80 FR 8580 - Department of Justice Debt Collection Regulations

DEPARTMENT OF JUSTICE
Office of the Attorney General

Federal Register Volume 80, Issue 32 (February 18, 2015)

Page Range		8580-8586
FR Document		2015-02587
This rule proposes to amend the regulations that govern debt collection at the Department of Justice (Department) to bring the regulations into conformity with government-wide standards, to update or delete obsolete references, and to make other clarifying or technical changes.
Federal Register, Volume 80 Issue 32 (Wednesday, February 18, 2015)
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Proposed Rules]
[Pages 8580-8586]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-02587]


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DEPARTMENT OF JUSTICE

Office of the Attorney General

28 CFR Part 11

[JMD Docket No. 152; A.G. Order No. 3493-2015]
RIN 1105-NYD


Department of Justice Debt Collection Regulations

AGENCY: Department of Justice.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This rule proposes to amend the regulations that govern debt 
collection at the Department of Justice (Department) to bring the 
regulations into conformity with government-wide standards, to update 
or delete obsolete references, and to make other clarifying or 
technical changes.

DATES: Written comments must be postmarked and electronic comments must 
be submitted on or before April 20, 2015. Comments received by mail 
will be considered timely if they are postmarked on or before that 
date. The electronic Federal Docket Management System (FDMS) will 
accept comments until Midnight Eastern Time at the end of that day.

ADDRESSES: The Department encourages that all comments be submitted 
electronically through http://www.regulations.gov using the electronic 
comment form provided on that site. An electronic copy of this document 
is also available at the http://www.regulations.gov Web site for easy 
reference. Paper comments that duplicate the electronic submission are 
not necessary as all comments submitted to http://www.regulations.gov 
will be posted for public review and are part of the official docket 
record. Should you wish to submit written comments via regular or 
express mail, however, they should be sent to: Dennis Dauphin, 
Director, Debt Collection Management Staff, Justice Management 
Division, U.S. Department of Justice, Washington, DC 20530.

FOR FURTHER INFORMATION CONTACT: Dennis Dauphin, Director, Debt 
Collection Management Staff, or Morton J. Posner, Assistant General 
Counsel, Justice Management Division, U.S. Department of Justice, 
Washington, DC 20530, (202) 514-5343 or (202) 514-3452.

SUPPLEMENTARY INFORMATION: This rule updates the Department's debt 
collection regulations at 28 CFR part 11, subpart A--Retention of 
Private Counsel for Debt Collection, Subpart B--

[[Page 8581]]

Administration of Debt Collection, and Subpart C--Treasury Offset 
Program for Collection of Debts, and proposes a new Subpart D--
Administrative Wage Garnishment.
    Subpart A sets forth the Department's procedures governing the 
retention of private counsel for debt collection authorized in 31 
U.S.C. 3718(b). The Federal Debt Recovery Act initiated a pilot program 
authorizing the Department to contract with private counsel on a 
provisional basis in a limited number of judicial districts. Public Law 
99-578 (1986). The Debt Collection Improvement Act of 1996 (DCIA), 
Public Law 104-134, sec. 31001, made the pilot program permanent and 
authorized the Department to contract with private counsel in as many 
judicial districts as necessary. The Department proposes to amend this 
rule by removing references to the private counsel program as a 
``pilot''; by replacing the term ``Contracting Officer's Technical 
Representative (COTR)'' with ``Contracting Officer's Representative 
(COR)'' to align with the definitions in Federal Acquisition 
Regulation. See 48 CFR 1.602-2, 2.101; by adding the term ``qualified 
HUBZone small business concerns'' as defined in section 3(p)(5) of the 
Small Business Act, 15 U.S.C. 632(p)(5), to conform to the DCIA; and by 
changing the obsolete references to a federal procurement statute and 
to the database used for notifying the public of federal procurement 
bidding opportunities. Another change corrects a typographical error.
    Subpart B prescribes the standards and procedures for collecting a 
debt through administrative offset. The ten-year statute of limitations 
for administrative offset was repealed, Public Law 110-264, sec. 14219 
(codified at 31 U.S.C. 3716(e)), the Department of the Treasury deleted 
the limitations period from its regulation, 74 FR 68149 (Dec. 23, 
2009), and the Department proposes to delete the corresponding time 
limit from its own regulation.
    Subpart C prescribes the standards and procedures for submitting 
past due, legally enforceable debts to the Department of the Treasury 
for collection by offset. These standards and procedures are authorized 
under the offset provisions of the Deficit Reduction Act of 1984, and 
the DCIA, codified in relevant part at 31 U.S.C. 3716 and 3720A, and 
the Department of the Treasury's implementing regulations at 31 CFR 
285.2 and 285.5. The Department proposes to amend this subpart to 
conform to subsequent legal changes. The obsolete ten-year statute of 
limitations is being removed. Because the DCIA now mandates that 
agencies report consumer debt to credit bureaus, 31 U.S.C. 3711(e), it 
is no longer necessary to address the subject in Subpart C. The 
Department of the Treasury incorporated the Internal Revenue Service's 
former tax refund offset program into the Treasury Offset Program, so 
references to it are being updated. Other revisions provide clarity, 
make technical corrections, or correct a typographical error.
    Proposed Subpart D would implement the Department's authority under 
the DCIA, 31 U.S.C. 3720D, to collect past due indebtedness through 
administrative wage garnishment. Wage garnishment is a process whereby 
an employer withholds amounts from an employee's wages and pays those 
amounts to the employee's creditor in satisfaction of a withholding 
order. The DCIA authorizes Federal agencies to issue administrative 
wage withholding orders to garnish up to 15 percent of the disposable 
pay of a debtor to satisfy delinquent nontax debt owed to the United 
States. The Department of the Treasury's implementing rule at 31 CFR 
285.11 provides that ``[a]gencies shall prescribe regulations for the 
conduct of administrative wage garnishment hearings consistent with 
this section or shall adopt this section without change by reference.'' 
The Department proposes to add a Subpart D consistent with 31 CFR 
285.11. Subpart D would apply to wages to be garnished by non-Federal 
employers.

Regulatory Flexibility Act

    The Attorney General, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 605(b)), has reviewed this regulation and by approving it 
certifies that this regulation will not have a significant economic 
impact on a substantial number of small entities. The Department 
proposes to collect delinquent nontax debt owed it through an 
administrative wage garnishment (AWG) process. When an AWG order is 
issued, employers (including small businesses) that employ workers from 
whom the Department is collecting a delinquent debt will be required to 
certify the employee's employment and earnings, garnish wages, and 
remit withheld wages to the Department. Such procedures are mandated by 
Department of the Treasury regulations issued to implement the Debt 
Collection Improvement Act. Employment and salary information is 
contained in an employer's payroll records. Therefore, it will not take 
a significant amount of time or result in a significant cost for an 
employer to certify employment and earnings. Employers of delinquent 
debtors may be subject at any time to garnishment orders issued by a 
court to collect delinquent debts of their employees owed to 
governmental or private creditors. The addition of an AWG process will 
not significantly increase the burden to which employers are already 
subject to collect the delinquent debt of their employees.

Executive Orders 12866 and 13563--Regulatory Review

    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review,'' section 
1(b), Principles of Regulation, and in accordance with Executive Order 
13563, ``Improving Regulation and Regulatory Review,'' section 1(b), 
General Principles of Regulation.
    The Department of Justice has determined that this rule is not a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review, and accordingly this rule has not 
been reviewed by the Office of Management and Budget.
    Further, both Executive Orders 12866 and 13563 direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. The Department has assessed the costs and 
benefits of this regulation and believes that the regulatory approach 
selected maximizes net benefits.

Executive Order 12988--Civil Justice Reform

    This regulation meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

Executive Order 13132--Federalism

    This regulation will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

[[Page 8582]]

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local and 
tribal governments, in the aggregate, or by the private sector, of 
$100,000,000 or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 251 of the 
Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 
804. This rule will not result in an annual effect on the economy of 
$100,000,000 or more; a major increase in costs or prices; or 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

Paperwork Reduction Act

    This rule imposes no information collection or record keeping 
requirements.

List of Subjects in 28 CFR Part 11

    Administrative practice and procedure, Claims, Debt collection, 
Government contracts, Government employees, Income taxes, Lawyers, 
Wages.
    Accordingly, by virtue of the authority vested in me as Attorney 
General, including 5 U.S.C. 301 and 28 U.S.C. 509 and 510, part 11 of 
title 28 of the Code of Federal Regulations is proposed to be amended 
as follows:

PART 11--DEBT COLLECTION

0
1. The authority citation for part 11 is revised to read as follows:

    Authority: 5 U.S.C. 301, 5514; 28 U.S.C. 509, 510; 31 U.S.C. 
3711, 3716, 3718, 3720A, 3720D.

Subpart A--Retention of Private Counsel for Debt Collection


Sec.  11.1  [Amended]

0
2. Amend Sec.  11.1 as follows:
0
a. Remove the word ``pilot'' from the first sentence; and
0
b. Remove the word ``Adminstration'' and add in its place the word 
``Administration''.


Sec.  11.2  [Amended]

0
3. Amend Sec.  11.2 as follows:
0
a. In the heading, remove the words ``Pilot program'' and add in their 
place the words ``Private counsel debt collection program'';
0
b. In the first two sentences, remove the word ``pilot'';
0
c. In the third sentence, remove the words ``Contracting Officer's 
Technical Representative (COTR)'' and add in their place the words 
``Contracting Officer's Representative (COR)''; and
0
d. In the fourth sentence, remove the term ``COTRs'' and add in its 
place the term ``CORs''.


Sec.  11.3  [Amended]

0
4. Amend Sec.  11.3 as follows:
0
a. In the first sentence, remove the words ``the Federal Property and 
Administrative Services Act of 1949, 41 U.S.C. 251 et seq'' and add in 
their place the words ``41 U.S.C. 3307''.
0
b. In the second sentence, adding the phrase ``and law firms that are 
qualified HUBZone small business concerns'' after the phrase ``socially 
and economically disadvantaged individuals'';
0
c. In the second sentence and third sentence, remove the word ``pilot'' 
and add in its place the word ``program''; and
0
d. In the third sentence, remove the words ``Commerce Business Daily'' 
and add in their place the term ``FedBizOpps''.

Subpart B--Administration of Debt Collection


Sec.  11.4  [Amended]

0
5. Amend Sec.  11.4 as follows:
0
a. Remove the second sentence of paragraph (a); and
0
b. In paragraph (b)(3)(i), add the number ``1'' after the words ``26 
U.S.C.''.
0
6. Revise the heading of subpart C to read as follows:

Subpart C--Collection of Debts by Administrative and Tax Refund 
Offset

0
7. Revise Sec.  11.10 to read as follows:


Sec.  11.10  [Amended]

    (a) The provisions of 31 U.S.C. 3716 allow the head of an agency to 
collect a debt through administrative offset. The provisions of 31 
U.S.C. 3716 and 3720A authorize the Secretary of the Treasury, acting 
through the Bureau of the Fiscal Service (BFS) and other Federal 
disbursing officials, to offset certain payments to collect delinquent 
debts owed to the United States. This subpart authorizes the collection 
of debts owed to the United States by persons, organizations, and other 
entities by means of offsetting Federal and certain state payments due 
to the debtor. It allows for collection of debts that are past due and 
legally enforceable through offset, regardless of whether the debts 
have been reduced to judgment.
    (b) Nothing in this subpart precludes the Department from pursuing 
other debt collection procedures to collect a debt that has been 
submitted to the Department of the Treasury under this subpart. The 
Department may use such debt collection procedures separately or in 
conjunction with the offset collection procedures of this subpart.
0
8. Amend Sec.  11.11 by revising paragraphs (a) and (b), and adding a 
paragraph (e) to read as follows:


Sec.  11.11  [Amended]

    (a) Debt. Debt means any amount of funds or property that has been 
determined by an appropriate official of the Federal Government to be 
owed to the United States by a person, organization, or entity other 
than another Federal agency. For purposes of this section, the term 
debt does not include debts arising under the Internal Revenue Code of 
1986 (26 U.S.C. 1 et seq.), the tariff laws of the United States, or 
the Social Security Act (42 U.S.C. 301 et seq.), except to the extent 
provided in sections 204(f) and 1631(b)(4) of such Act (42 U.S.C. 
404(f) and 1383(b)(4)(A), respectively) and 31 U.S.C. 3716(c). Debts 
that have been referred to the Department of Justice by other agencies 
for collection are included in this definition.
    (b) Past due. A past due debt means a debt that has not been paid 
or otherwise resolved by the date specified in the initial demand for 
payment, or in an applicable agreement or other instrument (including a 
post-delinquency repayment agreement), unless other payment 
arrangements satisfactory to the Department have been made. Judgment 
debts remain past due until paid in full.
* * * * *
    (e) Legally enforceable. Legally enforceable means that there has 
been a final agency determination that the debt, in the amount stated, 
is due, and there are no legal bars to collection by offset.
0
9. Amend Sec.  11.12 as follows:
0
a. Revise the section heading and paragraphs (a), (b)(2), (b)(3), and 
(c);
0
b. Remove paragraph (b)(4);
0
c. In paragraph (d)(5), remove the number ``65'' and add in its place 
the number ``60'';
0
d. In paragraph (d)(6) and paragraph (e), remove the term ``IRS'' and 
add in its place the term ``BFS'';
0
e. In the second sentence of paragraph (d)(6), remove the word ``of'' 
the second time it occurs and add in its place the word ``or''; and

[[Page 8583]]

0
f. Add paragraph (f).
    The addition and revisions read as follows:


Sec.  11.12  Centralized offset.

    (a) The Department must refer any legally enforceable debt more 
than 120 days past due to BFS for administrative offset purposes 
pursuant to 31 U.S.C. 3716(c)(6). The Department must refer any past 
due, legally enforceable debt to BFS for tax refund offset purposes 
pursuant to 31 U.S.C. 3720A(a) at least once a year. Prior to referring 
debts for offset, the Department must certify to BFS compliance with 
the provisions of 31 U.S.C. 3716(a) and 3720A(b). There is no time 
limit on when a debt can be collected by offset.
    (b) * * *
    (2) The Department intends to refer the debt to BFS for offset 
purposes;
    (3) The debtor has 60 days from the date of notice in which to 
present evidence that all or part of the debt is not past due, that the 
amount is not the amount currently owed, that the outstanding debt has 
been satisfied, or, if a judgment debt, that the debt has been 
satisfied, or that collection action on the debt has been stayed, 
before the debt is referred to BFS for offset purposes.
* * * * *
    (c) If the debtor neither pays the amount due nor presents evidence 
that the amount is not past due or is satisfied or that collection 
action is stayed, the Department will refer the debt to BFS for offset 
purposes.
* * * * *
    (f) In the event that more than one debt is owed, payments eligible 
for offset will be applied in the order in which the debts became past 
due.
0
10. Add a new Sec.  11.13 to read as follows:


Sec.  11.13  Non-centralized offset.

    (a) When offset under Sec.  11.12 of this part is not available or 
appropriate, the Department may collect past due, legally enforceable 
debts through non-centralized administrative offset. See 31 CFR 
901.3(c). In these cases, the Department may offset a payment 
internally or make an offset request directly to a Federal payment 
agency.
    (b) At least 30 days prior to offsetting a payment internally or 
requesting a Federal payment agency to offset a payment, the Department 
will send notice to the debtor in accordance with the requirements of 
31 U.S.C. 3716(a). When referring a debt for offset under this 
paragraph (b), the Department will certify, in writing, that the debt 
is valid, delinquent, and legally enforceable, and that there are no 
legal bars to collection by offset. In addition, the Department will 
certify its compliance with these regulations concerning administrative 
offset. See 31 CFR 901.3(c)(2)(ii).
0
11. Amend part 11 by adding a new subpart D to read as follows:

Subpart D--Administrative Wage Garnishment


Sec.  11.21  Administrative wage garnishment.

    (a) Purpose. In accordance with the Department of the Treasury 
government-wide regulation at 31 CFR 285.11, this section provides 
procedures for the Department of Justice to collect money from a 
debtor's disposable pay by means of administrative wage garnishment to 
satisfy delinquent nontax debt owed to the United States.
    (b) Scope. (1) This section shall apply notwithstanding any 
provision of State law.
    (2) Nothing in this section precludes the compromise of a debt or 
the suspension or termination of collection action in accordance with 
applicable law. See, for example, the Federal Claims Collection 
Standards (FCCS), 31 CFR parts 900-904.
    (3) The receipt of payments pursuant to this section does not 
preclude the Department from pursuing other debt collection remedies, 
including the offset of Federal payments to satisfy delinquent nontax 
debt owed to the United States. The Department may pursue such debt 
collection remedies separately or in conjunction with administrative 
wage garnishment.
    (4) This section does not apply to the collection of delinquent 
nontax debt owed to the United States from the wages of Federal 
employees from their Federal employment. Federal pay is subject to the 
Federal salary offset procedures set forth in 5 U.S.C. 5514 and other 
applicable laws.
    (5) Nothing in this section requires the Department to duplicate 
notices or administrative proceedings required by contract or other 
laws or regulations.
    (c) Definitions. As used in this section the following definitions 
shall apply:
    Agency means a department, agency, court, court administrative 
office, or instrumentality in the executive, judicial, or legislative 
branch of the Federal Government, including government corporations. 
For purposes of this section, agency means either the agency that 
administers the program that gave rise to the debt or the agency that 
pursues recovery of the debt.
    Business day means Monday through Friday. For purposes of 
computation, the last day of the period will be included unless it is a 
Federal legal holiday.
    Day means calendar day. For purposes of computation, the last day 
of the period will be included unless it is a Saturday, a Sunday, or a 
Federal legal holiday.
    Debt or claim means any amount of money, funds, or property that 
has been determined by an appropriate official of the Federal 
Government to be owed to the United States by an individual, including 
debt administered by a third party as an agent for the Federal 
Government.
    Debtor means an individual who owes a delinquent nontax debt to the 
United States.
    Delinquent nontax debt means any nontax debt that has not been paid 
by the date specified in the agency's initial written demand for 
payment, or applicable agreement, unless other satisfactory payment 
arrangements have been made. For purposes of this section, the terms 
``debt'' and ``claim'' are synonymous and refer to delinquent nontax 
debt.
    Disposable pay means that part of the debtor's compensation 
(including, but not limited to, salary, bonuses, commissions, and 
vacation pay) from an employer remaining after the deduction of health 
insurance premiums and any amounts required by law to be withheld. For 
purposes of this section, ``amounts required by law to be withheld'' 
include amounts for deductions such as Social Security taxes and 
withholding taxes, but do not include any amount withheld pursuant to a 
court order.
    Employer means a person or entity that employs the services of 
others and that pays their wages or salaries. The term employer 
includes, but is not limited to, State and local Governments, but does 
not include an agency of the Federal Government.
    Evidence of service means information retained by the agency 
indicating the nature of the document to which it pertains, the date of 
mailing of the document, and to whom the document is being sent. 
Evidence of service may be retained electronically so long as the 
manner of retention is sufficient for evidentiary purposes.
    Garnishment means the process of withholding amounts from an 
employee's disposable pay and the paying of those amounts to a creditor 
in satisfaction of a withholding order.
    Withholding order means any order for withholding or garnishment of 
pay issued by an agency, or judicial or administrative body. For 
purposes of this section, the terms ``wage garnishment order'' and 
``garnishment order'' have the same meaning as ``withholding order.''

[[Page 8584]]

    (d) General rule. Whenever the agency determines that a delinquent 
debt is owed by an individual, the agency may initiate proceedings 
administratively to garnish the wages of the delinquent debtor.
    (e) Notice requirements. (1) At least 30 days before the initiation 
of garnishment proceedings, the agency shall mail, by first class mail, 
to the debtor's last known address, a written notice informing the 
debtor of:
    (i) The nature and amount of the debt;
    (ii) The intention of the agency to initiate proceedings to collect 
the debt through deductions from pay until the debt and all accumulated 
interest, penalties, and administrative costs are paid in full; and
    (iii) An explanation of the debtor's rights, including those set 
forth in paragraph (e)(2) of this section, and the timeframe within 
which the debtor may exercise those rights.
    (2) The debtor shall be afforded the opportunity:
    (i) To inspect and copy agency records related to the debt;
    (ii) To enter into a written repayment agreement with the agency 
under terms agreeable to the agency; and
    (iii) For a hearing in accordance with paragraph (f) of this 
section concerning the existence or the amount of the debt or the terms 
of the proposed repayment schedule under the garnishment order. 
However, the debtor is not entitled to a hearing concerning the terms 
of the proposed repayment schedule if these terms have been established 
by written agreement under paragraph (e)(2)(ii) of this section.
    (3) The agency will retain evidence of service indicating the date 
of mailing of the notice.
    (f) Hearing--
    (1) Request for hearing. The agency shall provide a hearing, which 
at the agency's option may be oral or written, if the debtor submits a 
written request for a hearing concerning the existence or amount of the 
debt or the terms of the repayment schedule (for repayment schedules 
established other than by written agreement under paragraph (e)(2)(ii) 
of this section).
    (2) Type of hearing or review. (i) For purposes of this section, 
whenever the agency is required to afford a debtor a hearing, the 
agency shall provide the debtor with a reasonable opportunity for an 
oral hearing when the agency determines that the issues in dispute 
cannot be resolved by review of the documentary evidence, as, for 
example, when the validity of the claim turns on the issue of 
credibility or veracity.
    (ii) If the agency determines that an oral hearing is appropriate, 
the time and location of the hearing shall be established by the 
agency. An oral hearing may, at the debtor's option, be conducted 
either in person or by telephone conference. All travel expenses 
incurred by the debtor in connection with an in-person hearing will be 
borne by the debtor. All telephonic charges incurred during the hearing 
will be the responsibility of the agency.
    (iii) In those cases when an oral hearing is not required by this 
section, the agency shall nevertheless accord the debtor a ``paper 
hearing,'' that is, the agency will decide the issues in dispute based 
upon a review of the written record. The agency will establish a 
reasonable deadline for the submission of evidence.
    (3) Effect of timely request. Subject to paragraph (f)(12) of this 
section, if the debtor's written request is received by the agency on 
or before the 15th business day following the mailing of the notice 
described in paragraph (e)(1) of this section, the agency shall not 
issue a withholding order under paragraph (g) of this section until the 
debtor has been provided the requested hearing and a decision in 
accordance with paragraphs (f)(9) and (f)(10) of this section has been 
rendered.
    (4) Failure to timely request a hearing. If the debtor's written 
request is received by the agency after the 15th business day following 
the mailing of the notice described in paragraph (e)(1) of this 
section, the agency shall provide a hearing to the debtor. However, the 
agency will not delay issuance of a withholding order unless the agency 
determines that the delay in filing the request was caused by factors 
over which the debtor had no control, or the agency receives 
information that the agency believes justifies a delay or cancellation 
of the withholding order.
    (5) Hearing official. A hearing official may be any qualified 
individual, as determined by the head of the agency, including an 
administrative law judge.
    (6) Procedure. After the debtor requests a hearing, the hearing 
official shall notify the debtor of:
    (i) The date and time of a telephonic hearing;
    (ii) The date, time, and location of an in-person oral hearing; or
    (iii) The deadline for the submission of evidence for a written 
hearing.
    (7) Burden of proof. (i) The agency will have the initial burden of 
proving, by a preponderance of the evidence, the existence or amount of 
the debt.
    (ii) If the agency satisfies its initial burden, the debtor must 
prove, by a preponderance of the evidence, that no debt exists or that 
the amount of the debt is incorrect. In addition, the debtor may 
present evidence that the terms of the repayment schedule are unlawful 
or would cause a financial hardship to the debtor, or that collection 
of the debt may not be pursued due to operation of law.
    (8) Record. The hearing official must maintain a summary record of 
any hearing provided under this section. A hearing is not required to 
be a formal evidentiary-type hearing. However, witnesses who testify in 
in-person or telephonic hearings will do so under oath or affirmation.
    (9) Date of decision. The hearing official shall issue a written 
opinion stating the decision, as soon as practicable, but not later 
than 60 days after the date on which the request for such hearing was 
received by the agency. If an agency is unable to provide the debtor 
with a hearing and render a decision within 60 days after the receipt 
of the request for such hearing:
    (i) The agency may not issue a withholding order until the hearing 
is held and a decision rendered; or
    (ii) If the agency had previously issued a withholding order to the 
debtor's employer, the agency must suspend the withholding order 
beginning on the 61st day after the receipt of the hearing request and 
continuing until a hearing is held and a decision is rendered.
    (10) Content of decision. The written decision shall include:
    (i) A summary of the facts presented;
    (ii) The hearing official's findings, analysis, and conclusions; 
and
    (iii) The terms of any repayment schedules, if applicable.
    (11) Final agency action. The hearing official's decision will be 
final agency action for purposes of judicial review under the 
Administrative Procedure Act (5 U.S.C. 701 et seq.).
    (12) Failure to appear. In the absence of good cause shown, a 
debtor who fails to appear at a hearing scheduled pursuant to paragraph 
(f)(3) of this section will be deemed as not having timely filed a 
request for a hearing.
    (g) Wage garnishment order. (1) Unless the agency receives 
information that the agency believes justifies a delay or cancellation 
of the withholding order, the agency will send, by first class mail, a 
withholding order to the debtor's employer:
    (i) Within 30 days after the debtor fails to make a timely request 
for a hearing (i.e., within 15 business days after the mailing of the 
notice described in paragraph (e)(1) of this section), or,
    (ii) If a timely request for a hearing is made by the debtor, 
within 30 days after

[[Page 8585]]

a final decision is made by the agency to proceed with garnishment, or
    (iii) As soon as reasonably possible thereafter.
    (2) The withholding order sent to the employer under paragraph 
(g)(1) of this section shall be in a form prescribed by the Secretary 
of the Treasury. The withholding order shall contain the signature of, 
or the image of the signature of, the head of the agency or his/her 
delegatee. The order shall contain only the information necessary for 
the employer to comply with the withholding order. Such information 
includes the debtor's name, address, and Social Security Number, as 
well as instructions for withholding and information as to where 
payments should be sent.
    (3) The agency will retain evidence of service indicating the date 
of mailing of the order.
    (h) Certification by employer. Along with the withholding order, 
the agency shall send to the employer a certification in a form 
prescribed by the Secretary of the Treasury. The employer shall 
complete and return the certification to the agency within the 
timeframe prescribed in the instructions to the form. The certification 
will address matters such as information about the debtor's employment 
status and disposable pay available for withholding.
    (i) Amounts withheld. (1) After receipt of the garnishment order 
issued under this section, the employer shall deduct from all 
disposable pay paid to the applicable debtor during each pay period the 
amount of garnishment described in paragraph (i)(2) of this section.
    (2)(i) Subject to the provisions of paragraphs (i)(3) and (i)(4) of 
this section, the amount of garnishment shall be the lesser of:
    (A) The amount indicated on the garnishment order up to 15 percent 
of the debtor's disposable pay; or
    (B) The amount calculated pursuant to the formula set forth in 15 
U.S.C. 1673(a)(2) (Restriction on Garnishment). The formula set forth 
at 15 U.S.C. 1673(a)(2) is the amount by which a debtor's disposable 
pay exceeds an amount equivalent to thirty times the Federal minimum 
wage. See 29 CFR 870.10.
    (3) When a debtor's pay is subject to withholding orders with 
priority the following shall apply:
    (i) Unless otherwise provided by Federal law, withholding orders 
issued under this section shall be paid in the amounts set forth under 
paragraph (i)(2) of this section and shall have priority over 
withholding orders that are served later in time. Notwithstanding the 
foregoing, withholding orders for family support shall have priority 
over withholding orders issued under this section.
    (ii) If amounts are being withheld from a debtor's pay pursuant to 
a withholding order served on an employer before a withholding order 
issued pursuant to this section, or if a withholding order for family 
support is served on an employer at any time, the amounts withheld 
pursuant to the withholding order issued under this section shall be 
the lesser of:
    (A) The amount calculated under paragraph (i)(2) of this section, 
or
    (B) An amount equal to 25 percent of the debtor's disposable pay 
less the amount(s) withheld under the withholding order(s) with 
priority.
    (iii) If a debtor owes more than one debt to the agency, the agency 
may issue multiple withholding orders provided that the total amount 
garnished from the debtor's pay for such orders does not exceed the 
amount set forth in paragraph (i)(2) of this section.
    (4) An amount greater than that set forth in paragraphs (i)(2) and 
(i)(3) of this section may be withheld upon the written consent of the 
debtor.
    (5) The employer shall promptly pay to the agency all amounts 
withheld in accordance with the withholding order issued pursuant to 
this section.
    (6) An employer shall not be required to vary its normal pay and 
disbursement cycles in order to comply with the withholding order.
    (7) Any assignment or allotment by an employee of his earnings 
shall be void to the extent it interferes with or prohibits execution 
of the withholding order issued under this section, except for any 
assignment or allotment made pursuant to a family support judgment or 
order.
    (8) The employer shall withhold the appropriate amount from the 
debtor's wages for each pay period until the employer receives 
notification from the agency to discontinue wage withholding. The 
garnishment order shall indicate a reasonable period of time within 
which the employer is required to commence wage withholding.
    (j) Exclusions from garnishment. The agency may not garnish the 
wages of a debtor who it knows has been involuntarily separated from 
employment until the debtor has been reemployed continuously for at 
least 12 months. To qualify for this exclusion, upon the request of the 
agency, the debtor must inform the agency of the circumstances 
surrounding an involuntary separation from employment.
    (k) Financial hardship. (1) A debtor whose wages are subject to a 
wage withholding order under this section, may, at any time, request a 
review by the agency of the amount garnished, based on materially 
changed circumstances such as disability, divorce, or catastrophic 
illness that results in financial hardship.
    (2) A debtor requesting a review under paragraph (k)(1) of this 
section shall submit the basis for claiming that the current amount of 
garnishment results in a financial hardship to the debtor, along with 
supporting documentation. Agencies shall consider any information 
submitted in accordance with procedures and standards established by 
the agency.
    (3) If a financial hardship is found, the agency shall downwardly 
adjust, by an amount and for a period of time agreeable to the agency, 
the amount garnished to reflect the debtor's financial condition. The 
agency will notify the employer of any adjustments to the amounts to be 
withheld.
    (l) Ending garnishment. (1) Once the agency has fully recovered the 
amounts owed by the debtor, including interest, penalties, and 
administrative costs consistent with the FCCS, the agency shall send 
the debtor's employer notification to discontinue wage withholding.
    (2) At least annually, an agency shall review its debtors' accounts 
to ensure that garnishment has been terminated for accounts that have 
been paid in full.
    (m) Actions prohibited by the employer. An employer may not 
discharge, refuse to employ, or take disciplinary action against the 
debtor due to the issuance of a withholding order under this section.
    (n) Refunds. (1) If a hearing official, at a hearing held pursuant 
to paragraph (f)(2) of this section, determines that a debt is not 
legally due and owing to the United States, the agency shall promptly 
refund any amount collected by means of administrative wage 
garnishment.
    (2) Unless required by Federal law or contract, refunds under this 
section shall not bear interest.
    (o) Right of action. The agency may sue any employer for any amount 
that the employer fails to withhold from wages owed and payable to an 
employee in accordance with paragraphs (g) and (i) of this section. 
However, a suit may not be filed before the termination of the 
collection action involving a particular debtor, unless earlier filing 
is necessary to avoid expiration of any applicable statute of 
limitations period. For purposes of this section, ``termination of

[[Page 8586]]

the collection action'' occurs when the agency has terminated 
collection action in accordance with the FCCS or other applicable 
standards. In any event, termination of the collection action will be 
deemed to have occurred if the agency has not received any payments to 
satisfy the debt from the particular debtor whose wages were subject to 
garnishment, in whole or in part, for a period of 1 year.

    Dated: February 3, 2015.
Eric H. Holder, Jr.
Attorney General.
[FR Doc. 2015-02587 Filed 2-17-15; 8:45 am]
BILLING CODE 4410-AR-P
8580 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules

under the plan), how can a plan sponsor a. Should the comments received DEPARTMENT OF JUSTICE
identify which benefits are based on from contributing employers, employee
disability? organizations, participants and Office of the Attorney General
3. For participants who have not yet beneficiaries, and other interested
retired: parties be made available to the public? 28 CFR Part 11
a. What practical issues should be
b. How long should the comment [JMD Docket No. 152; A.G. Order No. 3493–
considered as a result of the fact that
period last? 2015]
their benefits are not yet fixed (for
example, their benefits could vary as a 8. With respect to the section RIN 1105–NYD
result of future accruals, when they 432(e)(9)(H) participant vote, what
decide to retire and which optional form issues arise in connection with: Department of Justice Debt Collection
of benefit they select)? a. Preparing the ballot, including Regulations
b. What practical issues should be developing a statement in opposition to AGENCY: Department of Justice.
considered in the case of a suspension the suspension compiled from
of benefits that is combined with a ACTION: Notice of proposed rulemaking.
comments and obtaining approval of the
reduction of future accruals or a ballot within the statutory time SUMMARY: This rule proposes to amend
reduction of section 432(e)(8) adjustable constraints for conducting a vote; and the regulations that govern debt
benefits (such as subsidized early collection at the Department of Justice
retirement factors) under a b. Conducting the vote and obtaining
certification of the results of the vote? (Department) to bring the regulations
rehabilitation plan? into conformity with government-wide
4. For participants who have retired, 9. What other practical issues do
standards, to update or delete obsolete
what practical issues should be commenters anticipate will arise in the
references, and to make other clarifying
considered regarding the section course of implementing these
or technical changes.
432(e)(9)(D)(ii) age limitations on provisions?
suspensions, the application of the DATES: Written comments must be
section 432(e)(9)(E) rules on benefit Timing of Applications and Notices postmarked and electronic comments
improvements, or other provisions? must be submitted on or before April 20,
Section 201(b)(7) of MPRA provides 2015. Comments received by mail will
5. With respect to the section that, not later than 180 days after the
432(e)(9)(F) requirement to provide be considered timely if they are
date of the enactment of this Act, the postmarked on or before that date. The
notice of the proposed suspension to
Treasury Secretary, in consultation with electronic Federal Docket Management
plan participants and beneficiaries
the Pension Benefit Guaranty System (FDMS) will accept comments
concurrently with the submission of the
Corporation and the Secretary of Labor, until Midnight Eastern Time at the end
application for approval:
a. What suggestions do commenters shall publish appropriate guidance to of that day.
have for the steps that are needed to implement section 432(e)(9). In
ADDRESSES: The Department encourages
satisfy the requirement to provide notice addition, section 432(e)(9)(F)(i) provides
that all comments be submitted
to the plan participants and that no suspension of benefits may be
electronically through http://
beneficiaries ‘‘who may be contacted by made unless notice of the proposed
www.regulations.gov using the
reasonable efforts,’’ including the suspension has been given by the plan electronic comment form provided on
application of that requirement to sponsor concurrently with an that site. An electronic copy of this
terminated vested participants? application for approval of the document is also available at the
b. What practical issues do plan suspension, and section http://www.regulations.gov Web site for
sponsors anticipate in providing 432(e)(9)(F)(iii)(I) provides that notice easy reference. Paper comments that
individual estimates of the effect of the must be ‘‘provided in a form and duplicate the electronic submission are
proposed suspensions on each manner prescribed in guidance.’’ not necessary as all comments
participant and beneficiary? Section 432(e)(9)(G)(i) provides that the submitted to http://www.regulations.gov
c. If the suspension is combined with Treasury Secretary, in consultation with will be posted for public review and are
other reductions as described in request the Pension Benefit Guaranty part of the official docket record. Should
number 3.b, how will the notice of Corporation and the Secretary of Labor, you wish to submit written comments
proposed suspension interact with the shall approve an application for via regular or express mail, however,
notices required for those other suspension upon finding that the plan they should be sent to: Dennis Dauphin,
reductions? has satisfied the criteria of section Director, Debt Collection Management
d. What issues arise in coordinating 432(e)(9)(C), (D), (E), and (F). Because Staff, Justice Management Division, U.S.
benefit protections that are measured as appropriate guidance is required to Department of Justice, Washington, DC
of the date of suspension (such as the implement section 432(e)(9), including 20530.
restriction on suspensions that apply to the procedures for the plan sponsor to
FOR FURTHER INFORMATION CONTACT:
a participant or beneficiary who has submit an application for approval of a
Dennis Dauphin, Director, Debt
attained age 75 as of the effective date suspension of benefits and provide
Collection Management Staff, or Morton
of the suspension) with the timing of the concurrent notice, a plan sponsor
J. Posner, Assistant General Counsel,
application, notice, and voting process? should not submit an application for a
Justice Management Division, U.S.
6. With respect to item 5, please suspension of benefits until a date
mstockstill on DSK4VPTVN1PROD with PROPOSALS

Department of Justice, Washington, DC
provide any examples of notices of specified in that future guidance.
20530, (202) 514–5343 or (202) 514–
proposed suspension that commenters Dated: February 11, 2015. 3452.
would like to be considered in the
David G. Clunie, SUPPLEMENTARY INFORMATION: This rule
development of a model notice.
7. What issues arise in connection Executive Secretary, Department of the updates the Department’s debt
with the section 432(e)(9)(G)(ii) Treasury. collection regulations at 28 CFR part 11,
requirement to solicit comments on an [FR Doc. 2015–03290 Filed 2–13–15; 11:15 am] subpart A—Retention of Private Counsel
application for suspension of benefits? BILLING CODE 4830–01–P for Debt Collection, Subpart B—

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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 8581

Administration of Debt Collection, and limitations is being removed. Because earnings. Employers of delinquent
Subpart C—Treasury Offset Program for the DCIA now mandates that agencies debtors may be subject at any time to
Collection of Debts, and proposes a new report consumer debt to credit bureaus, garnishment orders issued by a court to
Subpart D—Administrative Wage 31 U.S.C. 3711(e), it is no longer collect delinquent debts of their
Garnishment. necessary to address the subject in employees owed to governmental or
Subpart A sets forth the Department’s Subpart C. The Department of the private creditors. The addition of an
procedures governing the retention of Treasury incorporated the Internal AWG process will not significantly
private counsel for debt collection Revenue Service’s former tax refund increase the burden to which employers
authorized in 31 U.S.C. 3718(b). The offset program into the Treasury Offset are already subject to collect the
Federal Debt Recovery Act initiated a Program, so references to it are being delinquent debt of their employees.
pilot program authorizing the updated. Other revisions provide
Department to contract with private clarity, make technical corrections, or Executive Orders 12866 and 13563—
counsel on a provisional basis in a correct a typographical error. Regulatory Review
limited number of judicial districts. Proposed Subpart D would implement This regulation has been drafted and
Public Law 99–578 (1986). The Debt the Department’s authority under the reviewed in accordance with Executive
Collection Improvement Act of 1996 DCIA, 31 U.S.C. 3720D, to collect past Order 12866, ‘‘Regulatory Planning and
(DCIA), Public Law 104–134, sec. 31001, due indebtedness through Review,’’ section 1(b), Principles of
made the pilot program permanent and administrative wage garnishment. Wage Regulation, and in accordance with
authorized the Department to contract garnishment is a process whereby an Executive Order 13563, ‘‘Improving
with private counsel in as many judicial employer withholds amounts from an Regulation and Regulatory Review,’’
districts as necessary. The Department employee’s wages and pays those section 1(b), General Principles of
proposes to amend this rule by amounts to the employee’s creditor in Regulation.
removing references to the private satisfaction of a withholding order. The The Department of Justice has
counsel program as a ‘‘pilot’’; by DCIA authorizes Federal agencies to determined that this rule is not a
replacing the term ‘‘Contracting issue administrative wage withholding ‘‘significant regulatory action’’ under
Officer’s Technical Representative orders to garnish up to 15 percent of the Executive Order 12866, section 3(f),
(COTR)’’ with ‘‘Contracting Officer’s disposable pay of a debtor to satisfy Regulatory Planning and Review, and
Representative (COR)’’ to align with the delinquent nontax debt owed to the accordingly this rule has not been
definitions in Federal Acquisition United States. The Department of the reviewed by the Office of Management
Regulation. See 48 CFR 1.602–2, 2.101; Treasury’s implementing rule at 31 CFR
and Budget.
by adding the term ‘‘qualified HUBZone 285.11 provides that ‘‘[a]gencies shall
small business concerns’’ as defined in prescribe regulations for the conduct of Further, both Executive Orders 12866
section 3(p)(5) of the Small Business administrative wage garnishment and 13563 direct agencies to assess all
Act, 15 U.S.C. 632(p)(5), to conform to hearings consistent with this section or costs and benefits of available regulatory
the DCIA; and by changing the obsolete shall adopt this section without change alternatives and, if regulation is
references to a federal procurement by reference.’’ The Department proposes necessary, to select regulatory
statute and to the database used for to add a Subpart D consistent with 31 approaches that maximize net benefits
notifying the public of federal CFR 285.11. Subpart D would apply to (including potential economic,
procurement bidding opportunities. wages to be garnished by non-Federal environmental, public health and safety
Another change corrects a typographical employers. effects, distributive impacts, and
error. equity). Executive Order 13563
Subpart B prescribes the standards Regulatory Flexibility Act emphasizes the importance of
and procedures for collecting a debt The Attorney General, in accordance quantifying both costs and benefits, of
through administrative offset. The ten- with the Regulatory Flexibility Act (5 reducing costs, of harmonizing rules,
year statute of limitations for U.S.C. 605(b)), has reviewed this and of promoting flexibility. The
administrative offset was repealed, regulation and by approving it certifies Department has assessed the costs and
Public Law 110–264, sec. 14219 that this regulation will not have a benefits of this regulation and believes
(codified at 31 U.S.C. 3716(e)), the significant economic impact on a that the regulatory approach selected
Department of the Treasury deleted the substantial number of small entities. maximizes net benefits.
limitations period from its regulation, The Department proposes to collect Executive Order 12988—Civil Justice
74 FR 68149 (Dec. 23, 2009), and the delinquent nontax debt owed it through Reform
Department proposes to delete the an administrative wage garnishment
corresponding time limit from its own (AWG) process. When an AWG order is This regulation meets the applicable
regulation. issued, employers (including small standards set forth in sections 3(a) and
Subpart C prescribes the standards businesses) that employ workers from 3(b)(2) of Executive Order 12988.
and procedures for submitting past due, whom the Department is collecting a
Executive Order 13132—Federalism
legally enforceable debts to the delinquent debt will be required to
Department of the Treasury for certify the employee’s employment and This regulation will not have
collection by offset. These standards earnings, garnish wages, and remit substantial direct effects on the States,
and procedures are authorized under withheld wages to the Department. Such on the relationship between the national
the offset provisions of the Deficit procedures are mandated by Department government and the States, or on the
mstockstill on DSK4VPTVN1PROD with PROPOSALS

Reduction Act of 1984, and the DCIA, of the Treasury regulations issued to distribution of power and
codified in relevant part at 31 U.S.C. implement the Debt Collection responsibilities among the various
3716 and 3720A, and the Department of Improvement Act. Employment and levels of government. Therefore, in
the Treasury’s implementing regulations salary information is contained in an accordance with Executive Order 13132,
at 31 CFR 285.2 and 285.5. The employer’s payroll records. Therefore, it it is determined that this rule does not
Department proposes to amend this will not take a significant amount of have sufficient federalism implications
subpart to conform to subsequent legal time or result in a significant cost for an to warrant the preparation of a
changes. The obsolete ten-year statute of employer to certify employment and Federalism Assessment.

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8584 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules

(d) General rule. Whenever the agency location of the hearing shall be debt is incorrect. In addition, the debtor
determines that a delinquent debt is established by the agency. An oral may present evidence that the terms of
owed by an individual, the agency may hearing may, at the debtor’s option, be the repayment schedule are unlawful or
initiate proceedings administratively to conducted either in person or by would cause a financial hardship to the
garnish the wages of the delinquent telephone conference. All travel debtor, or that collection of the debt
debtor. expenses incurred by the debtor in may not be pursued due to operation of
(e) Notice requirements. (1) At least 30 connection with an in-person hearing law.
days before the initiation of garnishment will be borne by the debtor. All (8) Record. The hearing official must
proceedings, the agency shall mail, by telephonic charges incurred during the maintain a summary record of any
first class mail, to the debtor’s last hearing will be the responsibility of the hearing provided under this section. A
known address, a written notice agency. hearing is not required to be a formal
informing the debtor of: (iii) In those cases when an oral evidentiary-type hearing. However,
(i) The nature and amount of the debt; hearing is not required by this section, witnesses who testify in in-person or
(ii) The intention of the agency to the agency shall nevertheless accord the telephonic hearings will do so under
initiate proceedings to collect the debt debtor a ‘‘paper hearing,’’ that is, the oath or affirmation.
through deductions from pay until the agency will decide the issues in dispute (9) Date of decision. The hearing
debt and all accumulated interest, based upon a review of the written official shall issue a written opinion
penalties, and administrative costs are record. The agency will establish a stating the decision, as soon as
paid in full; and reasonable deadline for the submission practicable, but not later than 60 days
(iii) An explanation of the debtor’s of evidence. after the date on which the request for
rights, including those set forth in (3) Effect of timely request. Subject to such hearing was received by the
paragraph (e)(2) of this section, and the paragraph (f)(12) of this section, if the agency. If an agency is unable to provide
timeframe within which the debtor may debtor’s written request is received by the debtor with a hearing and render a
exercise those rights. the agency on or before the 15th decision within 60 days after the receipt
(2) The debtor shall be afforded the business day following the mailing of of the request for such hearing:
opportunity: the notice described in paragraph (e)(1) (i) The agency may not issue a
(i) To inspect and copy agency of this section, the agency shall not withholding order until the hearing is
records related to the debt; issue a withholding order under held and a decision rendered; or
(ii) To enter into a written repayment paragraph (g) of this section until the (ii) If the agency had previously
agreement with the agency under terms debtor has been provided the requested issued a withholding order to the
agreeable to the agency; and hearing and a decision in accordance
(iii) For a hearing in accordance with debtor’s employer, the agency must
with paragraphs (f)(9) and (f)(10) of this suspend the withholding order
paragraph (f) of this section concerning section has been rendered.
the existence or the amount of the debt beginning on the 61st day after the
(4) Failure to timely request a hearing. receipt of the hearing request and
or the terms of the proposed repayment If the debtor’s written request is
schedule under the garnishment order. continuing until a hearing is held and
received by the agency after the 15th a decision is rendered.
However, the debtor is not entitled to a business day following the mailing of
hearing concerning the terms of the (10) Content of decision. The written
the notice described in paragraph (e)(1) decision shall include:
proposed repayment schedule if these of this section, the agency shall provide
terms have been established by written (i) A summary of the facts presented;
a hearing to the debtor. However, the (ii) The hearing official’s findings,
agreement under paragraph (e)(2)(ii) of agency will not delay issuance of a
this section. analysis, and conclusions; and
withholding order unless the agency (iii) The terms of any repayment
(3) The agency will retain evidence of determines that the delay in filing the
service indicating the date of mailing of schedules, if applicable.
request was caused by factors over (11) Final agency action. The hearing
the notice. which the debtor had no control, or the
(f) Hearing— official’s decision will be final agency
agency receives information that the action for purposes of judicial review
(1) Request for hearing. The agency agency believes justifies a delay or
shall provide a hearing, which at the under the Administrative Procedure Act
cancellation of the withholding order. (5 U.S.C. 701 et seq.).
agency’s option may be oral or written, (5) Hearing official. A hearing official
if the debtor submits a written request (12) Failure to appear. In the absence
may be any qualified individual, as
for a hearing concerning the existence or of good cause shown, a debtor who fails
determined by the head of the agency,
amount of the debt or the terms of the to appear at a hearing scheduled
including an administrative law judge.
repayment schedule (for repayment (6) Procedure. After the debtor pursuant to paragraph (f)(3) of this
schedules established other than by requests a hearing, the hearing official section will be deemed as not having
written agreement under paragraph shall notify the debtor of: timely filed a request for a hearing.
(e)(2)(ii) of this section). (i) The date and time of a telephonic (g) Wage garnishment order. (1)
(2) Type of hearing or review. (i) For hearing; Unless the agency receives information
purposes of this section, whenever the (ii) The date, time, and location of an that the agency believes justifies a delay
agency is required to afford a debtor a in-person oral hearing; or or cancellation of the withholding order,
hearing, the agency shall provide the (iii) The deadline for the submission the agency will send, by first class mail,
debtor with a reasonable opportunity for a withholding order to the debtor’s
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of evidence for a written hearing.
an oral hearing when the agency (7) Burden of proof. (i) The agency employer:
determines that the issues in dispute will have the initial burden of proving, (i) Within 30 days after the debtor
cannot be resolved by review of the by a preponderance of the evidence, the fails to make a timely request for a
documentary evidence, as, for example, existence or amount of the debt. hearing (i.e., within 15 business days
when the validity of the claim turns on (ii) If the agency satisfies its initial after the mailing of the notice described
the issue of credibility or veracity. burden, the debtor must prove, by a in paragraph (e)(1) of this section), or,
(ii) If the agency determines that an preponderance of the evidence, that no (ii) If a timely request for a hearing is
oral hearing is appropriate, the time and debt exists or that the amount of the made by the debtor, within 30 days after

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Document Created: 2018-02-16 11:10:43
Document Modified: 2018-02-16 11:10:43
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking.
Dates		Written comments must be postmarked and electronic comments must be submitted on or before April 20, 2015. Comments received by mail will be considered timely if they are postmarked on or before that date. The electronic Federal Docket Management System (FDMS) will accept comments until Midnight Eastern Time at the end of that day.
Contact		Dennis Dauphin, Director, Debt Collection Management Staff, or Morton J. Posner, Assistant General Counsel, Justice Management Division, U.S. Department of Justice, Washington, DC 20530, (202) 514-5343 or (202) 514-3452.
FR Citation		80 FR 8580
CFR Associated		Administrative Practice and Procedure; Claims; Debt Collection; Government Contracts; Government Employees; Income Taxes; Lawyers and Wages
80 FR 8580 - Department of Justice Debt Collection Regulations

DEPARTMENT OF JUSTICEOffice of the Attorney General

Federal Register Volume 80, Issue 32 (February 18, 2015)

DEPARTMENT OF JUSTICE
Office of the Attorney General
