ML20059G625

Forwards marked-up Final Rule 10CFR15 Re Debt Collection Procedures,Reflecting Editorial & Format Corrections.Package Should Be Presented Under Memo to EDO for Signature & Approval

ML20059G625
Person / Time
Issue date:	05/11/1990
From:	Meyer D NRC OFFICE OF ADMINISTRATION (ADM)
To:	Dandois D NRC OFFICE OF THE CONTROLLER
Shared Package
ML20059G534	List: ML20059G531 ML20059G567 ML20059G581 ML20059G584 ML20059G591 ML20059G611 ML20059G625 ML20059G640 ML20059G669 ML20059G673
References
FRN-55FR32375, RULE-PR-15 AC87-2-08, AC87-2-8, NUDOCS 9009130039
Download: ML20059G625 (33)

Text

{{#Wiki_filter:._.._ i x _ /-) C.f 1 - t } /g. m.vyjo,, UNITED STATES g ij NUCLEAR REGULATORY COMMISSION n {~ ,I wAssiwoTow,0. c. ronss j I,....., ( ] MAY 1 1 'A i 1 4 MDIORANDUM FORT Diane B. Dandois, Chief 5 License Fee and Debt Collection Branch Division of Accounting and Finance i Office of the controller j FROM: David L. Meyer, Chief Regulatory Publications Branch i Division of FreM on of Information 1 and PurAications Services j Office of Administration SUBJECT DEBT COLLECTION PROCEDURP.S The Regulatory Publications Branch has reviewed the final rule on 10'CFR Part 15 concerning the procedures that the NRC uses to l collect the debts which are owed to it. Enclosed is a marked-upl~ ] copy of the final rule that presents editorial and format corrections. When the package is forwarded to the EDO for signature and approval, it nMuld be presented under a memorandum to the EDO. i' that describe,t i.he action and requests his signature and approval and contain an entry for insertion in the Daily Staff Notes to the Commission (set section 15.4 of the NRC Regulations i Handbook)_. The' package should also contain a draft letter that will be used to inform appropriate Congressional oversight committ.ees of the contemplated _ regulatory action. (See Appendix A to the NRC. Regulations Handbook for a sample Congressi9r.cl letter and a list of standard Congressional addresses). =We have forwarded a copy of the final rule to the Informatior and I . Records. Management Branch, IRM, for their Apmment and concurr Imco

concerning the' paperwork management aspects of this rulemakin3 action.

i L. l-i L lx l l \\ is i' j Y 9009130039 900907 PDR PR i 15 55FR32375 PDR ;; i 5

f

i J l ~~ p\\yv If you have any questions concerning this matter, please have a g,gA @ member of your staff contact Betty K. Golden, Regulatory Publications Branch, ADM (extension 24268) or Michael T.

Lesar,

• d Chief, Rules Review Section, Regulatory Publications Branch, ADM

/p (extension 27758). p E OJi.tw David L. Meyer, Chief Regulatory Publications Branch Division of Freedom of Information j and Publications Services 1 Office of Administration {

Enclosure:

1 As stated ] cc Brenda'Shelton, IRM + l p t _-_ s $ i a-s' t f

7_ .g> 1 [7590-01) .e .Incroau d i-NUCTIAR REGULATORY COMMISSION i 10 CFR PART 15 RIN 3150 - AC 3'l Debt Collection Procedures AGENCY: Nuclear Regulatory Commission. ACTION: Final ruls.

SUMMARY

The Nuclear Regulatiry Commission (NRC) is angnding its regulations 1-(hpl h A)RC ph 4.

Ort owe 6%o e concerning the procedures Kvuses to collect d bts[ t>> mch The amendment is necessary to conform NRC regulations to the amended procedures containad in the Federal Claims Collection Standards issued by the General Accounting Office (GAO) and the Department of Justice (DOJ). This action is intended to allow the NRC to further ir. prove 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. ' SUPPIIMENTARY INFORMATION: On February 22, 1982 (47 FR 7615), the NRC published a final rule concerning debt collection procedures. Since then, the Debt Col-1ectfon 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 DO, issued a final rule amending the Federal Claims Collection Standards as set out in 4 CFR Parts 101-105. On October 7, 1, _a

{J19-01f' 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 i to submit written consents on the proposed rule by November 21, 1988, and no ) j com wnts were' received. 'ibe revision to 10 CFR Part 15 establishes procedures for the NRC to col- ) i k. lect, compromise, or terminate collection action on claims owed to the United States Government arising from activities under NRC jurisdiction. The revision implements _the Federal Claims Collection Act as amended by the Delt Collceti:n { h5 Act and supplements tre amendments to the Federal Claims Collect 19n Standards. This revision, however, does not implement the salary offset prosisions of the (D So/ny oMref Debt Collection Actg M rovisions will be implemented through the establish-( ment of 10 CFR Part 16. ,,, y,,/c g,y/,,,,,jw, u,/ ),/ f uha r TheNRCrintendstorevise10CFR2.205ftospecifythoseprovisionsof10 CFR 15 which apply to civil penalties assessed by NRC under 10 CFR 2.205. (ON Section by Section Analysis Section 15.i applica i.19u. This section is being revised to make it clear that Part 15 prescribes NRC procedures for collecting compromising, terminating, and referring claims to GA0 and D0J, and conforni c.o Pub. L. 99-224. Paragraph (b)(1) is being aodified 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, trans-portation and relocation expenses, and allowances. 2

( [7500501) * - A new paragraph (b)(2) is being added to indicate that civil monetary penalties imposed under 10 CFR 2.205 are subject to special statutory and administrative procedures. i t i Section 15.2 Definitions. I This new section is being added to provide definitions for the terec "ad-ministrative offset," " claim and debt," " delinquent " " license," and " payment in full" as they are used in this part and 4 CFR Parts 101-105. Section 15.3 Communications. ~' This section is being revised by correcting the Conaission's address for i communications concerning the regulations in 10 CFR Pert 15. Section 15.5 Claims that are covered. This se' tion'is being revised to note that the provisions of 10 CFR Part 15 e which apply to civil penalties shall be specified in 10 CFR 2.205, to note t. hat [ the provisions of 10 CFR Part 15 do not apply to claims between Federal agencies, 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 Pat.s 170 and 171 are covered. Section 15.7 Monetary limitations on NRC's authority. The statutory citation-in this section is being corrected to read 31 U.S.C. 3711(b) Paragraph (b) is being modified to include " penalties, and administra-tive costs" with the exclusion of interest from the $20,000 limitation on the NRC's compromise authority. 3

41590-01 Section 15.9 Omissions not a defense. This section is being modified to include the citation for the Federal Claims Collection Standards. Section 15.13 Subdivision of c1cias. A cross reference to the statutory and regulatory authority for this i section is being added. Sectien 15.21 Written demands for payment. I Paragraph (a)(1) is being modified to include notice to the debtors of their right to seek review within the Agency. Paragraph (a)(4) is being modi-fled to indicate the date of mailing or hand delivery as the date on which pay-I ment 'is to be made under normal circumstances, consistent with 4 CFR Par,t 102. Paragraph (a)(5) is being modified to include penalties and administrative costs of collection 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. Section 15.25 Personal interviews. g,p o* I This section is being modified to make suc[ interviews discretionary on the part of the NRC under paragraph (a) while maintainine a requirement to grant an interview to the debtor, if requested, under paragraph (b). l Section 15.26 Use of consumer reporting agencies. t A new section is being added to provide for the reporting of delinquent - debts to consumer reporting agencies, notifying debtors of these actions, 4 3 4

i j2/ ) <___. m. t- .QIsiv vaj J reporting debt status changes to debtors, and limiting the information which the NRC may provide to consumer reporting agencies. 1 i Seccion 15.29 Suspension or revocation of license. t n -This section is being modified to correspond more closely to the terminology-used in 4 CFR Part's 101-105. Section 15.31 Disputed debts. i This section is being modified to correspond more closely to the terminology used in 4 CFR Parts 101-105. I Section 15.32 Contracting for collection services. This new section is added to provide for NRC action to collect a debt by means of a commercial collection agency, as authorized by 4 CFR 102.6. With the inclusion of this new section, 5 15.63 is being removed from Subpart E of this part. Section 15.33 Collection by administrative offset. This section is being modified to disclose the 10 year limitation on the 1. NRC's authority to initiate an administrative offset. If the payment of fees to the NRC is deferred, the ten years will run from the end of the deferral period or any other period the NRC subsequently establishes. u 5 t

r f; M ~ i t Paragraphs (b) and (t) of this section are being changed to make it con-sistent with the provisions in 4 CFR Pa 102.2, 102.3, and 102.4. Provisions i 2 are added to establish the debtor's procedural rights, to provide for seeking I offset from other Government agencies when they have funds due the debtor, to l provide for NRC acceptance of a repayment agreement in lieu of an offset, and 1 to. establish other limitations on the use of administrative offset in the col-l h lection of debts osed the NRC. q Section 15.35 Payments. i i Language is being added to this section to clarify tha*. charges for inter-est, penalties, and administrative costs will be assessed on delinquent payments paid in full in one lump sum. In addition, language is being added to explain how an installment agreement will be inst.tuted'and applied to a debt. The sig-nificant additions are a provision for ac:elerated payment in the event the debtor defaults on an installment agreement and an indication that the NRC will comply with the debtor's instructions in the application of payments when more than one debt is involved. 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 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. l-l- l (. 6 L

I 4 590-011 a P h Paragraph (f) provides that the NRC will assess against the debtor the costs i I of administrative 4y handling a delinquent debt. l 1 Paragraph (g) codifies the current NRC prac+. ice of assessing a penalty charge in the amount of 6 percent per annum on a debt that is delinquent for more than 90 days. This charge accrues from the date that the debt became delinquent. Thus, both interest and penalties are calculated from the same j initial date. Paragraph (h) provides that payments will be applied first.to outstanding-penalty and administrative charges, then to interest, and finally to.the j principal, i Paragraph (i) codifies curren* NRC p.actice of waiving interest for debts paid within 30 days of the due date. I Paragraph (j) codifies current NRC 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. ? Section 15.38 Use of credit reports. A new section is being added to allow NRC to. institute a credit investiga-tion of a debtor in order to make appropriate determinations regarding the { collection of a claim. l l, i, . Section 15.41 When a claim may be compromised. l The opening sentence of this section is being changed for clarification purposes only. t o 7 [ 1

~" [1590-01F i Section 15.43 Reasons for compromising a claim. This section is being 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. Para-e graph (d) is being divided to set out separately in a new paragraph (e) the l 2 requirement for.an enforceable agreement'of installment payments under a com-promise of a claim; ) Section 15.45 Restrictions on the compromise of a claim. The opening sentence of'this section is being changed for clarification purposes only. Section 15.51 When collection action may be suspended or terisinated. This section is being modified to indicate the exclusion of interest, penalties, and administrative' costs from the monetary limitation on when the NRC may suspend or terminate collection action. Section.15.61 Prompt referral. Paragraph (a) is being modified to delete the reference to a private collection agency which is now to be addressed in the new S 15.32 discussed above. A one-year rafer :.1 requirement is codified for NRC action after final determination of the fact and the amount owed to the NRC. A new paragraph (b) is being added to provide for NRC referral to GAO of questions concerning acceptance of a proposed compromise, suspension, or term-ination of collection actions in order to obtain GA0's advice on the matter in question. The current paragraph (b) will be redesignated as paragraph (c). 8

O (7590-011~, A new paragraph (d) is being added to reflect the fact that once a referral hasbeenmadetoGAOorDOJ,theNRCwillrefrainfromanycontactwiththedbtor and will immediately advise GAO or DOJ of any payments made by the debtor. i Section 15.63 Referral of a claim to private agencies for collection. This section is being deleted both because of the new $15.32 which 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 6 i NRC using other means._ Section 15.67 Referral to the Department of Justice. A new paragraph (a) is being added to indicate the threshold for determin-s ing to whom the NRC will refer a claim for enforced collection, i.e., D0J or the appropriate U.S. Attorney. The current paragraphs (.) and (b) are being redesignated as paragraphs (b) and (c), respectively. i A new paragraph (d) is being added to indicate that the NRC must make its referrals in accordance with the guidance in 4 CFR 105.2, and that pertinent evidence will be preserved. Finding of No Significant Environmental Impact: Availability I i The Commission has determined under the National Environmental Policy Act of 1969, as amended, and the Conuniasion's regulations in Subpart A of 10 CFR L Part 51,'that this-rule is not a major Federal action significantly affecting L L 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 i 9 o l

4 .[7590 01-} ~0E--- radiation exposure onsite. The endment 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 i-available for -inspection at the NRC Public Document Room, 2120 L Street NW fs g ((ower-{evel o Washington, DC.. Paperwork Reduction Act Statement L This final rule concains no information collection requirements and therefore is not subject to the requirer.ents of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). 1 Regulatory Analysis This final rule will bring NRC debt collection procedures into conforman_ce \\% e t tho r t g. with. current statutory and regulatory guidance and requirements and, at_such,\\-(_, i does not have significant impact on state and local go ernments and geographical regions, health,' safety, and the environment; nor ooes it represent substantial costs to licensees, the NRC, or other Federal agencies. This constitutes the regulatory analysis for this rule. Regulatory Flexibility Certification In accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b), 'the a o ' Commission certifies that this rule does not have#significant economic impact we on a substantial number of small entities. Any impact on a small entity which 1 ~ H 10 1

h-u H2590nu1 } --2.- right 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 been prepared. Backfit Analysis .b/NC. The ConuriesM 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 itapose backfits as defined in 10 CFR 50.109(a)(1). List of Subjects in 10 CFR Part 15. e b Administrative practice and procedure, Debt collection. 4 .%w <- 4 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, as amended, the Federal Claims Collection ~Act of 1966, as amended,.and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR Part 15. PART 15 -- DEBT COLLECTION PROCEDURES 0,B oh i G O 1. The authority es tier. for Part 15 is revised to read as follows: AUTHORITY: Secs.161,186, 68 Stat. 948, 955, as amended-(42 U.S.C. 2201, 2236); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841); sec. 3, Pub. L. 89-508, 80 Stat. 308, as amended (31 U.S.C. 3711, 3717, 3718); sec.1, Pub. L. 11

..( @ -Of 97-258, 96 Stat. 972 (31 U.S.C. 3713); sec. 5, Pub. L. 89-508, 80 Stat. 308, as l amended (31 U.S.C. 3716)~; Pub. L. 97-365, 96 Stat. 1749 (31 U.S.C. 3701-3719); v Federal Claims Collection Standards, 4 CFR Parts 101-105. 2. Section 15.1 is amended by revising paragraphs (a) and (b)(1), redes-i ignating paragraph (b)(2) as paragrath (b)(3), and adding a new paragraph (b)(2) to read as follows: $ 15.1 Application. 1 (a) This part applies to claims for the payment of debts owed to the United States' Government in the form of money or pcoperty and; unless a differ-eat procedure is specified in a statute, regulation, or contract; prescribes procedures by which the NRC -- (1) Collects, compromises, suspends, and terminates collect!.on actions for claims; (2) Determines and collects interest and other charges'on these claims; j and (3) Refers unpaid claims to the General Accounting Office (GAO) and the Delartment of Justice (D0J) for litigation. (b) i (1) A claim against an employee for erroneous payment of pay and allowances I subject to waiver under 5 U.S.C. 5584. L I" (2) A clain against an applicant for, or a holder or former holder of, an NRC license invniving the payment of civil penalties imposed by the NRC under t l l 10 CFR 2.205. f Y* 3. Section '.5.2 is added to read as follows: l 12 e e-e r,-, g---- ~ -,w- -w

i [3 90-01 h - f i I $ 15.2 Definitions. l I " Administrative offset" means withholding money payable by the United States { Government to, or held by the Government for, a person to satisfy a debt the i person owes the United States Government. " Claim" and " debt" are used synonymously and interchangeably for the pur-l t poses of this part. These terms refer to money or property which has been i 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 [ specified in the initial written demand for payment or applicable contrac Na1 agreement with the NRC unless other satisfactory payment arrangements have been i I 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 Conunission. " 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: $ 15.3 Communications. Unless otherwise specified, all communications concerning the regulations 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 Comniission's offices located at 11555 Rockville Pike, One White Flint North, Rockville, Maryland 20852. 13 t

7 -.7 L a stl

• M? bll'*l'?'

] . p,7, c& 4,, 1%e 'l75go.nt,../ pkrse)Aryh (b) (3), 5. Section 15.5 is amended by revising paragraphs (a)(1) and (b)(1), and by adding paragraphs (b)(5) and (b)(6) to read ii follows: i 15.5 Claims that are covered. C (a) * (1) Results from activities of the NRC, 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 requirementunless62.205ofthischapterprovidesotherwisef-) 4 1, s' 'i -(5)A claim between Federal agencies y j

• t nd (6) A claim once it becomes subject to salary offset which is governed by 5 U.S.C. 5514 6.

In 6 15.7, the introductory paragraph and (b) are revised to read as. follows: l'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 U.S.C. 3711(a) to claims that -- r i iX t...~., p 's- .t k. (b) Do not' exceed $20,000, exclusive of interest, penalties, and administrative costs (the monetary limitation). 4 14 [ ]

B [7590-01] A ~ i 7. Section 15.9 is amended 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 I prevent the NRC frbe applying these provisions. 8. Section 15.13 is revised to read as follows: i 15.13 Subdivision of claims, t l 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 suspedding 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- $15.7. 9. The heading of Subpart B is revised to resd as follows: { L Subpart B -- Administrative Collectior, of Claims 10. In S 15.21P' paragraphs (b)(3)(iii), (iv), and (v) are redesig,, r4ated as paragraphs (b)(3)(iv),-(v), and (vi), respectively; paragraphs (a)(1), (a)(4), (a)(5), and (a)(6), the introductory text of paragraph. N$(b),andparagraph(b)(2)are-revised;-andanewparagraph(b)(3)(iii)is I added to read as follows: p l' 15 i

J2590-0137 e s 6 15.21 Written demands for payment. t s (a) * (1) The basis of the indebtedness and the right of the debtor to f seek review within the NRC; ~ l (4) The date on which payment is to be made (which is normally the date the initial written demand letter statement was mailed or hand delivered, unless otherwise specified by contractual agreement, established by Federal statute or regulation, or agreed to under a. payment agreement); (5) The applicable standards for assessing interest, penalties, and administrative costs under 4 CFR 102. (6) The applicable policy for reporting the delinquent debt. to i consumer reporting agencies. (b) Unless a debtor is a current NRC employee, the NRC shall normally send three progressively stronger written demands at not more than 30-day intervals, l unless circumstances indicate that alternative remedies better protect the Government's interest, that the debtor has explicitly refused to pay, or that u sending a further demand is futile. Depending upon the circumstances of the L - particular case, the second and third derends may-- L ~* L (2) State the amount of the interest and penalties that will be added on l l a daily basis as well as the adicinistrative costs that will be added to the 1 debt until the debt is paid; and p (3).

• I I

L 16 l L I

i -. ^ kl{ i l - f (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 6 15.26; i

11.. In S 15.25, the introductory text of paragraph (a) is revised to read as follows:

-l r I 15.25 Personal interviews. (a) The NRC may seek an interview with the debtor at the offices of the NRC-4 when--

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

$ 15.26 Use of consumer reporting agencies. (a) In~ addition to assessing interest, penalties, and administrative i costs under 6 15.37, the NRC m.sy 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 r (1) Paid or agreed to pay the debt under n 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 $ 15.26 (a)(2)(iv). (2) The NRC has included a notification in the third written demand (see 6 15.21(b)) to the individual debtor stating-- (i) That the payment of the debt is delinquent; L L 17 1: .s l

1 '47d i: (ii) That, within not less than 60 drys after the date of the notifica-tion, the NRC intends to disclose to a consumer reporting agency that the individur.1 debtor is resp >>nsible for the debt; (f.ii) The specific information to be disclosed to the consumer reporting 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. (3) The NRC has sent at least one written demand by either registered or of ass remn certified mail with the notification described in paragraph (a) (2) (4) The NRC has reconsidered its initial decision on the debt when the debtor has requested a review under 6 15.26(a)(2)(iv). (5) The NRC has taken reasonable action to locate a debtor for whom the NRC does not have a current address to send the notification provided for in paragraph (a) (2) of this section. (b) If there is a substantial cha% 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;

and, (3) Obtain assurances from the consumer reporting agency that the agency l

} is complying with all applicable Federal, state and local laws relating to its i use of consumer credit information. (c) The informatton the NRC discloses to the consumer reporting agency is f limited to-- 18 l

17590-0118 (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. 13. Section 15.29 is revised to read as follows: $ 15.29 Suspensiott or revocation of license. The NRC n 4y nsren6 or revoke any license or approval which the NRC has - 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 or approval for f ailure to pay a debt, the NRC shall issue to the debtor an Order to Show Cause (by either registered or certified mail) why the license or other privilege should not be suspended or revoked. The NRC shall allow the debtor no more than 30 days to pay the debt in full, including applicable interest, penalties, and administrative costs of collection of the delinquent debt. The NRC may suspend or revoke the license or approval at the end of this period. If a license is revoked 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 bave been paid in full. 14. In S 15.31, paragraphs (a) and (b) are revised to read as follows: 6 15.31 Disputed debts. .(a) A debtor who disputes a debt shall explain why the debt is incorrect in fact or in law within 30 days from the date that the initial demand letter was mailed or hand-delivered. The debtor may support the explanation by affidavits, cancelled checks, or other relevant evidence. l 19

?) ' 47590 01) 1 (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-nation of the existence or amount of the debt. T S

15. Section 15.32 is added to read as follows:

6 15.32 Contracting for collection services. -The NRC may contract for collection services in order to recover delinquent t ' debts. However, the NRC retains the authority to resolve disputes, compromise claims, suspend or terminate collection action, and initiate enforced collection throu'gh litigation. When appropriate, the NRC shall contract for collection services in accordance with the guidance and standards contained in 4 CFR 102.6. 10. In i 15.33, paragraphs (a), (b), and (c) are revised to read as follows: B 15.33 Collection by administrative-offset. g (a) The NRC may administrative 1y undertake collection by offset on each l claim which is liquidated or certain in amount in accordance with the guidance and standards contained in 4 CFR Parts 102.2,102.3, 'and 102.4. The NRC may not tuitiate 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 NRC 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. 20

cD590-01) (b) Collection by administrative cffset of amounts payable from the Civil Service Retirement and Disability Fund or the Federal Employees Retirement: f System is made pursuant to 4 CFR 102.4 and the provisions of paragraph (d) of this section, t (c) 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 as, sets of a licensee. (1) Before the offset is made, the NRC shall provide the debtor with a written notice of the nature and amount of the debt and-- (i) Notice.of the NRC's intent to collect the debt by offset; (ii) An opportunity to inspect and copy NRC records pertaining to the debt; (iii) An opportunity to request reconsideration of the debt by the NRC or, if provided for by statute, waiver of the debt; (iv) An opportunity to enter into a written agreement with the NRC to repay or pay the debt, as the case may be; i (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). j - -(2) If tbc NRC learns that other agencies of the Federal government are hMding funds payable to the debtor, the NRC shall provide the other agencies with written certification that the debt is owed to the NRC and that the NRC has complied with the provisions of 4 CFR 102.3. The NRC shall request _i that funds due the debtor which are necessary to offset the debt to the NRC be transferred to the NRC. t (3) 1he NRC may accept a repayment or payment agreement, as appropriate, in Ifeu of offset, but will do so only after balancing the Government's interest 21

y O d7590-01]Q_ l> 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 repayment 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 l0 d c (St,)y L (1) 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:

$ 15.35 Payments. (a). Payment in full. The NRC shall make every effort to collect a claim v 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, / a and administrative costs as specified in 6 15.37. . (b) Payment in inst:illments. 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-l ment that the debtor's application for a loan to enable the debtor to pay the 1 t. L 22 l l 1

4; w b 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 interest, and administrative charges. (1) Installment note forms, including confess-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 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 note 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 voluntary installment payment is to be applied among those debts, the NRC shall follow thatdesignaEion. If the debtor does not designate the application of the payment, the NRC shall apply the payment to the various debts in accordance 1 with the best interests of the United States, as determined by the facts and circumstances of the particular case. L i

18. Section 15.37 is revised to tead as follows:

l L15.37 Interest, penalties, and administrative costs. (a) The NRC shall assess interest, penalties, and administrative costs on L debts owed to the United States' Government in accordance with the guidance pro-videdundertheFederal'.ClaimsCollectionStandards,4CFRParty102.13unless otherwise directed by statute, regulation, or contract. l l' l 23 [ I

i E i (b) Before assessing any charges on delinquent debts, the NRC shall mail or hand-deliver a written notice to the debtor explaining its requirements concernifag these charges under 4 CFR. Par-ts 102.2 and 102.13. ) (c) Interest begins to accrue from the date on which the initial written . demand, advising the debtor of the t terest requirements, is first mailed or hand delivered to the debtor unless a different date is specified in a statute, regulation, or contract. (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 L and the Treasury Financial Manual Bulletins, unless a different rate is pre-scribed by statute, regulation, or contract. (e) Interest is computed only on the principal of'the debt and the inter-est rate remains fixed for the duration of the indebtedness, unless a debtor defaults on a repayment agreement and seeks to enter into a new agreement. (f) The NRC shall assess against a debtor charges to cover 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'tc.the delinquency. (g) The NRC shall assess a penalty cht.rge of 6 percent a year on any por-tion of a debt that is delinquent 0 r more than 90 days. The charge accrues retroactively to the da;e that the debt became delinquent. (h) Amounts received by the NRC as partial or installment payments are applied first to outstanding penalty and administrative cost charges, second to. accrued interest, and third to outstanding principal. (i) The NRC shall waive collection of interest on the debt or any portion of the debt. which is paid in full within 30 days after the date on which interest began to accrue. 24 L 4

j [3&994 } # x' l (j) The NRC may waive interest'during the period a debt disputed under i 15.31 is_under investigation or review by the NRC. However, this additional } waiver is not automatic and must be requested before the expiration of the initial 30-day waiver period. The NRC may grant the additional waiver only '~ when it finds merit in the explanation the debtor has submitted under i 15.31. (k) The NRC 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; i (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 r time by enforced collection proceedings; or (4) Collection would be against equity and good conscience or not in the best interests of the United Stater, 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: i a 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 WRC in making appropriate determinations as to: (a) The collection and compromise of a debt; (b) The collection of interest, peaalties, and administrative costs; (c) The use of administrative offset; (d) The use of other collection methods; and (e) The likelihood of collecting the debt. 25 + f

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_ OMO.Q.ll,,Q_ r 1 '20.=-Section 15.41:is revised to read at. follows: $ 15.41 When a-claim may be compromised. The NRC may compromise a claim not in excess of the monetary limitatica if it has not been-referred to GAO.or to DOJ for litigation. Only the Comptrol-3.. ler General'of the United States or designee may eff'ect the comprom^1se of a ' claim that arises but of an exception made by the GA0 in the account of an'- accountable officer, including a claim against the payee, prior to its referral by GAO for litigation. be;\\W MD ML 21.. In S 15.43, paragraph (b) is amended by in m ttng a comma =ftar tha m ~ - worgclaime " by re ising paragraphs (c) and (d), and 1r adding paragraph (e) 5 a f'\\ tiC'b u - h to read as fo ows: q. { [ * $ 15.43 Reasons for compromising a claim. k Np '" tion of t'2e full amount. The NRC shall apply-this reason for compromise in accordunce.with the guidance in 4 CFR 103.4. (d) The NRC shall determine the debtor's inability to pay, the Government's .-aW lity to enforce collection, and the amounts which are acceptable in compromise in accordance with the Federal Claims Collection Standards, 4 CFR Pa:rt 103. (e) Compromises payable in installments are' discouraged, but, if necess mf, must be in the form of a legally enforceable agreement for the reinstatement of the prior indebtedness-less sums paid thereon. The agreement also must provide .that in the event of default-- (1) The entire balance of the debt becomes immediately due and payable; and 26 ..t

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'dj (2) The Government'has the right to enforce ~any'securitycinterest.- 1 g'; $-15.45'[ Amended] i -22. In the'first sentence of i 15.45, the; word "or" is corrected to read - "nor." 4.-

23. Section 15.51 is revised to read as'follows:

$ 15.51 Vhen collection action may be suspended or terminated. . i The NRC may suspend or terminate collection action on a claim not in excess 'of the moneury limitation, exclusive of interest, penalties,'and administrative. -i costs, after aeducting the' amount of partial payments, if any, if it has not ~ been referred to GAO or to DOJ for litigation. -f / / 24.- Section 15.61 is amended bygredesignating paragraph (b) as paragraph (c),hevisingparagraph(a),$andaddingnewparagraphs(b)'and(d)toreadas . 1 g y m. ~# S'15.61 Prompt referral.- 3 (a) A-claim which requires enforced collection action is referred to GA0 or to D0J for litigation. A referral is-made'as early as'possible-consistent .. with aggressive' collection action and in A y event well within the time required 1 to bring a timely; suit against the debtor, Ordinarily, referrals are made ,y, within one year 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 ( 27 t t 1. k 4 / ie i

^ ^ ^~ .n a.... L inv us) i i of collection actions-is in doubt, the NRC shall refer the matter to the GA0 for i i resolution ~and instructions. prior to proceeding with collection action and/or referral to D0J for litigation. w :.. .(d) Once a claim has been referred to GAO or to.DOJ under this subpart, } E o y the NRC shall refrain from having any contact with the debtor and shall direct U the debtor to GA0 or DOJ, as appropriate, when quastions concerning the claim ~j .o are raised by the debtor. The NRC shall immediately advise GAO or DOJ, as appropriate, of any payments by the debtor. l 6 15.63-[ Removed] s '{ l 25.- Section 15.63 is removed. .,P r a

26. 'Section 15.67 is amended by redesignating paragraph- (a) and

\\, (b) ~as paragraphs -(b) and (c), respectively, and by adding new paragraphs g lV ' (a) and'(d) to read as follows: f (.!, ii. ,t l t 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, li 20530.- Claims'for which the p gross original amount is $100,000 or less must be referred to the United States Attorney in whose district the debtor can be found. 1. 28 1 1

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? r f _$ i 1 3 r,enn_ni d,. f ^ s ,3 f w y-i r .n -(d) Claims must be' referred to'the Department of Justice'in_the: j n. i . manner prescribed by 4_ CFR 105' 2^. Care must be. taken to' preserve 'all. ~ files,: records', and exhibits on claims: referred under paragraphs - (a) and' 't- . (b).of'this section. + F l' Dated at Rockville, Maryland, this day of- , 1990. ) For the Nuclear Regulatory Commission. James M. Taylor 3 g-Executive Director for Operations. t t T 8 .p, =1 k kk f 7 3 i. 1'- T 5. 1 n l 9 I 29 1 c; n>.. ?

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