ML20059G584

Forwards R Smith Draft Rev to 10CFR15 Re Debt Collection Procedures

ML20059G584
Person / Time
Issue date:	04/06/1988
From:	Greenberg E NRC
To:	Hassell D NRC
Shared Package
ML20059G534	List: ML20059G531 ML20059G567 ML20059G581 ML20059G584 ML20059G591 ML20059G611 ML20059G625 ML20059G640 ML20059G669 ML20059G673
References
FRN-55FR32375, RULE-PR-15 AC87-2-05, AC87-2-5, NUDOCS 9009130027
Download: ML20059G584 (46)

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UMTED ST ATES S.k NUCLEAR REGULATORY COMMISSION W ASHINGTON, D.C. 20066 a.:*

April 6,1988

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NOTE FOR: Don Hassell As suggested. I am sending you a copy of Ron Smith's draft revision of 10 CFR Part 15 with our coments.

Pleast contact me wheri you are ready to dis-cuss the draft.

I can'be reached on x28773.

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,s.1 M%c3 Ed Greenberg

Attachment:

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Graham Johnson, ARM /DAF-Subject Revision'of 10 CFR Part 15 A*

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Please accept my appreciation f or the initiative (*a have taken to j

help us update Part 15. As requested.;we reviewed yuur proposed

changes and would'like to discuss the items outlin d b l e

e ow as well 2:f;aj / tasLeome additional: notations < in' the text of your: proposed revision -

y by oef ore it: is submitted f or' publication.

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- Feet free to curitact me if you wish to discuss our comments and.

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' suggestions.-

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Item No. - 2 ' - Secti on : 15.1

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-(a)

Incorporate the fc11owing in section 15.1:

)i The regulations;in this part are issued. pursuant L to l

33^U.S.C.D 1511 (c) (1), and

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"o These regulations; supplement tho' General Accounting

Office-Department of Justice regulations in 4 CFR Parts 104 4

t and'105.-

COMMENTS.These citat1'ons tie NRC's regulationsson debt collection procedures to the statutory requirement :

for agency regulations and conform-totthe standards prescribed by the-Attorney-General and the

-Comptroller General..

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(b) Add the' f ollowing categories of claims-to subsection 15.1(b)-

civilipenalties~

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'-~ overpayments(to vendors, and claims against employees and former employees, 2,

and others for' outstanding travel advances and other

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indebtedness to-the U.S.. Government ^to the extent that they i

are covered by these procedures as, stipulated in Section m

'15.5 of this Chapter.

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COMMENTS: The proposed regulation changes would add fees

-- YK paid by NRC license applicants and licensees' to the "9

two debt categories listed in the regulations. We m

agree with this change and suggest that.the above j'

Items also be added to round off the list of the J

principal types of claims we deal with.

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3 19.iltem ' No.c 3f - Section 15.2:

We suggest' that - the definition of " Delinquent debt" in the' proposed -

section; 15.2 -(bottom of - Pg. 16) be changed ' to read as f ollows:

'" Delinquent' debt" means a new debt thatfhas not been3paidLby the date specified in NRC's initial written notification, or applicable contractual-agreement,- or : as otherwise established:

by Federal statute or regulations, unless.other satisfactory

,j payment arrangements have been made-by that date, or if at

'1 anytime thereaf ter, the debtor f ails to. comply with a new t

payment agreement with-NRC.

lf COMMENTS: The above definition conforms to the; text of.4 CFR:

l 101.2(b).

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'C. ' Item'No. 9 - Section 15.21:

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(a) Paragraph 15.21(a)(4):

ilt lc Delete "... stipulated under this chapter, e.g.,

10.CFR I

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171.19);" and substitute "...specified by contractual

'K agreement, established by Federal statute or regulation, or agreed to under a. payment agreement) ".

COMMENTS EThis. will conform the description of the payment date-to the definition of delinquent debt in section.15.2.

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(b) Paragraph 15.21 (a) (5):

L Delete the period-at the-end of the sentence and add the

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following after~the word " costs":

... pursuant.to 4 CFR 102.13."

V COMMENTS: The citation provides a reference to Federal standards p

for assessing interest, penalties, and. administrative-costs.

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,D. Item No. 11 - Section 15.26:

-(a) Paragraph 1526(a)

In-the last sentence of'this paragraph, change the word "will" to

"may "..

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' COMMENTS: We concur with -thr addition of a section f or reporting delinquent debts to consumer reporting agencies..However, the use of these services should be discretionary, (b) Paragraph 1526(b) s This paragraph calls for notification to the debtor when a debt has.been delinquent for 90 days.

It is not clear if this notice would sent i n addition to or be included in the third E-

. payment demand sent to the debtor.

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q sE..Itca N3. 17 - Section 15.37:

Y-(a)L Add mi nen paragraph to state that prior to assessing late-

_ payment charges 'f or ~ interest,. penalties,, and - adminisf'rative?

costs on _ delinquent debts, NRC w1:11 give-written-notification' to the debtor _ explaining NRC's requirements concerning: these charges. :

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COMMENTS-This necification is required under 4 CFR 102.13(a).

(b) Paragraph 15.37(b):

Delete "... prevailing > rate of interest (updated quarterly) required by-the Treasury Fiscal Requirements Manual Bulletins.... " and. substi tute "... rate of the current value of funds to the United States Treasury. (i.e.- the Treasury tax'and loan account rake), prescribed for the current quarter and published in the Federal Register and the d

Y Treasury / Fiscal Requirements Manual Bulletins,... "

'CDMMENTS: The. Treasury tax and_ loan account rate is.the basic-rate cited in 31. USC 3717(a) (1) and 4 CFR 102.13(c)-

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for determining the rate of interest to-be assessed 1

cm delinquent debts.

Treasury publishes a number of.

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dif f erent ratesL f or1various purposes (e.g.,

' Renegotiation Board Interest-Rate' published

_ semiannually is used as the basis for interest

' payments under the Prompt' Payment Acts interest-rates

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.(investment.ylelds) on savings bonds, retirement' bondag etc.)

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Interest shall be assessed at a fixed rate until the-

-L indebtedness 'in satisfied and will not be assessed on late payment' charges.

However, if a debtor defaults.on a 1

repayment (agreement and seeks to enter.into ainew q

agreement, a'new interest rate will be assessed.at the current value of f unds to the. Treasury 'at the time the new agreement is executed."

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c:CDMMENTS: 31 USC (e) and 4 CFR 102.13(c) prohibit assessing d

interest on late payment finance charges except,as noted:above.

1 The date, March 24, 1982, in the first sentence of this

= paragraph should'be changed to October 24, 1982.

A statement q

-snould be made to point out that unless otherwise provided for,.

late payment-charges will not be assessed prior to Oriober 25, 1982.

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COMMENTS: 4 CFR 102.13(b) and (1) stipulate that finance charges shall not be assessed prior to October 25,1982 unless otherwise provided for by statute, regulation, loan agreement, or contract.

'(c)' Paragraph 15.37(c)-(h):

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(f ), c (g),- cnd : (h) ? as -(c), - ^d ), - - (e), ( f ), - at d _ (g ) respectively-and then: make the following revisions.

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15. 37 (d) See changes in, text.- '*

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o' ;15.37(f)' When; arrangementse ara. made_ to pay a: debt in

' installments over's period of ' time, i monies received' by NRC-

_ will be applied'first to outstanding penalty and administrative cost charges,: second to? accrued interest, and_ third to principal.

l COMMENTS This paragraph currently states that interest on installment paymentaf shall be based on Treasury's

current ~" Schedule et Certified Interest; Rates With Range'of Maturities" and does not state how payments-are to applied to charges 'f or administrative costs' and penalties.

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-Memorandum I

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Ron Smith, DGC-From:

Graham Johnson, ARM /DAF

Subject:

Revision of 10 CFR Part 15 Please accept my appreciation f or the initiative you have taken to help no update Part 15. As requested, we reviewed your proposed.

t changes and would like to discuss the items outlined below as well as some additional notations in the text of your proposed revision l

bef ore it is submitted f or publication.

Feel f ree -to contact me if you wish to discuss our comments and suggestions.

A.

Itsm No. 2 - Section 15.1:

(a) Incorporate the f ollowing in section 15.1:

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The regulations ip this part are issued pursuant to 31 U.S.C.

1311(m) 1 )/, and These regulations

.u Accounting Office-Department o'pplement the General

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Justice regulations in 4. CFR Parts 104 and-105.

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COMMENTS: These citption's tie NRC's regulations on debt I

collection, procedures to the statutory requirement 1

f or agency' regulations and conf arm to the - standards prescribed by the Attorney General and the Comptroller General.

l (b)-- Add the f ollowing categories of claims to subsection 15.1(b)-

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v perial ties ob t~d s,

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claims against employees and former amployees, and others for outstanding travel advances and_other

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4 nombtedness to the U.S.

Government to the 'e tent that they re' covered by these procedures as stipulate in Section l'

5.5 of this Chapter.'. - -

h' CDM ENTS: Tpe proposed regula ion changes would ad Mees _

pal'd by NRC license pplicants and licensees to the

/two ' debt cate'gories listed'in the regulations. We l

j agreda with this change and suggest that the above items \\also be added to round off the list of the l

principal t'ypes of claims we - deal with.

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b'ItemNo.r3-.Section--15i2:-

We suggest that the definition of " Delinquent debt" in the/ proposed

,section 15.2<(bottom of-Pg.-16) be changed'to read as follows:

" Delinquent debt" means a saw debt that has not been paid by-the date specified in NRC's initial written notification,,or 4

- applir,able contractual agreement,- or as otherwise established

~ by Faderal" statute or-regulations,x unless other ~ satisf actory payment arrangements 1have been made byLthat date, or if at' anytime thereafter, the debtor fails to comply with a-M -

payment-agreement with NRC.

COMMENTSt The above' definition conforms to-the-text of 4 CFR 7

101.2(b).

.C.

Item No. 9 Section 15.21:

l' (a) Paragraph-lu.& ' ') (4) :

Delete "... stipulated under this chapter, e.g.,

10 CFR. 171.19);"-and substitute "...specified by contractual agreement, established by Federal statute or regulation, or s greed >to under a. payment agreement);".

-COMMENTS' This will conform the description of +h p yment date to-the definition of delinquent debt in section 15.2.

g (b) Paragraph 15.21(a) (5):

Delete the period at the end of the sentence and add the

'following after the word " costs":

... pursuant to=4 CFR 102.13."

COMMENTS: The citation providen a reference to Federal standards

' f or. ausessing interest, penalties, and administrative

-costs.

=D.JItem No. Section '15.26:

Ia).Paragraphil526(a)

. In : the last sentence of -this paragraph, change the word "will" to "may".

COMMENTS: We concur with the addition of a section f or reporting-delinque: t debts -to consumer reporting agencies.

However, the use of'these services.should

-be discretionary.

(b) Paragraph 1526(b)

LThis paragraph calls for notification to the debtor when a debt ham been.delinquantifor. 90 days.

It is not clear if this notice would sent in addition to or be included in the third paymentLdemand'sent to the debtor, m

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-S;cticn 15.37:

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' (a) = Addf a new paragraph to state that' prior' to assessing. late-y

. payment charges f or interest. penal ties, and administrative s

costs:on delinquent; debts, NRC will give written notification to the-debtor-explaining NRC's requirements concerning-these-

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charges; i

COMMENTS:

-This" notification is required under 4 CFR 102.13(a?.

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"(b) Paragraph-15.37(b):

'I Delete "...penv:',11ng rate of interest (updated. quarterly) required by t~ns Treasury Fiscal Requirements Manual Bulletins..." and substitute "... rate'of the current value of funds 1to the United States Treasury-(i.e. the Treasury-n tax.and-loan account rate), prescribed for the~ current J;

quarterfand published in the Federal Register and the Treasury /Fi scal Requirements: Manual Bulletins,... "

COMMENTS: The Treasury tax and loan account rate is the basic' rate ci ted. in '31 USC 3717(a) (1) and 4 CFR 102.13(c) for_ determining the. rateof interest to.be assessed

.on delinquent debts.

Treasury publishes a number of

'different rates for various purposes (e.g.,

Renegotiation Board Interest Rate published i

semiannually. is used as the basis f or_ interest.

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payments under the Prompt' Payment Act; interest rates (investment yields) on savings bonds, retirement' j-bonds etc.)-

i Interest shall be assessed at a fixed rate.until the

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, indebtedness is satisfied and will not be: assessed on late payment charges..

However, ifia debtor defaults on a-repayment agreement and seeks to enter into a new agree.nent, a'new interest rate will be assessed.at the-current value of funds to th= Treasury at the. time the new agreement-is executed."

).r lCOMMENTE: 31 USC (e) and 4 CFR 102.13(c) prohibit assessing l

interest on late payment finance charges except as noted above.

E

'The date, March 24, 1982, in the first sentence of this.

paragraph should be changed to October 24,-1982.

A statement

=-Sould be made to point out that unless otherwise provided for, w

at payment charges will.not be assessed prior to October 25, 782.-

COMMENTS 4 CFR 102.13(b) and (1) stipulate that finance charges shall not be assessed prior to October 25,1982 unless otherwise provided f or by statute, regulation, loan' agreement, or contract.

(c) Paragraph 15.37(c)-(h):,

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-_ Delcto pcrcgrcph.l(c) cnd lrcid:Oignstof percgrcpha((d), (c),.

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' (f ),-- (g)',: 'cnd ' (h) E co (c ),.(d) f (c),. (f), an$ (g) roeptetiv01y.

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Tand then make the: f ollowing ' revisions e,

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o? 15.37(d)1See" changes in text..

a1 l152 37 (f ): Wh'en arrangementst are made to payza debt in t

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! installments-over a period of= time,1 monies 1 received by,NRC 6

will be: applied first to outstanding penalty and.

l administrative cost charges,.second to accrued interest, and third ta principal.

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. COMMENTS LThis paragraph currently states that interest on

'_ installment payments shall be based on Treasury's s

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< current " Schedule of Certified Interest Rates < With.

Range of Maturities"'and does not state how payments..

t areg to applied to charges for administrative costs L and penalties.

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~PART 15; 4

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Author's-Name:

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Document Coments:-

Fed _ Reg notice for revision of Part 15

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Document Namet i

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SHORTEN-Author's Name:

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= Destination Name:

SHORTEN Distribution Name:

' 1NRC1516 SMITH 0011~

- Addressee:-

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-'Date Sent:

04/06/88 Time Sent:

'13:53' Message:.

.For Ed'Greenburg from Ron Smith. 0GC. Please acknowledge.

receipt'to~X21640. Thanks.

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. UNITED STATEf NUCLEAR REGULATORY. COMMISSION :

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3 p-0 NUCLEAR REGULATORY ' COMMISSION V

10 C FR Part 15 3

f Debt Collection Procedures

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. AGENCY: Nuclear Regulatcryr Com mission.,

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' A C TIO N i..P,ro, posed R ule. g 4

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.SUMM A R Y.:?,Thec. Nuclear-Regulatory : Commission is '_ proposing to " amend Part ~

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- 15.of N,itst regulationsi itotincorporatel changes ' re_ quired ' by 31 U.S.C.

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3711(e)(2)',$,.as.amendid.. 'The ~prbcedu'res;are based upon the Federal ~ Claims.

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C ollectio n ? Sta n da rd s lij s'ue d byith)g General Accounting '.0fficeL(G AO)?and' the.

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U'S. Department of Justice.-(D0J), as amended on March 9,11984i ' 491 FR i

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-8896.-

'The' revised: procedures will enable the NRC to further improve its

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' collection. of debts due the United States.

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. DATES: ESubmit. comments by

,11987.t - Comments received after 4

Lp this(date willL be considered if it is practical to ido so, but assurance of 1 '

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' consideration cannot be - given except as--to. comments received on or before-this date.

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~ ADDRESSES:

Send com ments to:

Secretary, U.S.

Nuclear Regulatory i

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- Commission, Washington, DC 20555, ATTN: Docketing' and Service Branch, i

Hand deliver comments to:

Room 1121,1717 H Street NW, Washingt6n,:

D C between 8:15 a.m. and' 5:00 p.m.

Examine commcats received at : The NRC Pubic Document Room.1717 H

, Street N W', Washington, D C.

FOR FURTHER INFORM ATION CONTACT:

Graham D

' Johnson, Director, y

Division - of Accounting and Finance, Office 'of Administration and Resource -

' Management, U.S.

Nuclear Regulatory Commission, Washington, DC 20555,

- telephone (301) 492-7535.

S UPPLEMEN T A R Y.IN FO RM A TIO N:' On February 22,

1982, the- - Nuclear Regulatory _ Commission: published ' a final rule _ concerni_ng debt collection-procedures: (47 ' FR 7615).

Since then, the Debt Collection F-+, of 11982,.

. Public Law 97-365 was enacted on October 25,1982 which revised the Federal!

Claims Collection Act of 1966.

On March 9,1984.. the-General; Accounting

' Office and.the Department of Justice issued a final rule amending the Federal-Claims Coliection Standards, as set out in 4 CFR Parts 101-105.

The

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l proposed revisions 'will bring Part 15,10 CFR into conformance with those stan dards.

The most significant change is that a hearing will not be e

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' required prior to suspension or revocation of a license for nonpayment of l:

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debt except'in :very. limited / circumstances 'as - outlined in - the -new s'ection.

L 15.34.:

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I Section by Section Analvsis J

.9[15.1: A pplication.

n T his section1 is - being : revised to more clearly identify that Part' 15 l

prescribesfagency standards for the ' administrative collection, compromise,.

termination.:of agency collection, and referral to G AO and the D0J.. A new 9

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' paragraph has also' be added to make it clear that nonpayment of fees,under 10, C FR Parts 170 and 171 are also subject to the collection procedures 3 and-standards of Part 15.

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' S 15.2 ': Definitions.

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- This :new section is.'being -added to: provide definitions for? the; terms

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administrative offset, clain and debt, consumer reporting agency, delinquent'-

i debt,-license.- and payment in full as they are used in 'this part and 4 CFR Parts 101-105.

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, a 6:15.5 ~ Claims that are-covered.

.f This section is being revised to add claims between Federal agencies as not being covered under Part 15.

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l 15.7 - Monetary-limitation.on. N R C'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, ani!

administrative costs" with the exclusion of interest from the $20,000 limitation:

'on N R C compromise authority.

6.15.9 Omissions not a defense.

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LThis section is' being modified;to include 16 e citation for the Federal 1

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. Claims Collection Standards;.

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ES'15.13: Subdivision-of claims..

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.A' cross L reference: to : the statutory ; and regulatory authority for this Jsection.is 'being added.

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9 15.21' ~ Written demands.for payment.

Subparagraph (a)(1) is being modified to inclu'de ; notice to the debtors.

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of their;right to. seek review within the agency.

Subparagraph (4) is. being y modifiedi-to indicate: the date of mailing or hand delivery as the due date' l

E, under normal circumstances, consistent with 4 CFR Part 102.

Subparagraph i

i-ll(5)( is; being modified to include penalties and administrative costs of k

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' collection in the demand for payment.

Minor editorial changes are made to L

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.5-paragraph' (b), including the. addition of possible reporting; of delinquent:

' debt to consumer reporting agencies.

915.25-Personal interviews.

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This section is being modified to make such interviews discretionary on-l-

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'the' part of the NRC' under paragraph-(a) while maintaining aL requirement to l

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. grant an interview to the debtor, if requested, urdde paragraph (b).

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515.26 Use:of consumer reporting agencies.

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. A, new 'section is being added to provide for the reporting of. consumer

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. debt' to consumer reporting agencies, notice'to the debtor of such action, j

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th'e Jreporting - o'f changes in ' the debtor's debt statu', and limitations on

,i information - which.the 'N R C may provide-toicons';mer reporting agencies. :

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.6 15.29 Suspension or. revocation of license.

.g L-1 This section is being modified to eliminate the show cause - order L

requirement when it' is proposed to suspend or revoke

. a licensee for-no' payment of a debt to the NR C.

In accordance with 4 CFR ~ Part 102, a e

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hearing is not required when the-only issue is the nonpayment of a debt to t

the - N R C.

Nevertheless, the debtor is given notice by registered mail and i

ampleLopportunity to pay the debt prior to implementation of any suspension i-

'or revocation Jaction.

It should also be understood that the debtor, prior to i s.

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such an action, will have: been given ample opportunity to dispute the-debt 1

pursuant to $_15.31.

Finally, the section - provides for the circumstances which will lead to reinstatement of the license, either by payment of the debt in the case _of suspension or by a new application in the _ case of a revoked u 3

- lice n se. -

4ft s 15.32 contracting for collection services.

s This new section is added to provide for. NRC action to collect a ' debt; E,

- by means of a: commercial collection agency, as authorized _ pursuant to. 4_' CFR i

,10?. 6. ' With the inclusion? of-this new section, i 15.63 is.being removed from-e L,m Subpart E:of this part.

1 l' 15.33 LCollection' by; administrative offset.

ti This_ section is: being modified to express the 10 year limitation-on the j

4 N R C initiating; an administrative offset.

.In ' the case of a' deferral of the i

payment of fees to the N R C,. the-ten years ~ will run from the end ' of the j

deferral-period or other such period'as may be subsequently established by L'

2 th e N P, C. '

l Paragraph (b) of the.section is being changed to make it consistent.

4 1

L with the like provisions-in 4 CFR Part 102.

The hearing provisions are

_ deleted -in favor of the new section 15.34 based on the guidance in 4~ CFR-7 l

_ Part 102.

Provisions are added to provide for seeking offset from other l

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Government agencies when they-have funds due the dator, ~ acceptance by the N R C of a1 repayment. agreement in lieu of an offset, and other limitations t

on :the-'use of administrative offset in the collection of debts owed the N RC'.

j 9:15' 34 Review or reconsideration of a debt.

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-h This new section is being added _ to provide that in the main the N RC -will not-t grant a hearing in determining indebtedness, but rather will rely:.onLthe written record in. making such decisions.

Hearings art provided for 'in-instances where-credibility or veracity are at issue.

T he N R C. justifies = this' change on the basis'of guidance on this issue in 4 CFR Part 102 and on the-fact that almost all debts to the N R C are questionable, if at all, on the basis of mathematical or factual error. on the part of the N RC:(e.g.,-the' debt was

-.im properly ~ calculated or inspection costs were attributed to the wrong -

~ license) rather than because'of a substantive factual. dispute which would be <

. decided on-- the basis of testimony.._This proposed change.is-consistent with a

the l restrictions contained in section 9(b) of the Administrative Procedures Act -(5 ' U.S.C. 558(b)) and the authority provide under Subchapter II _ of Chapter 37 of Title 31, U.S' C.

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!0 -15.35 (Payments.

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Language is being added to this section 'to clarify how an installment agreement will be instituted and applied to a debt.

The significant additions I

are a provision for accelorated payment in the event the debtor defaults on a

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j installment? agreement and that the NRC will comply ; with - the de btor.'s.

j instructions in the application of. payments. when more thanL one, debt;is.

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involved.

However..if the debtor does not so designates the NR C will apply 1 the payments in the best interest of the linited States.

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615.37 Interest, penalties, and. late payment administrative costs.

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This section;-is ch'anged 'substantially by adding the following: new

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I Paragraph (e) provides that the -N RC will assess against.the-debtor the costs of administratively handling a delincuent ' debt.

=

' Paragraph '(f) codifies the N R C' practice of assessing penalty charges in

. the amount of 6 percent per annum' on delinquent debts beginning-91

. days: after the delinquency but retroactive-to the original-due date.

' Thus,- both interest and penalties ' are calculated-from the same initial

date.

l Paragraph (g) provides that payments 'will be. applied first '.to l

outstanding penalty and administrative charges,. then to interest, and.

finally;to the principal.

e Paragraph ^ (h)' codifies current N R C practice of waiving interest for debts paid within 30 days of the due date.

This waiver may be t

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9 extended at the discretion of the N RC for good cause. shown on. a

' case-by-case basis.

9 15.43 Reasons for compromising a claim.

V This section ~is-being modified to bring it into conformance with like

. provisions contained in 4 CFR Part 103.

Paragraph (c) is changed to indicate the standard of enforced collection costs in accordance with 4 CFR 103.4 rather than as. currently stated.

Paragraph (d) is being 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.

5: 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 D

N R C may. suspend or terminate collection action.

'Q l5.61L Prompt referral.

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1 Paragraph.(a) uis being modified to delete ~ the reference to a private.

4

. collection agency which is now to be addressed in the new.section 15.32-discusse'd above.

A one-year referral requirement is codified for N R C action after final determination of the fact and the amount owed to the NRC.

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AD new paragraph 1(b) is being added to provide for N R C ? referral to GA0 of ~ questions concerning acceptance' of a

pis,..ed compromM.

j suspension,. or termination-of collection' actions in order 'to-obtain: G AO's' 1.

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advice - on.the = matterlin question.

The current ~ paragraph (b) - will be l

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redesignated.as paragraph (c)..

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A new paragraph. (d) is being. added to reflect the fact that once-- a 1

referral has been made to G A0 or the DOJ, the N R C'. will refrain froml any.

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contact with the debtor'and will immediately advise G A0 or the. D0J of any payments made by the ' debtor. -

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-9 15.63. Referral of a claim to private agencier, for collection..

i This section-is being deleted both because of the new sectionl15.32 which addresses such : actions, and because such collection actions are not a i

' referral in' the' truest sense, but rather' reflect a different form of collection!

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action:by the NRC' using other means.

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.515.67 L Referral to the Department of Justice.

e A new ' paragraph -(a) is being added to indicate the threshhold for to t

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i w' om ;the.N R C will refer a claim for enforced collection, i.e., the 00J or the h

S appropriate U.S.. Attorney.

The current paragraphs (a) and (b) are being redesignated as paragraphs (b) and (c), respectively.

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'AL new' paragraph (d)L is being added to indicate that the.~ N R C must

.s-make.its referrals'in< accordance with the guidance in 4 CFR 105.2 and' that.

i 1' L pertinent evidence will be preserved..

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ENVIRONMENT AL IMPACT STATEMENT -

1; This proposed ~ rule. does ' not significantly affect the environment.

An j

g environmental impact ' statement is not required under the National Environmental-Policy Act of'1969, as amended.

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PAPERWORX REDUCTION ACT ST ATEMENT

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- This J proposed rule contains no new - reporting and record keeping

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requirements and' therefore is,not subject to review by.. the Office. of.:

U Management; andt ' Budget under the Paperwork Reduction Act of 1980, as amended !(44 U.'S.C. 3501 et seq.).

N REGUL ATORY AN ALYSIS-l?

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.This proposed rule will bring NRC debt collection procedures ' into

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,. conformance with current statutory and regulatory guidance and:

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7 lreqv,irements and, as'such, does not have significant impacts on state and -

,t local governments and geographical regions,

health,

safety, and the L

environment; nor does it represent substantial costs to licensees, the NRC, y

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or ~other Federal agencies.

This constitutes the regulatory analysis ;for this

. proposed rule.

y REGULATORY FLEXIBILITY CERTIFIC ATION

. 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 soley from the acts or omissions of the small entity; concerned because-of its failure to pay a valid debt to the N RC.

'As a result, a regulatory flexibility analysis has not been prepared.

LIST OF SUBJECTS IN 10 CFR PART 15 A'dministrative practice and procedure, Debt collection.

For the reasons set out in the preamble and under authority of the -

' Atomic, Energy Act of-1954, as amended, the Energy Reorganization Act of 1974,Las amended, the. Federal Claims Collection Act of 1966, as amended, and' 5 U.S.C. 553, the N R C is proposing to adopt the following amendments to 10 C FR Part 15.

.PART 15 - DEBT COLLECTION PROCEDURES q

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i ubpart A -l A'pplication and - Coverage S

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' ' 15.1: ' A pplication. -

,g 315;2 : Definitions.

~15.3 Comm u nications.-

[S 415.5 Claims tNat are covered.

'15.7 Monetary' limitation = on N R C's authority.-

pp L15.9 0 missions : not a'. defense.

15.11' Conversion. claims.

1 215.13 ' Subdivision of claims.

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. Subpart;8 - Administrative Collection of-Claims.

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9 115.21T Written ' demands for payment.

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s 15.23 Telephone inquiries 'and investigations.-

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i15.23 Personal interviews.

15.26 - U'se of= consumer reporting agencies.

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115 27 Contact with debtor's. employing agency.

g-115.29 S'uspension or revocation of a license.-

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L (15.31 Disputed debts.

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15.32 Contracting for collection services.

4 ylK 4 15133 : Co11ection: by offset.

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15.34 Review and reconsideration of debts.

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' ; 15.35 ' Payments.

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i 15.3'7 Interest' and late pa'yment charges.

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.1 l15.39 ' lB an kru ptsy ; claim s'.

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- Subpart C J-; Compromise of a. Claim t

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s15.41, ;When a claim my be compromised.

p i15.'43 Reasons for compromising a claim.

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,15.45 : Restrictions on the copromise of a claim. -

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.15.47. Finality of a compromise.

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, ?Subpart,DT-Suspension or Termination of Collection Action 7

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.,i *IN.51! (When 'colliction action may be suspended or terminated..

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15.53l Reasons' for suspending. collection action.

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15;55 Reasons for terminating collection action..

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e15.57f iTermination 'of. collection action.:

n L15.'59 ; Transfer of a claim.

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' ! Subpart' E L-: Referral of alClaim ;

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$15'.61I Prompt. referral.

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l15.65/ Referral of a compromiseioffer.

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- 15.'67[ Ref'erral to th'e -Department of Justice.

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'1 The authority"section for Part 15 is revised to read as follows:

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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);-

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' sec.e 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, e

L'.89-508, 80. Stat. 308, as amended (31 U.S.C.

3716); Federal Claims r

= Collection Standar'ds, 4 C F R Parts 101-105.

4 2.

Section 15.1 is amended by revising paragraph (a), redesignating-subparagraph -(b)(2) as (b)(3), and adding a.new subparagraph (b)(2) to-

, _ cread as follows:

9-15.1 Applihation.

'(a)

These procedures prescribe.- N R C - standards for the. administrative -

collection,1 com promise, suspension, and : termination of collection ' actions, m

referral to'the General Accounting Office and to the ' Department: of Justice -

. for litigation collection-actions and apply ~ to claims-for the payment of: debts:

'owedito the United States in the form of money er property unless -'a-differenti procedure isl specific'd in a statute, regulation, or contract.

For-

-some'. debts these procedures apply after special statutory' and administrative.

procedures are exhausted.

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Al claim? against an applicant for or a holder -of an NRCilicense.

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finvolving' the. paythent of. Various-fees pursuant _to 10 C FR ' Parts"170 and;171.-

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-(3)

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3L Section-15.2 is added to read as follows:

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'l 15.2 ' Definitions. :

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' " A'd ministrative ' offset" means a procedure by which monies -otherwise:

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due the debtor from the' United States are used to offset or satisfy: a portion

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' :l Jor all of a debt or: claim' of the United States against the debtor. -

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'" Claim and _ debt" are synonymous 'and interchangeable f and -~ refer to money or property. which-has been determined by anl appropriate /NRC official /

to be owed ' to; the - United States: byiany person.. organization, or entity,'

except another Federal agency.'

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- " Consumer reporting agency" has - the meaning ' provided in '31 U.S.C.

a J3701(a)(3).-

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"Delin q uen't debt" means a ' debt which has not. been paid by the date o,

= specified' in' the N R C demand' 'for n'

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payment or billing statement, or as 3

otherwise established urder this chapter, e.g.,10 C FR 171.19.

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" License" means..any license, ' permit, or other approval issued by: the h

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Com mission.

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" Payment lin full" means - payment of the total - debt due the : United.'

. i States, including any interest, penalty, and administrative costs of collection l

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4.

Section 15.5 'is amended by removing the. word "and" at the end of.

su bparagraph (b)(3) and-by adding the word "a n d" =

at th e ! e n d - of'-

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subparagraph- (b)(4).

A-new subparagraph.(b)(5) is added as follows:

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}_15.5 LClaims that are covered.-

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Claims between Federal agencies.

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'Section 15.7 is amended by revising the statutory citation to readi s

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"3100.S;C. '3711(b)""and by revising subparagraph (b) to read as follows:

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_$.15.7 Monetary limitation on N R C's authority, h

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Do; net exceed $20,000, exclusive of interest,; penalties, and l

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Ladministrative costs (the monetary. limitation)'.

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. Section 15.9' is : amended - by ' revising ' paragraph. (a) to read, as ~

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!follows:

,,(a).

The failure of the NRC to include in this part any provision of the d

4 Federal Claims Collection-Standards, 4 CFR Parts 101-105, does not prevent IO s the ;N R C from applyl_ng said. provisions, which are incorporated herein by

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'7.

Section 15.13 is revised to read ac-follows:

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-h 8 1 16.13 Subdivision of-claims.

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. iThe 4N R C shall consider a debtor's liability : arising from a, particular

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o e ftransaction; or' contract as a single claim in determining whether the claim-is i

' less thanL the -monetary limitation for the purpose. of com promising or

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duspending.or -terminating collection action.

A claim may not be-subdivided x

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' to9 avoids theMmonetary limitation established by 31 U.S.C. 3711(a)(2) and i

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4 ' [,i section l15.7 of this part.

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8.

The title for Subpart B is being currected by deleting the word *a" i

and changing the word " Claim" to read " Claims."

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In i

15.21, subparagraphs (b)(3)(iii),

(iv),

and (v) are j

redesignated as (b)(3)(iv), (v), and (vi), respectively, and the remainder i

of the section is revised to read as follows:

y 1 15.P1 Written demands for payment.

f (a)

(1)

The basis of the indebtedness and the right of the debtor to' seek i

review with'n the N RC; (2)

(3)

(4)

The date payment is due (The due date is normally 30 days from the date the initial written demand or billing statement was mailed or hand delivered, unless otherwise stipulated under this chapter, e.g.,

10 C F R 171.19.);

(5).

The :pplicable standards for assessing interest, penalties, and administrative costs.

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, (6)

(b)

Unless a debtor is a current NR C employee, the NR C will normally send three progressively stronger written demands at not more than 30-day intervals, unless circumstances indicate that alternative remedies better protect the Governement's interest, that the debtor has explicitly refused to pay, or that sending additional demtnds is futile.

Depending upon the circumstances of the particuler case, the second and third demands may--

(1) i (2)

State the amount of the daily late payment charge (s) that will be added to the debt until the debt is paid; and l

(3)

(iii)

Possible reporting of the delinquent debt to consumer reporting agencies; j

10.

In 615.25, paragraph (a) is amended in the first 1tne by changing the word "shall" to "may."

11.

A new i 15.26 is added to read as follows:

i i

I i 15.26 Use of consumer reporting agencies.

i (a) When an individual debtor has not--

(1) paid or agreed to pay the debt under a written payment plan that j

has been signed by the debtor and agreed to by the Chairman or his i

f designee; or-q (2) filed for review of the debt under 515.34 of this part, i

?

the NRC will take action in accordance with paragraph (b) of this section.

(b)

When a debt has been delinquent for 90 days, in addition to I

d

. assessing penalty and administrative costs pursuant to i 15.37 of this part, the Chairman, or his designee, will notify the individual debtor by certified m ail--

t (1) that payment of the debt is overdue;

)

(2).that, within not less than 60 days:after the date of such notice, the NRC intends to disclose to a consumer reporting agency that the individual debtor is responsible for the debt; l.

(3) of the specific information to be disclosed to the consumer reporting agency; and 1

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- (4) that the individual 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 dabt, and to administrative repeal or review of the debt.

e (c)

(1)

' sre is a substantial change in condition or amount of the debt, the NRC will disclose promptly that fact (s) to each consumer reporting

(

agency to which the original disclosure was made.

(2)

The NRC will verify or correct promptly information about a 6.ht on request of a consumer reporting agency for verification of information disclosed by the N RC.

I (3)

The NRC will get assurances from the consumer reporting agency that' the agency is complying with all laws of the United States related to l

providing consumer credit information.

(d)

The information the NRC will disclose to the consumer reporting I

I agency is limited to--

1.

r-(1) information necessary to establish the identity of the individual debtor, including name and address; f.

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l (2) the amount, status, and history nf the debt; and (3) the NRC program under which the debt arose.

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12.

Section 15.29 is revised to read as follows:

6 6 15.29 Suspension or revocation of license.

i For any delinquent debt or repeated delinquency in payment of debt, l

the NRC may suspend or revoke any license or other privilege which the NRC has granted to the debtor.

Prior to suspending or revoking any license for failure to pay a debt, the NRC will notify the debtor by registered mail of its intent to suspend or revoke the license and the reasons therefore.

The debtor will be allowed no more than 30 days to pay the debt in full, including applicable interest, penalties, and administrative f

costs of collection of the delinquent debt.

The proposed suspe... ton or revocation will take effect automatically at the end of the period without further action by the N R C.

A suspension will remain in effect until full payment is made or for no more than 60 days.

If full payment is not made within the suspension period, the license will be revoked automatically at the end of the suspension period without further action by the NRC.

Payment 1

l' in full of the debt within the suspension period will result in automatic L

reinstatement of the license, absent a".y suspension or revocation itction 1

L pursuant to Part 2 of this chapter.

If a license is revoked under authority of this part, a new application, with appropriate fees, must be made to the Commission.

Such an application will not be considered unless all previous debt to the NRC has been paid in full.

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13.

Section 15.32 is added to read as follows:

21

- - u-i 15.32 Contracting for collection services.

The NRC has the authority to contract for collection services in order to recover delinquent debts 'and, when deemed appropriate to do so, will contract for collection services in accordance with the guidance and

.r standards contained in 4 CFR 102.6.

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i 14.

In 5

15.33, paragraph (c) is deleted,

paragraph (d) is redisignated as paragraph (c), and paragraphs (a) and (b) are revised to read as follows:

'i 15.33 Collection by -administrative offset.

4 (a).

The N RC may administrative 1y undertake collection by offset on each claim which is liquidated or certain in amount.

The NRC ma'y. 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 Govern ment's right to collect the debt were not known and could not reasonably have been known to the N R C, or collection of fees has been deferred under other provision of this chapter.

In the latter case, the ten-year period begins to run at the end of the deferral period.

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(b)

The following procedures apply when the NRC seeks to collect a i-debt by offset against accrued pay, compensation, accrued benefits or the i

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amount of retirement credit due to a present or former Government employee or against the assets' of licensee.

(1) c i

-(2)

Before the offset is made-.

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I (1)

The NRC will provide the debtor a written notice of the nature and amount of the debt and--

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( A) ' Notice of the NR C's intention to collect the debt by offset; i

,(B)

An opportunity to inspect and copy NRC records pertaining to the

-debt (C)

An opportunity to request reconsideration of the debt by-the I ""

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(D)

An. opportunity to enter into a written agreement with the NRC to f

q repay or pay the debt, as the case may be, i

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'(3)

If the~ NRC learns that other agencies of-the Federal government I

are holding funds payable to the debtor, the Controller of the N RC, or his/her designee, will provide the other agency (ies) with documentation of J

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e--e,_

r the ' debt to the N R C and will request that funds due the debtor and necessary to offset the debt to the NR C be transferred to the NRC.

I (4)

The NRC may accept a repayment or payment agreement, as eppropriate, in lieu of offset, but will do so only after balancing the j

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 will accept a repayment or payment agreement in lieu of offset only if the debtor is able to establish under sworn affidavit that offset t

would result 'in undue financial hardship or would be against equity and good conscience.

(5)

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 1

administrative offset is explicitly provided for or prohibited by another statute.

-(6)

The NRC reserves the right to take any other action in respect to offset as is permitted under 4 C FR 102.3.

(c)

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15. Section 15.34 is added to read as follows:

} 15.34 Review or reconsideration of a de_bt.

I Debts payable to the NRC rarely involve issues of credibility or veracity in determining the fact or amount of indebtedness or in considering a waiver of indebtedness.

Therefore, pursut.nt to 4 C FR 102.3(c),the N R C has determined that hearings will not be conducted for the purpose of offset or other disputed claims.

Instead the NRC will make decisions concerning disputed claims and requests for waiver or reconsideration based upon a I

review of the written record.

Should an occasion arise where credibility or veracity is at issue, an oral hearing will be conducted under the procedures contained in 4 CFR 102.3(c).

16.

Section 15.35 is amended by revising paragraph (b) to read as follows:

6 15.35 Payments.

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(b)

Payment in insta11 men %

If a debtor furnishes satisfactory evidence of inability to pay a claim in full prior to the due date, payments in installments may be arranged.

Evidence may consist of a financial statement.or a signed statement that the debtor's application for a loan to

4

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enable the debtor to pay the claim in full was rejected.

Except for a debt described at 5 U.S.C. 5514, all installment payment arrangements shall be reduced to writing and require the payment of interest.

(1)

Installment note forms, including confess-judgment notes, may be used.

The written installment agreement will contain a provision accelerating F

the debt payment in the event the debtor defaults.

If the 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 an installment nota by executing a. 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 l

voluntary installment payment is to be applied as among those debts, that designation will be followed by 'Se NR C.

If the debtor does not designate the app 1tcation of the payment, the N R C. will apply the payment to the various debts in accordance with the best interest of the United States, as determined by the facts and circumstances of the particular case.

17.

Section 15.37 is amended by revising paragraphs (a) and (b) and adding paragraphs (e)-(h) to read as follows:

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E 15.37 Interest. penalties, and late payment administrative charges.

(a)

Interest' begins to accrue from the due date specified in the initial i

written demand or billing statement ::aless a different date is specified in a i

statute, regulation, or contract.

1 (b)

If a debt, initially asserted by the NRC after ilarch 24.1982, is not paid in full on or before the due date, the NRC shall assess a late payment interest charge based upon the prevailing rate of interest (updated quarterly). required by the Treasury Nscal Requirements Manual Bulletins, i

unless a different rate is prescribed by statute, regulation, or contract.

This rate reflects the short term value of funds to the Treasury Department and is publized in the Federal Register.

A late payment interest charge is ~

assessed for each day after the due date, subject to the 30-day interest l

waiver provision in paragraph (h) of this section.

(c) l r

(d)

(e)'

The NRC will assess against a debtor charges to cover the administrative costs incurred as a

result of a

delinquent debt.

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

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the delinquency.

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... (f)

The NRC will assess a penalty charge of 6 percent a year on any portion of a debt that is delinquent for more than 90 days.

The charge will be calculated beginning the 91st day of delinquency, but shall secrue from the original due date of the written demand or billing statement.

(g)

Debts paid in partial or installment payments will be applied first

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to outstanding penalty and administrative costs charges, second to accrued interest, and third to outstanding principal.

1 (h)

The NRC will waive collection of interest on the debt which is paid in full within 30 days after the date on which interest began to accrue.

The N RC will waive interest during the period a disputed debt, pursuant to l l

15.31, is under investigation or review by the N R C.

However, such a waiver is not automatic and-must be requested prior to the expiration of the i

initial 30-day waiver period described herein.

T he N R C will grant such an additional' waiver only when it finds merit in the clain of the debtor as submitted under section 15.31 of this part, i

18.

In i 15.41, the first sentence is corrected by changing it to read:

$ 15.41 When a ' claim may be compromised.

The NRC may com promis 3 a claim not in excess of the monetary limitation if it has not been referred to the G A0 or to the D0J for litigation.

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19.

Section 15.43-is amended by correcting paragraph (b) by inserting-

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1 a comma after the word." claimed" in the fourth 11ne, by dividing paragraph.-

(d) into two paragraphs (d) and (e), and by revising paragraphs (c)

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through (e) to read as follows:

I 6 15.43 Reasons for compromising a claim.

(c)

The cost of collecting the claim does not justify the enforced collection of the full amount.

Application of this reason for compromise will be in 'accordance with the guidance in '4 CFR 103.4.

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(d)

The debtor's inability to pay, the Government's ability to enforce-X collection, and the amounts which are acceptable in compromise shall be determined in accordance with the Federal Claims Collection Standards, 4 CFR Part 103.

(e)

Compromises payable in installments are discouraged, but, if

' necessary, shall be in the. form of a legally enforceable agreement for.the reinstatement of the prior indebtedness less sums paid thereon.

The.

agreement also shall provide that in the event of default--

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(1)

The entire balance of the debt becomes immediately due and payable; and I

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(2)

The Government has the right to enforce any security interest.

20.

In 'l 15.45, in the second line, the word "or" is corrected to read i:-

"nor."

21.

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 administrative costs, after deducting the amount of partial payments, if any, if it has not been referred to the G A0 or to the 00J for litigation.

P2.

Section 15.61 is amended by redesignating paragraph (b) as

!q paragraph (c), and revising paragraph (a) and adding new paragraphs (b) i

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l-and (d) to read as follows:

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(a)

A claim. which requires enforced collection action is referred to the l

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L G A0 or _to the D0J for litigation.

A referral is made as early as possible l

consistent with aggressive collection action and in any event well within the time required to bring a timely suit against the de btor.

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.O lot 0 referrals will be made within one yee. of the NRC'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 the propriety of acceptance of a proposed compromise, suspension', or termination of col?ection actions are in doubt, the NRC will refer the matter to the General Accounting Office for resolution and instructions prior to proceeding with collection action and/or referral to the Department of Justice for. litigation.

(c)

(d)

Once a claim has been referred to G AO or to the DOJ pursuant to this subpart, the NRC will refrain from having any contact with the debtor and will direct the debtor to G A0 or DOJ, as appropriate, when questions concerning the claim are raised by the debtor.

GAO or DOJ, as t

appropriate, will be advised immediately by the NRC of anv payments by the de btor.

22.

Part 15 is amended by removing 615.63.

Y 23.

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:

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I 15.67 Referral to the Department of Justice.

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(a)

Claims for which the gross original amount is over $100,000 shall l

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 shall be referred to the United States Attorney in whose district the debtor can be found.

(b)

(c) i (d)

Claims will be referred to the Department of Justice in form and substance as set out in 4 CFR 105.2.

Care will be taken to preserve all

. files, records, and exhibits on claims referred under paragraphs (a) and (b) of this section.

Dated at Bethesda, Maryland, this day of

. 1987.

For the Nuclear Regulatory Commission, I

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Victor Stello, Jr.

Executive Director for Operations.

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