ML20059A930
| ML20059A930 | |
| Person / Time | |
|---|---|
| Issue date: | 07/27/1990 |
| From: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| References | |
| FRN-53FR39480, FRN-55FR32375, RULE-PR-15 AC87-2-11, NUDOCS 9008240156 | |
| Download: ML20059A930 (29) | |
Text
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- . WM NUCLEAR REGULATORY C0te!ISSION 90 AUG -3 P2 :35 a-10 CFR PART 15 gg/w /hf9NM' RIN 3150-AC87 Debt Collection Procedures' gi,g!gi{Cftjflj BRANCH AGEL ": Nuclear Regulatory Commission.
i o
ACTION:~ Final rule.
e
SUMMARY
The Nuclear Regulatory Commission (NRC) is. amending its regulations concerning the procedures that the NRC uses to collect the debts which are owed' to it.
The amendment is necessary to conform NRC regulations to the amended
. procedures contained in the Federal Claims Collection Standards. issued by the General Accounting Office.(GAO) and the Department of Justice (DOJ). This-action is inter.ded to allow the NRC to further improve its collection of debts
-due the United States.
EFFECTIVE-DATE:
(30 days after publication)
FOR FURTHER INFORMATION CONTACT:
Diane B. Dandois, Chief, License Fee and Debt Collection Branch, Office of the Controller, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 492-7225, 1
SUPPLEMENTARY INFORMATION:
On February 22, 1982 (47 FR 7615), the NRC published a. final rule enneerning debt collection procedures.
Since then, the Debt Col-lection 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), GA0 and D0J issued a final rule amending the Federal
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Claims Collection Standards as set out in 4 CFR Parts 101-105.
On October 7, 9008240156 900727 A
l PDR PR I
F 36 gcjD 15,53FR39480 PDR
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1988 (53 FR 39480), the NRC published a proposed rule based on the requirements contained in the Federal Claims Collection Standards. The public was invited to submit written comments on the proposed rule by November 21, 1988, and no comments were received.
i The revision to 10 CFR Part 15 establishes procedures for the hTC to col-1ect, compromise, or terminate collection action on claims owed to the United i
States Government arising from activities under NRC jurisdiction.
The revision i
implements the Federal Claims Collection Act as amended by the Debt Collection
.I Act and supplements the amendments to the Federal Claims Collection Standards.
This revision, however, does not implement the salary offset provisions of the Debt Collection Act. Those provisions will be implemented through the estab-lishment of 10 CFR Part 16 which is currently under development by the Commission.
In addition this rulemaking does not address the collection of civil penalties under 10 CFR 2.205.
NRC is considering a separate rulemaking action to specify those provisions of 10 CFR Part 15 which apply to civil penalties assessed by NRC under 10 CFR 2.205.
i.
Section by Section Analysis Section 15.1 Application.
-This section is revised to make it clear that Part 15 prescribes hTC procedures for collecting, compromising, terminating, and referring claims to GAO and DOJ, and to conform to Pub. L.99-224, 2
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Paragraph (b)(1) is modified to conform to the provisions of 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 authorizing waivers'of erroneous payments of travel,-transportation and relocation expenses, and allowances.
A new paragraph (b)(2) is added to indicate that civil monetary penalties imposed under 10 CFR 2.205 are subject to special statutory and administrative procedures.
Section 15'.2 Definitions.
This new section.is added to provide definitions for the terms "administra--
tive offset," " claim and debt," " delinquent," " license," and " payment in. full" as they are used in this part and 4 CFR Parts 101-105.
a Section 15.3 Communications.
J' i
This section is revised by correcting the Commission's address-for communi-cations concerning the regulations in 10 CFR Part 15.
Section 15.5 Claims that' 4re covered.
This section is revis:d to note that *.he provisions of 10 CFR Part 15 which'
- apply to civil penalties shall be specifiel in 10 CFR 2.205, to note that the.
. provisions of 10 CFR Part'15 do not apply either to claims between Federal agencies, or to claims once they become subject to the salary offset provisions of 5 U.S.C. 5514, and to explicitly provide that fees imposed under 10 CFR Parts 170 and 171 are covered.
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- m Section 15.71-Monetary-limitations on NRC's authority.
im The statutory citation in this section is corrected'to read 31 U.S.C.
3711(b). Paragraph (b) is 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 modified to include the citation for the Federal Claims Collection Standards.
Section 15.13' Subdivision of claims.
A cross reference to the statutory and-regulatory authority for this i
section-is added.
Section 15.21 -Written demands for payment.
Paragraph (a)(1) is modified to include notice to the debtors of their right' to seek review within the Agency.
Paragraph (a)(4) is modified to indicate'the date of mailing or hand delivery as the date on which payment is to be made under a
normal circumstances, consistent with 4 CFR Part 102.
Paragraph (a)(5) is modi--
' i fled to include penalties'and administrative costs of colle'etion in the demand-for payment.
Minor' editorial ~ changes are made to paragraph (b), including the addition' of possible reporting of delinquent debts to consumer reporting agencies.
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Section 15.251 Personal interviews.
.C i
i This section is modified to make personal 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.
4 A new section is added to provide for the reporting of delinquent debts to consumer reporting agencies, notifying debtors of these actions, reporting debt status changes to. debtors, and limiting the information which the NRC may provide to consumer reporting _ agencies.
=i i
Section 15.29 Suspensica.or revocation of license.
i s
This section is rodified to correspond more-closely to the terminology used in 4 CFR Parts J01-105.
1 Section 15.31 Disputed debts.
i This section is modified to correspond more closely to the terminology used.in 4 CFR Parts 101-105.
Section 15.32' Contracting for collection services.
l 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 102.6.
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With the inclusion of this new section, S=15.63 is. removed from Subpart E of this part, r
Section 15.33 Collection by administrative offset.
This section is modified to disclose the 10 year limitation on 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 or.her period the KRC subsequently establishes.
t
-Paragraphs (b) and (c) of this section are changed to make it consistent-with.the provisions in 4 CFR 102.2,102.3, and 102.4, and 5 U.S.C. 5514.
Provi-sions are added to establish the debtor's procedural rights, to provide for seeking offset from other Government agencies when they have funds due the 1
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 NPC.
?
Section 15.35 Payments.
Language is added to this section to clarify that charges for interest, penalties, and administrative costs will be assessed on delinquent payments paid in full in one lump sum.
In addition, language is added to explain how an installment agreement will be instituted and applied to a debt. The signi-ficant additions are a provision for accelerated payment in the event the debtor defaults on an installment agreement and an indication that the KRC will comply with the debtor's instructions in the application of payments when more L
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1 than one debt is involved.
If the debtor does not, however, designate the application of payments, the NRC will apply the payments in the best interest-of the United States, i
i Section 15.37 Interest', penalties, and administrative costs.
This section is changed substantially by revising its title and 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 i
of administrative 1y handling a delinquent-debt.
j 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 delinquent for i
more than 90 days.
This charge accrues from the date that the debt' became j
i 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 (i) codifies current NRC practice of waiving-interest for debts
_ paid within 30 days of the due.date.
Paragraph (j) codifies current KRC practice of waiving interest during the-
. period a disputed -debt is under investigation.
Paragraph (k) codifies other circumstances under which interest, penalties, and administrative costs may be waived.
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j Section-15.38 Use of credit-reports.
A new section is added to allow NRC to institute a credit investigation 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-changed for clarification purposes.
i only.
l
'Section 15.43 Reasons for' compromising a_ claim.
I This.section is modified to bring it into conformity with 4 CFR Part 103.
Paragraph-(c) is changed to indicate that collection costs will be expended in
'accordance with 4 CFR 103.4 rather than as currently stated.
Paragraph (d) is divided to ' set out separately in a new paragraph (e) the requirement for an enforceable agreement of installment payments under a compromise of a claim.
l Section 15'.45 Restrictions on the compromise of a claim.
'The opening. sentence of;this section is changed for clarification purposes-only.
Section 15.51 When collection action may be suspended or terminated.
This section is 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.
.Section 15.61 Prompt referral.
t
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. Paragraph (a) is modified to delete the reference to a private l-collection agency which is now to be addressed in the new $ 15.32 discussed L
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I above.
A one year referral requirement is codified for NRC action after final.
determination of the fact and the amount owed to the NRC.
~
A new paragraph (b) is added to provide for NRC referral to GA0 of questions concerning acceptance of a proposed compromise, suspension, or termination of collection actions in order to obtain GAO's advice on the matter in question.
The current paragraph (b) is redesignated as paragraph (c).
A new paragraph Td) is added to reficct the fact that once a referral has 1
been made to GAO or DOJ,-the NRC will refrain from.any contact with the debtor and will immediately advise GAO or D0J of any payments made by.the debtor.
Section 15.63 Referral of a claim to private agencies for collection.-
This section is deleted both because of the new $15.32 which addresses these actions, and because these collection actions are not a referral in the truest sense, but rather reflect a different form of collection action by the NRC using other means.
Section 15.67 Referral to the Department of Justice.
A new paragraph-(a) is added to indicate the threshold for determining to
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whom the 4RC wi.'l refer a claim for enforced collection, i.e., D0J or'the appro-
- Priate.U.S. Attorney. The current paragraphs (a) and (b) are redesignated as paragraphs (b) and (c), respectively.
-A.new paragraph (d) is added to indicate that the NRC must make its referrals in accordance with the guidance in 4 CFR 105.2, and that pertinent evidence will s
be preserved.
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Finding'of No Significant Environmental Impact:
Availability The Commission'has determined under the National-Environmental Policy Act of 1969,~ as amended, and the Commission's regulations in Subpart A of 10 CFR Part 51, that this rule is not 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 NRC uses'to collect debts 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.
The environmental assessment and. finding of no significant impact, on which this determination is based, are available for inspection at the NRC Public Document Room, 2120 L Street, NW (Lower Level) Washington, DC.
Paperwork Reduction Act Statement This-final rule contains no information collection requirements and therefore is not subject to the requirements of the Paperwork Reduction Act~of 1980 (44 U.S.C. 3501 et seq.).
Li Regulatory Analysis This final rule will bring NRC debt collection procedures into conformance with current statutory and regulatory guidance and requirements.and, therefore, does not have significant impact on state and local governments and geographical regions, health, safety, and the environment; nor does it represent substantial 1
' costs to licensees, the NRC, or other Federal agencies. This constitutes the regulatory analysis for this rule.
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Regulatory Flexibility Certification
-In accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Commission certifies that this rule does not have a significant 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 analysis has not ueen prepared.
Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this rule, and therefore, that a backfit analysis is not required for this rule because these amendments do not involve any provisions which would impose backfits as defined in 10 CFR 50.109(a)(1).
List of Subjects in 10 CFR Part 15 Administrative practice and procedure, Debt collection, i
l For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganisation Act of 1974, as amended, the Federal Claims Collection Act of 1966, as amended, and 5 U.S.C.
1 552 and 553, the NRC.is adopting the following amendments to 10 CFR Part 15.
l PART 15 -- DEBT COLLECTION PROCEDURES i
l i
1.
The authority citation for Part 15 is revised to read as follows:
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.AUTi!0RITY:. Sees. 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);.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.97-365, 96 Stat. 1749-(31 U.S.C. 3701-3719);
I Federal Claims Collection Standards, 4 CFR Parts 101-105.
2.
Section 15.1 is amended by revising paragraphs (a) and (b)(1), ' redes-ignating paragraph (b)(2) as paragraph (b)(3), and adding a new paragraph (b)(2) to read as follows:
S 15.'1 Application.
(a) This part. applies to claims for the payment of' debts owed to the United States-Government in the form of money or property and; unless a differ-ent 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 i
(3) Refers unpaid claims to the General Accoueting Office (GAO) and the Department of Justice (DOJ) for litigatien.
.o (b)
.(1) A claim against an employee for erroneous payment of pay and allowances
[
subject to waiver under 5 U.S.C. 5584.
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R k
(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:
$ 15.2 Definitions.
A_dministrative 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.
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 spe-cified in the initial written demand for payment or applicable contractual agreement with the NRC unless other satisfactory payment arrangements have been made by that date.
If the debtor fails to satisfy obligations under'a payment agreement with the NRC after other payment arrangements have been made, the debt becomes a delinquent debt.
License ~means any license, permit,-or other approval 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 collection assessed against the debtor.
4.
Section 15.3 is revised to read as follows:
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$ 15. Communications.
Unless otherwise specified,-all communications concerning the regulations I
in this part should be addressed to the Secretary, U.S. Nuclear Regulatory.
Commission,' Washington DC 20555, ATTN: Docketing and Service Branch.
Communica-tions may be delivered in person to the Commission's offices located at-11555 i
Rockville Pike, One White Flint North, Rockville, Maryland 20852.
j 5.
Section 15.5 is amended by revising paragraphs (a)(1) and (b)(1),
removing the word "and" following paragraph (b)(3), and by adding paragraphs.
(b)(5) and (b)(6) to read as follows:
1 6 15.5 Claims that are covered.
(a) *
(1) Results from activities of the KRC, including fees imposed under Part 170 and Part 171; or (b) *
(1) A claim based on a civil monetary penalty.for violation of a licensing requirement unless S 2.205 of this chapter provides otherwise; 1
(5) A claim between Federal agencies; and
-(6) A claim once it becomes subject to salary offset which is governed by b
510.S.C. 5514 6.
In 515.7, the introductory paragraph and (b) are revised to read as
=follows:
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$ 15.7 Monetary' limitation on NRC's authority.
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-LU.S.C. 3711(a) to claims that --
(b) Do not exceed $20,000, exclusive of interest, penalties, and administrative costs (the monetary limitation).
7.
Section 15.9 is amer f ed by revising paragraph (a) to read as follows.:
$ 15.9 omissions not a defense.
(a) The failure of the NRC to include in this. part any provision of-
.the Federal Claims Collection Standards, 4 CFR Parts 101-105, does.not-prevent the NRC from applying these provisions.
-8.
Section 15.13'is revised to read as follows:
$ 15.13 Subdivision of claims.
The NRC shall consider a debtor's liability arising from a.particular transaction or contract as a single claim in determining 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) and
$15.7.
9.
The heading of Subpart B is revised to read as follows:
Subpart B -- Administrative Collection of Claims 15 i
p,.-
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~10. 'In S 15.21, paragraphs (b)(3)(iii)
(iv), and (v) are redesig-7 nated 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:
$ 15.21 Written demands'for payment.
l (a). *
]y (1)' The basis of the indebtedness and'the. right of the debtor to seek review within the NRC; l
(4) The date on which payment is to be made (which is normally the date i
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 payment agreement);
l (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 consumer reporting agencies.
l
- (b) Unless a debtor is a current NRC employee, the NRC shall normally send I
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-1 sending a further demand is futile. Depending upon the circumstances of the p'
particular case, the second and third demands may--
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c (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 reporting agencies in accordance with the-guidance and standards contained in 4 CFR 102.5 and the NRC procedures set forth in S 15.26; i
11.
In S 15.25, the introductory text of paragraph (a) is revised to read-
~
as follows:
'S 15.25 Personal interviews.
.f (a) The NRC may seek an interview with the debtor at the offices of the NRC f
when--
s 12.
A new $ 15.26 is added to read as follows:
1,15.26 Use of consumer reporting agencies.
(a) In addition'to assessing interest, penalties, and administrative g
costs.under_S 15.37, the NRC may report a. debt that has been delinquent for.90 days to a consumer reporting agency if all the conditions of this
. paragraph 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 S 15.26 (a)(2)(iv).
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'(2).The NRC has included a notification in the third written demand
^l (see $ 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 notifica-I tion, 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 the consumer reporting r
agency; and (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.
I (3) The NRC has sent at least one written demand by either :egistered or certified mail with the notification described in paragraph (a)(2) of this e
section.
-p (4) The NRC has reconsidered its initial decision on the debt when the debtor has requ'ested a review under S 15.26(a)(2)(iv).
l (5) The NRC has taken reasonable action to locate a debtor for whom l
the NRC does not have a current address to send the notification provided i
for in paragraph (a)(2) of this section.
(b) _ If there is a suhstantial 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 information disclosed by the NRC;
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4 (3): Obtain: assurances from the consumer reporting agency that the agency.
is complying with all applicable Federal, state and local laws rele'(ng to its use of consumer credit information.
(c) The information the NRC discloses. to the consumer reporting agency is limited to--
(1) Information necessary to establish the identity of the individual debtor, including name, address, and taxpayer identification number; (2) The-amount, status, and history of the debt; and (3) The NRC activity under which the debt arose.
i a
13.
Section 15.29 is revised to read as follows:
i
-k 6 15.29 Suspension or revocation of license.
1 1
The NRC may suspend or revoke any license or approval which the NRC has i
granted to the debtor for any inexcusable, prolonged, or repeated failure of the debtor to pay a delinquent debt.
Before suspending or revoking any license.
lor approval for failure to pay a debt, the NRC shall issue to the debtor an e
Order to Show Cause (by either registered or certified mail) why the license or.
l.t 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 l
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 i
period.
If a license is revoked under authority of this part, a new applica-
-)
tion, 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.
l 14.
In $ 15.31, paragraphs (a) and (b) are revised to read as follows:
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l p-j15'31 Disputed debts.
~i
-(a)'A debtor:.who disputes a debt..shall explain why the.'ebt is-incorrect d
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, can' celled checks,'or other relevant evidence.
(b)
If the debtor's arguments appear to have' merit, the NRC may. extend:
the _ interest waiver period as described in S 15.37 (j)-pending a final determi-
~
as nation 'of the existence or amount of the debt.
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3
- 15. Section 15.32 is added to read as follows-i
,m
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6 6 15.32 Controcting 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 li
.c a ms, suspend or terminate collection action, and.' initiate enforced.c:11ection-j
' through-litigation.
When appropriate, the NRC shall contract.for collection services-in accordance with the guidance.and standards contained in 4 CFR 102.6.
a 16.
In 6 '15.33,-paragraphs (a), (b), and-(c) are revised; paragraph-(d) is.
[
redesignated as paragraph (c), and a new paragraph (d) is added to read as H
follows:
m.
t
_$ 15.33 Collection by administrative offset.
(a) The NRC may administratively undertake collection by offset on each claim which is liquidated or certain in amount in accordance with the guidance
- and standards contained in 4 CFR 102.2, 102.3, and 102.4 and 5 U.S.C. 5514, a
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)
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i 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 N1tC or collection of
~" approval" fees has been deferred under 10 CFR 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 amountii payable from the Civil Service Retirement-and Disability Fund, the Federal Emp:;oyees Retirement System or other similar funds is made pursuant to 4 CFR 102.4 and the provisions of paragraph (d) of_this_section, o
(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 against the assets of a licensee.
(1) Before the offset is made, the NRC shall provide'the debtor with a -
t written notice of the nature and amount of the debt and--
(1) Notice of ' the NRC's intent to collect the ' debt by of fset; (ii) An opportunity to inspect and copy NRC records pertaining to the debt; i
(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 required under the provisions of 4 CFR 102.3(c).
(2)
If the NRC learns that other agencies of the Federal government are holding funds payable to the debtor, the NRC shall provide the other agencies 21
i'
[7590-01]
with writt m certification that the debt is owed to the lac and that the NRC has complied with the provisions'of 4 CFR 102.3.
The NRC shall request that funds t due the debtor which are necessary to offset the debt to the NRC be transferred i
to the NRC.
-(3) The NHC may accept a repayment or payment agreement, as appropriate, l
in lieu of offset, but will do so only after balancing the Government's interest in collecting the debt against fairness to the debtor.
If the debt is delinquent and the debtor has not disputed its existence or. amount, the NRC may accept a repay ent or payment agreement in lieu of offset only if the debtor is able to.
establish under sworn 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--
(i) Debts owed by any State or local government; (ii) Debts once they become subject to the salary offset provisions of 5 U.S.C. 5514; or (iii) Any case in which collection of the type of debt involved by admin-
-istrative 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:
9 15.35 Payments.
(a). Payment in full.
The NRC shall make every effort 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 6 15.37.
22
4 0
L
[7590-01]
(b) Payment in installments.
If a debtor furnishes satisfactory evidence of inability to pay a claim in one lump sum, payment in regular installments may be arranged.- Evidence may consist of a financial statement or a signed state-ment 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 must be in writing and require the payment of intercSt. med administrative charges.
(1) Installment note forms, including confest-judgment notes, may be used.
The written installment agreement must contain a provision accelerating the debt payment in the event the debtor defaults.
If the debtor's financial i
statement di. closes 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 an installment note by executing a 1
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 designates 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.
i 18.
Section 15.37 is revised to read as follows:
6 15.37 Interest, penalties, and administrative costs.
(a) The NRClshall assess interest, penalties, ead administrative costs on debts owed to the United States Government in accordance with the guidance 23
l m
[7590-01]_
i k
L h
provided under the' Federal Claims Collection Standards, -4 CFR 102.13 unless '
b p
otherwise directed'by statute, regulation, or contract.
(. b) liefore assessing any charges on delinquent debts, the NRC shall mail-
'or hand-deliver a written notice to the debtor explaining its requirements
[
- concerning these charges under 4 CFR 102.2 and'102.13.
l (c) Interest begins to accrue from -the date on which-the initial written i
p
" demand,' advising the debtor of the' interest requirements, is first mailed or A
hand delivered to the debtor unless a different date isLspecified in a statute,:
c regulation, or. contract.
t
'(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 differcut rate is pre-i scribed.by statute, regulation, or contract.
.(e). Interest is computed only on the principal of the debt and the. inter-J est rate remains fixed for the duration of the indebtedness, unless a debtor-
.def aults on.a. repayment agreement and seeks to enter into -a new agreement. -
( f )'
The NRC shall assess against_a debtor charges to cover administrative costs. incurred as a result of a delinquent debt.- Administrative costs may include costs incurred in ' obtaining a credi.t report or in'using a private debt' collector, to the extent they are attributable to the delinquency.
(g) The-NRC shall assess a penalty charge of 6 percent a year on any por-a debt that is delinquent for more than 90 days. The charge accrues
,ely to the date that the debt became delinquent.
7 Amounts received by the NRC as partial or installment payments are a pp.. first to outstanding penalty and administrative cost charges, second to accrued interest, and third to outstanding principal.
24
,+
[7590-01)
(i) The NRC shall waive collection of interest on the debt or any portion I
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 er review by the h?C. However, this additional waiver is not automatic and must be requested before the expiration of the y
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 9 15.31.
(k) The hPC may waive the collection of interest, penalties,.and admin-istrative 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 time; (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 reasonable 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 admin-istrative offset or installment payment agreement is in effect.
19.
Section 15.38 is added to read as follows:
$ 15.38 Use of credit reports.
The NRC may institute a credit investigation of the debtor at any time fol-lowing receipt of knowledge of the debt in order to-aid NRC in making appropriate determinations as to:
(a) The collection and compromise of a debt; (b) The collection of interest, penalties, and administrative costs; 25
[7590-01]
(
(c)
TA.
1se of administrative' offset; (d) The use of'other collection methods; and (e) The likelihood of collecting the debt.
20.
Section 15.41 is revised to read as follows:
+
$ 15.41 When a claim may be compromised.
r The NRC may compromise a claim not in excess of the monetary limitation i
if it has not been referred to GAO or to D0J for litigation.
Only the Comptrol-ler General of the United States or designee may effect the compromise of a
' claim that arises out of an exception made by the GA0 in the account of an accountable officer, including a claim against the payee, prior to its referral i
by GAO for litigation.
- 21. 'In S 15.43, paragraph (b) is amended by inserting a comma between the words " claimed" and "either," by revising paragraphs (c) and (d), and by adding paragraph (e) to read as follows:
}
$ 15.43 Reasons for compromising a claim.
(c) The cost of collecting the claim does not justify the enforced 'collec-
- t l
tion of the full amount. The NRC shall apply this reason for compromise in accordance with the guidance in 4 CFR 103.4.
.i (d) The NRC'shall determine the debtor's inability to pay, the Government's ability to enforce collection, and the amounts which are acceptable in compramise 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 i
26 l
I.
v
[759001) r
'o
+
f
' he prie indebtedness less suas paid thereon.
The agreemer.t also must provide.
}
t
[b that in the event. of default--
[
(1) The entire balance of the debt becomes immediately due and payable; and
(
(2) The Government has the right to enforce. iy security interest.
$ 15.45 [ Amended]
4
\\
22.
In the first sentence of $ 15.45, the word "or" is corrected to read
'"nor."
23.
- a-on 15.51 is revised to read as follows:
$ 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 administrative costs, after deducting the amount of partial payments, if any, if it has not been referred to GAO or to DOJ for litigation.
- 24. Section 15.61 is re '- ' by redesignating paragraph (b) as paragraph (c), revising paragraph (a), and addtr.A new paragraphe (b) and (d) to read as-follows:
l L15.61' prompt referral.
(a)_ A claim which requires enforced collection action is referred to GAO or!to DOJ for litigation.
A referral is made as early as possible connaent with aggressive collw tion action and in any event well within the time required l.
I 27 l
1
[7590-01).
to bring a timely suit against the debtor.. Ordinarily, referrals are made
[
- within one year of thelNRC's final determination 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 i
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 GAO for resolution and instructions prior to proceeding with collection action and/or referral to DOJ for litigation.
=*
(d) Once a claim has been referred to GAO or to DOJ under this subpart, the NRC shall re'frain from having any contact with the debtor and shall direct' I
the debtor to GAO or DOJ, as appropriate, when questions concerning the claim i
are raised by the debtor.
The NRC shall immediately advise GAO or DOJ, as appropriate, of any payments by the debtor, v
i 15.63 [ Removed)
- 25. Section 15.63 is removed.
i
- 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:
i l'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, DC 20530.
Claims for which the 28
[7590-01) 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) Cleims must be referred to the Department of Justice in the manner p'escribed by 4 CTR 105.2. Care must be taken to preserve all files, records, and exhi' ts on claims referred under paragraphs (a) and i
(b) of this section.
Dated et Rockville, Maryland, this.2 7 day of
, 1990.
For the Nuclear Regulator mmi ion.
x
/
%uJ <&
ase M. Taylor,jf' cutive Director for Operations.
Y
}
f Y
29