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11340 Federal Register / Vol. 73, No.

42 / Monday, March 3, 2008 / Rules and Regulations

marketing years’ budgeted expenses. engaged in the production for market of and standards prescribed by the
Such reserve funds may be used: walnuts in the production area. Such Department of Justice and the
(i) To defray expenses, during any termination shall be announced on or Department of the Treasury. 31 U.S.C.
marketing year, prior to the time before the end of the production year. 3711(d)(2). These standards, known as
assessment income is sufficient to cover * * * * * the Federal Claims Collection Standards
such expenses; ■ 29. Add a new § 984.91 to read as
(FCCS), became effective on December
(ii) To cover deficits incurred during follows: 22, 2000. 31 CFR chapter IX and parts
any year when assessment income is 900 through 904.
less than expenses; § 984.91 Relationship with the California The DCIA also requires agencies, prior
(iii) To defray expenses incurred Walnut Commission. to collecting debts owed to the United
during any period when any or all In conducting Board activities and States, to:
provisions of this part are suspended; other objectives under this part, the (1) Adopt without change regulations
(iv) To meet any other such costs Board may deliberate, consult, on collecting debts by offset
recommended by the Board and cooperate and exchange information promulgated by the Department of
approved by the Secretary. with the California Walnut Commission, Justice or Department of the Treasury
* * * * * whose activities compliment those of (FCCS); or (2) prescribe agency
the Board. Any sharing of information regulations for collecting such debts by
■ 25. Add a new § 984.70 to read as
gathered under this subpart shall be offset, which are consistent with the
follows:
kept confidential in accordance with FCCS. 31 U.S.C. 3716. Agency
§ 984.70 Contributions. provisions under section 10(i) of the regulations protect the minimum due
The Board may accept voluntary Act. process rights that must be afforded to
contributions but these shall only be Dated: February 27, 2008. the debtor when an agency seeks to
used to pay expenses incurred pursuant collect a debt by administrative offset,
Lloyd C. Day,
to § 984.46, Research and development. including the ability to verify,
Administrator, Agricultural Marketing
Furthermore, such contributions shall challenge, and compromise claims, and
Service.
be free from any encumbrances by the access to administrative appeals
[FR Doc. E8–4016 Filed 2–29–08; 8:45 am]
donor and the Board shall retain procedures which are both reasonable
BILLING CODE 3410–02–P
complete control of their use. and protect the interests of the United
States.
■ 26. Revise § 984.71 to read as follows:
NCUA has decided to issue its own
§ 984.71 Reports of handler inventory. NATIONAL CREDIT UNION rule for debt collection and offset, given
ADMINISTRATION NCUA’s status as an independent
Each handler shall submit to the
Board in such form and on such dates regulatory agency. The final rule is
12 CFR Part 797 consistent with the FCCS, as required by
as the Board may prescribe, reports
showing his or her inventory of inshell Procedures for Debt Collection the DCIA. The salary offset portion of
and shelled walnuts. the rule has been submitted to and
AGENCY: National Credit Union approved by the Office of Personnel
■ 27. Revise § 984.73 to read as follows:
Administration (NCUA). Management (OPM), as required by 5
§ 984.73 Reports of walnut receipts. ACTION: Final rule. U.S.C. 5514(b)(1). In addition to these
Each handler shall file such reports of legal authorities, NCUA is issuing these
SUMMARY: Pursuant to the Debt regulations pursuant to 12 U.S.C.
his or her walnut receipts from growers,
Collection Improvement Act of 1996 1752a(d), which authorizes NCUA to
handlers, or others in such form and at
NCUA is issuing a regulation governing adopt regulations it deems necessary for
such times as may be requested by the
procedures for collecting debts owed to transaction of its business.
Board with the approval of the
the federal government by present and
Secretary. II. The Final Rule
former NCUA employees. The
■ 28. Amend § 984.89 by redesignating regulation sets forth the procedures A. Subpart A—Scope, Purpose,
paragraph (b)(4) as (b)(5) and adding a NCUA will follow in collecting debts Definitions and Delegations of Authority
new paragraph (b)(4) to read as follows: owed to the United States arising from
activities under NCUA jurisdiction. The final rule applies only to debts
§ 984.89 Effective time and termination. owed to the United States which arise
These procedures include collection of
* * * * * out of NCUA transactions and functions
debts through administrative offset and
(b) * * * in its agency capacity, including, but
salary offset.
(4) Within six years of the effective not limited to, erroneous salary
DATES: This rule is effective April 2,
date of this amendment the Secretary overpayments to employees and claims
shall conduct a referendum to ascertain 2008. arising out of employee benefit
whether continuance of this part is FOR FURTHER INFORMATION CONTACT: withholdings and contributions. The
favored by producers. Subsequent Dianne Salva, Trial Attorney, at the rule does not apply to debts owed to or
referenda to ascertain continuance shall above address or telephone: (703) 518– payments made by NCUA in connection
be conducted every six years thereafter. 6540. with NCUA’s conservatorship,
The Secretary may terminate the SUPPLEMENTARY INFORMATION: liquidation, supervision, enforcement,
provisions of this part at the end of any or insurance responsibilities, nor does it
fiscal period in which the Secretary has I. Background limit or affect NCUA’s authority
found that continuance of this part is This final rule implements the Debt pursuant to 12 U.S.C. 1752(a) and 1766.
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not favored by a two-thirds (2⁄3) majority Collection Improvement Act of 1996 The Executive Director shall follow
of voting producers, or a two-thirds (2⁄3) (DCIA). The DCIA requires federal the procedural standards for collecting
majority of volume represented thereby, agencies to collect debts owed to the debts set forth in the FCCS when he
who, during a representative period United States under regulations determines that it is appropriate to
determined by the Secretary, have been prescribed by the head of the agency, initiate debt collection or seek offset to

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Federal Register / Vol. 73, No. 42 / Monday, March 3, 2008 / Rules and Regulations 11341

collect a debt. 31 CFR parts 900 through CFR 550.1104. Subpart C implements The Treasury and General Government
904. The FCCS establish procedures those statutory requirements. Appropriations Act, 1999—Assessment
governing the following areas of the of Federal Regulations and Policies on
debt collection process: (1) Prompt III. Administrative Procedure Act Families
demand for payment of the claim from NCUA has determined that this rule The NCUA has determined that this
the debtor; (2) review of the existence or pertains to agency practice and final rule would not affect family well-
amount of a debt claimed upon the procedure and is interpretative in being within the meaning of section 654
debtor’s demand for a final agency nature. The procedures contained in the of the Treasury and General
determination; (3) standards for rule for salary offset and administrative Government Appropriations Act, 1999,
collecting debts in installment offset are mandated by law and by Public Law 105–277, 112 Stat. 2682
payments; (4) the assessment of interest, regulations promulgated by OPM, (1998).
penalties and administrative costs on jointly by the Department of the
debts claimed; (5) standards for Small Business Regulatory Enforcement
Treasury and the Department of Justice
compromise of claims due; and (6) Fairness Act
and by the IRS. Notice of proposed
standards to be followed in determining rulemaking is not required under the The Small Business Regulatory
whether to suspend or terminate Administrative Procedure Act (APA) Enforcement Fairness Act of 1996,
collection action. Public Law 104–121 (SBREFA) provides
because the rule pertains solely to
B. Subpart B—Administrative Offset agency procedure and practice. 5 U.S.C. generally for congressional review of
553(b)(3)(A). Notice and an opportunity agency rules. A reporting requirement is
Pursuant to 31 U.S.C. 3716, NCUA
for public comment are not necessary triggered in instances where NCUA
may collect debts owed to the United
prior to issuance of this final rule issues a final rule as defined by Section
States through administrative offset.
because it implements a definitive 551 of the APA. 5 U.S.C. 551. NCUA has
Subpart B of the final rule authorizes
statutory scheme mandated by the obtained the determination of the Office
NCUA to collect debts owed to the
DCIA. of Management and Budget that this
United States by: (1) Withholding
rule is not a major rule for purposes of
money payable by NCUA to the debtor, Regulatory Flexibility Act the Small Business Regulatory
or held by NCUA for the debtor; or (2)
by requesting that another federal Enforcement Fairness Act of 1996.
The Regulatory Flexibility Act
agency withhold money payable to the requires that NCUA prepare an analysis List of Subjects in 12 CFR Part 797
debtor, or held by the other federal to describe any significant economic Administrative practice and
agency for the debtor. Subpart B meets impact a rule may have on a substantial procedure, Claims, Debt collection,
the requirements under 31 U.S.C. number of small credit unions, or those Government employees, Hearing
3716(b) to provide due process rights to with under $10 million dollars in assets. procedures, Wages.
the debtor, including the ability to The final rule applies to federal agencies
verify, challenge, and compromise and federal employees. Accordingly, the By the National Credit Union
Administration Board on February 21, 2008.
claims, and to provide to administrative Board determines and certifies that this
appeals procedures which are both Mary F. Rupp,
final rule does not have significant
reasonable and protect the interests of economic impact on a substantial Secretary of the Board.
NCUA. Subpart B also meets the number of small credit unions and that ■ For the reasons set forth in the
requirement of 31 U.S.C. 3711(d) that a Regulatory Flexibility Analysis is not preamble, NCUA adds 12 CFR part 797
NCUA promulgate administrative offset required. to read as follows:
regulations consistent with the
standards established by the Attorney Paperwork Reduction Act PART 797—PROCEDURES FOR DEBT
General and the Secretary of the COLLECTION
The final rule is not subject to the
Treasury.
Paperwork Reduction Act (44 U.S.C. Subpart A—Scope, Purpose, Definitions
C. Subpart C—Salary Offset 3501), since it does not contain any new and Delegation of Authority
Subpart C of the final rule provides information collection requirements. Sec.
that when NCUA determines it is 797.1 Scope.
Executive Order 13132 797.2 Purpose.
appropriate to collect a debt by means 797.3 Definitions.
of deductions from the current pay Executive Order 13132 encourages 797.4 Delegation of authority.
account of an NCUA employee, or any independent regulatory agencies to
individual employed by the federal consider the impact of their actions on Subpart B—Administrative Offset
government (including a former NCUA state and local interests. In adherence to 797.5 Authority and scope.
employee), NCUA shall initiate a salary fundamental federalism principles, 797.6 Administrative offset prior to
offset under 5 U.S.C. 5514(a)(1). Salary NCUA, an independent regulatory completion of procedures.
797.7 Procedures.
offset is a form of administrative offset agency as defined in 44 U.S.C. 3502(5), 797.8 Right to agency review.
governed by statute (5 U.S.C. 5514) and voluntarily complies with the executive 797.9 Review procedures.
by regulations issued by the OPM (5 order. The final rule would not have 797.10 Special review.
CFR part 550, subpart K). Salary offset substantial direct effects on the states, 797.11 Interest, administrative costs, and
may only be used to collect debts owed on the connection between the national penalties.
by persons currently employed by the government and the states, or on the 797.12 Refunds.
federal government. Agencies are distribution of power and 797.13 Requests for administrative offset
required to promulgate their own salary responsibilities among the various where NCUA is the creditor agency.
797.14 Requests for administrative offset
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offset regulations that conform to OPM’s levels of government. NCUA has where NCUA is the paying agency.
salary offset regulations. As noted determined that this final rule does not 797.15 Administrative offset against
above, salary offset rules must receive constitute a policy that has federalism amounts payable from Civil Service
OPM approval before the regulations implications for purposes of the Retirement and Disability Fund.
become effective. 5 U.S.C. 5514(b)(1); 5 executive order. 797.16 Stay of offset.

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Subpart C—Salary Offset States. This part is consistent with the (i) FCCS means the Federal Claims
797.17 Authority and scope. following federal statutes and Collection Standards published in 31
797.18 Notice requirements where NCUA is regulations: CFR part 900.
the creditor agency. (1) DCIA at 31 U.S.C. 3711 (collection (j) Hearing official means an
797.19 Review of agency records related to and compromise of claims); section individual who is authorized to conduct
the debt. 3716 (administrative offset), and section a hearing with respect to the existence
797.20 Procedures to request a hearing. 3717 (interest and penalty on claims). or amount of a debt claimed and issue
797.21 Hearing procedures. (2) 5 U.S.C. 5514 (salary offset);
797.22 Voluntary repayment agreement.
a final decision on the basis of such
(3) 5 U.S.C. 5584 (waiver of claims for hearing. A hearing official may not be
797.23 Certification where NCUA is the overpayment);
creditor agency. under the supervision or control of
(4) 31 CFR parts 900 through 904 NCUA when NCUA is the creditor
797.24 Certification where NCUA is the
paying agency. (FCCS); agency.
797.25 Recovery from final check or other (5) 5 CFR part 550, subpart K (salary (k) NCUA means the National Credit
payments due a separated employee. offset); Union Administration.
(6) 31 U.S.C. 3720D, 31 CFR 285.11
Authority: 12 U.S.C. 1752a; 5 U.S.C. 5514; (l) Paying agency means an agency of
(administrative wage garnishment); and
31 U.S.C. 3711, 3716, 3720A, 3720D. (7) 5 CFR 831.1801 through 1808 (U.S. the federal government owing money to
Office of Personnel Management (OPM) a debtor against which an
Subpart A—Scope, Purpose, administrative or salary offset can be
offset).
Definitions and Delegation of Authority (b) Collectively, these statutes and effected.
regulations prescribe the manner in (m) Salary offset means an
§ 797.1 Scope.
which federal agencies should proceed administrative offset to collect a debt
This part establishes NCUA under 5 U.S.C. 5514 by deductions at
procedures for the collection of certain to establish the existence and validity of
debts owed to the federal government one or more officially established pay
debts owed to the United States. intervals from the current pay account
(a) This part applies to collections by and describe the remedies available to
agencies to offset valid debts. of a debtor.
NCUA from: (n) Waiver means the cancellation,
(1) Federal employees who are § 797.3 Definitions. remission, forgiveness, or nonrecovery
indebted to NCUA; Except where the context clearly of a debt allegedly owed by an employee
(2) Employees of NCUA who are indicates otherwise or where the term is to NCUA or another agency as permitted
indebted to other agencies or NCUA; defined elsewhere in this subpart, the or required by 5 U.S.C. 5584 or any
and following definitions shall apply to this other law.
(3) Former federal employees who are subpart.
indebted to NCUA. (a) Administrative offset, as defined in § 797.4 Delegation of authority.
(b) This part does not apply: 31 U.S.C. 3701(a)(1), means withholding Authority to conduct the following
(1) To debts or claims arising under money payable by the United States activities is delegated to the Executive
the Internal Revenue Code of 1986 (Title government to, or held by the Director to:
26, U.S. Code), the Social Security Act government for, a person to satisfy a (a) Initiate and carry out the debt
(42 U.S.C. 301 et seq.), or the tariff laws debt the person owes the government. collection process on behalf of NCUA,
of the United States; (b) Agency means a department, in accordance with the FCCS;
(2) To a situation to which the agency, or instrumentality in the (b) Accept or reject compromise
Contract Disputes Act (41 U.S.C. 601 et Executive, Judicial, or Legislative offers, suspend, terminate or waive
seq.) applies; branch of the government. collection actions to the full extent of
(3) In any case where collection of a (c) Claim or debt means money or NCUA’s legal authority under 12 U.S.C.
debt is explicitly provided for or property owed by a person or entity to 1752(a) and 1789; 31 U.S.C. 3711, and
prohibited by another statute; an agency of the federal government. A any other applicable statute or
(4) To debts owed to or payments ‘‘claim’’ or ‘‘debt’’ includes amounts regulation.
made by NCUA in connection with due the government, fees, services, (c) Report to consumer reporting
NCUA’s conservatorship, liquidation, overpayments, penalties, damages, agencies certain data pertaining to
supervision, enforcement, or insurance interest, fines and forfeitures. For delinquent debts, where appropriate;
responsibilities pursuant to 12 U.S.C. purposes of this part, a debt owed to (d) Use offset procedures, including
1786 and 1787, nor does it limit or NCUA constitutes a debt owed to the administrative and salary offset, to
affect NCUA’s authority with respect to federal government. collect debts; and
debts and/or claims pursuant to 12 (d) Claim certification means a (e) Take any other action necessary to
U.S.C. 1752(a) and 1766. creditor agency’s written request to a promptly and effectively collect debts
(c) Nothing in this part precludes the paying agency to effect an owed to the government in accordance
compromise, suspension, or termination administrative or salary offset. with the policies contained herein and
of collection actions, where appropriate, (e) Creditor agency means an agency as otherwise provided by law.
under standards implementing the Debt to which a claim or debt is owed.
Collection Improvement Act (DCIA) (31 (f) Debtor means the person or entity Subpart B—Administrative Offset
U.S.C. 3711 et seq.), the Federal Claims owing money to the federal government.
Collection Standards (FCCS) (31 CFR (g) Disposable pay means that part of § 797.5 Authority and scope.
parts 900 through 904); or any other current basic pay or other authorized NCUA may collect a debt owed to the
applicable law. pay remaining after the deduction of federal government from a person,
any amount required by law to be organization, or other entity by
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§ 797.2 Purpose. withheld. NCUA shall allow the administrative offset, pursuant to 31
(a) The purpose of this part is to deductions described in 5 CFR U.S.C. 3716, where:
implement federal statutes and 581.105(b) through (f). (a) The debt is certain in amount;
regulatory standards authorizing NCUA (h) Employee means a current (b) Administrative offset is feasible,
to collect debts owed to the United employee of NCUA or another agency. desirable, and not otherwise prohibited;

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(c) The applicable statute of veracity. Unless otherwise required by matters discussed at the hearing,
limitations has not expired; and law, an oral hearing under this subpart however, will be carefully documented.
(d) Administrative offset is in the best is not required to be a formal (c) Any review required by this part,
interest of the federal government. evidentiary hearing, although NCUA whether a review of the written record
shall document all significant matters or an oral hearing, shall be conducted
§ 797.6 Administrative offset prior to by a hearing official. When NCUA is the
discussed at the hearing. In those cases
completion of procedures. creditor agency and the debtor is an
where an oral hearing is not required by
Prior to the completion of the this subpart, NCUA shall make its NCUA employee, NCUA shall contact
procedures described in § 797.7, NCUA determination on the request for waiver any agency designated in appendix A to
may effect administrative offset if failure or reconsideration based upon a review 5 CFR part 581 to arrange for a hearing
to offset would substantially prejudice of the written record. official. When NCUA is the creditor
its ability to collect the debt, and if the (e) An opportunity to enter into a agency and the debtor is not an NCUA
time before the payment is to be made written agreement for the repayment of employee (i.e., the debtor is employed
does not reasonably permit completion the amount of the claim at the discretion by another federal agency, also known
of the procedures described in § 797.7. of NCUA; as the paying agency), and NCUA
Such prior administrative offset shall be cannot provide a prompt and
(f) That charges for interest, penalties,
followed promptly by the completion of appropriate hearing, NCUA may contact
and administrative costs will be
the procedures described in § 797.7. an agent of the paying agency
assessed against the debtor, in
§ 797.7 Procedures. accordance with 31 U.S.C. 3717, if designated in appendix A to 5 CFR part
payment is not received by the payment 581 to arrange for a hearing official. The
Prior to collecting any debt by paying agency must cooperate with
administrative offset or referring such due date, unless excused by the FCCS;
(g) That if the debtor has not entered NCUA to provide a hearing official, as
claim to another agency for collection required by the FCCS.
through administrative offset, NCUA into an agreement with NCUA to pay
the debt, has not requested NCUA to (d) The hearing official shall issue a
shall provide the debtor with a written final written decision based on
Notice of Intent to Collect by review the debt, or has not paid the debt
by the payment due date, NCUA intends documentary evidence and, if
Administrative Offset (the Notice) at applicable, information developed at an
least 30 calendar days before to collect the debt by all legally
available means; oral hearing. The written decision shall
administrative offset is to commence. be issued as soon as practicable after the
The Notice shall provide the (h) The name and address of the
review but not later than 60 days after
following information: Executive Director whom the debtor
the date on which the request for review
(a) The nature and amount of the debt, shall send all correspondence relating to
was received by NCUA, unless the
the intention of NCUA to collect the the debt; and
debtor requests a delay in the
debt through administrative offset, and (i) Other information, as may be proceedings. A delay in the proceedings
a statement of the rights of the debtor appropriate. shall be granted if the hearing official
under this section, including the right to determines that there is good cause to
§ 797.8 Right to agency review.
request a waiver under 5 U.S.C. 5584; grant the delay. If a delay is granted, the
(b) An opportunity to inspect and (a) If the debtor disputes the claim,
the debtor may request a review of 60-day decision period shall be
copy the records of NCUA related to the extended by the number of days by
debt or receive copies if personal NCUA’s determination of the existence
of the debt or of the amount of the debt. which the review was postponed.
inspection is impractical; (e) Upon issuance of the written
(c) The payment due date, which shall If only part of the claim is disputed, the
opinion, NCUA shall promptly notify
be 30 calendar days from the date after undisputed portion should be paid by
the debtor of the hearing official’s
receipt of the initial demand for the payment due date.
decision. The notification shall include
payment; (b) To obtain a review, the debtor a copy of the written decision issued by
(d) An opportunity for the debtor to shall submit a written request for review the hearing official.
obtain a review of the determination of to the Executive Director within 15
indebtedness. Any request for review by calendar days after receipt of the Notice. § 797.10 Special review.
the debtor shall be in writing and shall The debtor’s request for review shall (a) An employee subject to offset, or
be submitted to NCUA within 15 state the basis on which the claim is a voluntary repayment agreement, may,
calendar days after receipt of the Notice. disputed. at any time, request a special review by
NCUA may waive the time limits for (c) The NCUA shall promptly notify the Executive Director of the amount of
requesting review for good cause shown the debtor, in writing, that the NCUA the offset or voluntary repayment, based
by the debtor. NCUA shall provide the has received the request for review. The on materially changed circumstances,
debtor with a reasonable opportunity for NCUA shall conduct its review of the including, but not limited to,
an oral hearing when: claim in accordance with § 797.9. catastrophic illness, divorce, death, or
(1) An applicable statute authorizes or disability.
requires NCUA to consider waiver of the § 797.9 Review procedures. (b) To determine whether an offset
indebtedness involved, the debtor (a) Unless an oral hearing is required would prevent the employee from
requests waiver of the indebtedness, and by § 797.7(d), NCUA’s review shall be a meeting essential subsistence expenses,
the waiver determination turns on an review of the written record of the the employee shall submit a detailed
issue of credibility or veracity; or claim. statement and supporting documents for
(2) The debtor requests (b) If an oral hearing is required, the employee, the employee’s spouse,
reconsideration of the debt and NCUA NCUA shall provide the debtor with a and dependents indicating the
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determines that the question of the reasonable opportunity for such a employee’s assets and liabilities.
indebtedness cannot be resolved by hearing. The oral hearing, however, (c) If the employee requests a special
review of the documentary evidence, as shall not be an adversarial adjudication review under this section, the employee
for example, when the validity of the and need not take the form of a formal shall file an alternative proposed offset
debt turns on an issue of credibility or evidentiary hearing. All significant or payment schedule and a statement.

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(d) The Executive Director shall and with the applicable provisions of the employee with a written notice of
evaluate the statement and supporting the FCCS, with respect to providing the the nature and the amount of the
documents, and determine whether the debtor with due process. adjustment and a point of contact for
original offset or repayment schedule contesting such adjustment.
§ 797.15 Administrative offset against (2) Any negative adjustment to pay
imposes an undue financial hardship on
amounts payable from Civil Service
the employee. The Executive Director Retirement and Disability Fund.
that arises from an employee’s election
shall notify the employee in writing of coverage or a change in coverage
NCUA may request that monies
within 30 calendar days of such under a federal benefits program that
payable to a debtor from the Civil
determination, including, if appropriate, requires periodic deductions from pay,
Service Retirement and Disability Fund
a revised offset or payment schedule. If if the amount to be recovered was
be administratively offset to collect
the special review results in a revised accumulated over four pay periods or
debts owed to NCUA by the debtor.
offset or repayment schedule, NCUA less. However, at the time that such
NCUA shall provide OPM with a
shall provide a new certification to the adjustment is made, NCUA shall
written certification that states the
paying agency. provide the employee a statement that
debtor owes the debt, the amount of the
debt, and that NCUA has complied with informs the employee of the previous
§ 797.11 Interest, administrative costs, and overpayment.
penalties. the agency’s offset regulations, as well
Where NCUA is the creditor agency, as, the requirements set forth in 31 CFR § 797.18 Notice requirements where NCUA
it shall assess interest, penalties and parts 900 through 904 and OPM’s is the creditor agency.
administrative costs pursuant to 31 regulations. Where NCUA seeks salary offset
U.S.C. 3717 and 31 CFR parts 900 § 797.16 Stay of offset. under 5 U.S.C. 5514 as the creditor
through 904, unless excused in agency, NCUA shall first provide the
(a) When a creditor agency receives a
accordance with the FCCS. employee with a written Notice of Intent
debtor’s request for inspection of agency
to Collect by Salary Offset (the Notice)
§ 797.12 Refunds. records, the offset is stayed for 15
at least 30 calendar days before salary
NCUA shall refund promptly those calendar days beyond the date set for
offset is to commence. The Notice shall
amounts recovered by offset but later the record inspection.
(b) When a creditor agency receives a provide the following information:
found not to be owed to the federal (a) That the Executive Director has
government. debtor’s offer to enter into a repayment
agreement, the offset is stayed until the determined that a debt is owed to NCUA
debtor is notified as to whether the and intends to collect the debt by means
§ 797.13 Requests for administrative offset
where NCUA is the creditor agency. proposed agreement is acceptable. of deduction from the employee’s
(c) When a review is conducted, the current disposable pay account until the
(a) NCUA may request that a debt
offset is stayed until the creditor agency debt and all accumulated interest is
owed to NCUA be collected by
issues a final written decision. The paid in full or otherwise resolved;
administrative offset against funds due (b) The amount of the debt and the
and payable to a debtor by another written decision must be issued within
60 days after receipt of the debtor’s factual basis for the debt;
agency. (c) A salary offset schedule stating the
(b) In requesting administrative offset, request for review.
frequency and amount of each
NCUA, as creditor, shall certify in deduction, stated as a fixed dollar
writing to the agency holding funds of Subpart C—Salary Offset
amount or percentage of disposable pay
the debtor: § 797.17 Authority and scope. not to exceed 15 percent;
(1) That the debtor owes the debt; (a) NCUA may collect debts owed by (d) That in lieu of salary offset, the
(2) The amount and basis of the debt; employee may propose a voluntary
employees to the federal government by
and repayment plan to satisfy the debt on
means of salary offset under the
(3) That NCUA has complied with the
authority of 5 U.S.C. 5514, 5 CFR part terms acceptable to NCUA, which must
requirements of its own administrative
550, subpart K, and this subpart. The be documented in writing, signed by the
offset regulations and the applicable
procedures set forth in this subpart employee and the Executive Director,
provisions of the FCCS with respect to
apply to situations where NCUA is and documented in NCUA’s files;
providing the debtor with due process. (e) NCUA’s policy concerning
attempting to collect a debt by salary
§ 797.14 Requests for administrative offset offset that is owed to it by an individual interest, penalties, and administrative
from other federal agencies where NCUA is employed by NCUA or by another costs, and a statement that such
the paying agency. agency; or where NCUA employs an assessments must be made, unless
(a) Any agency may request that funds individual who owes a debt to another excused in accordance with the FCCS;
due and payable to a debtor by NCUA agency. Since salary offset is a type of (f) That the employee has the right to
be administratively offset in order to administrative offset, this subpart inspect and copy NCUA records related
collect a debt owed to such agency by supplements subpart B. to the debt, or to receive copies of such
the debtor. (b) The procedures set forth in this records if personal inspection is
(b) NCUA shall initiate the requested subpart do not apply to: impractical;
administrative offset only upon receipt (1) Any routine intra-agency (g) That the employee has a right to
of a written certification from the adjustment of pay that is attributable to request a hearing regarding the
creditor agency that: clerical or administrative error or delay existence and amount of the debt
(1) The debtor owes the debt, in processing pay documents that have claimed or the salary offset schedule
including the amount and basis of the occurred within the four pay periods proposed by NCUA, provided that the
debt; preceding the adjustment, or any employee files a request for such a
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(2) The agency has prescribed adjustment to collect a debt amounting hearing with NCUA in accordance with
regulations for the exercise of to $50 or less. However, at the time of § 797.20, and that such a hearing will be
administrative offset; and any such adjustment, or as soon conducted by a hearing official not
(3) The agency has complied with its thereafter as possible, NCUA or its under the supervision or control of
own administrative offset regulations designated payroll agent shall provide NCUA;

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Federal Register / Vol. 73, No. 42 / Monday, March 3, 2008 / Rules and Regulations 11345

(h) The procedure and deadline for Notice. If the employee files a request (2) Oral hearings may take the form of,
requesting a hearing, including the for a hearing after the expiration of the but are not limited to:
name, address, and telephone number of 15th calendar day, NCUA may accept (i) Informal conferences with the
the Executive Director or other the request if the employee can show hearing official in which the employee
designated individual to whom a that the delay was the result of and agency representative are given full
request for a hearing must be sent; circumstances beyond the employee’s opportunity to present evidence,
(i) That a request for hearing must be control or the employee failed to receive witnesses, and argument;
received by NCUA on or before the 30th actual notice of the filing deadline. (ii) Informal meetings in which the
calendar day following receipt of the (b) The request for a hearing must be hearing examiner interviews the
Notice, and that filing of a request for signed by the employee and must fully employee; or
hearing will stay the collection identify and explain with reasonable (iii) Formal written submissions
proceedings; specificity all the facts, evidence, and followed by an opportunity for oral
(j) That NCUA will initiate salary witnesses, if any, that support the presentation.
offset procedures not less than 30 days employee’s position. The request must (d) Hearing by examination of
from the date of the employee’s receipt also state whether the employee is documents. If the hearing official
of the Notice, unless the employee files requesting an oral or documentary determines that an oral hearing is not
a timely request for a hearing; hearing. If an oral hearing is requested, necessary, the hearing official shall
(k) That if a hearing is held, the the request shall state why the matter make the determination based upon an
hearing official will issue a decision at cannot be resolved by a review of examination of the documents.
the earliest practical date, but not later documentary evidence alone. (e) Record. The hearing official shall
than 60 days after the filing of the (c) The failure of an employee to maintain a summary record of any
request for the hearing, unless the request a hearing will be considered an hearing conducted under this section.
employee requests a delay in the admission by the employee that the debt (f) Decision. (1) The hearing official
proceedings which is granted by the exists in the amount specified in the shall issue a written decision based
hearing official; Notice. upon evidence and information
(l) That any knowingly false or developed at the hearing or in the case
frivolous statements, representations, or § 797.21 Hearing procedures. of a documentary hearing the decision
evidence may subject the employee to (a) Obtaining the services of a hearing shall be based on the documents and
disciplinary procedures appropriate official. When the debtor is not an written submissions. The decision shall
under 5 U.S.C. chapter 75, 5 CFR part NCUA employee and NCUA cannot be issued, as soon as practicable after
752; penalties under the False Claims provide a prompt and appropriate the hearing, but not later than 60
Act, 31 U.S.C. 3729 through 3731; hearing before a hearing official, NCUA calendar days after the hearing request
criminal penalties under 18 U.S.C. 286, may request a hearing official from an was received by NCUA. If the hearing
287, 1001, 1002; or any other applicable agent of the paying agency, as was delayed at the request of the
statutory authority; and designated in 5 CFR part 581, appendix employee, the 60-day decision period
(m) That the employee also has the A, or as otherwise designated by the shall be extended by the number of days
right to request waiver of overpayment paying agency. When the debtor is an by which the hearing was postponed.
pursuant to 5 U.S.C. 5584, and may NCUA employee, NCUA may contact (2) The decision of the hearing official
exercise any other rights and remedies any agent of another agency, as shall be final and is considered to be an
available under statutes or regulations designated in 5 CFR part 581, appendix official certification regarding the
governing the program for which the A. existence and the amount of the debt for
collection is being made. (b) Notice of hearing. After the purposes of executing salary offset
§ 797.19 Review of NCUA records related employee requests a hearing, the under 5 U.S.C. 5514. If the hearing
to the debt. hearing official shall notify the official determines that a debt may not
(a) An employee who desires to employee of the form of the hearing to be collected by salary offset, but NCUA
inspect or copy NCUA records related to be provided. If the hearing will be oral, finds that the debt is still valid, NCUA
the employee’s debt must send a written the notice shall set forth the date, time, may seek collection of the debt through
request to the Executive Director or the and location of the hearing, which must other means in accordance with
individual designated in the Notice. The occur no more than 30 calendar days applicable law and regulations.
letter must be received in the office of after the request is received, unless the (g) Content of decision. The written
that individual within 15 calendar days employee requests that the hearing be decision shall include:
after the employee’s receipt of the delayed. If the hearing will be (1) A summary of the facts concerning
Notice. conducted by an examination of the origin, nature, and amount of the
(b) In response to a timely request documents, the employee, within 30 debt;
submitted by the employee, the calendar days, shall submit any (2) The hearing official’s findings,
employee shall be notified of the evidence or written arguments that analysis, and conclusions; and
location and time when the employee should be considered by the hearing (3) The terms of any repayment
may inspect and copy records related to official. schedules, if applicable.
the debt. If the employee is unable (c) Oral hearing. (1) An employee who (h) Failure to appear. If the employee
personally to inspect such records, requests an oral hearing shall be or the NCUA representative fails to
NCUA shall arrange to send copies of provided an oral hearing if the hearing appear, the hearing official shall
such records to the employee. official determines that the matter proceed with the hearing as scheduled,
cannot be resolved by an examination of and issue the decision based upon the
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§ 797.20 Procedures to request a hearing. the documents alone, as for example, oral testimony presented and the
(a) To request a hearing, an employee when an issue of credibility or veracity documentation submitted by both
must send a written request to the is involved. The oral hearing need not parties. At the request of both parties,
Executive Director within 15 calendar be an adversarial adjudication and rules the hearing official may re-schedule the
days after the employee’s receipt of the of evidence need not apply. hearing date.

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11346 Federal Register / Vol. 73, No. 42 / Monday, March 3, 2008 / Rules and Regulations

§ 797.22 Voluntary repayment agreement. (b) Such written notice of salary offset inspections of the landing gear (LG)
(a) In response to the Notice, an shall advise the employee of the: selector valve 40GA and the LG door
employee may propose to repay the debt (1) Certification that has been issued selector valve 41GA, to identify a
voluntarily in lieu of salary offset by by NCUA or received from another possible hydraulic leak. The corrective
submitting a written proposed creditor agency; action includes replacing the LG
repayment schedule to NCUA. Any (2) Amount of the debt and of the selector valve 40GA and/or the LG door
proposal under this section must be deductions to be made; and selector valve 41GA if necessary.
received by NCUA within 15 calendar (3) Date and pay period when the DATES: Effective January 14, 2008.
days after receipt of the Notice. salary offset will begin.
(b) In response to a timely proposal by (c) If NCUA is not the creditor agency, ADDRESSES: You may examine the AD
the employee, NCUA shall notify the NCUA shall provide a copy of the notice docket on the Internet at http://
employee whether the employee’s to the creditor agency and advise the www.regulations.gov; or in person at the
proposed repayment schedule is creditor agency of the dollar amount to Docket Management Facility between
acceptable. NCUA has the discretion to be offset and the pay period when the 9 a.m. and 5 p.m., Monday through
accept, reject, or propose to the offset will begin. Friday, except Federal holidays. The AD
employee a modification of the docket contains this AD, the regulatory
proposed repayment schedule. § 797.25 Recovery from final check or evaluation, any comments received, and
(1) If NCUA decides that the proposed other payments due a separated employee. other information. The address for the
repayment schedule is unacceptable, the (a) Lump-sum deduction from final Docket Office (telephone 800–647–5527)
employee shall have 15 calendar days check. In order liquidate a debt, a lump- is the Document Management Facility,
from the date of the decision in which sum deduction exceeding 15 percent of U.S. Department of Transportation,
to file a request for a hearing. disposable pay may be made pursuant Docket Operations, M–30, West
(2) If NCUA decides that the proposed to 31 U.S.C. 3716 from any final salary Building Ground Floor, Room W12–140,
repayment schedule is acceptable or the payment due a former employee, 1200 New Jersey Avenue, SE.,
employee agrees to a modification whether the former employee was Washington, DC 20590.
proposed by NCUA, an agreement shall separated voluntarily or involuntarily. FOR FURTHER INFORMATION CONTACT: Tim
be put in writing and signed by both the (b) Lump-sum deductions from other Dulin, Aerospace Engineer,
employee and NCUA. sources. Whenever an employee subject International Branch, ANM–116, FAA,
to salary offset is separated from NCUA, Transport Airplane Directorate, 1601
§ 797.23 Certification where NCUA is the
creditor agency.
and the balance of the debt cannot be Lind Avenue, SW., Renton, Washington
liquidated by offset of the final salary 98057–3356; telephone (425) 227–2141;
(a) NCUA shall issue a certification in
payment, NCUA may offset any later fax (425) 227–1149.
all cases where the hearing official
payments of any kind to the former
determines that a debt exists or the SUPPLEMENTARY INFORMATION: On
employee to collect the balance of the
employee admits the existence and November 21, 2007, the FAA issued AD
debt pursuant to 31 U.S.C. 3716.
amount of the debt, as for example, by 2007–25–12, amendment 39–15294 (72
failing to request a hearing. [FR Doc. E8–3799 Filed 2–29–08; 8:45 am] FR 69593, December 10, 2007), for
(b) The certification must be in BILLING CODE 7535–01–P certain Airbus Model A318, A319,
writing and state: A320, and A321 series airplanes. The
(1) That the employee owes the debt; AD requires inspections of the landing
(2) The amount and basis of the debt; DEPARTMENT OF TRANSPORTATION gear (LG) selector valve 40GA and the
(3) The date the federal government’s LG door selector valve 41GA, to identify
right to collect the debt first accrued; Federal Aviation Administration a possible hydraulic leak. The corrective
(4) The date the employee was
action includes replacing the LG
notified of the debt, the action(s) taken 14 CFR Part 39 selector valve 40GA and/or the LG door
pursuant to NCUA’s regulations, and the
[Docket No. FAA–2007–29249; Directorate selector valve 41GA if necessary.
dates such actions were taken;
(5) If the collection is to be made by Identifier 2007–NM–112–AD; Amendment As published, the AD applies to
lump-sum payment, the amount and 39–15294; AD 2007–25–12] airplanes identified in paragraphs (c)(1)
date such payment will be collected; RIN 2120–AA64 ‘‘and’’ (c)(2) of this AD instead of those
(6) If the collection is to be made in identified in paragraph (c)(1) ‘‘or’’ (c)(2)
installments, the amount or percentage Airworthiness Directives; Airbus Model of this AD.
of disposable pay to be collected in each A318, A319, A320, and A321 Series This change is relieving in nature, and
installment and, if NCUA wishes, the Airplanes no other part of the regulatory
desired commencing date of the first information has been changed;
installment, if a date other than the next AGENCY: Federal Aviation therefore, the final rule is not
officially established pay period; and Administration (FAA), Department of republished in the Federal Register.
(7) A statement that NCUA’s Transportation (DOT).
The effective date of this AD remains
regulation on salary offset has been ACTION: Final rule; correction. January 14, 2008.
approved by OPM pursuant to 5 CFR
SUMMARY: The FAA is correcting a § 39.13 [Corrected]
part 550, subpart K.
typographical error in an existing
§ 797.24 Certification where NCUA is the airworthiness directive (AD) that was ■ In the Federal Register of December
paying agency. published in the Federal Register on 10, 2007, on page 69594, in the second
(a) Upon issuance of a proper December 10, 2007 (72 FR 69593). The column, paragraph (c) of AD 2007–25–
12 is corrected to read as follows:
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certification by NCUA or upon receipt error resulted in a potential for


of a proper certification from another confusion regarding the applicability of * * * * *
creditor agency, NCUA shall send the the AD. This AD applies to certain (c) This AD applies to Airbus Model
employee a written notice of salary Airbus Model A318, A319, A320, and A318, A319, A320, and A321 series
offset. A321 series airplanes. This AD requires airplanes, certificated in any category,

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