Text

PR-015 - 53FR39480 - Debt Collection Procedures
	ML23156A092
Person / Time
Issue date:	10/07/1988
From:	Taylor J; NRC/EDO
To:	;
References
	PR-015, 53FR39480
	Download: ML23156A092 (1)
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ADAMS Template: SECY-067 DOCUMENT DATE: 10/07/1988 TITLE: PR-015 - 53FR39480 - DEBT COLLECTION PROCEDURES CASE

REFERENCE:

PR-015 53FR39480 KEYWORD: RULEMAKING COMMENTS Document Sensitivity: Non-sensitive - SUNSI Review Complete

PAGE 1 OF 2 STATUS OF RULEMAKING RECORD 1 OF 1 PROPOSED RULE: PR-015 RULE NAME: DEBT COLLECTION PROCEDURES PROPOSED RULE FED REG CITE: 53FR39480 PROPOSED RULE PUBLICATION DATE: 10/07/88 NUMBER OF COMMENTS: 0 ORIGINAL DATE FOR COMMENTS: 11/21/88 EXTENSION DATE: I I FINAL RULE FED. REG. CITE: 55FR32375 FINAL RULE PUBLICATION DATE: 08/09/90 NOTES ON: ED.O~S1§Jl1'::D-PROPOSED RULE. FINAL ACTION UNDETERMINED PER REGULATORY ATUS t ~ A OF 10/89. FINAL RULE PUBLISHED 8/9/90, 55FR32375.

RULE '**: FILE LOCATED ON P-1.

PRESS PAGE DOWN OR ENTER TO SEE RULE HISTORY OR STAFF CONTACT PRESS ESC TO SEE ADDITIONAL RULES, (E) TO EDIT OR (S) TO STOP DISPLAY PAGE 2 OF 2 HISTORY OF THE RULE PART AFFECTED: PR-015 RULE TITLE: DEBT COLLECTION PROCEDURES A>ROPOSED RULE PROPOSED RULE DATE PROPOSED RULE

~ECY PAPER: SRM DATE: I I SIGNED BY SECRETARY: 09/30/88 FINAL RULE FINAL RULE DATE FINAL RULE SECY PAPER: SRM DATE: I I SIGNED BY SECRETARY: 07/27/90 STAFF CONTACTS ON THE RULE CONTACTl: G. JOHNSON MAIL STOP: MNB11104 PHONE: 492-7535 CONTACT2: MAIL STOP:

DOCKET NO. PR-015 (53 FR39480}

In the Matter of DEBT COLLECTION PROCEDURES DATE DATE OF TITLE OR DOCKETED DOCUMENT DESCRIPTION OF DOCUMENT

-10/12/88 09/30/88 FEDERAL REGISTER NOTICE - PROPOSED RULE 08/03/90 07/27/90 FEDERAL REGISTER NOTICE - FINAL RULE 08/03/90 07/27/90 FEDERAL REGISTER NOTICE - FINAL RULE 55 FR 32375, PUBLISHED 8/9/90 l

32375 Rules and Regulations Federal...._,

Vol 55, No. 154 Thul'Nlay. All8Uf,I 8. m11 This WC1iofl of the ~ l . f t ~ - propoeed nde h.1 Nov.ember 2t, 1981. Seclioll 1S.5 CJaims .ilat are o,¥Hl!!II contains regulatory documents having and no comments were f't!CE9ved.

generat applicability and tegal effect. ffl0lll l1te revision to 10 CFR part 15 .

ibis section is revised to note iha1 Ole of which are 11-eyed 1o :and eodifietl 1n establishes procedures tor the NRC to provisions of 10 CFR part 15 w'hicli the -Code of Federa1 Regulatioml. which is or collect. compro1J!1se, terminate apply to civil penaltie9 shaU be 11peclfied published .under 50 Wes pursuant to 44 in 10 CFR 2.205, to note that the u.s.c. 1s10: collection action on t1aims owed 1o 1be United S1ates Government arisi,m from provisions of 10 O'R part 15 do tiot The Code of Federal Regllations * .old by the ~ of Oocumenta. activities under NRC jurisdiction. 'The apply either ao claims between Fed.eail Prices of new books are Aisted in the revision implements the Federal Claims agencies, or to claims once they beceme first FEOERAt.. REGISTER issue of each CoHection Act aa 11rnended by the Deht subject to the salary offset provis1oos al week. Collection Act .and 11upp1ements the 5 U.S.C. 5514, and to explicitly provide amendmenta to the FedeT-a, Claim that fees 'imposed under 10 CFR parts Collection Standards. This revision,

110 and t7111re covered.

Nuct.EAR REGULATORY however, does not implement the nlary COMMISSION SectiOD 15.7 Monetary LirniJ.otiDns i)11 offset provisiomi of the Debt Col1eclion Act. Those pro,,mons will 1,e .

NRC's Authon'ty 10 CFR Part t 5 imp1emented througli the-estab1is1nnen't

The statutory .citation in this .aeolioo is RIN 31.SO-ACl7 oho CFR part 16 whicll itl C1ffl'erlf.ly corrected to read 31 U.S.C. V11{b}.

under development by the Comniissiffll. Paragraph {b) ia modified lo include Debt Collection Procedures In addition this rulema'king doeaffllt "penalties, and <<lminu.tralive cOfltJI" AGENCY: Nuclear Regu]ato17 address the -collection of civil peDBltiea with the exclusion of interest .from 4he Commission. under 10 CFR 2.205. NRC is eomiidering $Z(),OOO limitation on fhe NRC's ACTION: Fmal rule. 111teparate rulemaking action 1o specify

compromise authority.

those provisions of 10 CFR part 15 whicb

SUMMARY

The Nuclear Regulatory apply to civil penalties assessed by NRC Section 15.9 Omissions Not a De~

Commission {NRC) is amending its under10CFR 2.205. This section is modified to include the regulations concerning 1he procedures Section by Section Analyas citation for 1he Federal Claum that the NRC uses to conect the debts Collection 'Standards.

which are owed to it. The amendment w Section 15.1 Application necessary to conform NRC regulations This section is revised to make it dear .!.ec:tion 15.U Subdivision ojClaims to the amended procedures contained 4n that part 15 presa-ibes NR.C prooedures -

the Federal Claims CoDection Standards for collecting. compromising, A cross reference to (he statutory ana

'issued by the General Accounting Office terminating, and referring claims to regulatQJ')' .authority for .this .sectiou .iJI (GAO) and the Department of fustice GAO and DOJ,-and to confum1 toPtiblic added. .

(DOJ). This action is intended to aTiow Law 99-224. Section ~:Zl Written Demands for the NRC to furtlier improve its collection Paragraph (b}{1J ia modified to Payment of debts due the United States. c:onform to the provisions of Pablic Law EFFECTIVE DATE: September 10. 1990.99-224, dated December 28, 1185, whim P.ar.agraph {11)(1) ie modified ito dnclude FOR FURTHER INFORMATION CONTACT: amended 5 U.S.C. 5584, 10 U.S.C. WI notice to the debtors of ,their right to Diane B. Dandois, Chief, License Fee and 32 U.S.C. 716 by authorizing waivers 9eelt rev.iew within the Agency.

and Debt Collection Branch, Office -of of erroneous payments,of travel, Paragraph {,8)(4) ia modified to indicate the Controller, U.S. Nuclear Regulatory tran.sportation and relocation expenses, die date ,of mailing or band delivery 811 Commission, Washington. D C ~ and allowaftCeS. the date on which payment is to be telephone {301} 492-7225. A new paragRiph tb1t2) is added to made under normal drcumstaDOe11.

SUPPLEMENTARY INFORMATION: On . indicate that civil monetary penaltiea -oonsistent with 4 CFR part 102.

February 22, 1982 ( '7 FR 7615), the NRC imposed illlder 10 CFR 2.205 are aubject :Paragraph tans} itl modified 1oindude published a final rule concerning debt to special statutory and .admin.isb:ativ.e *penalties and administrative costsd *

-collection *procedures. 'Since then, the procedures. collection in the demand for .p ayment.

Debt Collection Act of 1982 (Pub. L '91-365} was enacted on October 25, 1982, 5'JctiOJJ Ui.2 DefiAitian11 Minor editorial dumges are ma~ .k> -

which revised the Federal Claims

This new -section is added to provide paragraph (b), including 1he addimm <<

Collection Act of 1966 {31 U.S.C. '3701 et poasiWe reporting of delinquent.debia w definitions for the terms "administrative seq.). On March 9, :1984 .( 49 FR 8889), offset," "claim and debt." "delinquent.'" consumer reporting "'9enciea.

GAO and DOJ issued a final nile "licease," .and "'paymellt in full" as 'fAey :Section 15.25 Pe1'6onol fntervi1rivs amending the Fooera1 Claims CoRection .are used~ .this part end 4 Cf'R pat1s Slandards as set out in 4 CFR parts 101- 101-105. lhia :aection ts modified !a make 105. On October7, 1988 {53 FR 394flQ), personal mtemews diflcl,etionaJY on the the NRC ~btished a proJ)Med ~ Sectiaa LU Co,nmuaioaiions fHd of the NRC under paregr.aph (al based -on the l'eq\rirements <'.6nta.ned ill Tbis *aecUon is remed ~ c:onedull while ma.ilttaininB* 11equirement lo the Federal Oltiime Collectima the Commia*ioa*11 *ddren for grant a liatenr.iew 1o 1he debtor. iif Standaftls. The public was invited'° . <:ommunications ooncemiJ18 the *requeatied., 1fflder paragr.apll {l4 submtt written comment. en the reguia~ ill tOQIR 1J8f\ t5.

32376 Federal Register / Vol. 55, No. 154 / .Thursday. August 9. 1990 / Rules and Regulations Section 15.28 Use of Consumer. application of payments when more payments under a compromise ~fa Reporting Agencies_ than one debt i& involved. If the debtor claim. -

I

A new section is added to provide for

does not, however, designate the application of payments, the NRC will Section 15.45 Restrictions on the the reporting of delinquent debts to

Compromise of a Claim consumer reporting agencies, notifying apply the payments in the best interest debtors of these actions, reporting debt

of_the United States. The opening sentence of this section is status changes*to debtors, and limiting Section 15.37 Interest, Penalties, and changed for clarification purposes only.

the information which the NRC may

Administrative Costs provide to consumer reporting agencies. Section 1$.51 When Collection Action

.This section is changed substantially Moy Be Suspended or Terminated Section 15.29 Suspension or Revocation by revising its title an.d adding the This section is modified lo indicate of License following new paragraphs: the exclusion of interest, penalties, and This section Is modified to correspond Par!lgraph (e) provides thaf the administrative costs from the mcinetary more closely to the terminology used in interest rate on a debt will remain fixed - limitation on when the NRC may 4 CFR parts 101-105. . - :, , _ ..

except under specified circumstances. suspend or terminate collection action.

Section 15.31 Disputed Debts _. **

Paragraph (0 provides that the NRC .

* * . . - - *will assess against the debtor the costs Sectio~ 15.61 Prompt Referral .

This section is modified to correspond of administratively handling a more closely to the terminology used in . .delinquent debt. ..

Paragraph (a) is modified to d_elete the 4 CFR parts 101-105. : .. * :._ . Paragraph (g) codifies the current reference to a private collection agency which is now to be addressed in the Section 15.32 Controciing for Collection *

NRC practice of assessing a penalty new § 15.32 discussed above. A one- -

Services * * *

charge in the amount of 6 percent per

. . , .

aMum on a debt that is delinquent for

year referral requirement is codified for .

This new ~ectton Is added to provide more than 90 days. This charge accrues

NRC action after final determination of for NRC action to co!lect a de~t by from the date that the debt became . the fact and the amount owed to the means of a comm~rc1al collection delinquent. Thus both interest and NRC.

ili~

ag~~t ~~t~or!zed bffh~ CFR 102 6

t:

1 c us1on o 1s new sec 100, init' 1d t penalties are cal~ulated from the same A new paragraph (b) is added to provide for NRC referral to GAO of

§ 15.63 is removed from subpart E of this Pata

a e.h (h) 'd th t t questions concerning acceptance of a art. ragrap prov, es a paymen s P will be applied first to outstanding proposed compromise, suspension, or Section 15.33 Collection by penalty and administrative charges,

termination of collection actions in Administralive Offset then to interest, and finally to the order to obtain GAO's advice on the This section is modified to disclose principal. matter in question. The cun;ent the 10 year limitation on the NRC's Paragraph (i) codifies current NRC . paragraph (b) is redesignated as .

- authority to initiate an administrative** , practice of waiving interest for debts paragraph (c) . .

offset. If the payment of fees to the NRC paid within 30 days of the due date.

A new paragraph (d) is added to is deferred, the ten years will run from . Paragraph (j) codifies current NRC

reflect the fact that once a referral has the end of the deferral period o.r any

practice of waiving interest during the been made to GAO or DOJ, the NRC will other period the NRC subsequently period a disputed debt is under . refrain from .any contact with the debtor .

establishes. investigation.

and will immediately advise GAO or Paragraphs (b)and (c) of this section Paragraph (k) codifies other . DOJ of any payments made by the are changed to make it consistent with circumstances under which interest, debtor.

the provisions in 4 CFR 102.2, 102.3, and

penalties. and administrative costs may 102.4, and 5 U.S.C. 5514. Provisions are be waived.

Section 15.63 Referral of a Claim to added to establish the debtor's Private Agencies for Collection procedural rights, to provide for seeking Section 15.38 Use of Credit Reports

This section is deleted both because offset from other Government agencies . A new section is added to allow NRC of the new § 15.32 which addresses when they have funds due the debtor, to

to institute a credit investigation of a these actions, and because these provide for NRC acceptance of a debtor in order to make appropriate collection actions are not a referral in repayment agreement in lieu of an determinations regarding the collection the truest sense, but rather reflect a offset, and to establish other limitations of a claim. different form of collection action by the on the use of administrative offset in the

NRC using other means.

collection of debts owed the NRC. Section 15.41 When a Claim May Be Compromised

Section 15.67 Referral to the Department

Section 15.35 Payments The opening sentence of this section is offustice .

Language is added to .this section to ch~mged for clarification purposes only.

clarify that charges for Interest. Anew paragraph (a) is added to .

penalties, and administrative costs will

a Claim* Section 15.43 Reasons for Compromising indicate the threshold for determining to

whoin the NRC will refer a claim for be assessed on delinquent payments paid in full in one lump sum. In addition, * . This se.ctlon is modified to bring u* ** , : enforced collection, i.e., DOJ or the language is added to explain how an

into conformity with 4 CFR part 103. appropriate U.S. Attorney. The current

. installment agreement will be instituted .* Paragraph (c) is changed to indicate that paragraphs [a) and (b) are redesignated and applied to a debt. The significant collection costs will be expended in as paragraphs (b) and (c), respectively.

additions are a provision for accelerated accordance with 4 CFR 103.4 rather than A new paragraph (d) is added to payment in the event the debtor defaults as currently stated. Paragraph (d) is indicate that the NRC must make its on an installment agreement and an divided to set out separately in a new referrals in accordance with the indication thiit the NRC will comply paragraph (e) the requirement for an guidance in 4 CFR 105.2, and that

. with the debtor's instructions in the enforceable agreement of installment pertinent evidence will be preserved.

Fedei-al Register/ ve1.'a. No.. Uf / Thtar9day. ~ e. l990 / Re'les end R~llfifflm F"mding oT No Signifteant EnYhonmeptal Impose hackfits .u ,deliaed ia 10 CPJl -f t5.2 Deflnltiona. .

Impact: Availability _ . .- 50."109(a}{1).

.-Administrative.offset means

"-The -Commission has .determined List of 'Subjeclll in 19 CFR Pait '15 withhektins 1DOReJ payab1e hr Ille ender 'the National Env.iroDmental l\11icy United States Government -to, or he1' lp,r Actd1.Sl89, as amended,, sDd the .. . Administrafive prootice aad - lite Govenuneot fw, a ,maoalD-sallf.y Oommi1t!ion'1 ,r,egulation1 i,a-.ubpat.lA proc~DebtOGHedioa.

a,debt the penonowea ttbe u.taed of 10 G'R part 51, ,that .this nile ia ftJt

For the mallOB8 HI -oat 111 Jhe . States Governmeal

major Federa1 action asmficand_r s,reamble and llUder 'the autbor.itJ df6e Claim and debl are med aHectiQH the ,quality 1lf :the llumaa

Atomic Enetgy Act of 1954,aa 1m1ended, 11yaonymousJy and interchansea'blr*

environment .aud :therefore :an the Ener.gy Re~zationAu Gf:UIVl, *the purposes *of this J)8rl. These *terma

environmental statem~ t&.DDt requi,ed. as amended, the Federal Claims refer to money or property wllidi ltas Amending the procedures that the NRC Collection Act of 1966. .as amendeL.and been-determined by an appropriate NRC U1leS lo mllect debts will hne DO . 5 U.S.C. ~ and '553. 1he :NRC .ia :e'fficial to be owed lo 1he United Sta1e1

-radioJQgical envirenme11tal :i mpact

adoptmg the .following amendmeau te . by .any person, organization, tt enftt,J. -

offsite and no impact on t>CGupationat 10 CFR parUS.

except another Federal agency.

radiation exposure onsite. -nae Delinquent. A debt ia consldmia, amendment -does no1 affect PART 15-DEST COLLECTION PROCEDURES delinquent if it has not been paia \,JI 'tlle nonradiological plant efflltelltB ;and has date specified in the initial writtea no other envirollmentaJ mipact. The '1. The aufhorlty ci'ta1ion for part 11 la cemand for payment ur applicable environmental astleSsment and iindiqg *rev.ised to read as fo119ws: -contractual agreement with the NBC of no *ignifteant impact. -0n wliich 1hi9 ,URless other satisfactory-payment determination is eaHd, are available for

Aut1-ky:Seca.181..186.*1itat.Mfl.'861..

-88 amended {42 U.S.C. 2201, 2&36}:~:IOl,al anangementB have been made by 6at .

inspection a1 the NR-C Public Document date. If lhedebtwfailatoutisfy . ..

-Stat. 1242. 88 amendedi42US£.:5841): ~ -

Room. 212.0 L Sb'eet. NW. (Lower Lewel} 3, Pub. L 89-508. 80Stat. 308. as am811deil~

obligations under a payment ~m&lrt Wa&hingteu. DC. . U .s.c. 1J7'1t, 3717, *11&); 1H!'C. 't.11uh. 1..-Tl-aB. with the NRC after other payment Paperwork Reduction Ad Statement , 96 Slat. WZ {St US.C. '311st, eec. 'I, -Pub. L 9- .aJTan.gements liave been made, *'Im! m,ht 808. 80Stat. 308.

amendeditm u.s.c.*sneJ; .becomes a 11e1inquent debt.

This Jina) :rule ,oontains no infonnalion Pub. L.1W.:se5. 11&Sta1.11.a.(11t use. 3'1111- ,

collection requirements and therefON! is . 3719); Federal Claims.collectioll ~ f . License means any 1icen!Ml. pernal1. u .

not :subject to the requirements -of the CFR parts 101*1~

~er approval jasue~ by the *

Paperwork Reduction Act -of 1980!41 Commission.

u.s.c. 3501 et'BBq.j. z. Section 15.1 is -amended 'by-revmna Payment" in full means payment ehhe paragraphs {a):and {b.l{lJ, Tedesigna'tmJ total debt ~ue the United States.

R~toey Analysis _paragraph {b}{2} aa paragraph 1bJtSj. :nd including any interest, penalty, -amt Thls final rule will bring NRC,debt

adding a new-paragr&J>h lb}l2J 'loTead as administrative -c oats of co1Jectian collection procedures intoooaformanoe follows: assened-againat the .deblor.

wilh current statutory :and l'e8ulatorJ § 15.1 Application. .. 4. Section t5;3 is.r1ivised 1o :rea4 aa guidance and requirements and, therefore. does not have significant (a) This part app1ies to daim1 r. ie.e foDows:

1I1Wact-0n state and locai govemmenla payment of debts ~wed 'to fhe United and geographical regions. health, :aafety. States Government in tlte form of aoaey f15.3eornmunlelllloa or property and; ,mless .a different Unless otherwise specified. ~ll

and the *environment nor doea it communications concerning fhe

represent substantial costs to licensee1, procedure is speclfied ln a 1ilalute, regulations in this part should be the NRC, or -0ther Federal .agencies. This regulation, or amtract: prescribes .

procedures by which *the NRC - . *. addressed 1<> the Secretar,y,, U.S. :Nuclear constitutes .the :regulatory ana1yahl wr thisrwe. . . {1) Collects, compromises, suspends,

Regulatory Commission. Wasllin.gton DC and terminates collection actions for 20555, A TI'N: Docke1ing and Service Regulat&ry Flexibi'lity Certilicatioa chums; Br.anch. Communications may be '

ln accordance with &be Regulatoey (2) Determines and collects mterest

~vered .in peJ11011 .to the Commissiml'e Flexibility Act, 5 U.S.C.1W>S{b). the and other,cbargea on clhesedaims;Cld offices located at 11555 Roclcville Pike.

One White Flint North, Rockville, Commission certifies 1hat this nale does {3.) Refers unpaid daims lo the not have a significant economic implld Ma,,.land 20052.

Gener.al Accounting Office ~GAOJ aN!

on a substantial .Dumber of -small the Department of Justice .(OOJ) ior

s. Sectien lM ia amended by reviaiQB entities. Any impact on a small entity

litigation. parc1graph1 ~a)(1J and {b.){1}. remowiQs which might oocurwm result aolely from (b)* ... 1be word ".aod" followins parqraph .

the acls or emissions of the small entit_y *(b)(.l), and b_y .addmg paragr~h* lh)(5) ti) A claim against an enrp1oyee fGr

. cORcemed because of its failure lo pay .a erroneous payment of pay and

and "'1>}t6j to n!ad .ufotlowa:

valid debt .to the NRC. As a teBult.

regulatory flexibility trna1ys.is nu Jlol -allowances 8Ubject to. wai¥er under 5 f'1S.5 Claims that are-eovered.

been prepared.

u.s.c. 5584. .

(2)Ada1m~m&t:anapplican1for.aor . iaJ*** -

Backlit Analysis . a bo14er<<for-.mer11oldervf,11n NRC - .t l)Resu1ts from~tiYities.oflhe;NRC.

._ Jioense mvoMng '1te 1)8YUleftt ,ofd,'R , -

ind.ding fees imposed .u ndm-part :t7V

nie.NRChas.detemiiRed thaUhe

backfitnile, 10CFR 50.109,-deesflO't . * -1>enalties imposed .bythe -~ " 1 . G .~ and J781't '!1~; << .. **

apply .to .this ru1e, and therefoze. !h1t1 .a . .

Cflt'!.205.

. (b.)

. backfit analysis Is not required tot tliis rule because 1hese .amendments&, aot -3. Seclion *1JU]a aclded to read as * (t) A claim wed 411

cwil monetary

. involve any provisions which wou14 followa: ** penalty for violation ef a licensing

32378 Federal Register / Vol. 55, No. 154 / Thursday, August 9, 1990 /*Rules and Regulations requirement unless § 2.205 of this initial written demand letter statement (see § 15.21(b)) to the individual debtor chapter provides otherwise; was mailed or hand delivered, unless

stating-- **

* * *

otherwise specified by contractual (i) That the payment of the debt is (5) A claim between Federal agencies: agreement, established by Federal *

delinquent:

and . statute or regulation. or agreed to under (ii) That, within not less than 60 days (6) A claim once it becomes subject to a payment agreement); . after the date of the notification, the salary offset which is governed by 5 . (5) The applicable standards for NRC 1ntends to disclose to a consumer U.S.~. 5514 assessing interest. penalties, and reporting agency that the individual

6. In § 15.7, the introductory paragraph administrative costs under 4 CFR 102.13; debtor is responsible for the debt; and (b) are revised to read as follows: (6) The applicable policy for reporting (iii) The specific information to be the delinquent debt to consumer disclosed to the consumer reporting

§ 15.7 Monetary llmltaUon on NRC'a reporting agen'<ies. agency;and authority. (b) Unless a debtor is a current NRC (iv) That the debtor has a right to a

The NRC's authority to compromise a . employee, the NRC shall normally send complete explanation of the debt (if that claim, or to tenninate or suspend three progressively stronger written has ~ot already been given), to disputP collection action on a claim covered by demands at not more than 30-day information in NRC records about th ,

these procedures. is limited by 31 U.S.C. intervals, unless circumstances indicate . debt, end to request reconsideration 3711(a) to claims that -

that alternative remedies better protect the debt by administrative appeal o:

* * *

the Government's interest. that the review of the debt.

(b) Do not exceed $20,000, exclusive of debtor has explicitly refused to pay, or (3) The NRC has sent at least one interest, penalties, and administrative that sending a further demand is futile. . written demand by either registered ,

costs (the monetary limitation). Depending upon the circumstances of certified mail with the notification

7. Section 15.9 is amended by revising the particular case, the second and third described in paragraph (a)(2) of this paragraph (a) to read as follows: demands may - section.

* * ' * * (4) The NRC has reconsidered its

§ 15.9 Omissions not a defense. {2) State the amount of the interest initial decision on the debt when th (a) The failure of the NRC to include *and penalties that will be added on a debtor has requested a review und,

in this part any provision of the Federal daily basis as well as the administrative § 15.26(a)(2)(iv).

Claims Collection Standards, 4 CFR costs that will be added to the debt until (5) The NRC has taken reasonabl ,

parts 101-105, does not prevent the NRC the debt is paid; and action to locate a debtor for whom

from applying these provisions. (3) * *

NRC does not have a current addre

* * * * (iii) Possible reporting of the send the notification provided for ir

8. Section 15.13 is revised to read as delinquent debt to consumer reporting paragraph (a)(2) of this section.

follows: agencies in accordance with the (b)lf there is a substantial chang, guidance and standards contained in 4 the condition or amount of the debt. 11

§ 15.13 Subdivision of claim&. CFR 102.5 and the NRC procedures set *

NRC shall-The NRC shall consider a debtor's forth in § 15.26; (1) Promptly disclose that fact(s) t liability arising from a particular * * .. *

each consumer reporting agency to transaction or contract as a single claim 11. In § 15.25, the introductory text of which the original disclosure was n in determining whether the claim is less paragraph (a) is revised to read as (2) Promptly verify or correct than the monetary limitation for the follows: . information about a debt on reque f ptl.rpose of compromising or suspending consumer reporting agency for or terminating collection action. A claim I 15.25 Personal lntervlewL verification of information disclose l*

may not be subdivided to *avoid the . (a) The NRC may seek an interview the NRC: and, monetary limitation established by 31 with the debtor at the offices of the NRC (3) Obtain assurances from the U.S.C. 3711(a)(2) and § 15.7.

9. The heeding of subpart B is revised

when-

.. consumer reporting agency that th e agency is complying with all appl i Federal, state and local laws relat ;,,,

to read as follows: 12. A new § 15.26 is added to read as its use of consumer credit informati r Subpart 8 - Administrative Collectlon follows: {c) The information the NRC disc ofClalms I ~5.26 Use of consumer reporting to the consumer reporting agency i

10. In § 15.21, paragraphs (b)(3)(iii), agencies.

limited to -

(iv), and (v) are redesignated as (a) In addition to assessing interest. (1) Information necessary to establish paragraphs (b)(3)(iv), (v), and (vi), penalties, and administrative costs the identity of the individual debtor, respectively; paragraphs (a)(l), (a)(4), under § 15.37, the NRC may report a including name, address, and taxpayer (a)(5), and (a)L6), the introductory text of debt that has been delinquent for 90 identification number; paragraph (b), and paragraph (b)(2) are days to a consumer reporting agency if (2) The amount, status, and histor _ ,

revised; and a new paragraph (b)(3)(iii) all the conditions of this paragraph are the debt: and is added to read as follows: met. (3) The NRC activity under whi ch the (t) The debtor hes not - debt arose,

§ 15.21 Written demands for payment. (i) Paid or agreed to pay the debt (a}* * * .. *. . 13. Section i5.29 is revised to read a '

under a written payment plan that has follows:

(1) The basis of the indebtedness and been signed by the debtor and agreed to

the right of the debtor to seek review I 15.29 suspension or revocaUon of within the NRC; by the NRC: or . .

(ii) Filed for review of the debt under.

I 15.26 (a)(2)(iv). *. . **

license.

The NR*c may suspend or revoke an :,

(4) The date on which payment is to . (2) The NRC has included a . license or approval which the NRC hi' be made {which is normally the date *the notification in the third written demand granted to the debtor for any

Federal Register / Voi. 55, No. 154 / Thursday, August 9: 1990 i Rules an'd Regulati~ns 32379 inexcusable, prolonged, or repeated

and standards contained in 4 CFR 102.2, the debtor. If the debt is delinquent and failure of the debtor to pay a delinquent 102.3, and 102.4 and 5 U.S.C. 5514, as the debtor has not disputed its existence debt. Before suspending or revoking any applicable. The NRC may not initiate or amount, the NRC may accept a license or approval for failure to pay a administrative* offset to collect a debt repayment or payment agreement in lieu debt, the NRC shall issue to the debtor more than 10 years after the of offset only if the debtor is able to an Order to Show Cause (by either * ' Government's right to the debt fll'St establish under sworn affidavit that registered or certified mail} why the *' * accrued, unless facts material to the offset would result in undue financial license or other privilege should not be' Government's right to collect the debt hardship or would be against equity and suspended or revoked. The NRC shall were not known and could not good conscience.

allow the debtor no more than 30 days reasonably have been known to the (4) Administrative offset is not to pay the debt in full, including NRC or collection of "approval" fees has authorized with respect to -

applicable interest, penalties, and

been deferred under 10 CFR part 170. If (i) Debts owed by any State or local administrative costs of collection of the the collection of "approval" fees has government; delinquent debt. The NRC may suspend been deferred, the ten-year period begins to run at the end of the deferral . (ii) Debts once they become subject to or revoke the license or approval at the the salary offset provisions of 5 U.S.C.

end of this period. If a license Is revoked perio~. . .

under authority of this part, a new (b) Collection by administrative offset 5514;or of amounts payable from the Civil (iii) Any case in which collection of .

application, with appropriate fees, must Service Retirement and Disability Fund, the type of debt involved by be made to the NRC. The NRC may not the Federal Employees Retirement administrative offset is explicitly consider an application unless all System or other similar funds is made provided for or prohibited by another pre";ous delinquent debts of the debtor pursuant to 4 CFR 102.4 and the statute.

to the NRC have been paid in ~-

provisions of paragraph (d) of this (5) The NRC reserves the right to take

14. In § 15.31, paragraphs (a) and (b) section. any other action in respect to offset as is are revised to read as follows: * (c) Salary offset is governed by 5 permitted under 4 CFR 102.3.

I 15.31 Olsputed debt&. u.s.c. 5514. * * * * *

(d) The following procedures apply 17. Section 15.35 is amended by (a) A debtor who disputes a debt shall when the NRC seeks to collect a debt by revising paragraphs (a) and (b) to read explain why the debt is incorrect in fact offset against any payment to be made or in law within 30 days from the date as follows:

to a debtor or against the assets of a that the initial demand letter was mailed licensee. I t 5.35 Payments.

or hand-delivered. The debtor may (1) Before the offset is made, the NRC support the explanation by affidavits, (a) Payment in full. The NRC shall shall provide the debtor with a written make every effort to collect a claim in cancelled checks, or other relevant notice of the nature and amount of the evidence. full before it becomes delinquent. If a debt and- claim is paid in one lump sum after it (b) If the debtor's arguments appear to (i) Notice of the NRC's intent to .

have merit, the NRC may extend the becomes delinquent, the NRC shall collect the debt by offset; impose charges for interest, penalties.

interest waiver period as described in (ii) An opportunity to inspect and

§ 15.37 U) pending a final determination and administrative costs as specified in copy NRC records pertaining to the § 15.37.

of the existence or amount of the debt. debt:

* * * * (iii) An opportunity to request (b) Payment in installments. If a .

15. Section 15.32 is added to read as reconsideration of the debt by the NRC debtor furnishes satisfactory evidence of follows: or, if provided for by statute, waiver of inability to pay a claim in one lump sum, the debt; payment in regular installments may be

§ 15.32 Contracting for collectton (iv) An opportunity to enter into a arranged. Evidence may consist of a Ht'Ylces. financial statement or a signed written agreement with the NRC to The NRC may contract for collection repay or pay the debt, as the case may statement that the debtor's application services in order to recover delinquent be; for a loan to enable the debtor to pay debts. However, the NRC retains the (v) An explanation of the debtor's the claim in full was rejected. Except for authority to resolve disputes, rights under this subpart: and a claim described at 5 U.S.C. 5514, all compromise claims, suspend or (vi) An opportunity for a hearing installment payment arrangements must terminate collection action, and initiate when required under the provisions of 4 be in writing and require the payment of enforced collection through litigation. CFR 102.3(c). . interest, and administrative charges.

When appropriate, the NRC shall (2) If the NRC learns that other (1) Installment note forms, including contract for collection services in agencies of the Federal government are confess-judgment notes, may be used.

accordance with the guidance and holding funds payable to the debtor, the

The written installment agreement must standards contained in 4 CFR 102.6. NRC shall provide the other agencies * *contain a provision accelerating the

16. In § 15.33, paragraphs (a), (b), arid with written certification that the debt is debt payment in the event the debtor (cJ are revised: paragraph (d) is .

owed to the NRC and that the NRC has defaults. If the debtor's financial redesignated as paragraph (e), and a complied with the provisions of 4 CFR statement discloses the ownership of new paragraph (d) is added to read as 102.3. The NRC shall request that funds assets which are free and clear of liens follows: due the debtor which are necessary to or security interests, or assets in which offset the debt to the NRC be transferred the debtor owns an equity, the debtor I 15.33 CoHectlon by adm1mstratlve totheNRC. may be asked to secure the payment of offset. (3) The NRC may accept a repayment - an installment riote by executing a (a) The NRC may administratively or payment agreement, as appropriate, Security Agreement and Financing undertake collection by offset on each in lieu of offset, but will do so only after Statement transferring to the United claim which is liquidated or certain in balancing ~e Government's interest in States a security interest in the assets amount in accordance with the guidance collecting the debt against fairness to until the debt is discharged.

32380 Fetfer3J Reghter* / Val. 55, No-. 154 I Thamay, August 9, 1990 I Rules and Regulations (21 If the debt01' owes more than one fh) Amounts reaived by the NRCM Gener.al of the United States or designe,

debt and designates how a voluntary partial or installment payments Me may effect lhe ce111pmmi6e of a claim installment payment i1r to be appiled applied first to oatsfanding penalty and' that arises out of an exception made b:.

among those debts, tfte NRC shaR follow administrative emit cl'targes, secend' te- the GAIJ in the account of an .

that designation. If the debtor does not accrued interest, and third tu aceountabte*officer, including a cJ., :m designate the application of the- outs landing- prim:ipal. against the payee, prior tie fts referral by payment, the NRC shall apply t4le (i}The NRC shalf waive roDedmn of GAO for liti~.

payment to the various debts in- interest on the debt or any portion of the 21. rn. f 15.43,,. paragraph (bl is accordance with the best interests of the debt which rs paid in fuO within 30 days amended l'>y inserting a comma betw,

United States, as determined by the after the date on which interest began to the words "claimed" and **e11her," h facts and circumstances of lhe particular accnre. revisiog paragraphs fc) and (d}, and l,y I

case. (j) The NRC may waive int~rest during adding,paragrapb (el to read as follows:

the period a debt disputed under § 15-.31

18. Section ts.37 i8 re~sed to. read as is under investigation or review by the § 1-5.43 Reasons for compromising a follows: NRC. However, this additional waiver rs c:lairD..

not automatic and must be requested * * * * *

§ 15.37 Interest, penalties. and before the expiration of the initial 30- (c) 'ffie cost o[ coTiecting the clain .

administrative coats. day waiver period. The NRC may grant does not iustify the enforced collect (a) The NRC shall assess interest, the additional waiver oniy when i1 finds of the-full amount. The NRC shall a; penalties., and administrative costs on merit in the explanation the debtor has this reason for compromise in debts owed to the United States submitted under l 15.:n. accordance with the guidance in 4 (

Government in accordance with the (kl The NRC may waive the collection 103,4.

guidaf!Ce provided under the rederal of interest, penalties, and administrative (d.l The NRC shall determine the Claims Collection Standards. 4 CFR costs if it finds that one 01' more afthe debtor's iuability lo pay, the 102.13 unless otherwise directed by following conditions exist: Government's ability to enforce statute, regulation, or contract. (1} The debtor is unable to pay any collection, and the amounts which ;; *

(bl Before assessing any charges 8fl significant sum toward the debt within a acceptable in compromise in accord .

delinquent debts, the NRC shall mail or reasonable period of time; with the Federal Claims Collection hand-deliver a written notice to the- (2) Collection of interest, penalties, Standards. 4 CFR part 103.

debtor explaining its requirements and administrative costs will jeopardize (le} Compromises payable in concerning these charges under 4 CFR &Ollection of the principal of the debt; installments are discouraged. but. if 102.2 and 11'2.13. : [3l The. NRC is unahle to enforce necessary, must be in the fonn of a (c) Interest begins to accrue from the collection in full wfihin a reasonable legally enforceable agreement for th!

date on which the initial written time by enforced conection proceedings; reinstatement of the prior indebted c demand, advising the def>t01' of the or less sums paid thereon. The agreer ::: :it interest requirements, is first mailed or (41 Correction would (Je against equity also must provide tbatfrt the event of hand delivered to the debtor unless ir and good conscience or not in the \lest def.ault-rnfferent date is specified in a statute, interests of the United States, including (1) The entire balance of the debt regulation, or contract. the situation in which an administrative becomes immediately due and paya' (d) The NRC shall assess interest . offset or installment payment 88feement and based upon the rate of the cutTent value is in effecL (2) The G0vernment has the right t of funds to the United States Treasury 19. Section 15.36 is added to read as enforce any security interest.

(the Treasury tax and loan ll'Ccount rate) follows:

prescribed for the current quarter and § 15.45 lAtMnclecll published in the Federal Register and § 15.38 Use of credit rieporta. 22. In the fitst sentence of § 15.45.

the Treasury Financial Manual Bulletins, The NRC may institute a, cr.eait word **CN!" is cen:ected to read "nor '

unless a different rate is prescribed by investigation of the debtor at any time 23. Section TS.st is revised to re,.

statute, regulation, or contract. following receipt of knowledge of lhe follows:

fel Interest is computed only on the debt in order to aid NRC in making principal of the debt and the interest appropriate determinations as to; § 15.51 Whenc:olleetlon action may br or rate remains fixed for the duration the (a) The collection and compromise of suapendltd or a.rmlnaled.

The NRC may suspend or tennin,. t.

indebtednesS"; unless a debtor defaults

a debt; .

on a repayment agreement and seeks to (b) The collection of interest. collection action on a claim not in enter into a new agreement. penalties. and administrative costs; excess of the moiretaiy limitation.

(f) The NRC shall assess against a (c) The use of administrative offset;. exclushre af interest. penalties, and debtor charges to cover administrative (dl The use of other colledion administrative costs. after deductinr costs incurred as a result of a* delinquent methods: and amount of partial payments, if any, debt. Administrative costs may include or (e) The likeliholld collecting the has not been.referred to GAO or to L cost& incurred in obtaining a credit debL for litigaUoo.

report or in us.ng a private debt 20. Section t5.41 is revised to read as M. Section 15.81 is amended by collector, to the extent they are follows: redesignating paragraph (bl as attributable tn the delinquency. paragraph (cl, re.vising paragraph (a).

fg) The NRC shall asse88 a peRell,y § 15.41 When a claim may be and adding riew parngraphs (b) and (d) charge of & percent a year cm any compromlaect to read as follows:

portion or a debt that ie delinquent for The NRC may compromise a claim not more than 90 days. The charge accrues in excess mt1/2le menetaiy limitation if it f 15.11 Prempt Nferral.

retroactively lo the date that the debt bs not been merred to GAO or to DOJ fa} A claim which requires enforcr 1 became delinquent. for litigation. Only the Comptroller coUection action is rekned to GAO '.,:

1 l

Federal Register / Vol. 55, No. 154 / Thursday, August 9, 1990 / Rules and Regulations 32381 to DOJ for litigation. A referral is made DEPARTMENT OF TRANSPORTATION loss of rudder con l on these as early as possible consistent with airplanes.

aggressive collection action and in any Federal Avia n Administration event well within the time required to Background bring a timely suit against the debtor. The SDR's prior t 1981 led to the Ordinarily, referrals are made within issuance of Piper S 699 and AD 81 one year of the NRC's final 04, Amendment 3 29, which determination of the fact and the specifically applied PA-28RT-201, amount of the debt. Airworthiness lrectlves; Piper Model PA-28RT-201T, PA 4-200, and PA PA-34 Airplane 2001' model airplane The AD required (b) When the merits of the NRC's claim, the amount owed on the claim, or AGENCY: Federal Aviation the replacement of th rudder torque the propriety of acceptance of a Administration ( AA), DOT. tube fitting, if necessa~, with a "like proposed compromise, suspension, or part", that is, an alum um fitting, P/N ACTION: Final rul termination of collection actions is in 96319-00V, after a one time visual doubt, the NRC shall refer the matter to

SUMMARY

This a endment adopts a inspection. The rudder torque tube the GAO for resolution and instructions new Airworthines Directive (ADJ, fittings on the PA-28 mpdel airplanes prior to proceeding with collection applicable to Piper odel PA-34 were to be inspected ini.°ccordance with airplanes, which su ersedes AD 81 SB 699 to determine if lite fittings were action and/ or referral to DOJ for cracked and/or the holes elongated. The litigation. 04, Amendment 3 29, and requires the replacement oft rudder torque fittings were to be reinstalled or

* *

tube fitting in accord ce with Piper replaced with new fittings {P/N 96319-(d) Once a claim has been referred to Service Bulletin tSB) , unless already 00V) an~ properly retorqued. Since that GAO or to DOJ under this subpart, the accomplished. On nu rous PA-34 time, there have not beep any further NRC shall refrain from having any airplanes, the alumin rudder torque occurrences of cracked fittings or contact with the debtor and shall direct tube fitting was found c eked through elongated holes in rudd~r torque tube the debtor to GAO or DOJ, as the attachment holes, an some were fittings on the PA-28 fle~t. Based on the appropriate, when questions concerning found with elongated hol s. This satisfactory service history of this part, the claim are raised by the debtor. The condition may lead to the oss of rudder PA-28's and the requirements of SB 699 NRC shall immediately advise GAO or effectiveness and possible oss of rudder are not included in this AD.

DOJ, as appropriate, of any payments by control. The replacement o the rudder Since 1984, approximately 48 SDR'a the debtor.

torque tube fitting with a st el part will were concerned with PA-34 airplanes, prevent failure of the torque tube fitting and many of those involved the PA § 15.63 [Removed) and possible loss of rudder ntrol. 220T, which was not included either in

25. Section 15.63 is removed. EFFECTIVE DATES: Septembe~.14. 1990.

SB 699 or AD 81-12--04. Piper Aircraft Corporation has subsequently issued SB

26. Section 15.67 is amended by Compliance: As prescribed: in the 899, which requires replacing the redesignating paragraphs (a) and (b) as body of the AD. \ aluminum rudder torque tube fitting on paragraphs (b) and (c), respectively, and ADDRESSES: Piper SB 899, dat,d all PA-34 airplanes, including the model by adding new paragraphs (a) and (d) to February 10, 1989, applicable fp this AD PA-34-220T airplane, with a steel fitting read as follows: may be obtained from Piper Alrcraft . (P /N 96319-802).

Corporation, 2926 Piper Drive, Vero , This AD, which supersedes AD 81 § 15.67 Referral to the Department of Beach, Florida 32960; Telephone (407) 04, requires the replacem '" nt of the Justice. 567-4361, or may be examined at the rudder torque tube fitting ; '1 accordance (a) Claims for which the gross original FAA, Central Region, Office of the with SB 899 for all PA-34--200. PA amount is over $100,000 must be referred Assistant Chief Counsel. Room 1558, 601 200T, and PA-34-220T air~*'

es.

to the Commercial Litigation Branch, East 12th Street, Kansas City, Missouri Compliance will eliminate ._,ess rudder Civil Division, Department of Justice, 64106. '; play and possible loss of\ , dder Washington, DC 20530. Claims for which FOR FURTHER INFORMATION COftrACT: effectiveness or control.

the gross original amount is $100,000 or Dave Cundy, Aerospace Engine~r. Interested persons have: beei. . fforded less must be referred to the United Airframe Branch, Atlanta Aircr4ft an opportunity to commeO:t on the States Attorney in whose district the Certification Office, 1669 Phoen~

proposal. No comments or: objections debtor can be found. Parkway, Suite 210C, Atlanta, Georgia were received on the prop9sal.

30349; Telephone {404) 991-2910.\ Accordingly, the proposalls adopted (d) Claims must be referred to the SUPPLEMENTARY INFORMATION: A\. without change. The FAA as proposal to amend part 39 of the Ifederal Department of Justice in the manner prescribed by 4 CFR 105.2. Care must be Aviation Regulations to include requiring the replacement of the dder j AD determined that this regul .tion involves approximately 2500 ~irpla9es at a one-time cost of approximately ~150 for each taken to preserve all files, records, and torque fitting and attaching hard re on airplane, or a total one-tim~ fleet cost of exhibits on claims referred under PA-34 airplanes in accordance wi $375,000. The cost of complying with the paragraphs (a) and (b) of this section. Piper SB 899 on all Piper PA-34 proposed AD is so small tha,t it will not Dated at Rockville, Maryland, this 27th day airplanes was published in the F have a significant financial ilmpact on of July 1990. Register on February 28, 1990 (55 any small entities owning or\operating For the Nuclear Regulatory Commission. 7004). The proposal was prompte the affected airplanes. The r~ulations James M. Taylor, significant number of Service Dif ulty adopted herein will not have~bstan!i ,, I Executive Director for Operations. Reports (SDR's) pertaining to crac ed direct effects on the States, o the rudder torque tube fittings on PA relationship between the nati al

[FR Doc. 90-18511 Filed 8-8-90; 8:45 am) airplanes. This condition may res It in a government and the States, or on :

BIWNG COO£ 751CMJ1-0 loss of rudder effectiveness or possible distribution of power and

DOCKET NUMBER PROPOSED RULE p /5 [7590-01]

,' '. -*:~:.

(.SB,F,e 391,~o) JC I\L:i.. i.:

~.u o/ to Secy~- ..*.:: US Nf C c* ;y\?ol :::f.;:t to thG >..,.

NUCLEAR REGULATORY COMMISSION *90 AUG-3 P2 :35 10 CFR PART 15 RIN 3150-AC87 Debt Collection Procedures AGENCY : Nuclear Regulatory Commission.

ACTION: Final rule.

SUMMARY

T.he Naclear Regulatory Commission (NRC) is amending its regulations

- t0ncerning the procedures that the NRC uses to collect the debts which are owed to it. The amendment is necessary to conform NRC regulations to the amended procedures contained in the Federal Claims Collection Standards issued by the General Accounting Office (GAO) and the Department of Justice (DOJ). This action is intended to allow the NRC to further improve its collection of debts due the United States.

F.FFECl'IVE DATE: (30 days after publication)

FOR FURTHER INFORHATION CONTACT: Diane B. Dandois, Chief, License Fee and Debt Collection Branch, Office of the Controller, U.S. Nuclear Regu.lat.ory Commission, Washington, DC 20555, telephone (301) 492-7225.

SUPPLEMENTARY INFORMATION: On February 22, 1982 (47 FR 7615), the NRC published a final rule concerning debt collection procedures. Since then, the Debt Col-lection Act of 1982 (Pub. L.97-365) was enacted on October 25, 1982, which revised the Federal Claims Collection Act of 1966 (31 U.S.C. 3701 et seq.). On March 9, 1984 (49 FR 8889), GAO and DOJ issued a final rule amending the Federal Claims Collection Standards as set out in 4 CFR Parts 101-105. On October 7, 1

I Cui t1t111r Stat,scic

_)ate _ -_ _ _ __

IP.Ceived I

eoroducer' J 1

t. R1D-5,; PtJl(J_)

-.* .. , ~

.J * ,

[7590-01]

1988 (53 FR 39480), the NRC published a proposed rule based on the requirements contained in the Federal Claims Collection Standards . The public was invited to submit written comments on the proposed rule by November 21, 1988, and no comments were received.

The revision to 10 CFR Part 15 establishes procedures for the NRC to col-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 Debt Collection Act and supplements the amendments to the Federal Claims Collection Standards.

This revision, however, does not implement the salary offset provisions of the Debt Collection Act. Those provisions will be implemented through the estab-lishment of 10 CFR Part 16 which is currently under development by the Commission.

In addition this rulemaking does not address the collection of civil penalties under 10 CFR 2.205. NRC is considering a separate rulemaking action to specify those provisions of 10 CFR Part 15 which apply to civil penalties assessed by NRC under 10 CFR 2.205.

Section by Section Analysis Section IS.I Application.

This section is revised to make it clear that Part 15 prescribes NRC procedures for collecting, compromising, terminating, and referring claims to GAO and DOJ, and to conform to Pub. L.99-224.

2

[7590-01]

Paragraph (b)(l) is modified to conform to the provisions of Pub. L.99-224, dated December 28, 1985, which amended 5 U.S.C. 5584, 10 U.S.C. 2774 and 32 U.S.C.

716 by authorizing waivers of erroneous payments of travel, transportation and relocation expenses, and allowances.

A new paragraph (b)(2) is added to indicate that civil monetary penalties imposed under 10 CFR 2.205 are subject to special statutory and administrative procedures.

Section 15.2 Definitions.

This new section is added to provide definitions for the terms "administra-tive offset," "claim and debt," "delinquent," "license," and "payment in full" as they are used in this part and 4 CFR Parts 101-105.

Section 15.3 Communications.

This section is revised by correcting the Commission's address for communi-cations concerning the regulations in 10 CFR Part 15.

Section 15.5 Claims that are covered.

This section is 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 either to claims between Federal agencies, or to claims once they become subject to the salary offset provisions of 5 U.S.C. 5514, and to explicitly provide that fees imposed under 10 CFR Parts 170 and 171 are covered.

3

[7590-01]

Section 15.7 Monetary limitations on NRC's authority.

The statutory citation in this section is corrected to read 31 U.S.C.

37ll(b). Paragraph (b) is modified to include "penalties, and administrative costs" with the exclusion of interest from the $20,000 limitation on the NRC's compromise authority.

Section 15.9 Omissions not a defense.

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

Section 15.13 Subdivision of claims.

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

Section 15.21 Written demands for payment.

Paragraph (a)(l) is modified to include notice to the debtors of their right to seek review within the Agency. Paragraph (a)(4) is modified to indicate the

- date of mailing or hand delivery as the date on which payment is to be made under normal circumstances, consistent with 4 CFR Part 102. Paragraph (a)(5) is modi-fied 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.

4

[7590-01)

Section 15.25 Personal interviews.

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

Section 15.26 Use of consumer reporting agencies.

A new section is added to provide for the reporting of delinquent debts to consumer reporting agencies, notifying debtors of these actions, reporting debt status changes to debtors, and limiting the information which the NRC may provide to consumer reporting agencies.

Section 15.29 Suspension or revocation of license.

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

Section 15.31 Disputed debts.

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

Section 15.32 Contracting for collection services.

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.

5

[7590-01)

With the inclusion of this new section, § 15.63 is removed from Subpart E of this part.

Section 15.33 Collection by administrative offset.

This section is modified to disclose the 10 year limitation on the NRC's authority to initiate an administrative offset. If the payment of fees to the NRC is deferred, the ten years will run from the end of the deferral period or any other period the NRC subsequently establishes.

Paragraphs (b) and (c) of this section are changed to make it consistent with the provisions in 4 CFR 102.2, 102.3, and 102.4, and 5 U.S.C. 5514. Provi-sions are added to establish the debtor's procedural rights, to provide for seeking offset from other Government agencies when they have funds due the debtor, to provide for NRC acceptance of a repayment agreement in lieu of an offset, and to establish other limitations on the use of administrative offset in the collection of debts owed the NRC.

Section 15.35 Payments.

Language is added to this section to clarify that charges for interest, penalties, and administrative costs will be assessed on delinquent payments paid in full in one lump sum. In addition, language is added to explain how an installment agreement will be instituted and applied to a debt. The signi-ficant additions are a provision for accelerated payment in the event the debtor defaults on an installment agreement and an indication that the NRC will comply with the debtor's instructions in the application of payments when more 6

[7590-01]

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.

Section 15.37 Interest, penalties, and administrative costs.

This section is changed substantially by revising its title and adding the following new paragraphs:

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

Paragraph (f) provides that the NRC will assess against the debtor the costs of administratively handling a delinquent debt.

Paragraph (g) codifies the current NRC practice of assessing a penalty charge in the amount of 6 percent per annum on a debt that is 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

- penalty and administrative charges, then to interest, and finally to the principal.

Paragraph (i) codifies current NRC practice of waiving interest for debts paid within 30 days of the due date.

Paragraph (j) codifies current 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.

7

[7590-01)

Section 15.38 Use of credit reports.

A new section is added to allow NRC to institute a credit investigation of a debtor in order to make appropriate determinations regarding the collection of a claim.

Section 15.41 When a claim may be compromised.

The opening sentence of this section is changed for clarification purposes only.

Section 15.43 Reasons for compromising a claim.

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

Paragraph (c) is changed to indicate that collection costs will be expended in accordance with 4 CFR 103.4 rather than as currently stated. Paragraph (d) is divided to set out separately in a new paragraph (e) the requirement for an enforceable agreement of installment payments under a compromise of a claim.

Section 15.45 Restrictions on the compromise of a claim.

The opening sentence of this section is changed for clarification purposes only.

Section 15.51 When collection action may be suspended or terminated.

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

Section 15.61 Prompt referral.

Paragraph (a) is modified to delete the reference to a private collection agency which is now to be addressed in the new§ 15.32 discussed 8

[7590-01]

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

A new paragraph (b) is added to provide for NRC referral to GAO of questions concerning acceptance of a proposed compromise, suspension, or termination of collection actions in order to obtain GAO's advice on the matter in question.

The current paragraph (b) is redesignated as paragraph (c).

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

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

This section is deleted both because of the new §15.32 which addresses these actions, and because these collection actions are not a referral in the truest sense, but rather reflect a different form of collection action by the NRC using other means.

Section 15 . 67 Referral to the Department of Justice.

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

A new paragraph (d) is added to indicate that the NRC must make its referrals in accordance with the guidance in 4 CFR 105.2, and that pertinent evidence will be preserved.

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Finding of No Significant Environmental Impact: Availability The Commission has determined under the National Environmental Policy Act of 1969, as amended, and the Commission's regulations in Subpart A of 10 CFR Part 51, that this rule is not a major Federal action significantly affecting the quality of the human environment and therefore an environmental statement is not required. Amending the procedures that the NRC uses to collect debts will have no radiological environmental impact offsite and no impact on occupational radiation exposure onsite. The amendment does not affect nonradiological plant effluents and has no other environmental impact. The environmental assessment and finding of no significant impact, on which this determination is based, are available for inspection at the NRC Public Document Room, 2120 L Street, NW (Lower Level) Washington, DC.

Paperwork Reduction Act Statement This final rule contains no information collection requirements and

- therefore is not subject to the requirements of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Regulatory Analysis This final rule will bring NRC debt collection procedures into conformance with current statutory and regulatory guidance and requirements and, therefore, does not have significant impact on state and local governments and geographical regions, health, safety, and the environment; nor does it represent substantial costs to licensees, the NRC, or other Federal agencies. This constitutes the regulatory analysis for this rule.

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Regulatory Flexibility Certification In accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Commission certifies that this rule does not have a significant economic impact on a substantial number of small entities. Any impact on a small entity which might occur will result solely from the acts or omissions of the small entity concerned because of its failure to pay a valid debt to the NRC. As a result, a regulatory flexibility analysis has not been prepared .

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

List of Subjects in 10 CFR Part 15 Administrative practice and procedure, Debt collection.

For the reasons set out in the preamble and under the 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

1. The authority citation for Part 15 is revised to read as follows:

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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.97-258, 96 Stat. 972 (31 U.S.C. 3713); sec. 5, Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3716); Pub. L.97-365, 96 Stat. 1749 (31 U.S.C. 3701-3719);

Federal Claims Collection Standards, 4 CFR Parts 101-105.

2. Section 15.1 is amended by revising paragraphs (a) and (b)(l), redes-ignating paragraph (b)(2) as paragraph (b)(3), and adding a new paragraph (b)(2) to read as follows:

§ 15.1 Application.

(a) This part applies to claims for the payment of debts owed to the United States Government in the form of money or property and; unless a differ-ent procedure is specified in a statute, regulation, or contract; prescribes procedures by which the NRC --

(1) Collects, compromises, suspends, and terminates collection actions for

- claims; (2) Detennines and collects interest and other charges on these claims; and (3) Refers unpaid claims to the General Accounting Office (GAO) and the Department of Justice (DOJ) 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.

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(2) A claim against an applicant for, or a holder or former holder of, an NRC license involving the payment of civil penalties imposed by the NRC under 10 CFR 2. 205.

3. Section 15.2 is added to read as follows:

§ 15.2 Definitions.

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

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

A debt is considered delinquent if it has not been paid by the date spe-cified in the initial written demand for payment or applicable contractual agreement with the NRC unless other satisfactory payment arrangements have been made by that date. If the debtor fails to satisfy obligations under a payment agreement with the NRC after other payment arrangements have been made, the debt becomes a delinquent debt.

License means any license, permit, or other approYal issued by the Commission.

Payment i.n full means payment of the total debt due the United States, including any interest, penalty, and administrative costs of collection assessed against the debtor.

4. Section 15.3 is revised to read as follows:

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§ 15.3 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 Commission's offices located at 11555 Rockville Pike, One White Flint North, Rockville, Maryland 20852.

5. Section 15.5 is amended by revising paragraphs (a)(l) and (b)(l),

removing the word "and" following paragraph (b)(3), and by adding paragraphs (b)(5) and (b)(6) to read as follows:

§ 15.5 Claims that are covered.

(a) -:,

(1) Results from activities of the NRC, including fees imposed under Part 170 and Part 171; or i'\ -;, --:, --:,

(b) *k -k **k

- (1) A claim based on a civil monetary penalty for violation of a licensing requirement unless § 2.205 of this chapter provides otherwise; (5) A claim between Federal agencies; and (6) A claim once it becomes subject to salary offset which is governed by 5 u.s.c. 5514

6. In§ 15.7, the introductory paragraph and (b) are revised to read as follows:

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§ 15.7 Monetary limitation on NRC's authority.

The NRC's authority to compromise a claim, or to terminate or suspend collection action on a claim covered by these procedures, is limited by 31 U.S.C. 37ll(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:

§ 15.9 Omissions not a defense.

(a) The failure of the NRC to include in this part any provision of the Federal Claims Collection Standards, 4 CFR Parts 101-105, does not prevent the NRC from applying these provisions.

8. Section 15.13 is revised to read as follows:

§ 15.13 Subdivision of claims.

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

§15.7.

9. The heading of Subpart Bis revised to read as follows:

Subpart B -- Administrative Collection of Claims 15

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10. In§ 15.21, paragraphs (b)(3)(iii), (iv), and (v) are redesig-nated as paragraphs (b)(3)(iv), (v), and (vi), respectively; paragraphs (a)(l), (a)(4), (a)(5), and (a)(6), the introductory text of paragraph (b), and paragraph (b)(2) are revised; and a new paragraph (b)(3)(iii) is added to read as follows:

§ 15.21 Written demands for payment.

(1) The basis of the indebtedness and the right of the debtor to seek review within the NRC; (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 . 13; (6) The applicable policy for reporting the delinquent debt to consumer reporting .agencies.

(b) Unless a debtor is a current NRC eaployee, 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--

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

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

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

§ 15.25 Personal interviews.

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

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

§ 15.26 Use of consumer reporting agencies.

(a) In addition to assessing interest, penalties, and administrative costs under§ 15.37, the NRC may report a debt that has been delinquent for 90 days to a consumer reporting agency if all the conditions of this paragraph are met.

(1) The debtor has not--

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

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(2) The NRC has included a notification in the third written demand (see§ 15.2l(b)) to the individual debtor stating--

Ci) That the payment of the debt is delinquent; (ii) That, within not less than 60 days after the date of the notifica-tion, the NRC intends to disclose to a consumer reporting agency that the individual debtor is responsible for the debt; (iii) The specific information to be disclosed to the consumer reporting 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 certified mail with the notification described in paragraph (a)(2) of this section.

(4) The NRC has reconsidered its initial decision on the debt when the debtor has requested a review under§ 15.26(a)(2)(iv).

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

(b) If there is a substantial change in th~ 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, 18

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(3) Obtain assurances from the consumer reporting agency that the agency is complying with all applicable Federal, state and local laws relating to its use of consumer credit information.

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

(1) Information necessary to establish the identity of the individual debtor, including name, address, and taxpayer identification number; (2) The amount, status, and history of the debt; and (3) The NRC activity under which the debt arose.

13. Section 15.29 is revised to read as follows:

§ 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 failure 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 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 say 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 have been paid in full.

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

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§ 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.

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

15. Section 15.32 is added to read as follows:

§ 15.32 Contracting for collection services.

The NRC may contract for collection services in order to recover delinquent debts. However, the NRC retains the authority to resolve disputes, compromise claims, suspend or terminate collection action, and initiate enforced collection through litigation. When appropriate, the NRC shall contract for collection services in accordance with the guidance and standards contained in 4 CFR 102.6.

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

§ 15.33 Collection by administrative offset.

(a) The NRC may administratively undertake collection by offset on each claim which is liquidated or certain in amount in accordance with the guidance and standards contained in 4 CFR 102.2, 102.3, and 102.4 and 5 U.S.C. 5514, 20

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as applicable. The NRC may not initiate administrative offset to collect a debt more than 10 years after the Government's right to the debt first accrued, unless facts material to the Government's right to collect the debt were not known and could not reasonably have been known to the 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.

(b) Collection by administrative offset of amounts payable from the Civil

- Service Retirement and Disability Fund, the Federal Employees Retirement System or other similar funds is made pursuant to 4 CFR 102.4 and the provisions of paragraph (d) of this section.

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

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

(1) Before the offset is made, the NRC shall provide the debtor with a written notice of the nature and amount of the debt and--

(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; (v) An explanation of the debtor's rights under this subpart; and (vi) An opportunity for a hearing when required under the provisions of 4 CFR 102.3(c).

(2) If the NRC learns that other agencies of the Federal government are holding funds payable to the debtor, the NRC shall provide the other agencies 21

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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.

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

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(b) Payment in installments. If a debtor furnishes satisfactory evidence of inability to pay a claim in one lump sum, payment in regular installments may be arranged. Evidence may consist of a financial statement or a signed state-ment that the debtor's application for a loan to enable the debtor to pay the claim in full was rejected. Except for a claim described at 5 U.S.C. 5514, all installment payment arrangements must be in writing and require the payment of 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 that designation. If the debtor does not designate the application of the payment, the NRC shall apply the payment to the various debts in accordance with the best interests of the United States, as determined by the facts and circumstances of the particular case.

18. Section 15.37 is revised to read as follows:

§ 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 the guidance 23

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provided under the Federal Claims Collection Standards, 4 CFR 102.13 unless otherwise directed by statute, regulation, or contract.

(b) Before assessing any charges on delinquent debts, the NRC shall mail or hand-deliver a written notice to the debtor explaining its requirements concerning these charges under 4 CFR 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 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 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 to the delinquency.

(g) The NRC shall assess a penalty charge of 6 percent a year on any por-tion of a debt that is delinquent for more than 90 days. The charge accrues retroactively to the date 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.

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(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 under

§ 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 nerit in the explanation the debtor has submitted under § 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; (2) Collection of interest, penalties, and administrative costs will jeopardize collection of the principal of the debt; (3) The NRC is unable to enforce collection in full within a reasonable time by enforced collection proceedings; or (4) Collection would be against equity and good conscience or not in the best interests of the United States, including the situation in which an admin-istrative offset or installment payment agreement is in effect.

19. Section 15.38 is added to read as follows:

§ 15.38 Use of credit reports.

The NRC may institute a credit investigation of the debtor at any time fol-lowing receipt of knowledge of the debt in order to aid NRC in making appropriate determinations as to:

(a) The collection and compromise of a debt; (b) The collection of interest, penalties, and administrative costs; 25

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(c) The use of administrative offset; (d) The use of other collection methods; and (e) The likelihood of collecting the debt.

20. Section 15.41 is revised to read as follows:

§ 15.41 When a claim may be compromised.

The NRC may compromise a claim not in excess of the monetary limitation

- if it has not been referred to GAO or to DOJ for litigation. Only the Comptrol-ler General of the United States or designee may effect the compromise of a claim that arises out of an exception made by the GAO in the account of an accountable officer, including a claim against the payee, prior to its referral by GAO for litigation.

21. In§ 15.43, paragraph (b) is amended by inserting a comma between the words "claimed" and "either," by revising paragraphs (c) and (d), and by adding paragraph (e) to read as follows:

§ 15.43 Reasons for compromising a claim.

(c) The cost of collecting the claim does not justify the enforced collec-tion 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 form of a legally enforceable agreement for the reinstatement of 26

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the prior indebtedness less sums paid thereon. The agreement also must provide that in the event of default--

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

§ 15.45 [Amended]

22. In the first sentence of§ 15.45, the word "or" is corrected to read

"nor."

23. Section 15.51 is revised to read as follows:

§ 15.51 When collection action may be suspended or terminated.

The NRC may suspend or terminate collection action on a claim not in excess of the monetary limitation, exclusive of interest, penalties, and administrative costs, after deducting the amount of partial payments, if any, if it has not been referred to GAO or to DOJ for litigation.

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

§ 15.61 Prompt referral.

(a) A claim which requires enforced collection action is referred to GAO or to DOJ for litigation. A referral is made as early as possible consistent with aggressive collection action and in any event well within the time required 27

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to bring a timely suit against the debtor. Ordinarily, referrals are made 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 of collection actions is in doubt, the NRC shall refer the matter to the GAO for resolution and instructions prior to proceeding with collection action and/or referral to DOJ for litigation.

(d) Once a claim has been referred to GAO or to DOJ under this subpart, the NRC shall refrain from having any contact with the debtor and shall direct the debtor to GAO or DOJ, as appropriate, when questions concerning the claim are raised by the debtor. The NRC shall immediately advise GAO or DOJ, as appropriate, of any payments by the debtor.

§ 15.63 [Removed]

25. Section 15.63 is removed.

26. Section 15.67 is a1Dended by redesignating paragraphs (a) and (b) as paragraphs (b) and (c), respectively, and by adding new paragraphs (a) and (d) to read as follows:

§ 15.67 Referral to the Department of Justice.

(a) Claims for which the gross original amount is over $100,000 must be referred to the Commercial Litigation Branch, Civil Division, Department of Justice, Washington, DC 20530. Claims for which the 28

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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 (b) of this section.

Dated at Rockville, Maryland, this ~7 day of-,,,,"!~~~' 1990 .

For the Nuclear Regulator for Operations.

29

.* COPY to Secy-

, Orig\na\ fsethnte :!:a\ Register [7590-01]

Office o tor publication ooc *n m usmc

sa OCT 12 A10 :13 NUCLEAR REGULATORY COMMISSION 10 CFR Pa rt 15 Debt Collection Procedures oocnET NUMBER PR _

PROPOSE~_u~E b

(§_}F~39~cf0 AGENCY: Nuclear Regulatory Conmission

SUMMARY

The Nuclear Regulatory Conmission (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

... .{~~l Offi~f -* the Department of Justice {DOJ). The proposed action is intended to allow the NRC to further improve its collection of debts due the United States.

DATE: Submit comments by(45 days after publicatioq}l988. ColTITlents re-ceived after this date will be considered if it is practical to do so, but the Conmission is able to assure consideration only for conments re-ceived on or before this date.

ADDRESSES: Send conments to: Secretary, U.S. Nuclear Regulatory Co111T1is-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

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f Hand deliver corrments to: 11555 Rockville Pike, One White Flint North, Rockville, Maryland, between 7:45 am and 4:15 pm.

Examine colTITlents 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 Manage-ment, U.S *. Nuclear Regulatory Conrnission, Washington, DC 20555, telephone (301) 492-7535.

SUPPLEMENTARY INFORMATION: On February 22, 1982 (47 FR 7615), the Nuclear Regulatory Corrmissfon (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, 1982 which revised the Federal Claims Collection Act of 1966 (31 U.S.C. 3701 et seq.). On March 9, 1984 (49 FR 8889), the General Accounting Office and the 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 procedures for the Nuclear Regulatory CoR111ission to collect, compromise, or tenninate 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 NRC under 10 CFR 2.205.

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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)(l) is being modified to conform to the provisions of Pub. L.99-224, dated December 28, 1985, which amended 5 U.S.C. 5584, 10 U.S.C. 2774 and 32 U.S.C. 716 by authorizing waivers of erroneous payments of travel, transportation and relocation expenses and a11 owances.

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.

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 Conmunications.

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

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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. 37ll(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.

Paragraph (a)(l) 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 circumstances, consistent with 4 CFR Part 102. Paragraph (a)(5) is being modified to include penalties and administrative costs of collection in the demand for payment.

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Minor editorial changes are made to paragraph {b), including the addition of possible reporting of delinquent debt to consumer reporting 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, under paragraph {b}.

Section 15.26 Use of consumer reporting agencies.

A new section is being added to provide for the reporting of delin-quent debts to consumer reporting agencies, notifying debtors of these actions, reporting debt status changes to debtors, and limiting the in-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 tenninology 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 co111T1ercial collection agency, as authorized by 4 CFR 5

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102.6. With the inclusion of this new section,§ 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 provisions in 4 CFR Parts 102.2, 102.3, and 102.4 and 5 U.S.C. 5514. Provisions are added to establish the debtor's procedural rights, to provide for seeking offset from other Government 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 debts 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 installment agreement and an indication that the NRC will comply with the debtor's instructions in the application of payments when more than one debt is involved. However, if the debtor does designate the application of 6

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

Section 15.37 Interest, penalties, and administrative costs.

This section is changed substantially by revising its title and adding the following new paragraphs:

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

Paragraph (f) provides that the NRC will assess against the debtor the costs of administratively handling a delinquent debt.

Paragraph (g) codifies the current NRC practice of assessing a penalty charge in the amount of 6 percent per annum on a debt that is 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 penalty and administrative charges, then to interest, and finally to the principal.

Paragraph (i) codifies current NRC practice of waiving interest for debts paid within 30 days of the due date.

Paragraph (j) codifies current 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 detenninations regarding the collection of a claim.

Section 15.41 When a claim may be compromised.

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

Section 15.43 Reasons for 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 section is being changed for clarifica-tion purposes only.

Section 15.51 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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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§ 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 GAO of questions concerning acceptance of a proposed compromise, suspension, or termination of collection actions in order to obtain GAO's advice on the matter in question. The current paragraph (b) 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 OOJ, the NRC will refrain from any contact with the debtor and will irmrediately advise GAO or the DOJ of any payments 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 §15.32 which addresses these actions, and because these collection actions are not a referral in the truest sense, but rather reflect a different fonn of col-lection action by the NRC using other means.

Section 15.67 Referral to the Department of Justice.

A new paragraph {a) is being added to indicate the threshold for determining to whom the NRC will refer a claim for enforced collection, i.e., the DOJ 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 Commission has determined, under the National Environmental Policy Act of 1969, as amended, and the Co1m1ission'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 Co1T111ission 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 determination is based are available for inspection at the NRC Public Document Room, 2120 L Street NW, lower level, Washington, DC.

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

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Regulatory Analysis This proposed rule will bring NRC debt collection procedures into conformance 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 In accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b),

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

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

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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 Enerqy 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 PROCEDURES

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

AUTHORITY: Secs. 161, 186, 68 Stat. 948, 955, as amended (42 U.S.C. 2201, 2236); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841);

sec. 3, Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3711, 3717, 3718); sec. 1, Pub. L.97-258, 96 Stat. 972 (31 U.S.C. 3713); sec. 5, Pub. L.89-508, 80 Stat. 308, as amended (31 U.S.C. 3716); Pub. L.97-365, 96 Stat. 1749 (31 U.S.C. 3701-3719); Federal Claims Collection Standards, 4 CFR Parts 101-105.

2. Section 15.1 is amended by revising paragraphs (a) and (b)(l),

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

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§ 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) Determines and collects interest and other charges on these claims; and (3) Refers unpaid claims to the General Accounting Office and the Department of Justice for litigation.

(b) * * *

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

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

3. Section 15.2 is added to read as follows:

§ 15.2 Definitions.

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

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

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

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

"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 conmunications concerning the regu-

.lations in this part should be addressed to the Secretary, U.S. Nuclear Regulatory Conmission, Washington DC 20555, ATTN: Docketinq and Service Branch. Communications may be delivered in person at the Corrmission'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)(l) and (b)(l) and by adding paragraph (b)(5) to read as follows:

§ 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§ 2.205 of this chapter provides otherwise.

(5) Claims between Federal agencies.

6. In§ 15.7, the introductory paragraph and (b) are revised to read as fo 11 ows:

§ 15.7 Monetary limitation on NRC's authority.

The NRC's authority to compromise a claim or to tenninate or suspend 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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§ 15.9 Omissions not a defense.

(a) The failure of the NRC to include in this part any provision of the Federal Claims Collection Standards, 4 CFR Parts 101-105, does not prevent the NRC from applying these provisions.

8. Section 15.13 is revised to read as follows:

§ 15.13 Subdivision of claims.

The NRC shall consider a debtor's liability arising from a particular transaction or contract as a sinale claim in detennininq whether the claim is less than the monetary limitation for the purpose of compromising or suspending or terminating collection action. A claim may not be subdivided to avoid the monetary limitation established by 31 U.S.C. 3711(a)(2) and §15.7.

9. The heading of Subpart Bis revised to read as follows:

Subpart B -- Administrative Collection of Claims

10. In§ 15.21, paragraphs (b)(3)(iii), (iv), and (v) are redesig-nated as paragraphs (b)(3)(iv), (v), and (vi), respectively; paragraphs (a){l), {a)(4), (a)(5), and (a){6), the introductory text of paragraph

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

§ 15.21 Written demands for payment.

(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 payment agreement);

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

(6) The applicable policy for reporting the delinquent debt to consumer reporting agencies.

(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§ 15.26; 17

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

§ 15.25 Personal interviews.

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

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

§ 15.26 Use of consumer reporting agencies.

(a) In addition to assessing interest, penalties and administrative costs under§ 15.37, the NRC may report a debt that has been delinquent for 90 days to a consumer reporting agency if all the conditions of this paragraph are met.

(1) The debtor has not--

(i) Paid or agreed to pay the debt under a written payment plan

- that has been signed by the debtor and agreed to by the NRC; or (ii) Filed for review of the debt under§ 15.26 (a)(2)(iv).

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

(i) That the payment of the debt is delinquent; (ii) That, within not less than 60 days after the date of the 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 18

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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 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§ 15.26(a)(2){iv).

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

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

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

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

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(3) The NRC activity under which the debt arose.

13. Section 15.29 is revised to read as follows:

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

§ 15.31 Disputed debts.

(a) A debtor who disputes a debt shall explain why the debt 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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(b) If the debtor's arguments appear to have merit, the NRC may extend the interest waiver period as described in§ 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:

§ 15.32 Contractina for collection services.

The NRC may contract for collection services in order to recover delinquent debts. However, the NRC retains the authority to resolve disputes, compromise claims, suspend or terminate collection action, and initiate enforced collection through litigation. When appropriate, the NRC shall contract for collection services in accordance with the guidance and standards contained in 4 CFR 102.6.

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

§ 15.33 Collection by administrative offset.

(a) The NRC may administratively undertake collection by offset on each claim which is liquidated or certain in amount in accordance with the guidance and standards contained in 4 CFR Parts 102.2, 102.3, and 102.4, and 5 U.S.C. 5514, as applicable. The NRC may not initiate administrative offset to collect a debt more than 10 years after the Government's right to the debt first accrued, unless facts material to the Government's right to collect the debt were not known and could not reasonably have been known to the NRC or collection of "approval fees" has been deferred under 10 CFR 21

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

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

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

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

(1) Before the offset is made, the NRC shall provide the debtor with a written notice of the nature and amount of the debt and-(i) Notice of the NRC's intention to collect the debt by offset; (ii) An opportunity to inspect and copy NRC records pertaining to the debt; (iii) An opportunity to request reconsideration of the debt by the NRC or, if provided for by statute, waiver of the debt; (iv) An opportunity to enter into a written agreement with the NRC to repay or pay the debt, as the case may be; (v) An explanation of the debtor's rights under this subpart; and (vi) An opportunity for a hearing when required under .the provisions of 4 CFR Part 102.3(c}.

(2) If the NRC learns that other agencies of the Federal government are holding funds payable to the debtor, the NRC shall provide the other agencies 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 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) Debts owed by any State or local government; or (ii) Any case in which collection of the type of debt involved by administrative offset is explicitly provided for or prohibited by another statute.

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

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

§ 15.35 Payments.

(a) Payment in full. The NRC shall make every effort to collect a claim in full before it becomes del i nquent. If a claim is paid in one lump sum after it becomes delinquent, the NRC shall impose charges for interest, penalties, and administrative costs as specified in§ 15.37.

(b) Payment in installments. If a debtor furnishes satisfactory evidence of inability to pay a claim in one lump sum, payment in regular 23

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

18. Section 15.37 is revised to read as follows:

§ 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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the guidance provided under the Federal Claims Collection Standards, 4 CFR Part 102.13 unless otherwise directed by statute, regulation, or contract.

(b) Before assessing any charges on delinquent debts, the NRC shall mail or hand-deliver a written notice to the debtor explaining its re-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 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 and the Treasury Financial Manual Bulletins, unless a different rate is prescribed by statute, regulation, or contract.

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

(f) The NRC shall assess against a debtor charges to cover admin-istrative costs incurred as a result of a delinquent debt. Administrative 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 more than 90 days. The 25

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charge accrues retroactively to the date 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.

(j) The NRC may waive interest during the period a debt disputed under§ 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§ 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, penalties, and administrative costs will jeopardize collection of the principal of the debt; (3) The NRC is unable to enforce collection in full within area-sonable time by enforced collection proceedings; or (4) Collection would be against equity and good conscience or not in the best interests of the United States, including the situation in which an administrative offset or installment payment agreement is in effect.

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19. Section 15.38 is added to read as follows:

§ 15.38 Use of credit reports The NRC may institute a credit investigation of the debtor at any time 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; (d) The use of other collection methods; and (e} The likelihood of collecting the claim.

20. Section 15.41 is revised to read as follows:

§ 15.41 When a claim may be compromised.

The NRC may compromise a claim not in excess of the monetary limitation if it has not been referred to the GAO or to the DOJ for litigation. Only the Comptroller General of the United States or designee may effect the compromise of a claim that arises out of an exception made by the GAO in the account of an accountable officer, including a claim against the payee, prior to its referral by GAO for litigation.

21. In§ 15.43, paragraph (b) is amended by inserting a comma after the word "claimed" by revising paragraphs (c} and (d} and by adding paragraph {e} to read as follows:

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§ 15.43 Reasons for compromising a claim.

(c) The cost of collecting the claim 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 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 inmediately due and payable; and (2) The Government has the right to enforce any security interest.

§ 15.45 [Amended]

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

23. Section 15.51 is revised to read as follows:

§ 15.51 When collection action may be suspended or tenninated.

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

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

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

§ 15.61 Prompt referral.

(a) A claim which requires enforced collection action is referred to the GAO or to the DOJ 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.

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

{d) Once a claim has been referred to GAO or to the DOJ under this subpart, the NRC shall refrain from having any contact with the debtor and shall direct the debtor to GAO or DOJ, as appropriate, when questions concerning the claim are raised by the debtor. The NRC shall illll1ediately advise GAO or DOJ, as appropriate, of any payments by the debtor.

29

[7590-01]

§ 15.63 [Removed]

25. Section 15.63 is removed.

26. Section 15.67 is amended by redesignating paragraphs (a ) and (b) as paragraphs {b) and (c), respectively, and by adding new paragraphs

{a) and (d) to read as follows:

§ 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 Co111J1ercial 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 le files, records, and exhibits on claims referred under paragraphs (a) and (b) of this section.

A _,,Lf ~ /' ,

Dated at Rockville, Maryland, thi ~ ay o :,;

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For the Nuclear Regulatory :Conmission.

Victor Executive 30

ML23156A092

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