ML20005E531

Forwards for Signature,Proposed Rule to Be Published in Fr, Amending 10CFR15, Debt Collection Procedures. Provisions of Rule That Apply to Civil Penalties Assessed by NRC Under 10CFR2.205 Will Be Specified in Next Rev to 10CFR2.205

ML20005E531
Person / Time
Issue date:	09/28/1988
From:	Mcdonald W NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM)
To:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
Shared Package
ML20005E490	List: ML20005E489 ML20005E492 ML20005E495 ML20005E496 ML20005E497 ML20005E500 ML20005E501 ML20005E503 ML20005E504 ML20005E506 ML20005E515 ML20005E518 ML20005E526 ML20005E531
References
FRN-53FR39480, RULE-PR-15 AC87-1-14, NUDOCS 9001080080
Download: ML20005E531 (40)

Text

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AC87-l' PDRT Eg y UNITED STATES:

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' NUCLEAR REGULATORY COMMISSION '

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' MEMORANDUM FOR: + Victor Stello, Jr.

-Executive Director for Operations-1 FROMi.

William Gi Mcdonald, Director' 0ffice of" Administration and.

Resources Management; 1

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b SUBJECT _:'

DEBT COLLECTION PROCEDURES _

Enclosed for your signature is.a proposed rule to be published in_ the Federal Register that amends 10 CFR 15, " Debt Collection Procedures." The proposed amendment is necessary-to conform NRC regulations'to the amended procedures icontained in the' Federal' Claims Collection Standards: issued by the General DAccounting Office and the Department of Justice. The provisions of this rule V :that apply to civilL penalties assesed by NRC under 10 CFR 2.205 will; be speci-Lfied;in the:nextLrevision,to 10 CFR 2.205.

Backaround:.

On: February 22;.1982!(47 FRL7615), the NRC published a final: rule concerning debt' collection Since then, the Debt Collection'Act of'1982-

_(Pub. L.~97-365) procedures.

was enacted on October 25,.1982, which revised the Federal Claims Collection'Act of 1966 (31 U.S.C. 5 3701, et seq.).

10nMarch 9,<1984 (49'FR 8889) the General Accounting Office and the Department of Justice issued a final rule. amending-the Federal C1 aims Collection Standards as set out in;4 CFR Parts:101-105.

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The proposed rule implements the Federal Claims Collection Act as amended by a_

the Debt Collection' Act and supplements the amendments to the Federal Claims

-CollectioniStandards.

Public Connents:-

Consideration will be given to public comments made on the proposed rule as longsas: such comments are received within 45 days after the proposed rule is published in'the Federal Register. Comments received after this period 'will s

be considered if.it is practical to do so.

Environmental Assessment:

The staff has determined that the rule will not have a significant effect on the quality of the human environment (Enclosure B).

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-Victor Stello, Jr.

2 SEP 2 81988

Backfit Analysis:

The staff has determined.that a backfit analysis is not required for this rule because these amendments do not involve any provisions which would impose back--

I fitsasdefinedin10CFR50.109(a)(1).

Notices:

A notice to the Commission that the EDO has signed this proposed rule is enclosed for. inclusion in the next Weekly Report to'the Commission (Enclosure C). The appropriate Congressional Committees'will-be notified (Enclosure B)..

Coordination:

.. All Headquarters and Regional offices concur in the proposed rule.

ox Y illiam G. Mcdonald, Director

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Office of Administration and Resources Management lr

Enclosures:

A.' Federal Reaister Notice of Proposed Rule Making.

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Environmental Assessment and Finding of No Significant

' Impact-C.

Draft Congressional Letter D.- ' Draft Item for Weekly Report

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APPROVED FOR PUBLICATION t

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The'CommissionidelegatedtotheEDO(10CFR1.31(a)(3))theauthority) to developfand promulgate rules as defined in the APA (5 U.S.C. 551 (4)

S-subject to. the limitations in NRC Manual Chapter 0103, Organization and Functions, Office of the Executive Director for Operations, paragraphs 0213, 038, 039, and 0310.

The enclosed proposed-rule, entitled, " Debt Collection Procedures".

would amend Part 15 to conform NRC regulations to the amended procedures contained in the Federal Claims Collection Standards issued by the General Accounting Office and the Department of Justice.

This proposed rule does not constitute a significant question of policy, nor does it amend regulations contained in 10 CFR Part 7, 8, or 9 Subpart C concerning matters of policy.

I, therefore, find that_this rule is within the scope of my rulemaking authority and am proceeding to issue'it.

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Executivs' Di or for Operations 1

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Victor Stello, Jr.

2 SEP 2 81988 Backfit_ Analysis.:

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Tha staff has determined that a beckfit analysis is not required for this rule because these amendments do not involve any provisions which would impose back-fitsasdefinedin10CFR50.109(a)(1).

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Notices:

1:

' A notice to the Commission-that the EDO has signed this proposed rule is enclosed for inclusion'in the next Weekly Report to the Conunission (Enclosure C). The appropriate Congressional Committees will be notified (Enclosure B),

Coordination:

All Headquarters and Regional offices concur in the proposed rule.

Original Signed Bys '

William G. McDonsid William G. Mcdonald, Director Office of Administration and Resources Management

Enclosures:

A. -Federal Realster Notice of Proposed Rule Making

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. B.

Environmental Assessment and finding of No Significant Impact C.

Draft Congressional Letter D.

Draft Item for Weekly Report to the Conrnission DISTRIBUTION GDJohnson, ARM /DAF LHiller, ARM /FMC RMScroggins, ARM /FNC WGMcDonald, ARM DHassell, OGC JLieberman,OE ARM /DAF C/F ARM /0AF R/F h

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NUCLEAR REGULATORY COP 911SSION '

10 CFR Part 15-r y

Debt Collection Procedures-AGENCY: Nuclear Regulatory Comission y

ACTION: Proposed rule, n

SUMMARY

iThe Nuclear' Regulatory Comission (NRC) is proposing to amend g

its regulations ~concerning the procedures that the NRC uses to' collect.

. the debts which are: owed to it. The proposed amendment.is necessary to

. conform NRC-regulations to the amended procedures. contained in the Federal' Claims Collection Standards issued by the General. Accounting

' Office-(GA0) and the Department of Justice (00J)

The proposed action is intended to allow the NRC to further imp' rove its collection of debts due the United States.

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-DATE:

Submit ~ comments by

, 1988.

Comments re-ceived after. this date-will =be considered if it is practical to do so,-

but the Comission is able to assure consideration only for comments re-ceived on or before this date.

ADDRESSES: Send comments to: Secretary, U.S. Nuclear Regulatory Comis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

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[7590-01) 1 Hand deliver comments to:

11555 Rockville Pike, One White Flint:

North, Rockville, Maryland, between 7:45 am and 4:15 pm.

Examine comments received at:

The NRC Public Document Room, 2120 L Street NW, lower level, Washington, DC 20555.

FOR-FURTHER INFORMATION CONTACT: Graham D. Johnson, Director, Division

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of Accounting and Finance, Office of Administration and Resources Manage-ment, U.S.. Nuclear Regulatory Comission, Washington, DC 20555, telephone (301) 492-7535.

SUPPLEMENTARY'INFORMATION: On February 22,1982(47FR7615),theNuclear Regulatory _ Commission (NRC) published a final rule concerning debt collec-1 tion procedures.

Since then, the Debt Collection Act of 1982 (Pub.

L.97-365) was enacted on October 25, 1982 which revised the Federal Claims Collection Act of 1956(31U.S.C.3701etseq.). On March 9, 1984 (49 FR 8889), the General Accounting Office and the Department of Justice issued a final rule amending the Federal Claims Collection Standards as set l

out in 4 CFR Parts 101-105. The NRC regulations are based on the require-ments contained in the Federal Claims Collection Standards.

The proposed revision to 10 CFR Part 15 provides procedures for the i

Nuclear Regulatory Commission to' collect, compromise, or terminate col-lection action on claims owed to the United States Government arising from activities under NRC jurisdiction. The proposed revision implements the Federal Claims Collection Act as amended by the Debt Collection Act and supplements the amendments to the Federal Claims Collection Standards.

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The NRC intends to revise 10 CFR 2.205 to specify those provisions of 10 CFR 15 which apply to civil penalties n sessed by NRC under 10 CFR 2.205.

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i Section by Section Analysis

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Section 15;1 -- Application..

.This section is being revised to make it clear that Part 15 prescribes NRC procedures for collectino, compromisino, terminating and il referring claims to the' General Accounting Office and the Department of i

Justice and conform to Pub. L.99-224 l

. Paragraph (b)(1) is being modified to conform to the provisions of a

' Pub; L.99-224, dated December 28,-1985, which amended 5 U.S.C. 5584, 10 U.S.C. 2774 and 32 U.S.C. 716 by authori:ing waivers of erroneous 1

payments of travel, transportation and relocation expenses and i

allowances.

A new paragraph (b)(2) is being added to indicate that civil i

monetary penalties imposed under 10 CFR 2.205 are subject to special statutory and administrative procedures.

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Section 15.2 Definitions.

1 This new section is being added to provide definitions for the terms t

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" administrative offset", " claim and debt", " delinquent", " license", and

" payment in full" as they are used in this part and 4 CFR Parts 101-105.

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Section 15.3 Communications.

This section is being revised by correcting the Consnission's address for communications concerning the regulations in 10 CFR Part 15.

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[7590-011 Section 15.5 Claims that'are covered.

This.section is being revised to note that the provisions of 10 CFR Part 15 which apply to civil penalties shall be specified in 10 CFR 2.205, to note that the provisions of 10 CFR Part 15 do not apply to claims between Federal. agencies, and to explicitly provide that fees imposed under 10 CFR Parts 170 and 171 are covered.

Section 15.7-Monetary limitation on NRC's authority.

The statutory citation in this section is-being corrected to read 31 U.S.C. 3711(b).

Paragraph (b) is being modified to include " penalties, and administrative costs" with the exclusion of interest from the $20,000' limitation on the NRC's-compromise authority.

Section 15.9 Omissions not a defense.

This section is being modified to include the citation for the Federal Claims Collection Standards.

i Section 15.13 Subdivision of claims.

1 A cross reference to the statutory and regulatory authority for this section is being added.

h Section 15.21 Written demands for payment.

l Paragraph (a)(1) is being modified to include notice to the debtors l

of their right to seek review within the agency. Paragraph (a)(4) is being modified to indicate the date of mailing or hand delivery as the date on which payment is to be made under normal circumstances, consistent with 4 CFR Part 102.

Paragraph (a)(5) is being modified to include penalties and administrative costs of collection in the demand for payment.

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Minor editorial changes are made to paragraph (b), including-the addition of.possible reporting of delinquent debt' to consumer reporting s

agencies.

'Section 15.25 Personal interviews, i

This section is being modified to make such interviews discretionary on the part of the NRC under paragraph (a) while maintaining a requirement to grant an interview to-the debtor, if requested, under paragraph (b). -

Section 15.26 Use of consumer reporting agencies, i

A new section is being added to provide for the reporting of delin-quent debts to consumer reporting agencies,. notifying debtors of these-actions, reporting _ debt status changes to debtors,'and. limiting the in-e i

formation which the NRC may provide to consumer reporting agencies.

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L Soction 15.29 Suspension or revocation of license.

l This section is being modified to correspond more closely to the 1

l terminology used in 4 CFR Parts 101-105.

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-Section 15.31 Disputed debts.

This section is being modified to correspond more closely to the terminology used in 4 CFR Parts 101-105.

Section 15.32 Contracting for collection services.

This new section is added to provide for NRC action to collect a debt by means of a commercial collection agency, as authorized by 4 CFR 5

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-l 102.6. With'the' inclusion of this new section, i 15.63 is being removed

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i from Subpart E of this part.

Section 15.33 Collection by administrative offset.

This section~ is being modified to disclose the 10 year limitation on I

the NRC's-authority to initiate an administrative offset.

If the. payment of fees to the NRC is deferred, the ten years will-run from the end of the deferral period or any other period the NRC subsequently establishes.

u Paragraphs (b), Ic)and(d)ofthissectionarebeingchangedto make it consistent with the provisions in 4 CFR Parts 102.2, 102.3, and 102.4 and 5 U.S.C. 5514.

Provisions are added to establish the debtor's procedural rights, to provide for seeking offset from other Government l

age.icies when they have funds due the debtor, to provide for NRC acceptance of'a repayment agreement in lieu of an offset, and to establish other limitations on the use of administrative offset in the collection of debts owed the NRC.

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Section 15.35 Payments.

Lanausge is being added to this section to clarify that charaes for interest, penalties, and administrative costs will be assessed on delin-l quent payments paid in full in one lump sum.

In addition, larguage.is being added to explain how an installment agreement will be instituted and applied to a debt. The significant additions are a provision for accelerated payment in the event the debtor defaults on an installment agreement and an indication that the NRC will comply with the debtor's instructions in the application of payments when more than one debt is involved.

However, if the debtor does designate the application of 6

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payments, the'NRC will apply the payments'in the best interest of the United States.

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'Section 15.37 Interest, penalties,.and administrative costs.

This section~is changed substantially by revising its title and y

adding the following new paragraphs:

Paragraph (e) provides that the interest rate on a debt will remain fixed except under specified circumstances.

Paragraph (f) provides that the NRC will assess against the debtor

.the costs of administratively handling a delinquent debt.

Paragraph (g) codifies the current NRC practice of assessing a penalty charge in the amount of 6 percent per annum on a debt that is delincuent for more than 90 days.

This charge accrues from the date that the debt became delinquent. Thus, both interest and penalties are calculated from the same initial date.

Paragraph -(h) provides that payments will be applied first to outstanding penalty and administrative charges, then to interest, and finally to the principal.

Paragraph (1)codifiescurrentNRCpracticeofwaivinginterestfor debts ~ paid within 30 days of the due date.

L Paragraph (j) codifies current NRC practice of waiving interest I-

'during the period a disputed debt is under investigation.

Paragraph (k) codifies other circumstances under which interest, 1

penalties, and administrative costs may be waived.

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Section 15.38 Use of credit reports.-

A new section is being added to allow NRC to institute a credit investication of a debtor in order to make appropriate determinations.

regarding'the collection of a claim.

Section 15.41 When a claim may be compromised.

The opening sentence of this section is being changed for clarifica-tion purposes only.

Section 15.43 Reasons for compromisino a claim.

This-section is being modified to bring it into conformity with 4 CFR Part:103.

Paraoraph (c) is changed to indicate the standard of l

enforced collection costs in accordance with 4 CFR 103.4 rather than as Ib l'

currently stated. Paragraph (d) is being divided to set out separately

-in a new partgraph (e) the requirement for an enforceable agreement of installment payments under a compromise of a claim.

Section 15.45 Restrictions on the compromise of a claim.

The opening sentence of this section is being changed for clarifica-tion purposes only.

5 Section 15.51 When collection action may be suspended or terminated.

This section is being modified to indicate the exclusion of interest, penalties, and administrative costs from the monetary limitation on when the NRC may suspend or terminate collection action.

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k Cection-15.61-Prompt referral.

g-R Paragraph (a).is being modified to. delete the reference to a private-

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collection agency which is now to be addressed in the new i 15.32-i discussed above. A one-year referral requirement is codified for NRC action after final determination of-the fact and the amount owed to the i

NRC..

A new paragraph (b) is beino added to provide for NRC referral to

' GA0 of questions concarning acceptance of a proposed compromise, suspension, or termination of collection actions in order to obtain GAO's 6dvice on the matter in question. The current paragraph (b) will be redesignatedasparagraph(c).

A new paragraph (d)- is being added to reflect the fact that once a referral has been made to GA0 or the D0J. the NRC will refrain from any contact with the debtor and will immediately advise GA0 or the D0J of any payments made by the debtcr.

l Section 15.63 Referral of a claim.to private agencies for collection.

This section is being deleted both because of the new $15.32 which l

- addresses these actions, and because these collection actions are not a referral in the truest sense, but rather reflect a different form of col-t L

lection action by the NRC using other means.

Section 15.67 Referral to the Department of Justice.

A new paragraph (a) is being added to indicate the threshold for determining to whom the NRC will refer a claim for enforced collection, i.e., the 00J or the appropriate U.S. Attorney. The current paragraphs (a) and (b) are being redesignated as paragraphs (b) and (c), respectively.

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p A new paragraph (d).is being added to indicate that the NRC must:

make its referrals in accordance with the guidance in 4 CFR 105.2 and

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that pertinent evidence will be preserved.

Finding of No Significant Environmental Impact: Availability' 1

The Comission has determined, under the National Environmental-Policy Act of 1969, as amended, and the Comission's regulations in Sub-part A of 10 CFR Part 51,.that this rule if adopted, would not be a.

major Federal action significantly affecting the quality of the human environment and therefore an environmental statement is not required.

Amending the procedures that the Commission uses to collect

• e debts

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which are owed to it will have no radiological environmental' impact off-site and no impact on occupational radiation exposure onsite. The Amend-ment does not affect nonradiological plant effluents and has no other environmental impact. The environmental assessment and finding of no significant impact on which this detemination is based are available for inspection 'at the NRC Public Document Room, 2120 L Street NW, lower level, 1

L Washington, DC.

Paperwork Reduction Act Statement l

This proposed rule contains no information collection requirements and therefore is not subject to the requirements of the Paperwork Reduction Act of 1980(44U.S.C.3501etseq.).

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l Regulatory Analysis This proposed rule will bring NRC debt collection procedures into conformance with current statutory and reaulatory guidance and require-nents and, as such..does not have significant impacts on state and local governments and geographical regions, health, safety, and the environment; nor does it represent substantial. costs to licensees, the c

NRC, or other Federal agencies. This constitutes the regulatory. analysis for this proposed rule ~.

Regulatory Flexibility Certification

-In accordance with the Regulatory Flexibility Act, 5 U.'S.C. 605(b),

the Commission certifies that this rule.. if. adopted, will not have a sig-nificant economic impact on a substantial number of small entities. Any impact on a small entity which might occur will result solely from the acts or omissions of the small entity concerned because of its. failure to pay a valid debt to the NRC. As a result, a regulatory flexibility l

analysis has not been prepared.

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Backfit Analysis The Commission has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve any provisions which would impose backfits as defined in 10CFR50.109(a)(1).

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List of Subjects in 10 CFR Part 15 J

Administrative practice ar.d procedure, Debt collection.

For the reasons set out in the preamble and under authority o_f the Atomic Energy Act of 1954, as amended, the Energy Reoroanization Act of

.i 1974, as amenced, the Federal Claims Collection Act of 1966, as amended, and 5 U.S.C. 552 and 553, the NRC is proposing to adopt the following J

amendments to 10 CFR Part 15.-

PART 15 -- DE8T COLLECTION PROCEDURES 1.

%e authority section for Part 15 is revised to read as follows:

AUTHORITY: Secs. 161, 186, 68 Stat.

948, 955, as amended (42 U.S.C. 2201, 2236); sec. 201, 88 Stat. 1242, as amended-(42 U.S.C. -5841);

.i sec. 3. Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3711, 3717, 3718); sec.1, Pub. L.97-258, 96 Stat. 972 (31 U.S.C. 3713); sec. 5, Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C.

3716); Pub. L.

< 365, 96 Stat. 1749 (31 U.S.C. 3701-3719); Federal Claims Collection l

Standards, 4 CFR Parts 101-105.

L 2.

Section 15.1 is amended by revising paragraphs (a) and (b)(1),

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l-redesignating paragraph (b)(2) as paragraph (b)(3), and adding a new paragraph (b)(2) to read as follows:

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[7590-01) l 6 15.1-Application.

. a)_ This part applies to claims for the payment of debts owed to

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the United States Government in the form of money or property and; unless

- a different procedure is specified in a statute, regulation, or contract; prescribes procedures by which the NRC --

(1) Collects, compromises, suspends, and terminates collection-actions for claims; (2) Determines and collects interest and other charges on these claims; and (3) Refers _ unpaid claims to the General Accounting Office and the Department of Justice for litigation.

(b)

(1) - A claim against an employee for erroneous payment of pay and allowances subject to waiver under 5 U.S.C. 5584.

(2) A claim against an applicant for or a holder or former holder of an NRC license involving the payment of civil penalties imposed by the NRC under 10 CFR 2.205.

3.

Section 15.2 is added to read as follows:

6 15.2 Definitions.

" Administrative offset" means withholding money payable by the United States Government to, or held by the Government for, a person to satisfy a debt the person owes the United States Government.

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" Claim" and " debt" are used synonymously and interchangeably for the-purposes of this part. These terms refer to money or property which has been determined by an-appropriate NRC official to be owed to the United States by any person, organization, or entity, except another Federal agency.

A debt is considered " delinquent" if it has not been paid by the date on which-the initial written demand for payment is first mailed or hand delivered to the debtor or as otherwise established by Federal statute, regulations, or applicable contractual agreement with the NRC unless.other satisfactory payment arrangements have been made by that date.

If the debtor fails to satisfy oblications under a payment agreement with the NRC after other payment arrangements have been made, the debt becomes a delinquent debt.

" License" means any license or permit issued by the Commission.

" Payment in full" means payment of the total debt due the United States, including any interest, penalty, and administrative costs of g

collection assessed against the debtor 4.

Section 15.3 is revised to read as follows:

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-6 15.3 Communications.

Unless otherwise specified, all communications concerning the regu-lations in'this part should be addressed to the Secretary, U.S. Nuclear Regulatory Commission, Washington DC 20555, ATTN: Docketino and Service Branch. Communications may be delivered in person at the Comission's offices at 11555 Rockville Pike One White Flint North, Rockville, Maryland 20852.

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Section 15.5 is amended by revising paragraphs (a)(1) and (b)(1) and by addino paragraph (b)(5).to read as follows:

r 9 15.5 Claims that are covered' (a)

(1) Results from activities of the NRC, including fees imposed under Part 170 and Part 171; or t

(b)

• i (1) A claim based on a civil monetary penalty for violation of a licensing requirement unless 6 2.205 of this chapter provides otherwise.

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i (5) Claims between Federal agencies.

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In 615.7, the introductory paragraph and (b) are revised to read as follows:

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! 15.7 Monetary limitation on NRC's authority.

l The NRC's authority to compromise a claim or to terminate or suspend collection action on a claim covered by these procedures is limited'by 31 U.S.C. 3711(a) to claims that --

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j (b) Do not exceed $20,000, exclusive of interest, penalties, and i

administrative costs (the monetary limitation).

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Section 15.9 is amended by revising paragraph (a) to read as follows:

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.6 15.9 Omissions not a defense.

u (a) The failure of the NRC to include =in this part any provision of g

the Federal Claims Collection Standards, 4 CFR Parts 101-105, does not prevent the.NRC'from applying these provisions.

1 8.

Section 15.13 is revised to read as follows:

. 1 6 15.13 Subdivision of claims.

The NRC shall consider a debtor's liability arising from a particular transaction or centract as a sinole claim in determinino whether the claim is less than the monetary limitation for the purpose of compromising or suspending or terminating collection action. A claim may not be subdivided to avoid the monetary limitation established by 31 U.S.C.3711(a)(2)and615.7.

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The heading of Subpart'8 is revised to read as follows:

Subpart B -- Administrative Collection of Claims e

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In 615.21, paragraphs (b)(3)(iii), (iv), and (v) are redesig-noted as paragraphs (b)(3)(iv), (v), and (vi), respectively; paragraphs (a)(1), (a)(4), (a)(5), and (a)(6), the introductory text of paragraph

'(b), and paragraph (b)(2) are revised; and a new paragraph (b)(3)(iii) is added to read as follows:

p-6 15.21 Written demands for payment.

(a)

(1) The basis of the indebtedness and the right of the debtor to seek review within the NRC; I

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r (4) The date on which payment is to be made (This date is normally~

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- the date the initial written demand letter statement was~ mailed or hand delivered,-unless otherwise specified by contractual ~ agreement.

established by Federal statute or regulation, or agreed to under a paymentagreement);

(5) The applicable standards for assessing interest, penalties, and administrative costs under 4 CFR 102.13.

(6) The applicable policy for reporting the delinquent debt to i

consumer reporting agencies.

(b) Unless a debtor'is a current NRC employee, the NRC shall normally.

send three progressively stronger written demands at not more than 30-day intervals, unless circumstances indicate that alternative remedies better protect the Government's interest, that the debtor has explicitly refused to pay, or that sending a further demand is futile. Depending upon the circumstances of the particular case, the second and third demands may--

g-(2) State the amount of the interest and penalties that will be added on a daily basis as well as the administrative costs that will be added to the debt until the debt is paid; and (3). *

(iii) Possible reporting of the delinquent debt to consumer report-ing agencies in accordance with the guidance and standards contained in 4 CFR 102.5 and the NRC procedures set forth in 9 15.26; 17

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In-i 15.25, the introductory text of paragraph (a)-is revised to read as follows:

6: 15.25 Personal interviews.

(a) The NRC may seek an interview with the debtor at the office of the NRC when--

12. A new 6 15.26 is added to read as follows:

)

6 15.26 Use of consumer reportino acencies.

(a)

In addition to assessing interest, penalties and administrative-costs under 615.37, the NRC may report a debt that has been delinquent for-90 days to a consumer reporting agency if all the conditions of this i

paraoraph are met.

(1) The debtor has not--

(i) Paid or agreed to pay the debt under a written payment plan that has been signed by the debtor and agreed to by the NRC; or (ii) Filed for review of the debt under 6 15.26'(a)(2)(iv).

(2) The NRC has included a notification in the third written demand (see 6 15.21(b)) to the individual debtor stating--

(i) That the payment of the debt is delinquent; (ii) That, within not less than 60 days after the date of the notification, the NRC intends to disclose to a consumer reporting agency that the individual debtor is responsible for the debt; (iii) The specific information to be disclosed to tSe consumer reporting agency; and 18

A

[7590-01]

i (iv) That the debtor has a right to a complete explanation of the debt (if that has not already been given), to dispute information in NRC records about the debt, and to request reconsideration of the debt by administrative appeal or review of the debt, (3) The NRC has sent at least one written demand by either registered or certified trail with the notification described in paragraph (a)(2).

(4) The rdC has reconsidered its initial decision on the debt when the debtor has "+'uested a review under i 15.26(a)(2)(iv),

(5) The NRC has taken reasonable action to locate a debtor for whom the NRC does not have a current address to send the notification provided for in paragraph (a) (2) of this section.

(b)

If there is a substantial change in the condition or amount of the debt, the NRC shall (1) Promptly disclose that fact (s) to each consumer reporting agency to which the original disclosure was made; (2) Promptly verify or correct information about a debt on request of a consumer reporting agency for verification of infomation disclosed by the NRC; and, (3) Obtain assurances from the consumer reporting agency that the agency is complying with all applicable Federal, state and local laws relating to its use of consumer credit information.

(c) The information the NRC discloses to the censumer reporting agency is limited to--

(1)

Information necessary to establish the identity of the indivi-dual debtor, including name, address and tax payer identification number; (2) The amount, status, and history of the debt; and 19

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[7590-01)

(3) The NRC activity under which the debt arose, i

13. Section 15.29 is revised to read as follows:

i 15.29 Suspension or revocation of license.

The NRC may suspend or revoke any license or approval which the NRC has granted to the debtor for any inexcusable, prolonged or repeated fail-ure of the debtor to pay a delinquent debt. Before suspending or revoking any license or approval for failure to pay a debt, the NRC shall issue to thedebtoranordertoshowcause(byeitherregisteredorcertifiedmail) why the license or other privilege should not be suspended or revoked.

The NRC shall allow the debtor no more than 30 days to pay the debt in full, including applicable interest, penalties, and administrative costs of collection of the delinquent debt. The NRC may suspend or revoke the license or approval at the end of this period.

If a license is revoked unoer authority of this part, a new application, with appropriate fees, must be made to the NRC. The NRC may not consider an application unless all previous delinquent debts of the debtor to the NRC have been paid in full.

14.

In i 15.31, paragraphs (a) and (b) are revised to read as follows:

1 l

6 15.31 Disputed debts.

i (a) A debtor who disputes a debt shall explain why the debt is in-ccrrect in fact or in law within 30 days from the date that the initial demand letter was mailed or hand-delivered.

The debtor may support the explanation by affidavits, cancelled checks, or other relevant evidence.

20 I

[7590-01)

(b)

If the debtor's arguments appear to have merit, the NRC may extend the interest waiver period as described in i 15.37 (j) pending a final determination of the existence or amount of the debt.

15.

Section 15.32 is added to read as follows:

_6 15.32 Contractino for collection services.

The NRC may contract for collection services in order to recover delinquent debts. However, the NRC retains the authority to resolve disputes, compromise claims, suspend or terminate collection action, and initiate enforced collection through litioation.

When appropriate, the NRC shall contract for collection services in accordance with the guidance and standards contained in 4 CFR 102.6.

16.

In i 15.33, paragraphs (a), (b), and (c) are revised; paragraph (d) is redesignated as paragraph (e) and a new paragraph (d) is added to read as follows:

6 15.33 Collection by administrative offset.

(a) The NRC may administratively undertake collection by offset nn each claim which is liquidated or certain in amount in accordance with the guidance and standards contained in 4 CFR Parts 102.2, 102.3, and 102.4, and 5 U.S.C. 5514, as applicable. The NRC may not initiate administrative offset to collect a debt more than 10 years after the Government's right to the debt first accrued, unless facts material to the Government's right to collect the debt were not known and could not reasonably have been known to the NPC or collection of " approval fees" has been deferred under 10 CFR r

21

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[7590-01]

Part 170.- If the collection of " approval" fees has been deferred, the ten-year period begins to run at the end of the deferral period.

(b) Collection by administrative offset of amounts payable from the Civil Service Retirement and Disability Fund is made pursuant to 4 CFR 102.4 and the provisions of paragraph (d) of this section.

(c) Salary offset is governed by 5 U.S.C. 5514.

(d) The following procedures apply when the NRC seeks to collect a debt by offset against any payment to be made to a debtor or aoainst the-assets of a licensee.

(1) Before the offset is made, the NRC shall provide the debtor with a written notice of the nature and amount of the debt and-(1) Notice of the NRC's intention to collect the debt by offset; (ii) An opportunity to inspect and copy NRC records pertaining to the debt; (iii) An opportunity to request reconsideration of the debt by the NRC or, if provided for by statute, waiver of the debt; (iv) An opportunity to enter into a written agreement with the NRC to repay or pay the debt, as the case may be; (v) An explanation of the debtor's rights under this subpart; and (vi) An opportunity for a hearing when reouired under 'the provisions of4CFRPart102.3(c).

(2) If the NRC learns that other agencies of the Federal covernment are holdino funds payable to the debtor, the NRC shall provide the other agencies with written certification that the debt is owed to the NRC and that the NRC has complied with the provisions of 4 CFR 102.3. The NRC shall request that funds due the debtor which are necessary to offset the debt to the NRC be transferred to the NRC.

22

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[7590-01]

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(3) The NRC may accept a repayment or payment agreement, as I

appropriate, in lieu of offset, but will do so only after balancing the Government's interest in collecting the debt against fairness to the cebtor.

If the debt is delinquent and the debtor has not disputed its existence or amount, the NRC may accept a repayment or payment acreement j

in lieu of offset only if the debtor is able to establish under sworn I

affidavit that offset would result in undue financial hardship or would be against equity and good conscience.

(4) Administrative offset is not authorized with respect to-(1) Debts owed by any State or local government; or (ii) Any case in which collection of the type of debt involved by administrative offset is explicitly provided for or prohibited by another statute.

(5) The NRC reserves the right to take any other action in respect to offset as is permitted under 4 CFR 102.3.

17. Section 15.35 is amended by revising paragraphs (a) and (b) to read as follows:

6 15.35 payments.

(a) Payment in full.

The NRC shall make every effnrt to collect a claim in full before it becomes delinquent.

If a claim is paid in one lump sum after it becomes delinquent, the NRC shall impose charges for interest, penalties, and administrative costs as specified in i 15.37.

(b) Payment in installments.

If a debtor furnishes satisfactory evidence of inability to pay a claim in one lump sum, payment in regular 23

[7590-01) installments may be arranged. Evidence may censist of a financial state-ment or a signed statement that the debtor's application for a loan to enable the debtor to pay the claim in full was rejected.

Except for a

[

claim described at 5 U.S.C. 5514, all installment payment arrangements t

must be in writing and require the payment of interest.

(1) Installment note forms, including confess-judgment notes, may I

be used. The written installment agreement must contain a prevision accelerating the debt payment in the event the debtor defaults.

If the l

debtor's financial statement discloses the ownership of assets which are free and clear of liens or security interests, or assets in which the debtor owns an equity, the debtor may be asked to secure the payment of t

an installment note by executing 6 Security Agreement and Financing Statement transferring to the United States a security interest in the assets until the debt is discharged.

(2)

If the debtor owes more than one debt and desionates how a voluntary installment payment is to be applied among those debts, the NRC shall follow that designation.

If the debtor does not designate the application of the payment, the NRC shall apply the payment to the various debts in accordance with the best interests of the United States, as determined by the facts and circumstances of the particular case.

18.

Section 15.37 is revised to read as follows:

6 15.37 Interest, penalties, and administrative costs.

(a) The NRC shall assess interest, penalties, and administrative l

costs en debts owed to the United States Government in accordance with 24

r***

[7590-01) the guidance provided under the Federal Claims Collection Standards, 4 CFR Part 102.13 unless otherwise directed by statute, regulation, or contract.

(b) Before assessing any charges on delinquent debts, the NRC shall mail or hand-deliver a written notice to the debtor explaining its re-l quirements concerning these charges under 4 CFR Parts 102.2 and 102.13.

(c) Interest begins to accrue from the date on which the initial written demand, advising the debtor of the interest requirements, is first nailed or hand delivered to the debtor unless a different date is specified in a statute, regulation, or contract.

f (d) The NRC shall assess interest based upon the rate of the current value of funds to the United States Treasury (the Treasury tax and loan account rate) prescribed for the current quarter and published in the Federal Register and the Treasury Financial Manual Bulletins, unless a different rate is prescribed by statute, regulation, or contract.

(e) Interest is computed only on the principal of the debt and the interest rate remains fixed for the duration of the indebtedness, unless a debtor defaults on a repayment agreement and seeks to enter'into a new agreement.

(f) The NRC shall assess against a debtor charges to cover admin-istrative costs incurred as a result of a delinquent debt. Administrative l

costs may include costs incurred in obtaining a credit report or in using a private debt collector, to the extent they are attributable to the

?

delinquency.

l (g) The NRC shall assess a penalty charge of 6 percent a year on any portion of a debt that is delinquent for more than 90 days. The 25

[7590-0Q l

charge accrues retroactively to the date that the debt became delincuent.

'(h) Amounts received by the NRC as partial or installment payments are applied first to outstanding penalty and administrative cost charges, second to accrued interest, and third to outstanding principal.

(1) The NRC shall waive collection of interest on the debt or any portion of the debt which is paid in full within 30 days after the date on which interest began to accrue.

(j) The NRC may waive interest during the period a debt disputed under i 15.31 is under investigation or review by the NRC. However, this additional waiver is not automatic and must be requested before the expiration of the initial 30-day waiver period. The NRC may grant the additional waiver only when it finds merit in the explanation the debtor has submitted under 6 15.31.

(k) The NRC may waive the collection of interest, penalties, and administrative costs if it finds that one or more of the following conditions exist:

(1) The debtor is unable to pay any significant sum toward the debt within a reasonable period of tine; (2) Collection of interest, penalties, and administrative costs will jeopardize collection of the principal of the debt; (3) The NRC is unable to enforce collection in full within a rea-sonable time by enforced collection proceedings; or (4) Collection would be against equity and good conscience or not in the best interests of the United States, including the situation in which an administrative offset or installment payment agreement is in effect.

26

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[7590-01]

L-

19. Section 15.38 is added to read as follows:

G 15.38 Use of credit reports The NRC may institute a credit investigation of the debtor at any I

time following receipt of knowledge of the claim in order to aid NRC in making appropriate determinations as to (a) The collection and compromise of a claim; f

I -

(b) The collection of interest, penalties, and administrative costs; (c) The use of administrative offset;

[

(d) The use of other collection methods; and (e) The likelihood of collecting the claim.

20.

Section 15.41 is revised to read as follows:

i 15.41 When a claim may be compromised.

The NRC may compromise a claim not in excess of the monetary limitation if it has not been referred to the GA0 or to the 00J for litigation. Only the Comptroller General of the United States or i

designee may effect the compromise of a claim that arises out of an exception made by the GAO in the account of an accountable officer, i

l including a claim against the payee, prior to its referral by GA0 for litigation.

21.

In i 15.43, paragraph (b) is amended by inserting a comma after the word " claimed" by revising paragraphs (c) and (d) and by adding r

1 paragraph (e) to read as follows:

l l

27

g. ; --

. c.

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[7590-01) i

_f 15.43 Reesons for compromisino a claim.

i l

(c) The cost of collecting the claim does not' justify the enforced j

collection of the full amount. The NRC shall apply this reason for compromise in accordance with the guidance in 4 CFR 103.4

)

1 (d) The NPC shall determine the debtor's inability to pay, the Government's ability to enforce collection, and the amounts which are acceptable in compromise in accordance with the Federal Claims Collection Standards, 4 CFR Part 103.

(e) Compromises payable in installments are discouraged, but, if necessary, must be in the form of a legally enforceable agreement for the reinstatement of the prior indebtedness less sums paid thereon. The agreement also must provide that in the event of default--

(1) The entire balance of the debt becomes imediately due and payable; and (2) The Government has the right to enforce any security interest.

l 6 15.45 [ Amended]

l 22.

In the first sentence of 6 15.45, the word "or" is corrected to read "nor."

l l

23. Section 15.51 is revised to read as follows:

6 15.51 When collection action may be suspended or terminated.

The NRC may suspend or terminate collection action on a claim not in excess of the monetary limitation, exclusive of interest, penalties, and 28

[7590-01)

I administrative costs, after deducting the amount of partial payments, if any, if it has not been referred to the GA0 or to the DOJ for litigation.

24. Section 15.61 is amended by redesignating paragraph (b) as paragraph (c), revising paragraph (a), and adding new paracraphs (b) and (d) to read as follows:

i i 15.61 prompt referral.

(a) A claim which requires enforced collection action is referred to the GA0 or to the 00J for litigation. A referral is made as early as possible consistent with aggressive collection action and in any event well within the time required to bring a timely suit aoainst the debtor. -

Ordinarily,' referrals are made within one year of the NRC's final deter-mination of the fact and the amount of the debt.

(b) When the merits of the NRC's claim, the amount owed on the claim, or the propriety of acceptance of a proposed compromise, suspension, or termination of collection actions is in doubt, the NRC shall refer the matter to the GA0 for resolution and instructions prior to proceeding with collection action and/or referral to the D0J for litigation.

(d) Once a claim has been referred to GA0 or to the 00J under this subpart, the NRC shall refrain from having any contact with the debtor and shall direct the debtor to GA0 or D0J, as appropriate, when questions concerning the claim are raised by the debtor.

The NRC shall immediately advise GA0 or D0J, as appropriate, of any payments by the debtor.

29

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[7590-01) 6 15.63 [ Removed)

25. Section 15.63 is removed.

26. Section 15.67 is amended by redesignating paragraphs (a) and (b) as paragraphs (b) and (c), respectively, and by adding new paragraphs (a) and (d) to read as follows:

6 15.67 Referral to the Department of Justice.

(a) Claims for which the gross original amount is over $100,000 must be referred to the Commercial Litigation Branch, Civil Division, Department of Justice, Washington, D.C.

20530.

Claims for which the gross original amount is $100,000 or less must be referred to the United States Attorney in whose district the debtor can be found.

(d) Claims must be referred to the Department of Justice in the i

manner prescribed by 4 CFR 105.2. Care must be taken to preserve all files, records, and exhibits on claims referred under paragraphs (a) and (b) of this section.

Dated at Rockville, Maryland, this day of

, 1988.

For the Nuclear Regulatory Commission.

I Victor Stello, Jr.

Executive Director for Operations.

30 1

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e.

Enclosure B 4

ENVIRONMENTAL ASSESSMENT AND FINDING 0F NO SIGNIFICANT IMPACT i

a 2..

ENVIRONMENTAL ASSESSMENT AND FINDING OF NO SIGNIFICANT IMPACT; PROPOSED REVISION TO 10 CFR PART 15 The Nuclear Regulatory Commission is proposing to amend its regulations concern-ing the procedures that the NRC uses to collect the debts which are owed to.it.

Environmental Assessment Identification of Proposed Action 10 CFR Part 15 was originally issued for public comment as a proposed rule on September 23, 1981 (46 FR 46960); published in final form on February 22, 1982 (47 FR 7615) and became effective on March 24, 1982.

This part has not been amended since then.

Need for the Proposed Action Since the time that 10 CFR Part 15 was last published as a final rule, the Debt Collection Act of 1982 (Pub. L.97-365) was enacted on October 25, 1982 which revised the Federal Claims Collection Act of 1966 (31 U.S.C. 3701 et seq.) On

-March 9, 1984 (49 FR 8889), the General Accounting Office and the U.S. Depart-ment of Justice issued a final rule amending the Federal Claims Collection Stan-dards as set out in 4 CFR Parts 101-105.

The NRC is required by the Federal Claims Collection Act to issue debt collection procedures that conform with the 1

Act and with the standards as set out in 4 CFR Parts 101-105.

The debt collec-tion procedures published in final form as 10 CFR Part 15 on February 22, 1982 l

l DEBT COLLECTION ENCL B 2

09/09/88 l

i

, v.

l conform neither with the Federal Claims Collection Act as amended nor the Federal Claims Collection Standards as amended.

The Federal Claims Collection Act of 1966 provides that these procedures be issued as regulations.

Environmental Impacts of the Proposed Action The proposed revisicn of 10 CFR Part 15 will have no radiological environmental impact offsite, and no impact on occupational radiation exposure onsite.

The amendment does not affect nonradiological plant effluents and has no other environmental impact.

Therefore, the Commission concludes that there are no significant environmental impacts associated with the proposed amendment.

Alternatives to the Proposed Action As required by Section 102(2)(E) of NEPA (42 U.S.C.A. 4332(2)(E)), the staff has considered possible alternatives to the proposed action.

One alternative was not to initiate a rulemaking proceeding.

This is not acceptable as it would not conform to the statutory provision for the NRC to publish debt col-1ection procedures which conform to the Federal Claims Collection Act, as amended, and the Federal Claims Collection Standards, as amended.

Revising the existing rule was chosen as the best alternative.

Alternative Use of Resources No alternative use of resources was considered.

I DEBT COLLECTION ENCL B 3

09/09/88

pm- -

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o ;o =

Agencies and Persons Consulted No agencies or persons were consulted.

Finding of No Sionificant Impact The Commission has determined not to prepare an environmental impact statement for the proposed amendment.

Based on the foregoing environmental assessment, we conclude that the proposed action will not have a significant effect on the quality of-the _ human environment.

P 9

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DEBT COLLECTION ENCL B 4

09/09/88 9

f.- g.

p.1 Enclosure C Sample 2 - List of standard Congressional addresses.

The Honorable Philip R. Sharp, Chairman

, Subeceittee on Energy and Power Committee on Energy and Commerce

-United States House of Representatives

-Washington, DC 20515 cc:

The Honorable Carlos J. Moorhead The Honorable John B. Breaux, Chairman Subcommittee on Nuclear Regulation Committee on Environment and Public Works United States Senate Washington, DC 20510 cc: ~ The Honorable Alan K. Simpson The Honorable Morris K. Udall, Chairman Subcommittee on Energy and the Environment Committee on Interior and Insular Affairs United States House of Represenatives-Washington, DC 20515 cc:

The Honorable Manuel Lujan, Jr.

4 I

DEBT COLLECTION ENCL C 1

09/09/88 d