ML20155H271
| ML20155H271 | |
| Person / Time | |
|---|---|
| Issue date: | 09/30/1988 |
| From: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| References | |
| FRN-53FR39480, RULE-PR-15 PR-880930, NUDOCS 8810190325 | |
| Download: ML20155H271 (30) | |
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l NUCLEAR REGULATORY COMMISSION r-u:
10 CFR Part 15 D00/,ET NUf.iBER DD Debt Collection Procedures PROPOSED ULE FR
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AGENCY: Nuclear Regulatory Comission ACTION: Proposed rule.
SUMMARY
- The Nuclear Regulatory Comission (NRC) is proposing to amend its regulations concerning the procedures that the NRC uses to collect the debts which are owed to it. The proposed amendment is necessary to conform NRC regulations to the amended procedures contained in the Federal Claims Collection Standards issued by the General Accounting Office (GAO)andtheDepartmentofJustice(00J).
The proposed action is intended to allow the NRC to further improve its collection of debts due the United States.
DATE:
Submit coments by(45 days ofter publication)1988. Connents re-ceived after this date will be considered if it is practical to do so, but the Comission is able to assure consideration only for coments re-ceived on or before this date.
ADDRESSES:
Send coments to: Secretary, U.S. Nuclear Regulatory Comis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.
8810190325 080930 53 39400 PDR I
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Hand deliver coments to:
11555 Rockville Pike, One White Flint North, Rockville, Maryland, between 7:45 am and 4:15 pm.
Examine coments received at: The NRC Public Document Room, 2120 L Street NW, lower level, Washington, DC 20555.
FOR FURTHER INFORMATION CONTACT: Graham D. Johnson, Director, Division of Accounting and Finance, Office of Administration and Resources rianage-ment, U.S. Nuclear Regulatory Comission, Washington, DC 20555, telephone (301)492-7535.
SUPPLEMENTARY INFORMATION: On February 22,1982(47FR7615),theNuclear Regulatory Comission (NRC) published a final rule concerning debt collec-tion procedures.
Since then, the Debt Collection Act of 1982 (Pub.
L.97-365) was enacted on October 25, 19L2 which revised the Federal Claims Collection Act of 1966 (31 U.S.C. 3701 et seq.). On March 9, 1984 (49 FR 8889), the General Accounting Office and the Department of Justice issued a final rule amending the Federal Claims Collection Standards as set out in 4 CFR Parts 101-105.
The NRC regulations are based on the require-ments contained in the Federal Claims Collection Standards.
The proposed revision to 10 CFR Part 15 provides procadures for the Nuclear Regulatory Commission to collect, compromise, or terminate col-lection action on claims owed to the United States Government arising from activities under NRC jurisdiction.
The proposed revision implements the Federal Claims Collection Act as amended by the Debt Collection Act and supplements the amendments to the Federal Claims Collection Standards.
The NRC intends to revise 10 CFR 2.205 to specify those provisions of 10 CFR 15 which apply to civil penalties assessed by 'RC under 10 CFR 2.205, 2
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Section by Section Analysis Section 15.1 Application.
This section is being revised to make it clear that Part 15 prescribes NRC procedures for collecting, compromising, terminating and referring claims to the General Accounting Office and the Department of Justice and conform to Pub. L.99-224.
Paragraph (b)(1) is being modified to confonn 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 erronecas payments of travel, transportation and relocation expenses and allowances.
A new paragraph (b)(2) is being added to indicate that civil i
monetary penalties impo ed under 10 CFR 2.205 are subject to special statutory and administrative procedures.
Section 15.2 Definitions.
This new section is being added to provide definitions for the terms "administrative 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 Consnission's address for comunications concerning the regulations in 10 CFR Part 15, 3
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Section 15.5 Claims that are covered.
This section is being revised to note that the provisions of 10 CFR Part 15 which apply to civil penalties shall be specified in 10 CFR 2.205, to note that the provisions of 10 CFR Part 15 do not apply to claims between Federal agencies, and to explicitly provide that fees imposed under 10 CFR Parts 170 and 171 are covered.
Section 15.7 Monetary limitation on NRC's authority.
The statutory citation in this section is being corrected to read 31 U.S.C.3711(b).
Paragraph (b) is being modified to include "penalties, and administrative costs" with the exclusion of interest from the $20,000 limitation on the NRC's compromise authority.
Section 15.9 Omissions not a defense.
This section is being modified to include the citation for the Federal Claims Collection Standards.
Section 15.13 Subdivision of claims.
A cross reference to the statutory and regulatory authority for this section is being added.
Section 15.21 Written demands for payment.
j 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 modified to indicate the date of mailing or hand delivery as the date on which payment is to be made under normal ' ircumstances, consistent with 4 CFR Part 102.
Paragraph (a)(5)isbeingmodifiedtoincludepenaltiesand administrative costs of collection in the demand for p6yment.
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Minor editorial changes are made to paragraph (b), including the addition of possible reporting of delinquent debt to consumer reporting agencies.
Section 15.25 Personal interviews.
This section is being modified to make such interviews discretionary on the part of the NRC under paragraph (a) while maintaining a requirement to grant an interview to the debtor, if requested, undJr paragraph (b).
Section 15.26 lise of consumer reporting agencies.
A new section is being added te provide for the reporting of delin-quent debts to consumer reporting agencies, notifying debtors of tnese actions, reporting debt status changes to debtors, and limiting the in-formation which the NRC may provide to consumer reporting agencies.
Section 15.29 Suspension or revocation of license.
This section is being modified to correspond more closely to the terminology used in 4 CFR Parts 101-105.
Section 15.31 Disputed debts.
This section is being modified to correspond more closely to the terminology used in 4 CFR Parts 101-105.
Section 15.32 Contracting for collection services.
This new section is added to provide for NRC action to collect a debt by means of a comercial collection ager.cy, as authorized by 4 CFR 5
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102.6.
With the inclusion of this new section, i 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 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.
Paragraphs (b), (c) and (d) of this section are being changed to make it consistent with the provisiors in 4 CFR Parts 102.2, 102.3, and 102.4 and 5 U.S.C. 5514.
Provisions are added to establish the debtor's procedural rights, to provide for seeking offset from other Government agencies when they have funds due the debtor, to provide for NRC acceptance of a repayment agreement in lieu of an offset, and to establish other limitations on the use of administrative offset in the collection of dabts owed the NRC.
Section 15.35 Payments.
Language is being added to this section to clarify that charges for interest, penalties, and administrative costs will be assessed on delin-quent payments paid in full in one lump sum.
In addition, language is being added to explain how an installment agreement will be instituted and applied to a debt.
The significant additions are a provision for accelerated payment in the event the debtor defaults on an instailment
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agreenent and an indication that the NRC will comply with tha debtor's instructions in the application of payments when more than one debt is involved. However, ti the debtor does designate the application of 6
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payments, the NRC will apply the payments in the best interest of the United States.
Section 15.37 Interest, penalties, and administrative costs.
This section is changed substantially by revising its title and adding the followina new paragraphs:
Paragraph (e) provides that the interest rate on a debt will remain fixed e nept under specified circumstances.
Paragraph (f) provides that the NRC will assess against the debtor the costs of administratively handling a delinquent debt.
Paragrapt. (g) codifies the current NRC practice of assessing a penalty charge in the amount of 6 percent per annum on a debt that is delinquent for more than 90 days.
This charge accrues from the date that the debt became delinquent.
Thus, both interest and penalties are calculated from the same initial date.
Paragraph (h) provides that payments will be applied first to outstanding pcnalty and administrative charges, then to interest, and finally to the principal.
Paragraph (1)codifiescurrentNRCpracticeofwaivinginterestfor debts paid within 30 days of the due date.
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.
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Section 15.38 Use of credit reports.
A new section is being added to allow NRC to institute a credit investigation of a debtor in order to make appropriate determinations regarding the collectio-of a claim.
Section 15.41 When a claim may be compromised.
The opening sentence of this section is being changed for clarifica-tion purposes only.,
Section 15.43 Reasons for compromising a claim.
This section is being modified to bring it into confonnity with 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.
Section 15.45 Restrictions on the compromise of a claim.
The opening sentence of this se: tion is being changed for clarifica-tion purposes only.
Section 16.51 When collection action may be suspended or tenninated.
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 tenninate collection action.
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Sectiu 15.61 Prompt referral.
Paragraph (a) 1. being modified to delete the reference to a private collection agency which is now to be addressed in the new 9 15.32 discussed above. A one-year referral requirement is codified for NRC action after final determination of the fact and the amount owed to the NRC.
A new paragraph (b) is being added to provide for NRC referral to GA0 of questions concerning acceptance of a proposed compromise, suspension, or tennination of collection actions in order to obtain GA0's advice on tiie matter in question. The current paragraph (b) will be redesignated as paragraph (c).
A new paragraph (d) is being added to reflect the fact that once a referral has been made to GAO or the D0J, the NRC will refrain from any contact with the debtor and will immediately advise GA0 or the 00J of any paymeits made by the debtor.
Section 15.63 Referral of a claim to private agencies for collection.
This section is being deleted both because of the new 915.32 which addresses these actions, and because these collection actions are not a referral in the truest sense, but rather reflect a different form of col-lection action by the NRC using other means.
I Section 15.67 Referral to the Department of Justice.
Anewparagraph(a)isbeingaddedtoindicatethethresholdfor deten.11ning to whom the NRC will refer a claim for enforced collection, 1
f.e., the 00J or the appropriate U.S. Attorney. The current paragraphs (a) and (b) are being redesignated as paragraphs (b) and (c), respectively.
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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 The Comission has detennined, under the National Environmental Policy Act of 1969, as amended, and the Comission's regulations in Sub-part A of 10 CFR Part 51, that this rule, if adopted, would not be a major Federal action significantly affecting the quality of the human environment and therefore an environmental statement is not required.
Amending the procedures that the Comission uses to collect the debts which are owed to it will have no radiological environmental impact off-site and no impact on occupational radiation exposure onsite.
The Amend-ment does not affect nonradiological plant effluents and has no other environmental impact.
The environmental assessment and finding of no significant impact on which this detennination is based are available for inspection at the NRC Public Document Room, 2120 L Street NW, lower level, Washington, DC.
Paperwork Reduction Act Statement This proposed rule contains no infonnation collection requirements and therefore is not subject to the requirements of the Papontork Reduction Act of 1980(44U.S.C.3501etseq.).
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Regulatory Analysis This proposed rule will bring NRC debt collection procedures into confonnance with current statutory and regulatory guidance and require-ments and, as such, does not have significant impacts on state and local governments and geographical regions, health, safety, and the environment; nor does it represent substantial costs to licensees, the NRC, or other Federal agencies. This constitutes the regulatory analysis for this proposed rule.
Regulatory Flexibility Certification InaccordancewiththeRegulatoryFlexibilityAct,5U.S.C.605(b),
the Comission certifies that this rule, if adopted, will not have a sig-nificant economic impact on a substantial number of strall entities. Any impact on a small entity which might occur will result solely from the acts or omissions of the small entity concerned because of its failure to pay a valid debt to the NRC. As a result, a regulatory flexibility analysis has not been prepared.
Backfit Analysis The Comission has detennined that the backfit rule,10 CFR 50.109, does not apply to this proposed ru'ie, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve any provisions which would impose backfits as defined in 10CFR50.109(a)(1).
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List of Subjects in 10 CFR Part 15 Administrative 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, as amended, the Federal Claims Collection Act of 1966, as amended, and 5 U.S.C. 552 and 553, the NRC is proposing to adopt the following amendments to 10 CFR Part 15.
PART 15 -- DEBT COLLECTION PROCEDURFS 1.
The authority section for Part 15 is revised to read as follows:
AUTHORITY:
Secs. 161, 186, 68 Stat.
948, 955, asamended(42 U.S.C.2201,2236);sec.201,88 Stat.1242,asamended(42U.S.C.
5841);
sec. 3 Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3711, 3717, 3718);sec.1, Pub.L.97-258,96 Stat.972(31U.S.C.3713);sec.5, Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C.
3716); Pub.L.97-365, 96 Stat. 1749 (31 U.S.C. 3701-3719); Federal Claims Collection Standards, 4 CFR Parts 101-105.
2.
Sectio.115.1 is amended by revising paragraphs (a) and (b)(1),
redesignating paragraph (b)(2) as paragraph (b)(3), and adding a new paragraph (b)(2) to read as follows:
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1 6 15.1 Application.
(a) This part applies to claims for the payment of debts owed to the United States Government in the form of money or property and; unless a different procedure is specified in a statute, regulation, or contract; prescribes procedures by which the NRC --
(1) Collects, compromises, suspends, and terminates collection actions for claims; (2) Detennines and collects interest and other charges on these claims; and (3) Refers unpaid claims to the General Accounting Office and the Department of Justice for litigation.
(b)
(1) A claim against an employee for erroneous payment of pay and allowances subject to waiver under 5 U.S.C. 5584.
(2) A claim against an applicant for or a holder or fonner holder of an NRC license involving the payment of civil penalties imposed by the NRC under 10 CFR 2.205.
3.
Section 15.2 is added to read as follows:
f 15.2 Definitions.
l "Administrative offset" means withholding money payable by the United States Government to, or held by the Government for, a person to satisfy a debt the person owes the Unite.d States Government.
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"Claim" and "debt" are used synonymously and interchangeably for the purposes of this part. These tenns refer to money or property which has been detennined by an appropriate NRC official to be owed to the United States by any person, organization, or entity, except another Federal agency.
A debt is considered "delinquent" if it has not been paid by the date on which the initial written demand for payment is first mailed or hand delivered to the debtor or at otherwise established by Federal statute, regulations, or applicable contractual agreement with the NRC unless other satisfactory payment arrangements have been made by that date.
If the debtor fails to satisfy oblications under a payment agreement with the NRC after other payment arrangements have been made, the dcibt becomes a delinquent debt.
"License" means any license or pennit issued by the Comission.
"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:
6 15.3 Comunications.
Unless otherwise specified, all comunications concerning the regu-lations in this part should be addressed to the Secretary, U.S. Nuclear Regulatory Comission, Washington DC 20555, ATTN: Docketing and Service Branch. Comunications may be delivered in person at the Comission's offices at 11555 Rockville Pike One White Flint North, Rockville, Maryland 20852.
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5.
Section 15.5 is amended by revising paragraphs (a)(1) and (b)(1) arid by adding paragraph (b)(5) to read as follows:
6 15.5 Claims that are covered (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 requirement unless i 2.205 of this chapter provides otherwise.
(5) Claims between Federal agencies.
6.
In i 15.7, the introductory paragraph and (b) are revised to read as follows:
6 15.7 Monetary limitation on NRC's authority.
The NRC's authority to compromise a claim or to terminate or suspend i
collection action on a claim covered by these procedures is limited by 31 U.S.C. 3711(a) to claims that --
(b) Do not exceed $20,000, exclusive of interest, penalties, and administrative costs (the monetary limitation).
7.
Section 15.9 is amended by revising paragraph (a) to read as follows:
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6 15.9 Omissions not a defense.
(a) The failure of the NRC to include in this part any provision of the Federal Claims Collection Standards, 4 CFR Parts 101-105, does not prevent the NRC from applying these provisions.
8.
Section 15.13 is revised to read as follows:
4 15.13 Subdivision of claims.
The NRC shall consider a debtor's liability arising from a particular transaction or contract as a sinole claim in deter.nining whether the claim is less than the monetary limitation for the purpose of compromising or suspending or tenninating collection action. A claim may i
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not be subdivided to avoid the monetary limitation established by 31 U.S.C.3711(a)(2)and$15.7.
9.
The heading of Subpart B is revised to read as follows:
Subpart B -- Administrative Collection of Claims 10.
In i 15.21, paragraphs (b)(3)(111), (iv), and (v) are redesig-nated as paragraphs (b)(3)(iv), (v), and (vi), respectively; paragraphs l
(a)(1), (a)(4), (a)(5), and (a)(6), the introductory text of paragraph (b), and paragraph (b)(2) are revised; and a new paragraph (b)(3)(111) is 1
added to read as follows:
4 i 15.21 Written der. ands for payment.
(a)
(1) The basis of the indebtedness and the right of the debtor to seek review within the NRC; 16
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(4) The date on which payment is to be made (This date is nonnally the date the initial written demand letter statement was mailed or hand delivered, unless otherwise specified by contractual agreement, established by Federal statute or regulation, or agreed to under a paymentagreement);
(5) The applicable standards for assessing interest, penalties, and administrative costs under 4 CFR 1b?.13.
(6) The applicable policy for roporting the delinquent debt to consumer reporting agencies.
(b) Unless a debtor is a current NRC employee, the NRC shall normally send three progressively stronger written demands at not more than 30-day intervals, unless circumstances indicate that alternative remedies better protect the Government's interest, that the debtor has explicitly refused to pay, or that sending a further demand is futile. Depending upon the circumstances of the particular case, the second and third demands may--
(2) State the amount of the interest and penalties that will be added on a daily basis as well as the administrative costs that will be added to the debt until the debt is paid; and (3)
(iii) Possible reporting of the delinquent debt to consumer report-ing agencies in accordance with the guidance and standards contained in 4 CFR 102.5 and the NRC procedures set forth in i 15.26;
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t t
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In i 15.25, the introductory text of paragraph (a) is revised to read as follows:
6 15.25 Pe*sonal it,terviews.
(a) The NRC may seek an interview with the debtor at the office of the HRC when--
- 12. A new 9 15.26 is added to read as follows:
l 6 15.26 Use of consumer reportina aaencies.
(a)
In addition to assessing interest, penalties and administrative costs under i 15.37, the NRC may report a debt that has been delinquent for 90 days to a consumer reporting agency if all the conditions of this paragraph are met.
(1) The debtor has not--
(1) Paid or agreed to pay the debt under a written payment plan that has been signed by the debtor and agreed to by the NRC; or (ii)Filedforreviewofthedebtunderi15.26(a)(2)(iv).
l (2) The NRC has included a notification in the third written demand (see i 15.21(b)) to the individual debtor stating--
(i) That the payment of the debt is delinquent; (ii) That, within not less than 60 days after the date of the notification, the NRC intends to disclose to a consumer reporting agency that the individual debtor is responsible for the debt; (iii) The specific information to be disclosed to the consumer reporting agency; and l
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(iv) That the debtor has a right to a complete explanation of the debt (if that has not already been given), to dispute information in NRC records about the debt, and to request reconsideration of the debt by administrative appeal or review of the debt.
(3) The NRC has sent at least one written demand by either registered or certified trail with the notification described in paragraph (a)(2).
(4) The NRC has reconsidered its initial decision on the debt when the debtor has requested a review under i 15.26(a)(2)(iv).
(S) The NRC has taken reasonable action to locate a debtor for whom the NRC does not have a current address to send the notification provided for in paragraph (a) (2) of this section.
(b)
If there is a substantial change in the condition or amount of the debt, the NRC shall (1) Promptly disclose that #act(s) to ehch 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 infonnation disclosed by the Nr*,; and, (3) Obtain assurances from the consumer reporting agency that the agency is complying with all applicable Federal, state and local laws relating t) its use of consumer credit information.
(c) The infonnation the NRC discloses to the consemer reporting agency is limited to--
l (1)
Infonnation necessary to establish the identity of the indivi-dual debtor, including name, address and :ax payer identification number; (2) The amount, status, and history of the debt; and l
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(3) The NRr. activity under which the dabt arose.
13.
Section 15.?9 is revised to reat es follows:
9 15.29 Suspension or revocation of license.
The NRC may suspend or revoke any license or approval which the NRC has granted to the debtor for any inexcusable, prolonged or repeated fail-ure of the debtor to pay a delinquent debt. Before suspending or revoking any license or approval for failure to pay a debt, the NRC shall issue to the debtor an order to show cause (by either registered or certified mail) why the license or other privilege should not be suspcided or revoked.
The NRC shall allow the debtor no more than 30 days to pay the debt in full, including applicable interes enalties, and administrative costs of collection of the delinquent debt The NRC may suspend or revnke the license or approval at the end of this period.
If a license is revoked under authority of this part, a new application, with appropriate fees, must be made to the NRC. The NRC may not consider an application unless all previous delinquent debts of the debtor to the NRC have been paid in full.
14.
In i 15.31, paragraphs (a) and 4 5 '", revised to read as follows:
l_15.31 Disputed debts.
(a) A debtor who disputes a debt shall explain why the dcht is in-correct 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.
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j (b)
If the debtor's arguments appear to have merit, the NRC may extend the interest waiver period as described in i 15.37 (j) pending a final determination of the existence or amount of the debt.
- 15. Section 15.32 is added to read as follows:
i 15.3? Contractino for collection services.
The NRC may contract for collection services in order to recover delinquent debts. However, the NRC retains the authority to resolve dispues, compromise claims, suspend or teminate collection action, and
itiate enforced collection thnugh lit %ation.
When appropriate, the NRC shall c.ontract for cellection services in accordance with tha guidance and standards contained in 4 CFR 102.6.
16.
In i 15.33, paragraphs (3), (b), and (c) are revised; paragraph (d) is redesignated as paragraph (e) and a new paragraph (d) is added to read as follows:
i 15.33 Collection by administrative offset.
(a) The NRC may edministratively undertake collection by offset on each claim which is liquidated or certain in amount in accordance with e"idance and standards contained in 4 CFR Parts 102.2, 102.3, and 102.4, am o
. S. C. S'; as applicable. The NRC may not initiate admihistrative
- + ebt more than 10 years af tar the Government's right n: rued, unless facts material to the Government's right U
e ti,.c i a. -
N.
it were not known and could not reasonably have been known to the NRC
,,ollection of "approval fees" has been rieferred under 10 CFR
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Part 170.
If the collection of "approval" fees has been defarred, the ten-year period begins to run at the end of the deferral period.
(b) Collection by administrative offset of amounts payable from the 4
Civil Service Retirement and Disability Fund is made pursuant to 4 CFR 102.4andtheprovisionsofparagraph(d)ofthissection.
(c) Salary offset is governed by 5 U.S.C. 5514.
(d) The following procedures apply when the NRC seeks to collect a debt by offset against any payment to be made to a debtor or against the assets of a licensee.
(1) Before the offset is made, the NRC she.li provide the debtor with a written notice of the nature and amount of the debt and-(i) Notice of ths NRC's intention to collect the debt by offset; (ii) An opportunity to inspect and copy NRC records pertaining to 4
the debt; (iii) An opportunity to request reconsideration o" the debt by the NRC or, if provided for by statute, waiver of the debt; (iv) An opportunity to enter into a written agreement with the NRC to repay or pay the debt, as the case may be; (v) An explanation of the debtor's rights under this subpart; and (vi) An opportunity for a hearing when required under'the provisions of 4 CFR Part 102.3(c).
(2)
If the NRC learns that other agencies of the Federal govenunent are holding funds payable to the debtor, the NRC shall provide the other agencies with written certification that the debt is owed to the NRC and that the NRC has complied with the provisions of 4 CFR 102.3. The NRC shall request that funds due the debtor which are necessary to offset the debt to the NRC be transferred to the NRC.
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(3) The NRC may accept a repayment or payment agreement, as appropriate, in lieu of offset, but will do so only after balancing the Government's interest in collecting the debt against fairness to the debtor.
If the debt is delinquent and the debtor has not disputed its existence or amount, the NRC may accept a re,nayment 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 assinst equity and good conscience.
(4) Administrative offset is not authorized with respect to-(i) Debts owed by any State or local government; or 1
(ii) Any case in which collection of the type of debt involved by administrative offset is explicitly provided for or prohibited by another statute.
(5) The NRC reserves the right to take any other action in respect to offset as is pennitted under 4 CFR 102.3.
17.
Section 15.35 is amended by revising paragraphs (a) and (b) to read as follows:
i 15.35 Payments.
a (a) Payment in full.
The NRC shall make every effort to collect a claim in full before it becones delinquent.
If 4 claim is paid in one lump sum after it becomes delinquent, the NRC shall impose charges for interest, penalties, and administrative costs as specified in i 15.37.
(b)Paymentininstallments.
If a debtor furnishes satisfactory evidence of inability to pay a claim in one lump sum, payment in regular d
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installments may be arranged.
Evidence may consist of a financial state-ment or a signed statement that the debtor's application for a loan to enable the debtor to pay the claim in full was rejected.
Except for a claim described at 5 U.S.C. 5514, all installment payment arrangements must be in writing and require the payment of interest.
(1)
Installment note fanns, including confess-judgment notes, may be used. The written ins tallment agreement must contain a provision accelerating th( debt pay, int in the event the debtor defaults.
If the debtor's financial stateme t 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 ou debt and desionates how a voluntary installment payment is to be applied among those debts, the NRC shall follow that designation.
If the debtor does not designate the application of the payment, the NRC shall apply the pay 1nent to the various debts in accordance with the best interests of the United States, as detennined by the facts and circumstances of the particular case.
- 18. Section 15.37 is revised to read as follows:
l 1 15.37 Interest, penalties, and administrative costs..
(a) The NRC shall assess interest, penalties, and administrative costs on debts owed to the United States Government in accordance with 24
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[7590-01]
the guidance provided under the Federal Claims Collection Standards, 4 CFR Part 102.13 unless otherwise directed by statute, regulation, or contract.
(b) Before assessing any charges on delinquent debts, the NR* shall mail or hand-deliver a written notice to the deotor explaining its re-quirements concerning these charges under 4 CFR Parts 102.2 and 102.13.
(c)
Interest begins to accrue from the date on which the initial written demand, advising the debtor of the interest requirements, is first mailed or hand delivered to the deb;or unless a different date is t
specified in a statute, regulation, or contract.
(d) The NRC shall assess interest based upon tha rate of the current talue of funds to the United States Treesury (the Treasury tax and loan account rate) prescribed for the current quarter and published in the Federal Register and the Treasury Financial Manual Bulletins, unless a different rate is prescribed by statute, regulation, or contract.
(e)
Interect is computed only on the principal of the debt and the interest rate remains fixed for the duration of the indebtedness, unless a debtor defaults on a repayment agreement and seeks to enter into a new agreement.
(f) The NRC shall assess against a dabtor charges to cover admin-istrative 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 the delinquency.
(g) The NRC shall assess a penalty charge of 6 percent a year on any portion of a debt that is delinquent for nere than 90 days.
The 25
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[7590-01]
charge occrues retroactively to the date that the debt bevime 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.
(j) The NRC may waive interest during the period a debt disputed undar 6 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 ini:ial 30-day waiver period.
The NRC may grant the additional waiver only when it finds merit 'n the explanation the debtor has submitted under 9 15.31.
(k) The NRC may waive the collection of interest, penalties, and administrative costs if it finds that one or more of the following conditions exist:
(1) The debtor is unable to pay any significant sum toward the debt within a reasonable period of time; (2) Collection of interest, pent.lties, and administrative costs will jeopardize collection of the principal of the debt; (3) The NRC is unable to enforce collection in full within a rea-sonai,1e tim:: by enforced collection proceedings or (4) Collection would be against equity and good conscience or not in the best interests of che United States, includi
- e situation in which an administrative offset or installment payment ag eement is in effect.
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[7590-01]
- 19. Section 15.38 is added to read as follows:
I 15.38 Use of credst reports The NRC may institute a credit investigation of the debtor at any l
time following receipt of knowledge of the claim in order to aid NRC in making appropriate determinations as to --
(a) The collection and compromise of a claim; (b) The collection of interest, penalties, and administrative costs; (c) The use of administrative offset; i
(d) The use af other collection methods; and (c) The likelihood of collecting the claim.
- 20. Section 15.41 is revised to read as follows:
6 15.41 Whe,a claim may be compromised.
The NRC may compromise a claim not in excess of the monetary limitation if it has not been referred to the GAO or to the 00J for i
]
litigation. Only the Comptroller General of the United States or designee may effect the compromise of a claim that arises out of an 1
l exception made by the GAO in the account of an accountable officer, t
including a claim against the payee, prior to its referral by GA0 for litigation.
)
j 21.
Ini15.43, paragraph (b)isamendedbyinsertingacommaafter the word "claimed" by revising paragraphs (c) and (d) and by adding paragraph (e)toreadasfollows:
27
(7590-01]
i 15.43 Reasons for compromising a claim.
(c) The cost of collecting the cidim does not justify the enforced collection of the full amount. The NRC shall apply this reason for compromise in accordance with the guidance in 4 CFR 103.4 (d) The NRC shall determine the debtor's inability to pay, the Government's ability to enforce collection, and the amounts which are acceptable in compromise in accordance with the Federal Claims Collection Standards, 4 CFR Part 103.
(e) Compromises payable in installments are discouraged, but, if~
necessary, must be in the fonn of a legally enforceable agreement for the reinstatement nf the prior indebteoness less sums paid the/ eon. The agreement also must provide that in the event of default--
(1) The entire balance of the debt becomes imediately due and payable; and (2) The Government has the right to enforce any security interest.
j15.45[ Amended) r 22.
In the first sentence of i 15.45, the word "or" is corrected to read "nor."
23.
Section 15.51 is revised to read as follows:
6 15.51 When collection action may be suspended or tenninated.
The NRC may suspend or tenninate collecticn action on a claim not in excess of the monetary limitation, exclusive of interest, penalties, and 28
[7590-01]
administrative costs, after deducting the amount of partial payments, if any, if it has not been referred to the GA0 or to the 00J for litigation.
- 24. Section 15.61 is amended by redesignating paragraph (b) as paragraph (c), revising paragraph (a), and adding new paragraphs (b) and (d)toreadasfollows:
i i 15.61 Prompt referral.
1 l
(a) A claim which requires enforced collection action is referred to I
the GA0 or to the 00J for litigation. A referral is made as early as possible consistent with aggressive collection action and in any event well within the time required to bring a timely suit against the debtor.
Ordinarily, referrals are made within one year of the NRC's final deter-mination of the fact and the amount of the debt.
I (b) When the merits of the NRC's claim, the amount owed on the l
claim, or the propriety of acceptance of a proposed compromise, suspension, or temination of collection actions is in doubt, the NRC shall refer the matter to the GA0 for resolution and instructions prior j
to proceeding with collection action and/or referral to the DOJ for 1
litigation.
(d) Once a claim has been referred to GA0 or to the 00J under this subpart, the NRC thall refrain from havine any coiltact with the debtor l
and shall direct the debtor to GAO or 00J. as appropriate, when questions l
concerning the claim are raised by the debtor. The NRC shall innediately advise GA0 or DOJ, as appropriate, of any payments by the debtor.
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(7590-01]
i 15.63 [ Removed]
- 25. Section 15.63 is removed.
t
- 26. Section 15.67 is amended by redesignating paragraphs (a) and (b) as paragraphs (b) and (c), itspectively, and by adding new paragraphs (a) and (d) to read as follows:
l i 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 Consnercial Litigation Branch, Civil Division.
Department of Justice, Washington, D.C.
20530. Claims for which the gross original amount is $100,000 or less must be referred to the United States Attorney in whose district the debtor can be found.
(d) Claims must be referred to the Department of Justice in the 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)ofthissection, t
d/
4 Dated at Rockville, Maryland, thit4V' yo i
,,,A I M i.1988.
For tne Nuclear Regulatory 'Cossnissinn.
O.G 1sV}AL i
Vi tor SthHo, Jr.
Executive Directo or Operations.
1 30
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