False Claims
Act, codified at 31 U.S.C. 3801-3812. The statute at 31 U.S.C. 3809
requires each authority head to promulgate regulations necessary to
implement the provisions of the statute.
(b) Purpose. This part--
(1) Establishes administrative procedures for imposing civil
penalties and assessments against persons who make, submit, or present,
or cause to be made, submitted, or presented, false, fictitious, or
fraudulent claims or written statements to authorities or to their
agents; and
(2) Specifies the hearing and appeal rights of persons subject to
allegations of liability for such claims and statements.
Sec. 355.2 Definitions.
Authority means Railroad Retirement Board.
Authority head means the three-member Railroad Retirement Board.
Claim means any request, demand, or submission--
(1) Made to the authority for property, services, or money
(including money representing grants, loans, insurance, or benefits);
(2) Made to a recipient of property, services, or money from the
authority or to a party to a contract with the authority--
(i) For property or services if the United States--
(A) Provided such property or services;
(B) Provided any portion of the funds for the purchase of such
property or services; or
(C) Will reimburse such recipient or party for the purchase of such
property or services; or
(ii) For the payment of money (including money representing grants,
loans, insurance, or benefits) if the United States--
(A) Provided any portion of the money requested or demanded; or
(B) Will reimburse such recipient or party for any portion of the
money paid on such request or demand; or
(3) Made to the authority which has the effect of concealing or
improperly avoiding or decreasing an obligation to pay or transmit
property, services, or money to the authority.
Complaint means the written notice of allegations of liability
referred to a presiding officer and served by the reviewing official on
the respondent under Sec. 355.7.
Government means the U.S. Government.
[[Page 25145]]
Investigating official means the Inspector General of the authority
or an officer or employee of the Office of the Inspector General
designated by the Inspector General and serving in a position for which
the rate of basic pay is not less than 120 percent of the minimum rate
of basic pay for grade GS-15 under the General Schedule.
Knows or has reason to know means that a person, with respect to a
claim or statement--
(1) Has actual knowledge that the claim or statement is false,
fictitious, or fraudulent;
(2) Acts in deliberate ignorance of the truth or falsity of the
claim or statement; or
(3) Acts in reckless disregard of the truth or falsity of the claim
or statement.
Material has the meaning given to the term under 31 U.S.C. 3729(b)
and materiality shall be determined in the same manner as under that
statute.
Obligation has the meaning given to the term under 31 U.S.C.
3729(b).
Person means any individual, partnership, corporation, association,
or private organization.
Presiding officer means a member of a Board of Contract Appeals
established by 41 U.S.C. 7105.
Respondent means any person alleged in a complaint under Sec.
355.7 to be liable for a civil penalty or assessment under Sec. 355.3.
Reviewing official means the General Counsel of the authority or
his or her designee who is--
(1) Not subject to supervision by, or required to report to, the
investigating official; and
(2) Not employed in the organizational unit of the authority in
which the investigating official is employed; and
(3) Is serving in a position for which the rate of basic pay is not
less than 120 percent of the minimum rate of basic pay for grade GS-15
under the General Schedule.
Statement means any representation, certification, affirmation,
document, record, or accounting or bookkeeping entry made--
(1) With respect to a claim or to obtain the approval or payment of
a claim (including relating to eligibility to make a claim); or
(2) With respect to (including relating to eligibility for)--
(i) A contract with, or a bid or proposal for a contract with; or
(ii) A grant, loan, or benefit from the authority, or any state,
political subdivision of a state, or other party, if the U.S.
Government provides any portion of the money or property under such
contract or for such grant, loan, or benefit, or if the Government will
reimburse such state, political subdivision, or party for any portion
of the money or property under such contract or for such grant, loan,
or benefit.
Sec. 355.3 Basis for civil penalties and assessments.
(a) Claims. (1) Except as provided in paragraph (c) of this
section, any person who makes, presents, or submits or causes to be
made, presented, or submitted, a claim that the person knows or has
reason to know--
(i) Is false, fictitious, or fraudulent;
(ii) Includes or is supported by any written statement which
asserts a material fact which is false, fictitious, or fraudulent;
(iii) Includes or is supported by any written statement that--
(A) Omits a material fact;
(B) Is false, fictitious, or fraudulent as a result of such
omission; and
(C) Is a statement in which the person making such statement has a
duty to include such material fact; or
(iv) Is for payment for the provision of property or services which
the person has not provided as claimed, shall be subject, in addition
to any other remedy that may be prescribed by law, to a civil penalty
of not more than $5,000 for each such claim. This penalty is subject to
adjustment in accord with part 356 of this chapter.
(2) Each voucher, invoice, claim form, or other individual request
or demand for property, services, or money constitutes a separate
claim.
(3) A claim shall be considered made to an authority, recipient, or
party when such claim is actually made to an agent, fiscal
intermediary, or other entity, including any state or political
subdivision thereof, acting for or on behalf of such authority,
recipient, or party.
(4) Each claim for property, services, or money is subject to a
civil penalty regardless of whether such property, services, or money
is actually delivered or paid.
(5) If the Government has made any payment (including transferred
property or provided services) on a claim, a person subject to a civil
penalty under paragraph (a)(1) of this section shall also be subject to
an assessment of not more than twice the amount of such claim or that
portion thereof that is determined to be in violation of paragraph
(a)(1). Such assessment shall be in lieu of damages sustained by the
Government because of such claim. However, such assessment shall not be
in lieu of any recovery of erroneous payments as authorized by section
10 of the Railroad Retirement Act or section 2(d) of the Railroad
Unemployment Insurance Act.
(b) Statements. (1) Except as provided in paragraph (c) of this
section, any person who makes, presents, or submits, or causes to be
made, presented, or submitted, a written statement that--
(i) The person knows or has reason to know--
(A) Asserts a material fact which is false, fictitious, or
fraudulent; or
(B) Is false, fictitious, or fraudulent because it omits a material
fact that the person making the statement has a duty to include in such
statement; and
(ii) Contains or is accompanied by an express certification or
affirmation of the truthfulness and accuracy of the contents of the
statement, shall be subject, in addition to any other remedy that may
be prescribed by law, to a civil penalty of not more than $5,000 for
each such statement. This penalty is subject to adjustment in accord
with part 356 of this chapter.
(2) Each written representation, certification, or affirmation
constitutes a separate statement.
(3) A statement shall be considered made to an authority when such
statement is actually made to an agent, fiscal intermediary, or other
entity, including any state or political subdivision thereof, acting
for or behalf of such authority.
(c) Claims and statements relating to benefits under the Railroad
Retirement Act. (1) In the case of any claim or statement made by any
individual relating to any of the benefits listed in paragraph (c)(2)
of this section received by such individual, such individual may be
held liable for penalties and assessments under this section only if
such claim or statement is made by such individual in making
application for such benefits with respect to such individual's
eligibility to receive such benefits, and with respect to such claim or
statement, the individual--
(i) Has actual knowledge that the claim or statement is false,
fictitious, or fraudulent;
(ii) Acts in deliberate ignorance of the truth or falsity of the
claim or statement; or
(iii) Acts in reckless disregard of the truth or falsity of the
claim or statement.
(2) For purposes of this paragraph (c), the term ``benefits'' means
any annuity or other benefit under the Railroad Retirement Act of 1974
which are intended for the personal use of the individual who receives
the benefits or for a member of the individual's family.
(d) Intent to defraud. No proof of specific intent to defraud is
required to establish liability under this section.
[[Page 25146]]
(e) Liability of multiple persons. In any case in which it is
determined that more than one person is liable for making a claim or
statement under this section, each such person may be held liable for a
civil penalty under this section.
(f) Joint and several liability when payment has been made. In any
case in which it is determined that more than one person is liable for
making a claim under this section on which the Government has made
payment (including transferred property or provided services), an
assessment may be imposed against any such person or jointly and
severally against any combination of such persons.
Sec. 355.4 Investigation.
(a) If an investigating official concludes that a subpoena pursuant
to the authority conferred by 31 U.S.C. 3804(a) is warranted--
(1) The subpoena so issued shall notify the person to whom it is
addressed of the authority under which the subpoena is issued and shall
identify the records or documents sought;
(2) He or she may designate a person to act on his behalf to
receive the documents sought; and
(3) The person receiving such subpoena shall be required to tender
to the investigating official or the person designated to receive the
documents a certification that the documents sought have been produced,
or that such documents are not available and the reasons therefor, or
that such documents, suitably identified, have been withheld based upon
the assertion of an identified privilege.
(b) If the investigating official concludes that an action under
this part may be warranted, the investigating official shall submit a
report containing the findings and conclusions of such investigation to
the reviewing official.
(c) Nothing in this section shall preclude or limit an
investigating official's discretion to refer allegations directly to
the Department of Justice for suit under the False Claims Act or other
civil relief, or to preclude or limit such official's discretion to
defer or postpone a report or referral to avoid interference with a
criminal investigation or prosecution.
(d) Nothing in this section modifies any responsibility of an
investigating official to report violations of criminal law to the
Attorney General.
Sec. 355.5 Review by the reviewing official.
(a) If, based on the report of the investigating official under
Sec. 355.4(b), the reviewing official determines that there is
adequate evidence to believe that a person is liable under Sec. 355.3,
the reviewing official shall transmit to the Attorney General a written
notice of the reviewing official's intention to issue a complaint under
Sec. 355.7.
(b) Such notice shall include--
(1) A statement of the reviewing official's reasons for issuing a
complaint;
(2) A statement specifying the evidence that supports the
allegations of liability;
(3) A description of the claims or statements upon which the
allegations of liability are based;
(4) An estimate of the amount of money or the value of property,
services, or other benefits requested or demanded in violation of Sec.
355.3;
(5) A statement of any exculpatory or mitigating circumstances that
may relate to the claims or statements known by the reviewing official
or the investigating official; and
(6) A statement that there is a reasonable prospect of collecting
an appropriate amount of penalties and assessments. Such a statement
may be based upon information then known or an absence of any
information indicating that the person may be unable to pay such an
amount.
Sec. 355.6 Prerequisites for issuing a complaint.
(a) The reviewing official may issue a complaint under Sec. 355.7
only if--
(1) The Department of Justice approves the issuance of a complaint
in a written statement described in 31 U.S.C. 3803(b)(1); and
(2) In the case of allegations of liability under Sec. 355.3(a)
with respect to a claim, the reviewing official determines that, with
respect to such claim or a group of related claims submitted at the
same time such claim is submitted (as defined in paragraph (b) of this
section), the amount of money or the value of property or services
demanded or requested in violation of Sec. 355.3(a) does not exceed
$1,000,000. This maximum amount shall be adjusted for inflation in the
same manner and to the same extent as civil monetary penalties under
the Federal Civil Penalties Inflation Adjustment Act. Notice of the
maximum amount under this section for calendar years after 2025 will be
published by the authority in the Federal Register on an annual basis
on or before January 15 of each calendar year.
(b) For the purposes of this section, a related group of claims
submitted at the same time shall include only those claims arising from
the same transaction (e.g., grant, loan, application, or contract) that
are submitted simultaneously as part of a single request, demand, or
submission.
(c) Nothing in this section shall be construed to limit the
reviewing official's authority to join in a single complaint against a
person, claims that are unrelated or were not submitted simultaneously,
regardless of the amount of money or the value of property or services
demanded or requested.
Sec. 355.7 Complaint.
(a) On or after the date the Department of Justice approves the
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the
reviewing official may serve a complaint on the respondent, as provided
in Sec. 355.8.
(b) The complaint shall state--
(1) The allegations of liability against the respondent, including
the statutory basis for liability, an identification of the claims or
statements that are the basis for the alleged liability, and the
reasons why liability allegedly arises from such claims or statements;
(2) The maximum amount of penalties and assessments for which the
respondent may be held liable;
(3) Instructions for filing a request for a hearing, including a
specific statement of the respondent's right to request a hearing; and
(4) That failure to file and answer within 30 days of service of
the complaint may result in the imposition of the maximum amount of
penalties and assessments without right to appeal.
(c) At the same time the reviewing official serves the complaint,
he or she shall serve the respondent with a copy of this part.
Sec. 355.8 Service of complaint.
(a) Service of a complaint must be made by certified or registered
mail or by delivery in any manner authorized by Rule 4(d) of the
Federal Rules of Civil Procedure.
(b) Proof of service, stating the name and address of the person on
whom the complaint was served, and the manner and date of service, may
be made by--
(1) Affidavit of the individual making service;
(2) An acknowledged U.S. Postal Service return receipt card; or
(3) Written acknowledgment of the respondent.
Sec. 355.9 Requesting a hearing.
(a) The respondent may request a hearing by filing the request with
the reviewing official within 30 days of service of the complaint.
(b) In the request, the respondent--
[[Page 25147]]
(1) Shall admit or deny each of the allegations of liability made
in the complaint;
(2) Shall state any defense on which the respondent intends to
rely;
(3) May state any reasons why the respondent contends that the
penalties and assessments should be less than the statutory maximum;
and
(4) Shall state the name, address, and telephone number of any
person authorized by the respondent to act as the respondent's
representative.
(c) Any other response or document filed with the reviewing
official within 30 days of the service of the complaint which does not
meet the criteria in paragraph (b) of this section may still be deemed
to be a request for hearing, if the reviewing official determines the
document demonstrates a clear intent to request a hearing.
Sec. 355.10 [Reserved]
Sec. 355.11 Referral of request for hearing to the presiding officer.
(a) No earlier than 30 days after service of the complaint, the
reviewing official shall file the complaint and any answer or request
for a hearing filed by the respondent with the presiding officer by
submitting a copy of the complaint and any answer or request for
hearing filed by the respondent with the Civilian Board of Contract
Appeals.
(b) If the Chair of the Civilian Board of Contract Appeals declines
the referral of the complaint described in paragraph (a) of this
section, the reviewing official may submit the complaint and any answer
or request for hearing to any other board of contract appeals.
(c) Simultaneously with the submission of a referral under
paragraph (a) or (b) of this section, the reviewing official shall
serve the respondent with a notice in the manner prescribed by Sec.
355.8 that the referral has been made to an agency board of contract
appeals with an explanation as to where the respondent may obtain the
relevant rules of procedure promulgated by the board of contract
appeals.
(d) Upon acceptance of the referral, the presiding officer shall
conduct the hearing according to the rules and procedures promulgated
by the board of contract appeals for cases under the Administrative
False Claims Act.
Sec. Sec. 355.12-355.19 [Reserved]
Sec. 355.20 Disclosure of documents.
(a) Upon written request to the reviewing official, the respondent
is entitled to review any relevant and material documents, transcripts,
records, and other materials that relate to the allegations set out in
the complaint and upon which the findings and conclusions of the
investigating official under Sec. 355.4(b) are based unless such
documents are subject to a privilege under Federal law. Upon payment of
reasonable fees for duplication, the respondent may obtain copies of
such documents.
(b) Upon written request to the reviewing official, the respondent
is also entitled to a copy of all exculpatory information in the
possession of the reviewing official or investigating official relating
to the allegations in the complaint, even if it is contained in a
document that would otherwise be privileged. If the document would
otherwise be privileged, only that portion containing exculpatory
information must be disclosed.
(c) The notice sent to the Attorney General from the reviewing
official as described in Sec. 355.5 is not discoverable under any
circumstances.
Sec. Sec. 355.21-355.39 [Reserved]
Sec. 355.40 Stays ordered by the Department of Justice.
If at any time the Attorney General or an Assistant Attorney
General designated by the Attorney General transmits to the authority
head a written finding that continuation of the administrative process
described in this part with respect to a claim or statement may
adversely affect any pending or potential criminal or civil action
related to such claim or statement, the authority head shall stay the
process immediately. The authority head may order the process resumed
only upon receipt of the written authorization of the Attorney General.
Sec. 355.41 [Reserved]
Sec. 355.42 Judicial review.
The statute at 31 U.S.C. 3805 authorizes judicial review by an
appropriate U.S. District Court of a final decision of the presiding
officer imposing penalties or assessments under this part and specifies
the procedures for such review.
Sec. 355.43 Collection of civil penalties and assessments.
The statutes at 31 U.S.C. 3806 and 3808(b) authorize actions for
collection of civil penalties and assessments imposed under this part
and specify the procedures for such actions.
Sec. 355.44 Right to administrative offset.
The amount of any penalty or assessment which has become final, or
for which a judgment has been entered under Sec. 355.42 or Sec.
355.43, or any amount agreed upon in a compromise or settlement under
Sec. 355.46, may be collected by administrative offset under 31 U.S.C.
3716, except that an administrative offset may not be made under this
section against a refund of an overpayment of Federal taxes, then or
later owing by the United States to the respondent.
Sec. 355.45 Deposit in Treasury of United States.
All amounts collected pursuant to this part shall be credited first
to reimburse the authority or other Federal entity that expended costs
in support of the investigation or prosecution of the action, including
any court or hearing costs. Such reimbursements shall be deposited in
the appropriations account of the authority or other Federal entity
from which the costs were obligated, a similar appropriations account
of the authority or other Federal entity, or another appropriate
account if the authority or other Federal entity expended
nonappropriated funds, and shall remain available until expended. Any
amount remaining after such reimbursements are credited shall be
deposited as miscellaneous receipts in the Treasury of the United
States.
Sec. 355.46 Compromise or settlement.
(a) Parties may make offers of compromise or settlement at any
time.
(b) The reviewing official shall notify the Attorney General in
writing no later than 30 days before entering into any agreement to
compromise or settle allegations of liability under this part and
before the date on which the reviewing official is permitted to issue a
complaint.
(c) The reviewing official has the exclusive authority to
compromise or settle a case under this part at any time after the date
on which the reviewing official is permitted to issue a complaint and
before the date on which the presiding officer issues a decision.
(d) The Attorney General has exclusive authority to compromise or
settle any penalty or assessment under this part during the pendency of
any review under Sec. 355.42 or of any action to recover penalties and
assessments under 31 U.S.C. 3806.
(e) Any compromise or settlement must be in writing.
Sec. 355.47 Limitations.
The complaint with respect to a claim or statement must be served
in the manner specified in Sec. 355.8 not later than the later of--
(a) 6 years after the date on which such claim or statement is
made; or
(b) 3 years after the date on which facts material to the action
are known or
[[Page 25148]]
reasonably should have been known by the authority head, but in no
event more than 10 years after the date on which the claim or statement
was made.
By Authority of the Board.
Dated: June 11, 2025.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2025-10935 Filed 6-13-25; 8:45 am]
BILLING CODE 7905-01-P