82_FR_29507 82 FR 29383 - Processing of Monetary Claims

82 FR 29383 - Processing of Monetary Claims

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 82, Issue 124 (June 29, 2017)

Page Range29383-29387
FR Document2017-13421

This direct final rule makes changes to comply with statutory modifications increasing NASA's approval authority for certain actions from $20,000 to $100,000 and makes nonsubstantive changes to clarify the existing notification and review procedures. Pursuant to statutory amendments, NASA's authority to approve certain claims has increased from $20,000 to $100,000. NASA is amending its implementing regulation accordingly. Prior to this statutory change, amounts over $20,000 had to be forwarded to officials within the Department of Justice for approval. The additional changes to procedures were made to comply with ``plain wording'' criteria and to incorporate debt collection procedural changes implemented under the Debt Collection Improvement Act of 1996. No substantive changes were made to existing NASA provisions for notice and review of claims or indebtedness. The revision to this rule is part of NASA's retrospective plan under Executive Order (E.O.) 13563 completed in August 2011.

Federal Register, Volume 82 Issue 124 (Thursday, June 29, 2017)
[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)]
[Rules and Regulations]
[Pages 29383-29387]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13421]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1261

[Document Number NASA-2017-0003; Notice: 17-040]
RIN 2700-AD83


Processing of Monetary Claims

AGENCY: National Aeronautics and Space Administration.

ACTION: Direct final rule.

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SUMMARY: This direct final rule makes changes to comply with statutory 
modifications increasing NASA's approval authority for certain actions 
from $20,000 to $100,000 and makes nonsubstantive changes to clarify 
the existing notification and review procedures. Pursuant to statutory 
amendments, NASA's authority to approve certain claims has increased 
from $20,000 to $100,000. NASA is amending its implementing regulation 
accordingly. Prior to this statutory change, amounts over $20,000 had 
to be forwarded to officials within the Department of Justice for 
approval. The additional changes to procedures were made to comply with 
``plain wording'' criteria and to incorporate debt collection 
procedural changes implemented under the Debt Collection Improvement 
Act of 1996. No substantive changes were made to existing NASA 
provisions for notice and review of claims or indebtedness. The 
revision to this rule is part of NASA's retrospective plan under 
Executive Order (E.O.) 13563 completed in August 2011.

DATES: This direct final rule is effective August 28, 2017. Comments 
due on or before July 31, 2017. If adverse comments are received, NASA 
will publish a timely withdrawal of the rule in the Federal Register.

ADDRESSES: NASA's full plan can be accessed on the Agency's open 
Government Web site at http://www.nasa.gov/open/.

FOR FURTHER INFORMATION CONTACT: Bryan R. Diederich, Office of the 
General Counsel, NASA Headquarters, telephone (202) 358-0216.

SUPPLEMENTARY INFORMATION:

Direct Final Rule

    NASA has determined this rulemaking meets the criteria for a direct 
final rule because it involves non-discretionary statutory 
modifications to certain of NASA's claims and indebtedness approval 
authorities and makes nonsubstantive and ``plain wording'' changes to 
existing notification and review procedures within NASA. However, if 
the Agency receives a significant adverse comment, it will withdraw 
this direct final rule by publishing a notice in the Federal Register. 
A significant adverse comment is one that explains: (1) Why the direct 
final rule is inappropriate, including challenges to the rule's 
underlying premise or approach; or (2) why the direct final rule will 
be ineffective or unacceptable without a change. In determining whether 
a comment necessitates withdrawal of this direct final rule, NASA will 
consider whether it warrants a substantive response in a notice and 
comment process.

    Statutory Authority: Title 31, Subchapter II, Section 3711(a)(2) 
Collection and compromise.

Regulatory Analysis

Paperwork Reduction Act Statement

    This final rule does not contain an information collection 
requirement that is subject to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.).

Executive Order 12866 and Executive Order 13563

    Executive Orders 13563 and 12866 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. This final rule has been designated a ``not significant.''

Regulatory Flexibility Act

    It has been certified that this final rule is not subject to the 
Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.

List of Subjects in 14 CFR Part 1261

    Claims.

    Accordingly, 14 CFR part 1261 is amended as follows:

PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)

0
1. The authority citation for part 1261 is revised to read as follows:

    Authority: Subparts 1261.4, 1261.5, and 1261.6 issued under 51 
U.S.C. 20113; 31 U.S.C. 3711 et seq.; 5 U.S.C. 5514; 31 CFR parts 
900 through 904; 5 CFR part 550, subpart K, Sec. Sec.  550.1101 
through 550.1107.

Subpart 1261.3--Claims Against NASA or Its Employees for Damage to 
or Loss of Property or Personal Injury or Death--Accruing On or 
After January 18, 1967

0
2. The authority citation for subpart 1261.3 is revised to read as 
follows:

    Authority: 28 U.S.C. 2671-2680, 51 U.S.C. 20113(m), and 28 CFR 
part 14.


0
3. Amend Sec.  1261.301 by revising paragraphs (b) and (c) to read as 
follows:


Sec.  1261.301  Authority.

* * * * *
    (b) Under 51 U.S.C. 20113(m)(1), NASA is authorized to consider, 
ascertain, adjust, determine, settle, and pay, on behalf of the United 
States, in full satisfaction thereof, any claim for $25,000 or less 
against the United States for bodily injury, death, or damage to or 
loss of real or personal property resulting from the conduct of NASA's 
functions as specified in 51 U.S.C. 20112. At the discretion of NASA, a 
claim may be settled and paid under this authority even though the 
United States could not be held legally liable to the claimant.
    (c) Under 51 U.S.C. 20113(m)(2), if NASA considers that a claim in 
excess of $25,000 is meritorious and would otherwise be covered by 51 
U.S.C. 20113(m)(1), NASA may report the facts and circumstances of the 
claim to the Congress for its consideration or to the Comptroller 
General as provided in the ``Supplemental Appropriations Act, 1978,'' 
Public Law 95-240 (92 Stat. 107), 31 U.S.C. 724a.
* * * * *

0
4. Revise Sec.  1261.304 to read as follows:


Sec.  1261.304  Place of filing claim.

    A claim arising in the United States should be submitted to the 
Chief Counsel of the NASA installation whose activities are believed to 
have given rise to the claimed injury, loss, or death. If the identity 
of such installation is not

[[Page 29384]]

known, or if the claim arose in a foreign country, the claim should be 
submitted to the General Counsel, Headquarters, National Aeronautics 
and Space Administration, Washington, DC 20546.

0
5. Amend Sec.  1261.307 by revising paragraph (b) to read as follows:


Sec.  1261.307  Time limitations.

* * * * *
    (b) A claim may not be acted upon pursuant to 51 U.S.C. 20113(m)(1) 
or (2) unless it is presented to NASA within two years after the 
occurrence of the accident or incident out of which the claim arose.
* * * * *

0
6. Amend Sec.  1261.308 by revising paragraphs (c) and (d) to read as 
follows:


Sec.  1261.308   NASA officials authorized to act upon claims.

* * * * *
    (c) Claims of $10,000 or more, pursuant either to the Federal Tort 
Claims Act, or 51 U.S.C. 20113(m), shall be acted upon only with the 
prior approval of the General Counsel. Such claims shall be forwarded 
to the General Counsel for approval, if the Chief Counsel or the 
Associate General Counsel for General Law is of the opinion that the 
claim may be meritorious and otherwise suitable for settlement under 
any authority. A claim so forwarded should be accompanied by a report 
of the facts of the claim, based upon such investigation as may be 
appropriate, and a recommendation as to the action to be taken.
    (d) Claims acted upon by NASA officials pursuant to this section 
shall be acted upon pursuant to the Federal Tort Claims Act, or 51 
U.S.C. 20113(m)(1) or (2), as the NASA official deems appropriate.

0
7. Amend Sec.  1261.312 by revising paragraph (a) to read as follows:


Sec.  1261.312   Action on approved claims.

    (a) Upon settlement of a claim, the official designated in Sec.  
1261.308 will prepare and have executed by the claimant a Voucher for 
Payment of Tort Claims (NASA Form 616) if the claim has been acted upon 
pursuant to 51 U.S.C. 20113(m), or a Voucher for Payment under Federal 
Tort Claims Act (Standard Form 1145) if the claim has been acted upon 
pursuant to the Federal Tort Claims Act. The form will then be referred 
to the cognizant NASA installation fiscal or financial management 
office for appropriate action.
* * * * *

0
8. Amend Sec.  1261.315 by revising paragraphs (b) introductory text 
and (c) introductory text to read as follows:


Sec.  1261.315   Procedures for the handling of lawsuits against NASA 
employees arising within the scope of their office or employment.

* * * * *
    (b) Upon receipt of such process and pleadings, the Associate 
General Counsel for General Law or the Chief Counsel of the NASA 
installation receiving the same shall furnish to the U.S. Attorney for 
the district embracing the place where the action or proceeding is 
brought and, if appropriate, the Director, Torts Branch, Civil 
Division, Department of Justice, the following:
* * * * *
    (c) The Associate General Counsel for General Law or a Chief 
Counsel acting pursuant to paragraph (b) of this section shall submit 
the following documents to the General Counsel, who is hereby 
designated to receive such documents on behalf of the Administrator:
* * * * *

0
9. Amend Sec.  1261.317 by revising paragraph (b) to read as follows:


Sec.  1261.317   Attorney-client privilege.

* * * * *
    (b) Any adverse information communicated by the client-employee to 
an Agency attorney during the course of such attorney-client 
relationship shall not be disclosed to anyone, either inside or outside 
NASA, other than attorneys responsible for representation of the 
employee, unless such disclosure is authorized by the employee. Such 
adverse information shall continue to be fully protected whether or not 
representation is provided and even though representation may be denied 
or discontinued.

Subpart 1261.4--Collection of Civil Claims of the United States 
Arising Out of the Activities of the National Aeronautics and Space 
Administration (NASA)

0
10. Amend Sec.  1261.402 by revising paragraphs (b), (c), (d) and (e) 
to read as follows:


Sec.  1261.402  Delegation of authority.

* * * * *
    (b) For Headquarters, with regard to subpart 1261.4 and subpart 
1261.5: The Associate Administrator for Mission Support or a designee 
who reports directly to the Associate Administrator for Mission 
Support. A copy of such designation, if any, shall be sent to the 
Director, Financial Management Division, NASA Headquarters.
    (c) With respect to the analysis required by Sec.  1261.413: The 
NASA Chief Financial Officer or designee.
    (d) NASA-wide, with regard to subpart 1261.6: The NASA Chief 
Financial Officer or designee.
    (e) NASA-wide, for complying with pertinent provisions under these 
regulations for agency hearing or review (see Sec. Sec.  1261.408(b), 
1261.503, and 1261.603(c)): The NASA General Counsel or designee.

0
11. Amend Sec.  1261.403 by revising paragraph (a) introductory text to 
read as follows:


Sec.  1261.403   Consultation with appropriate officials; negotiation.

    (a) The authority pursuant to Sec.  1261.402 to determine to forgo 
collection of interest, to accept payment of a claim in installments, 
or, as to claims which do not exceed $100,000, exclusive of interest 
and related charges, to compromise a claim or to refrain from doing so, 
or to refrain from, suspend, or terminate collection action, shall be 
exercised only after consultation with legal counsel for the particular 
installation and the following NASA officials or designees, who may 
also be requested to negotiate the appropriate agreements or 
arrangements with the debtor:
* * * * *

0
12. Amend Sec.  1261.405 by revising paragraph (a) to read as follows:


Sec.  1261.405   Subdivision of claims not authorized; other 
administrative proceedings.

    (a) Subdivision of claims. Claims may not be subdivided to avoid 
the $100,000 ceiling, exclusive of interest, penalties, and 
administrative costs, for purposes of compromise (Sec.  1261.414) or 
suspension or termination of collection (Sec.  1261.416). The debtor's 
liability arising from a particular transaction or contract shall be 
considered a single claim (31 CFR 900.6).
* * * * *

0
13. Amend Sec.  1261.407 by adding paragraph (b)(4) to read as follows:
* * * * *
    (b) * * *
    (4) The name, address, and phone number of a contact person or 
office within the Agency.
* * * * *

0
14. Amend Sec.  1261.408 by revising paragraph (b)(2)(ii) to read as 
follows:


Sec.  1261.408   Use of consumer reporting agency.

* * * * *
    (b) * * *
    (2) * * *

[[Page 29385]]

    (ii) If a current address is available, notifying the individual by 
certified mail, return receipt requested, that: The designated NASA 
official has reviewed the claim and determined that it is valid and 
overdue; within not less than 60 days after sending this notice, NASA 
intends to disclose to a consumer reporting agency the specific 
information to be disclosed under paragraph (b)(1) of this section; the 
individual may request a complete explanation of the claim, dispute the 
information in the records of NASA about the claim, and file for an 
administrative review or repeal of the claim or for reconsideration of 
the initial decision on the claim.
* * * * *

0
15. Amend Sec.  1261.409 by revising paragraph (a) introductory text, 
adding paragraph (a)(5), revising paragraph (b), and adding paragraph 
(c) to read as follows:


Sec.  1261.409  Contracting for collection services.

    (a) When NASA determines that there is a need to contract for 
collection services, the following conditions shall apply:
* * * * *
    (5) The debt must not be subject to mandatory transfer to the 
Department of the Treasury for collection. See 31 CFR 901.5(a) and (b).
    (b) NASA shall use Government-wide debt collection contracts to 
obtain debt collection services provided by private collection 
contractors. See 31 CFR 901.5(b).
    (c) NASA shall fund private collection contractor contracts in 
accordance with 31 U.S.C. 3728(d) or as otherwise permitted by law. See 
31 CFR 901.5(c).

0
16. Amend Sec.  1261.411 by revising paragraph (a) to read as follows:


Sec.  1261.411   Collection in installments.

    (a) Whenever feasible, and except as otherwise provided by law, 
debts owed to the United States, together with interest penalties, and 
administrative costs as required by Sec.  1261.412, should be collected 
in full in one lump sum. This is true whether the debt is being 
collected by administrative offset or by another method, including 
voluntary payment. However, if the debtor is financially unable to pay 
the indebtedness in one lump sum, payment may be accepted in regular 
installments. Debtors who represent that they are unable to pay the 
debt in one lump sum must submit justification, including financial 
statements. If NASA agrees to accept payment in regular installments, 
it will obtain a legally enforceable written agreement from the debtor 
which specifies all of the terms of the arrangement and which contains 
a provision accelerating the debt in the event the debtor defaults. The 
size and frequency of installment payments should bear a reasonable 
relation to the size of the debt and the debtor's ability to pay. If 
possible, the installment payments should be sufficient in size and 
frequency to liquidate the Government's claim in not more than three 
years. Installment payments of less than $50 per month should be 
accepted only if justifiable on the grounds of financial hardship or 
similar reasonable cause. If the claim is unsecured, an executed 
confess-judgment note should be obtained from a debtor when the total 
amount of the deferred installments will exceed $750. Such notes may be 
sought when an unsecured obligation of a lesser amount is involved. 
When attempting to obtain confess-judgment notes, the debtor should be 
provided with written explanation of the consequences of signing the 
note, and documentation should be maintained sufficient to demonstrate 
that the debtor has signed the note knowingly and voluntarily. Security 
for deferred payments other than a confess-judgment note may be 
accepted in appropriate cases. NASA, at its option, may accept 
installment payments notwithstanding the refusal of a debtor to execute 
a confess-judgment note or to give other security.
* * * * *

0
17. Amend Sec.  1261.412 by revising paragraph (i)(1)(iv) and (i)(2) to 
read as follows:


Sec.  1261.412   Interest, penalties, and administrative costs.

* * * * *
    (i) * * *
    (1) * * *
    (iv) To debts arising under the Social Security Act, the Internal 
Revenue Code, or the tariff laws of the United States.
    (2) NASA may, however, assess interest and related charges on debts 
which are not subject to 31 U.S.C. 3717 to the extent authorized under 
the common law or applicable statutory authority.

0
18. Amend Sec.  1261.413 by revising the introductory text to read as 
follows:


Sec.  1261.413   Analysis of costs; automation; prevention of 
overpayments, delinquencies, or defaults.

    The Office of the NASA Chief Financial Officer will:
* * * * *

0
19. Amend Sec.  1261.414 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  1261.414   Compromise of claims.

    (a) Designated NASA officials (see Sec. Sec.  1261.402 and 
1261.403) may compromise claims for money or property arising out of 
the activities of the Agency where the claim, exclusive of interest, 
penalties, and administrative costs, does not exceed $100,000, prior to 
the referral of such claims to the Government Accountability Office, or 
to the Department of Justice for litigation. The Comptroller General 
may exercise such compromise authority with respect to claims referred 
to the Government Accountability Office prior to their further referral 
for litigation. Only the Comptroller General may effect the compromise 
of a claim that arises out of an exception made by the Government 
Accountability Office in the account of an accountable officer, 
including a claim against the payee, prior to its referral by the 
Government Accountability Office for litigation.
    (b) When the claim, exclusive of interest, penalties, and 
administrative costs, exceeds $100,000, the authority to accept the 
compromise rests solely with the Department of Justice. NASA should 
evaluate the offer, using the factors set forth in paragraphs (c) 
through (f) of this section, and may recommend compromise for reasons 
under one, or more than one, of those paragraphs. If NASA then wishes 
to accept the compromise, it must refer the matter to the Department of 
Justice, using the Claims Collection Litigation Report. See Sec.  
1261.417(e) or 31 CFR 904.2(c). Claims for which the gross amount is 
over $200,000 shall be referred to the Commercial Litigation Branch, 
Civil Division, Department of Justice, Washington, DC 20530. Claims for 
which the gross original amount is $200,000 or less shall be referred 
to the United States Attorney in whose judicial district the debtor can 
be found. The referral should specify the reasons for the Agency's 
recommendation. If NASA has a debtor's firm written offer of compromise 
which is substantial in amount and the Agency is uncertain as to 
whether the offer should be accepted, it may refer the offer, the 
supporting data, and particulars concerning the claim to the Government 
Accountability Office or to the Department of Justice. The Government 
Accountability Office or the Department of Justice may act upon such an 
offer or return it to the agency with instructions or advice. If NASA 
wishes to reject the compromise, Government Accountability Office or 
Department of Justice approval is not required.
* * * * *

[[Page 29386]]


0
20. Amend Sec.  1261.416 by revising paragraphs (a), (b), (c)(3)(iii) 
and (e) to read as follows:


Sec.  1261.416   Suspending or terminating collection action.

    (a) The standards set forth in this section apply to the suspension 
or termination of collection action pursuant to 31 U.S.C. 3711(a)(3) on 
claims which do not exceed $100,000, exclusive of interest, penalties, 
and administrative costs, after deducting the amount of partial 
payments or collections, if any. NASA may suspend or terminate 
collection action under this part with respect to claims for money or 
property arising out of activities of the Agency, prior to the referral 
of such claims to the Government Accountability Office or to the 
Department of Justice for litigation. The Comptroller General (or 
designee) may exercise such authority with respect to claims referred 
to the Government Accountability Office prior to their further referral 
for litigation.
    (b) If, after deducting the amount of partial payments or 
collections, if any, a claim exceeds $100,000, exclusive of interest, 
penalties, and administrative costs, the authority to suspend or 
terminate rests solely with the Department of Justice. If the 
designated official believes suspension or termination may be 
appropriate, the matter should be evaluated using the factors set forth 
in paragraphs (c) and (d) of this section. If the Agency concludes that 
suspension or termination is appropriate, it must refer the matter, 
with its reasons for the recommendation, to the Department of Justice, 
using the Claims Collection Litigation Report. See Sec.  1261.417(e) or 
31 CFR 904.2(c). If NASA decides not to suspend or terminate collection 
action on the claim, Department of Justice approval is not required; or 
if it determines that its claim is plainly erroneous or clearly without 
legal merit, it may terminate collection action regardless of the 
amount involved, without the need for Department of Justice 
concurrence.
    (c) * * *
    (3) * * *
    (iii) Collection of the debt will cause undue hardship on the 
debtor.
* * * * *
    (e) Transfer of claim. When NASA has doubt as to whether collection 
action should be suspended or terminated on a claim, it may refer the 
claim to the Government Accountability Office for advice. When a 
significant enforcement policy is involved in reducing a statutory 
penalty or forfeiture to judgment, or recovery of a judgment is a 
prerequisite to the imposition of administrative sanctions, such as the 
suspension or revocation of a license or the privilege of participating 
in a Government-sponsored program, NASA may refer such a claim for 
litigation even though termination of collection activity might 
otherwise be given consideration under paragraphs (d)(1) and (2) of 
this section. Claims on which NASA holds a judgment by assignment or 
otherwise will be referred to the Department of Justice for further 
action if renewal of the judgment lien or enforced collection 
proceedings are justified under the criteria discussed in this section.

0
21. Amend Sec.  1261.417 by revising the section heading and paragraphs 
(c) and (d) to read as follows:


Sec.  1261.417   Referral to Department of Justice or Government 
Accountability Office.

* * * * *
    (c) When the merits of the claim, the amount owed on the claim, or 
the propriety of acceptance of a proposed compromise, suspension, or 
termination are in doubt, the designated official should refer the 
matter to the Government Accountability Office for resolution and 
instructions prior to proceeding with collection action and/or referral 
to the Department of Justice for litigation.
    (d) Once a claim has been referred to the Government Accountability 
Office or to the Department of Justice pursuant to this section, NASA 
shall refrain from having any contact with the debtor about the pending 
claim and shall direct the debtor to the Government Accountability 
Office or to the Department of Justice, as appropriate, when questions 
concerning the claim are raised by the debtor. The Government 
Accountability Office or the Department of Justice, as appropriate, 
shall be immediately notified by NASA of any payments which are 
received from the debtor subsequent to referral of a claim under this 
section.
* * * * *

0
22. Add Sec.  1261.418 to read as follows:


Sec.  1261.418  Transfer of debts to Treasury for collection.

    Unless subject to an exception identified in 31 CFR 285.12(d), NASA 
shall transfer any debt that is more than 180 days delinquent to the 
Financial Management Service for debt collection services in accordance 
with the procedures described in 31 CFR 285.12.

Subpart 1261.5--Administrative Offset of Claims

0
23. Amend Sec.  1261.500 by revising paragraphs (a), (b), and (c) 
introductory text to read as follows:


Sec.  1261.500   Scope of subpart.

    (a) This subpart applies to collection of claims by administrative 
offset under section 5 of the Federal Claims Collection Act of 1966 as 
amended by the Debt Collection Act of 1982 and the Debt Collection 
Improvement Act of 1996 (31 U.S.C. 3716), other statutory authority, or 
the common law; it does not include ``Salary Offset,'' which is 
governed by subpart 1261.6, infra.
    (b) NASA shall refer past due, legally enforceable nontax debts 
which are over 180 days delinquent to the Secretary of the Treasury for 
collection by centralized administrative offset. For purposes of debts 
governed by this provision, NASA adopts and will follow the procedures 
established by the Department of the Treasury in 31 CFR 901.3.
    (c) For claims not subject to mandatory transfer to the Department 
of the Treasury pursuant to paragraph (b), NASA may consider ad hoc 
non-centralized administrative offset of claims at its sole discretion. 
Any ad hoc non-centralized administrative offset of claims will be 
conducted consistent with the requirements of 31 CFR 901.3(c).
* * * * *

0
24. Amend Sec.  1261.503 by revising paragraphs (a) introductory text, 
(a)(2), (b), and (c) to read as follows:


Sec.  1261.503   Agency records inspection; hearing or review.

    (a) NASA shall provide the debtor with a reasonable opportunity for 
a live, telephonic, or video-teleconference hearing when:
* * * * *
    (2) Unless otherwise required by law, a hearing under this section 
is not required to be a formal evidentiary-type hearing, although 
significant matters discussed at the hearing should be documented. See 
31 CFR 901.3(e)(1). Such hearing may be an informal discussion/
interview with the debtor, face-to-face meeting between debtor and 
cognizant NASA personnel, or written formal submission by the debtor 
and response by the NASA cognizant personnel with an opportunity for 
oral presentation. The hearing will be conducted before or in the 
presence of an official as designated by the NASA General Counsel on a 
case-by-case basis. The hearing is not an adversarial adjudication and 
need not take the form

[[Page 29387]]

of an evidentiary hearing. However, depending on the particular facts 
and circumstances, the hearing may be analogous to a fact-finding 
proceeding with oral presentations; or an informal meeting with or 
interview of the employee; or formal written submissions, with an 
opportunity for oral presentation, and decision based on the available 
written record. Ordinarily, hearings may consist of informal 
conferences before the hearing official in which the employee and 
Agency officials will be given full opportunity to present evidence, 
witnesses, and argument. The employee may represent himself or herself 
or be represented by an individual of his or her choice at no cost to 
the United States. The hearing official must maintain or provide for a 
summary record of the hearing provided under this subpart. The decision 
of the reviewing/hearing official should be communicated in writing (no 
particular form is required) to the affected parties and will 
constitute the final administrative decision of the Agency.
    (b) Paragraph (a) of this section does not require a hearing with 
respect to debt collection systems, as determinations of indebtedness 
or waiver from these rarely involve issues of credibility or veracity 
since NASA has determined that review of the written record is 
ordinarily an adequate means to correct prior mistakes. See 31 CFR 
901.3(e)(3).
    (c) In those cases where a live, telephonic, or video-
teleconference hearing is not required or granted, NASA will 
nevertheless accord the debtor an opportunity to submit any position 
regarding the matter by documentation and/or written presentation--that 
is, the Agency will make its determination on the request for waiver or 
reconsideration based upon a review of the available written record. 
See 31 CFR 901.3(e)(4). In such case, the responsible official or 
designee shall refer the request to the appropriate NASA Office of 
General Counsel or Chief Counsel for review and recommendation.
* * * * *

0
25. Amend Sec.  1261.507 by revising paragraph (e)(3) to read as 
follows:


Sec.  1261.507   Civil Service Retirement and Disability Fund.

* * * * *
    (e) * * *
    (3) Provide or not provide a live, telephonic, or video-
teleconference hearing.

Subpart 1261.6--Collection by Offset From Indebted Government 
Employees

0
26. Amend Sec.  1261.601 by revising paragraph (b)(2) to read as 
follows:


Sec.  1261.601   Scope of subpart.

* * * * *
    (b) * * *
    (2) Waiver requests and claims to the Government Accountability 
Office. This subpart does not preclude an employee from requesting 
waiver of a salary overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774, or 
32 U.S.C. 716, or in any way questioning the amount or validity of a 
debt by submitting a subsequent claim to the Government Accountability 
Office in accordance with procedures prescribed by the Government 
Accountability Office. Similarly, in the case of other types of debts, 
it does not preclude an employee from requesting waiver, if waiver is 
available under any statutory provision pertaining to the particular 
debt being collected.

0
27. Amend Sec.  1261.603 by revising the introductory text and 
paragraphs (a) introductory text and (c)(2) and (5), removing 
paragraphs (c)(6) through (8), and revising paragraph (e) to read as 
follows:


Sec.  1261.603   Procedures for salary offset.

    If NASA determines that a Federal employee is indebted to the 
United States or is notified of such by the head of another agency (or 
delegee), the amount of indebtedness may be collected in monthly 
installments, or regularly established pay intervals, by deduction from 
the affected employee's pay account. The deductions may be made from 
basic pay, special pay, incentive pay, retired pay, retainer pay, or in 
the case of an employee not entitled to basic pay, from other 
authorized pay. The requirements in paragraphs (a) through (h) of this 
section must be met before a deduction is made from the current pay 
account of an employee.
    (a) Written notice. The employee must be sent a minimum of 30 days 
written notice prior to further offset action, which specifies:
* * * * *
    (c) * * *
    (2) The petition should be addressed to the Agency counsel 
designated in the notice, but the hearing will be conducted by an 
official not under the supervision or control of the NASA 
Administrator. The Agency Chief Financial Officer is authorized to 
appoint an administrative law judge or other Federal executive branch 
employee or official on a reimbursable or other basis. Notice of the 
name and address of the hearing official will be sent to the employee 
within 10 days of receipt of petition.
* * * * *
    (5) As for the conduct of any live, telephonic, or video 
teleconference hearing, for additional guidance see 14 CFR 1261.503.
* * * * *
    (e) Limitation on amount and duration of deductions. Ordinarily, 
debts are to be collected in one lump-sum payment. However, if the 
employee is financially unable to pay in one lump sum or if the amount 
of the debt exceeds 15 percent of disposable pay for an officially 
established pay interval, collection must be made in installments. The 
size of installment deductions must bear a reasonable relationship to 
the size of the debt and the employee's ability to pay (see 14 CFR 
1261.411), but the amount deducted for any period must not exceed 15 
percent of the disposable pay from which the deduction is made (unless 
the employee has agreed in writing to the deduction of a greater 
amount). Deduction must commence with the next full pay interval 
(ordinarily, the next biweekly pay period). Such installment deductions 
must be made over a period not greater than the anticipated period of 
active duty or employment, as the case may be, except as provided in 
paragraph (f) of this section.
* * * * *

Nanette Smith,
NASA Federal Register Liaison Officer.
[FR Doc. 2017-13421 Filed 6-28-17; 8:45 am]
 BILLING CODE P



                                                                Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Rules and Regulations                                             29383

                                             Center (MCAGCC), Twentynine Palms,                      General Counsel, NASA Headquarters,                    List of Subjects in 14 CFR Part 1261
                                             CA.                                                     telephone (202) 358–0216.                                Claims.
                                             *    *    *  *     *                                    SUPPLEMENTARY INFORMATION:                               Accordingly, 14 CFR part 1261 is
                                               Issued in Washington, DC, on June 22,                 Direct Final Rule                                      amended as follows:
                                             2017.
                                             Rodger A. Dean, Jr.,                                       NASA has determined this                            PART 1261—PROCESSING OF
                                             Manager, Airspace Policy Group.                         rulemaking meets the criteria for a                    MONETARY CLAIMS (GENERAL)
                                             [FR Doc. 2017–13566 Filed 6–28–17; 8:45 am]             direct final rule because it involves non-
                                                                                                     discretionary statutory modifications to               ■  1. The authority citation for part 1261
                                             BILLING CODE 4910–13–P
                                                                                                     certain of NASA’s claims and                           is revised to read as follows:
                                                                                                     indebtedness approval authorities and                    Authority: Subparts 1261.4, 1261.5, and
                                                                                                     makes nonsubstantive and ‘‘plain                       1261.6 issued under 51 U.S.C. 20113; 31
                                             NATIONAL AERONAUTICS AND                                wording’’ changes to existing                          U.S.C. 3711 et seq.; 5 U.S.C. 5514; 31 CFR
                                             SPACE ADMINISTRATION                                    notification and review procedures                     parts 900 through 904; 5 CFR part 550,
                                                                                                     within NASA. However, if the Agency                    subpart K, §§ 550.1101 through 550.1107.
                                             14 CFR Part 1261
                                                                                                     receives a significant adverse comment,                Subpart 1261.3—Claims Against NASA
                                             [Document Number NASA–2017–0003;                        it will withdraw this direct final rule by             or Its Employees for Damage to or
                                             Notice: 17–040]                                         publishing a notice in the Federal                     Loss of Property or Personal Injury or
                                                                                                     Register. A significant adverse comment                Death—Accruing On or After January
                                             RIN 2700–AD83                                           is one that explains: (1) Why the direct               18, 1967
                                                                                                     final rule is inappropriate, including
                                             Processing of Monetary Claims                           challenges to the rule’s underlying                    ■ 2. The authority citation for subpart
                                             AGENCY: National Aeronautics and                        premise or approach; or (2) why the                    1261.3 is revised to read as follows:
                                             Space Administration.                                   direct final rule will be ineffective or
                                                                                                                                                              Authority: 28 U.S.C. 2671–2680, 51 U.S.C.
                                                                                                     unacceptable without a change. In
                                             ACTION: Direct final rule.                                                                                     20113(m), and 28 CFR part 14.
                                                                                                     determining whether a comment
                                             SUMMARY:   This direct final rule makes                 necessitates withdrawal of this direct                 ■ 3. Amend § 1261.301 by revising
                                             changes to comply with statutory                        final rule, NASA will consider whether                 paragraphs (b) and (c) to read as follows:
                                             modifications increasing NASA’s                         it warrants a substantive response in a                § 1261.301   Authority.
                                             approval authority for certain actions                  notice and comment process.
                                                                                                                                                            *      *     *     *    *
                                             from $20,000 to $100,000 and makes                         Statutory Authority: Title 31, Subchapter              (b) Under 51 U.S.C. 20113(m)(1),
                                             nonsubstantive changes to clarify the                   II, Section 3711(a)(2) Collection and
                                                                                                                                                            NASA is authorized to consider,
                                             existing notification and review                        compromise.
                                                                                                                                                            ascertain, adjust, determine, settle, and
                                             procedures. Pursuant to statutory                       Regulatory Analysis                                    pay, on behalf of the United States, in
                                             amendments, NASA’s authority to                                                                                full satisfaction thereof, any claim for
                                             approve certain claims has increased                    Paperwork Reduction Act Statement
                                                                                                                                                            $25,000 or less against the United States
                                             from $20,000 to $100,000. NASA is                                                                              for bodily injury, death, or damage to or
                                                                                                        This final rule does not contain an
                                             amending its implementing regulation                                                                           loss of real or personal property
                                                                                                     information collection requirement that
                                             accordingly. Prior to this statutory                                                                           resulting from the conduct of NASA’s
                                                                                                     is subject to the Paperwork Reduction
                                             change, amounts over $20,000 had to be                                                                         functions as specified in 51 U.S.C.
                                                                                                     Act of 1995 (44 U.S.C. 3501 et seq.).
                                             forwarded to officials within the                                                                              20112. At the discretion of NASA, a
                                             Department of Justice for approval. The                 Executive Order 12866 and Executive                    claim may be settled and paid under
                                             additional changes to procedures were                   Order 13563                                            this authority even though the United
                                             made to comply with ‘‘plain wording’’                                                                          States could not be held legally liable to
                                                                                                        Executive Orders 13563 and 12866
                                             criteria and to incorporate debt                                                                               the claimant.
                                                                                                     direct agencies to assess all costs and
                                             collection procedural changes                                                                                     (c) Under 51 U.S.C. 20113(m)(2), if
                                                                                                     benefits of available regulatory
                                             implemented under the Debt Collection                                                                          NASA considers that a claim in excess
                                                                                                     alternatives and, if regulation is
                                             Improvement Act of 1996. No                                                                                    of $25,000 is meritorious and would
                                                                                                     necessary, to select regulatory
                                             substantive changes were made to                                                                               otherwise be covered by 51 U.S.C.
                                                                                                     approaches that maximize net benefits
                                             existing NASA provisions for notice and                                                                        20113(m)(1), NASA may report the facts
                                                                                                     (including potential economic,
                                             review of claims or indebtedness. The                                                                          and circumstances of the claim to the
                                                                                                     environmental, public health and safety
                                             revision to this rule is part of NASA’s                                                                        Congress for its consideration or to the
                                                                                                     effects, distributive impacts, and
                                             retrospective plan under Executive                                                                             Comptroller General as provided in the
                                                                                                     equity). Executive Order 13563
                                             Order (E.O.) 13563 completed in August                                                                         ‘‘Supplemental Appropriations Act,
                                                                                                     emphasizes the importance of
                                             2011.                                                                                                          1978,’’ Public Law 95–240 (92 Stat.
                                                                                                     quantifying both costs and benefits, of
                                             DATES: This direct final rule is effective              reducing costs, of harmonizing rules,                  107), 31 U.S.C. 724a.
                                             August 28, 2017. Comments due on or                     and of promoting flexibility. This final               *      *     *     *    *
                                             before July 31, 2017. If adverse                        rule has been designated a ‘‘not                       ■ 4. Revise § 1261.304 to read as
                                             comments are received, NASA will                        significant.’’
                                             publish a timely withdrawal of the rule                                                                        follows:
                                             in the Federal Register.                                Regulatory Flexibility Act                             § 1261.304   Place of filing claim.
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                                             ADDRESSES: NASA’s full plan can be                         It has been certified that this final rule            A claim arising in the United States
                                             accessed on the Agency’s open                           is not subject to the Regulatory                       should be submitted to the Chief
                                             Government Web site at http://                          Flexibility Act (5 U.S.C. 601) because it              Counsel of the NASA installation whose
                                             www.nasa.gov/open/.                                     would not, if promulgated, have a                      activities are believed to have given rise
                                             FOR FURTHER INFORMATION CONTACT:                        significant economic impact on a                       to the claimed injury, loss, or death. If
                                             Bryan R. Diederich, Office of the                       substantial number of small entities.                  the identity of such installation is not


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                                             29384                Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Rules and Regulations

                                             known, or if the claim arose in a foreign                 ■ 8. Amend § 1261.315 by revising                        (c) With respect to the analysis
                                             country, the claim should be submitted                    paragraphs (b) introductory text and (c)               required by § 1261.413: The NASA
                                             to the General Counsel, Headquarters,                     introductory text to read as follows:                  Chief Financial Officer or designee.
                                             National Aeronautics and Space                                                                                     (d) NASA-wide, with regard to
                                                                                                       § 1261.315 Procedures for the handling of              subpart 1261.6: The NASA Chief
                                             Administration, Washington, DC 20546.                     lawsuits against NASA employees arising
                                                                                                       within the scope of their office or                    Financial Officer or designee.
                                             ■ 5. Amend § 1261.307 by revising                                                                                  (e) NASA-wide, for complying with
                                             paragraph (b) to read as follows:                         employment.
                                                                                                                                                              pertinent provisions under these
                                                                                                       *     *     *    *     *
                                             § 1261.307       Time limitations.                          (b) Upon receipt of such process and                 regulations for agency hearing or review
                                             *     *      *    *    *                                  pleadings, the Associate General                       (see §§ 1261.408(b), 1261.503, and
                                                                                                       Counsel for General Law or the Chief                   1261.603(c)): The NASA General
                                               (b) A claim may not be acted upon                                                                              Counsel or designee.
                                             pursuant to 51 U.S.C. 20113(m)(1) or (2)                  Counsel of the NASA installation
                                                                                                       receiving the same shall furnish to the                ■ 11. Amend § 1261.403 by revising
                                             unless it is presented to NASA within
                                                                                                       U.S. Attorney for the district embracing               paragraph (a) introductory text to read
                                             two years after the occurrence of the
                                                                                                       the place where the action or                          as follows:
                                             accident or incident out of which the
                                             claim arose.                                              proceeding is brought and, if                          § 1261.403 Consultation with appropriate
                                                                                                       appropriate, the Director, Torts Branch,               officials; negotiation.
                                             *     *      *    *    *
                                                                                                       Civil Division, Department of Justice,
                                                                                                                                                                (a) The authority pursuant to
                                             ■ 6. Amend § 1261.308 by revising                         the following:
                                                                                                                                                              § 1261.402 to determine to forgo
                                             paragraphs (c) and (d) to read as follows:                *     *     *    *     *                               collection of interest, to accept payment
                                                                                                         (c) The Associate General Counsel for                of a claim in installments, or, as to
                                             § 1261.308 NASA officials authorized to
                                             act upon claims.
                                                                                                       General Law or a Chief Counsel acting                  claims which do not exceed $100,000,
                                                                                                       pursuant to paragraph (b) of this section              exclusive of interest and related charges,
                                             *      *    *     *      *                                shall submit the following documents to                to compromise a claim or to refrain from
                                                (c) Claims of $10,000 or more,                         the General Counsel, who is hereby                     doing so, or to refrain from, suspend, or
                                             pursuant either to the Federal Tort                       designated to receive such documents
                                                                                                                                                              terminate collection action, shall be
                                             Claims Act, or 51 U.S.C. 20113(m), shall                  on behalf of the Administrator:
                                                                                                                                                              exercised only after consultation with
                                             be acted upon only with the prior                         *     *     *    *     *                               legal counsel for the particular
                                             approval of the General Counsel. Such                     ■ 9. Amend § 1261.317 by revising                      installation and the following NASA
                                             claims shall be forwarded to the General                  paragraph (b) to read as follows:                      officials or designees, who may also be
                                             Counsel for approval, if the Chief
                                                                                                                                                              requested to negotiate the appropriate
                                             Counsel or the Associate General                          § 1261.317    Attorney-client privilege.
                                                                                                                                                              agreements or arrangements with the
                                             Counsel for General Law is of the                         *     *     *    *    *                                debtor:
                                             opinion that the claim may be                               (b) Any adverse information
                                             meritorious and otherwise suitable for                    communicated by the client-employee                    *     *      *    *     *
                                             settlement under any authority. A claim                   to an Agency attorney during the course                ■ 12. Amend § 1261.405 by revising
                                             so forwarded should be accompanied by                     of such attorney-client relationship shall             paragraph (a) to read as follows:
                                             a report of the facts of the claim, based                 not be disclosed to anyone, either inside
                                                                                                                                                              § 1261.405 Subdivision of claims not
                                             upon such investigation as may be                         or outside NASA, other than attorneys                  authorized; other administrative
                                             appropriate, and a recommendation as                      responsible for representation of the                  proceedings.
                                             to the action to be taken.                                employee, unless such disclosure is
                                                                                                                                                                 (a) Subdivision of claims. Claims may
                                                (d) Claims acted upon by NASA                          authorized by the employee. Such
                                                                                                                                                              not be subdivided to avoid the $100,000
                                             officials pursuant to this section shall be               adverse information shall continue to be
                                                                                                                                                              ceiling, exclusive of interest, penalties,
                                             acted upon pursuant to the Federal Tort                   fully protected whether or not
                                                                                                                                                              and administrative costs, for purposes of
                                             Claims Act, or 51 U.S.C. 20113(m)(1) or                   representation is provided and even
                                                                                                       though representation may be denied or                 compromise (§ 1261.414) or suspension
                                             (2), as the NASA official deems                                                                                  or termination of collection
                                             appropriate.                                              discontinued.
                                                                                                                                                              (§ 1261.416). The debtor’s liability
                                             ■ 7. Amend § 1261.312 by revising                         Subpart 1261.4—Collection of Civil                     arising from a particular transaction or
                                             paragraph (a) to read as follows:                         Claims of the United States Arising Out                contract shall be considered a single
                                                                                                       of the Activities of the National                      claim (31 CFR 900.6).
                                             § 1261.312       Action on approved claims.               Aeronautics and Space Administration                   *      *    *     *     *
                                               (a) Upon settlement of a claim, the                     (NASA)                                                 ■ 13. Amend § 1261.407 by adding
                                             official designated in § 1261.308 will                                                                           paragraph (b)(4) to read as follows:
                                             prepare and have executed by the                          ■ 10. Amend § 1261.402 by revising
                                                                                                       paragraphs (b), (c), (d) and (e) to read as            *      *    *     *     *
                                             claimant a Voucher for Payment of Tort                                                                              (b) * * *
                                             Claims (NASA Form 616) if the claim                       follows:
                                                                                                                                                                 (4) The name, address, and phone
                                             has been acted upon pursuant to 51                        § 1261.402    Delegation of authority.                 number of a contact person or office
                                             U.S.C. 20113(m), or a Voucher for                         *     *     *    *     *                               within the Agency.
                                             Payment under Federal Tort Claims Act                       (b) For Headquarters, with regard to                 *      *    *     *     *
                                             (Standard Form 1145) if the claim has                     subpart 1261.4 and subpart 1261.5: The                 ■ 14. Amend § 1261.408 by revising
                                             been acted upon pursuant to the Federal                   Associate Administrator for Mission
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                                             Tort Claims Act. The form will then be                                                                           paragraph (b)(2)(ii) to read as follows:
                                                                                                       Support or a designee who reports
                                             referred to the cognizant NASA                            directly to the Associate Administrator                § 1261.408   Use of consumer reporting
                                             installation fiscal or financial                          for Mission Support. A copy of such                    agency.
                                             management office for appropriate                         designation, if any, shall be sent to the              *       *    *    *    *
                                             action.                                                   Director, Financial Management                             (b) * * *
                                             *     *     *     *      *                                Division, NASA Headquarters.                               (2) * * *


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                                                                  Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Rules and Regulations                                            29385

                                               (ii) If a current address is available,                 enforceable written agreement from the                 § 1261.414   Compromise of claims.
                                             notifying the individual by certified                     debtor which specifies all of the terms                   (a) Designated NASA officials (see
                                             mail, return receipt requested, that: The                 of the arrangement and which contains
                                                                                                                                                              §§ 1261.402 and 1261.403) may
                                             designated NASA official has reviewed                     a provision accelerating the debt in the
                                                                                                                                                              compromise claims for money or
                                             the claim and determined that it is valid                 event the debtor defaults. The size and
                                                                                                                                                              property arising out of the activities of
                                             and overdue; within not less than 60                      frequency of installment payments
                                                                                                                                                              the Agency where the claim, exclusive
                                             days after sending this notice, NASA                      should bear a reasonable relation to the
                                                                                                                                                              of interest, penalties, and administrative
                                             intends to disclose to a consumer                         size of the debt and the debtor’s ability
                                                                                                       to pay. If possible, the installment                   costs, does not exceed $100,000, prior to
                                             reporting agency the specific
                                                                                                       payments should be sufficient in size                  the referral of such claims to the
                                             information to be disclosed under
                                                                                                       and frequency to liquidate the                         Government Accountability Office, or to
                                             paragraph (b)(1) of this section; the
                                                                                                       Government’s claim in not more than                    the Department of Justice for litigation.
                                             individual may request a complete
                                                                                                       three years. Installment payments of less              The Comptroller General may exercise
                                             explanation of the claim, dispute the
                                                                                                       than $50 per month should be accepted                  such compromise authority with respect
                                             information in the records of NASA
                                                                                                       only if justifiable on the grounds of                  to claims referred to the Government
                                             about the claim, and file for an
                                                                                                       financial hardship or similar reasonable               Accountability Office prior to their
                                             administrative review or repeal of the
                                             claim or for reconsideration of the                       cause. If the claim is unsecured, an                   further referral for litigation. Only the
                                             initial decision on the claim.                            executed confess-judgment note should                  Comptroller General may effect the
                                                                                                       be obtained from a debtor when the total               compromise of a claim that arises out of
                                             *      *     *     *    *                                                                                        an exception made by the Government
                                                                                                       amount of the deferred installments will
                                             ■ 15. Amend § 1261.409 by revising                                                                               Accountability Office in the account of
                                                                                                       exceed $750. Such notes may be sought
                                             paragraph (a) introductory text, adding                   when an unsecured obligation of a                      an accountable officer, including a
                                             paragraph (a)(5), revising paragraph (b),                 lesser amount is involved. When                        claim against the payee, prior to its
                                             and adding paragraph (c) to read as                       attempting to obtain confess-judgment                  referral by the Government
                                             follows:                                                  notes, the debtor should be provided                   Accountability Office for litigation.
                                             § 1261.409       Contracting for collection               with written explanation of the                           (b) When the claim, exclusive of
                                             services.                                                 consequences of signing the note, and                  interest, penalties, and administrative
                                                (a) When NASA determines that there                    documentation should be maintained                     costs, exceeds $100,000, the authority to
                                             is a need to contract for collection                      sufficient to demonstrate that the debtor              accept the compromise rests solely with
                                             services, the following conditions shall                  has signed the note knowingly and                      the Department of Justice. NASA should
                                             apply:                                                    voluntarily. Security for deferred                     evaluate the offer, using the factors set
                                                                                                       payments other than a confess-judgment                 forth in paragraphs (c) through (f) of this
                                             *      *    *     *     *                                 note may be accepted in appropriate
                                                (5) The debt must not be subject to                                                                           section, and may recommend
                                                                                                       cases. NASA, at its option, may accept                 compromise for reasons under one, or
                                             mandatory transfer to the Department of                   installment payments notwithstanding
                                             the Treasury for collection. See 31 CFR                                                                          more than one, of those paragraphs. If
                                                                                                       the refusal of a debtor to execute a                   NASA then wishes to accept the
                                             901.5(a) and (b).                                         confess-judgment note or to give other
                                                (b) NASA shall use Government-wide                                                                            compromise, it must refer the matter to
                                                                                                       security.                                              the Department of Justice, using the
                                             debt collection contracts to obtain debt
                                             collection services provided by private                   *     *     *      *    *                              Claims Collection Litigation Report. See
                                             collection contractors. See 31 CFR                        ■ 17. Amend § 1261.412 by revising                     § 1261.417(e) or 31 CFR 904.2(c). Claims
                                             901.5(b).                                                 paragraph (i)(1)(iv) and (i)(2) to read as             for which the gross amount is over
                                                (c) NASA shall fund private collection                 follows:                                               $200,000 shall be referred to the
                                             contractor contracts in accordance with                                                                          Commercial Litigation Branch, Civil
                                                                                                       § 1261.412 Interest, penalties, and                    Division, Department of Justice,
                                             31 U.S.C. 3728(d) or as otherwise                         administrative costs.
                                             permitted by law. See 31 CFR 901.5(c).                                                                           Washington, DC 20530. Claims for
                                                                                                       *     *     *     *    *                               which the gross original amount is
                                             ■ 16. Amend § 1261.411 by revising                          (i) * * *                                            $200,000 or less shall be referred to the
                                             paragraph (a) to read as follows:                           (1) * * *
                                                                                                         (iv) To debts arising under the Social               United States Attorney in whose
                                             § 1261.411       Collection in installments.              Security Act, the Internal Revenue                     judicial district the debtor can be found.
                                                (a) Whenever feasible, and except as                   Code, or the tariff laws of the United                 The referral should specify the reasons
                                             otherwise provided by law, debts owed                     States.                                                for the Agency’s recommendation. If
                                             to the United States, together with                         (2) NASA may, however, assess                        NASA has a debtor’s firm written offer
                                             interest penalties, and administrative                    interest and related charges on debts                  of compromise which is substantial in
                                             costs as required by § 1261.412, should                   which are not subject to 31 U.S.C. 3717                amount and the Agency is uncertain as
                                             be collected in full in one lump sum.                     to the extent authorized under the                     to whether the offer should be accepted,
                                             This is true whether the debt is being                    common law or applicable statutory                     it may refer the offer, the supporting
                                             collected by administrative offset or by                  authority.                                             data, and particulars concerning the
                                             another method, including voluntary                                                                              claim to the Government Accountability
                                                                                                       ■ 18. Amend § 1261.413 by revising the
                                             payment. However, if the debtor is                                                                               Office or to the Department of Justice.
                                                                                                       introductory text to read as follows:
                                             financially unable to pay the                                                                                    The Government Accountability Office
                                             indebtedness in one lump sum,                             § 1261.413 Analysis of costs; automation;              or the Department of Justice may act
                                             payment may be accepted in regular                        prevention of overpayments, delinquencies,             upon such an offer or return it to the
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                                                                                                       or defaults.                                           agency with instructions or advice. If
                                             installments. Debtors who represent that
                                             they are unable to pay the debt in one                      The Office of the NASA Chief                         NASA wishes to reject the compromise,
                                             lump sum must submit justification,                       Financial Officer will:                                Government Accountability Office or
                                             including financial statements. If NASA                   *     *    *     *     *                               Department of Justice approval is not
                                             agrees to accept payment in regular                       ■ 19. Amend § 1261.414 by revising                     required.
                                             installments, it will obtain a legally                    paragraphs (a) and (b) to read as follows:             *      *     *     *     *


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                                             29386              Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Rules and Regulations

                                             ■ 20. Amend § 1261.416 by revising                      a prerequisite to the imposition of                    Subpart 1261.5—Administrative Offset
                                             paragraphs (a), (b), (c)(3)(iii) and (e) to             administrative sanctions, such as the                  of Claims
                                             read as follows:                                        suspension or revocation of a license or
                                                                                                     the privilege of participating in a                    ■ 23. Amend § 1261.500 by revising
                                             § 1261.416 Suspending or terminating                                                                           paragraphs (a), (b), and (c) introductory
                                             collection action.
                                                                                                     Government-sponsored program, NASA
                                                                                                     may refer such a claim for litigation                  text to read as follows:
                                                (a) The standards set forth in this
                                                                                                     even though termination of collection                  § 1261.500   Scope of subpart.
                                             section apply to the suspension or
                                                                                                     activity might otherwise be given                        (a) This subpart applies to collection
                                             termination of collection action
                                                                                                     consideration under paragraphs (d)(1)                  of claims by administrative offset under
                                             pursuant to 31 U.S.C. 3711(a)(3) on
                                             claims which do not exceed $100,000,                    and (2) of this section. Claims on which               section 5 of the Federal Claims
                                             exclusive of interest, penalties, and                   NASA holds a judgment by assignment                    Collection Act of 1966 as amended by
                                             administrative costs, after deducting the               or otherwise will be referred to the                   the Debt Collection Act of 1982 and the
                                             amount of partial payments or                           Department of Justice for further action               Debt Collection Improvement Act of
                                             collections, if any. NASA may suspend                   if renewal of the judgment lien or                     1996 (31 U.S.C. 3716), other statutory
                                             or terminate collection action under this               enforced collection proceedings are                    authority, or the common law; it does
                                             part with respect to claims for money or                justified under the criteria discussed in              not include ‘‘Salary Offset,’’ which is
                                             property arising out of activities of the               this section.                                          governed by subpart 1261.6, infra.
                                             Agency, prior to the referral of such                   ■ 21. Amend § 1261.417 by revising the                   (b) NASA shall refer past due, legally
                                             claims to the Government                                section heading and paragraphs (c) and                 enforceable nontax debts which are over
                                             Accountability Office or to the                         (d) to read as follows:                                180 days delinquent to the Secretary of
                                             Department of Justice for litigation. The                                                                      the Treasury for collection by
                                             Comptroller General (or designee) may                   § 1261.417 Referral to Department of                   centralized administrative offset. For
                                             exercise such authority with respect to                 Justice or Government Accountability                   purposes of debts governed by this
                                             claims referred to the Government                       Office.                                                provision, NASA adopts and will follow
                                             Accountability Office prior to their                    *      *     *     *   *                               the procedures established by the
                                             further referral for litigation.                                                                               Department of the Treasury in 31 CFR
                                                                                                       (c) When the merits of the claim, the
                                                (b) If, after deducting the amount of                                                                       901.3.
                                                                                                     amount owed on the claim, or the                         (c) For claims not subject to
                                             partial payments or collections, if any,
                                                                                                     propriety of acceptance of a proposed                  mandatory transfer to the Department of
                                             a claim exceeds $100,000, exclusive of
                                                                                                     compromise, suspension, or termination                 the Treasury pursuant to paragraph (b),
                                             interest, penalties, and administrative
                                                                                                     are in doubt, the designated official                  NASA may consider ad hoc non-
                                             costs, the authority to suspend or
                                                                                                     should refer the matter to the                         centralized administrative offset of
                                             terminate rests solely with the
                                                                                                     Government Accountability Office for                   claims at its sole discretion. Any ad hoc
                                             Department of Justice. If the designated
                                                                                                     resolution and instructions prior to                   non-centralized administrative offset of
                                             official believes suspension or
                                                                                                     proceeding with collection action and/                 claims will be conducted consistent
                                             termination may be appropriate, the
                                             matter should be evaluated using the                    or referral to the Department of Justice               with the requirements of 31 CFR
                                             factors set forth in paragraphs (c) and (d)             for litigation.                                        901.3(c).
                                             of this section. If the Agency concludes                  (d) Once a claim has been referred to                *     *      *     *     *
                                             that suspension or termination is                       the Government Accountability Office                   ■ 24. Amend § 1261.503 by revising
                                             appropriate, it must refer the matter,                  or to the Department of Justice pursuant               paragraphs (a) introductory text, (a)(2),
                                             with its reasons for the                                to this section, NASA shall refrain from               (b), and (c) to read as follows:
                                             recommendation, to the Department of                    having any contact with the debtor
                                             Justice, using the Claims Collection                    about the pending claim and shall direct               § 1261.503 Agency records inspection;
                                             Litigation Report. See § 1261.417(e) or                 the debtor to the Government                           hearing or review.
                                             31 CFR 904.2(c). If NASA decides not to                 Accountability Office or to the                           (a) NASA shall provide the debtor
                                             suspend or terminate collection action                  Department of Justice, as appropriate,                 with a reasonable opportunity for a live,
                                             on the claim, Department of Justice                     when questions concerning the claim                    telephonic, or video-teleconference
                                             approval is not required; or if it                      are raised by the debtor. The                          hearing when:
                                             determines that its claim is plainly                    Government Accountability Office or                    *      *    *     *    *
                                             erroneous or clearly without legal merit,               the Department of Justice, as                             (2) Unless otherwise required by law,
                                             it may terminate collection action                      appropriate, shall be immediately                      a hearing under this section is not
                                             regardless of the amount involved,                      notified by NASA of any payments                       required to be a formal evidentiary-type
                                             without the need for Department of                      which are received from the debtor                     hearing, although significant matters
                                             Justice concurrence.                                    subsequent to referral of a claim under                discussed at the hearing should be
                                                (c) * * *                                            this section.                                          documented. See 31 CFR 901.3(e)(1).
                                                (3) * * *                                            *      *     *     *   *                               Such hearing may be an informal
                                                (iii) Collection of the debt will cause                                                                     discussion/interview with the debtor,
                                             undue hardship on the debtor.                           ■   22. Add § 1261.418 to read as follows:             face-to-face meeting between debtor and
                                             *       *     *     *    *                                                                                     cognizant NASA personnel, or written
                                                                                                     § 1261.418 Transfer of debts to Treasury
                                                (e) Transfer of claim. When NASA has                                                                        formal submission by the debtor and
                                                                                                     for collection.
                                             doubt as to whether collection action                                                                          response by the NASA cognizant
                                             should be suspended or terminated on                      Unless subject to an exception                       personnel with an opportunity for oral
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                                             a claim, it may refer the claim to the                  identified in 31 CFR 285.12(d), NASA                   presentation. The hearing will be
                                             Government Accountability Office for                    shall transfer any debt that is more than              conducted before or in the presence of
                                             advice. When a significant enforcement                  180 days delinquent to the Financial                   an official as designated by the NASA
                                             policy is involved in reducing a                        Management Service for debt collection                 General Counsel on a case-by-case basis.
                                             statutory penalty or forfeiture to                      services in accordance with the                        The hearing is not an adversarial
                                             judgment, or recovery of a judgment is                  procedures described in 31 CFR 285.12.                 adjudication and need not take the form


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                                                                Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Rules and Regulations                                               29387

                                             of an evidentiary hearing. However,                     Subpart 1261.6—Collection by Offset                    address of the hearing official will be
                                             depending on the particular facts and                   From Indebted Government Employees                     sent to the employee within 10 days of
                                             circumstances, the hearing may be                                                                              receipt of petition.
                                             analogous to a fact-finding proceeding                  ■ 26. Amend § 1261.601 by revising                     *      *    *      *    *
                                             with oral presentations; or an informal                 paragraph (b)(2) to read as follows:                      (5) As for the conduct of any live,
                                             meeting with or interview of the                        § 1261.601    Scope of subpart.                        telephonic, or video teleconference
                                             employee; or formal written                                                                                    hearing, for additional guidance see 14
                                                                                                     *      *    *    *     *
                                             submissions, with an opportunity for                       (b) * * *                                           CFR 1261.503.
                                             oral presentation, and decision based on                   (2) Waiver requests and claims to the               *      *    *      *    *
                                             the available written record. Ordinarily,               Government Accountability Office. This                    (e) Limitation on amount and
                                             hearings may consist of informal                        subpart does not preclude an employee                  duration of deductions. Ordinarily,
                                             conferences before the hearing official                 from requesting waiver of a salary                     debts are to be collected in one lump-
                                             in which the employee and Agency                        overpayment under 5 U.S.C. 5584, 10                    sum payment. However, if the employee
                                             officials will be given full opportunity                U.S.C. 2774, or 32 U.S.C. 716, or in any               is financially unable to pay in one lump
                                             to present evidence, witnesses, and                     way questioning the amount or validity                 sum or if the amount of the debt exceeds
                                             argument. The employee may represent                    of a debt by submitting a subsequent                   15 percent of disposable pay for an
                                             himself or herself or be represented by                 claim to the Government Accountability                 officially established pay interval,
                                             an individual of his or her choice at no                Office in accordance with procedures                   collection must be made in installments.
                                             cost to the United States. The hearing                  prescribed by the Government                           The size of installment deductions must
                                             official must maintain or provide for a                 Accountability Office. Similarly, in the               bear a reasonable relationship to the size
                                             summary record of the hearing provided                  case of other types of debts, it does not              of the debt and the employee’s ability to
                                             under this subpart. The decision of the                 preclude an employee from requesting                   pay (see 14 CFR 1261.411), but the
                                             reviewing/hearing official should be                    waiver, if waiver is available under any               amount deducted for any period must
                                             communicated in writing (no particular                  statutory provision pertaining to the                  not exceed 15 percent of the disposable
                                             form is required) to the affected parties               particular debt being collected.                       pay from which the deduction is made
                                             and will constitute the final                           ■ 27. Amend § 1261.603 by revising the                 (unless the employee has agreed in
                                                                                                     introductory text and paragraphs (a)                   writing to the deduction of a greater
                                             administrative decision of the Agency.
                                                                                                     introductory text and (c)(2) and (5),                  amount). Deduction must commence
                                                (b) Paragraph (a) of this section does                                                                      with the next full pay interval
                                                                                                     removing paragraphs (c)(6) through (8),
                                             not require a hearing with respect to                                                                          (ordinarily, the next biweekly pay
                                                                                                     and revising paragraph (e) to read as
                                             debt collection systems, as                                                                                    period). Such installment deductions
                                                                                                     follows:
                                             determinations of indebtedness or                                                                              must be made over a period not greater
                                             waiver from these rarely involve issues                 § 1261.603    Procedures for salary offset.            than the anticipated period of active
                                             of credibility or veracity since NASA                      If NASA determines that a Federal                   duty or employment, as the case may be,
                                             has determined that review of the                       employee is indebted to the United                     except as provided in paragraph (f) of
                                             written record is ordinarily an adequate                States or is notified of such by the head              this section.
                                             means to correct prior mistakes. See 31                 of another agency (or delegee), the                    *      *    *      *    *
                                             CFR 901.3(e)(3).                                        amount of indebtedness may be
                                                                                                     collected in monthly installments, or                  Nanette Smith,
                                                (c) In those cases where a live,
                                                                                                     regularly established pay intervals, by                NASA Federal Register Liaison Officer.
                                             telephonic, or video-teleconference
                                             hearing is not required or granted,                     deduction from the affected employee’s                 [FR Doc. 2017–13421 Filed 6–28–17; 8:45 am]

                                             NASA will nevertheless accord the                       pay account. The deductions may be                     BILLING CODE P

                                             debtor an opportunity to submit any                     made from basic pay, special pay,
                                             position regarding the matter by                        incentive pay, retired pay, retainer pay,
                                             documentation and/or written                            or in the case of an employee not                      SUSQUEHANNA RIVER BASIN
                                             presentation—that is, the Agency will                   entitled to basic pay, from other                      COMMISSION
                                             make its determination on the request                   authorized pay. The requirements in
                                                                                                     paragraphs (a) through (h) of this section             18 CFR Parts 806 and 808
                                             for waiver or reconsideration based
                                             upon a review of the available written                  must be met before a deduction is made
                                                                                                     from the current pay account of an                     Review and Approval of Projects;
                                             record. See 31 CFR 901.3(e)(4). In such                                                                        Hearings and Enforcement Actions
                                                                                                     employee.
                                             case, the responsible official or designee                 (a) Written notice. The employee must
                                             shall refer the request to the appropriate                                                                     AGENCY:  Susquehanna River Basin
                                                                                                     be sent a minimum of 30 days written                   Commission.
                                             NASA Office of General Counsel or                       notice prior to further offset action,
                                             Chief Counsel for review and                                                                                   ACTION: Final rule.
                                                                                                     which specifies:
                                             recommendation.                                                                                                SUMMARY:   This document contains rules
                                                                                                     *      *     *     *    *
                                             *      *     *     *    *                                  (c) * * *                                           that would amend the regulations of the
                                             ■ 25. Amend § 1261.507 by revising                         (2) The petition should be addressed                Susquehanna River Basin Commission
                                             paragraph (e)(3) to read as follows:                    to the Agency counsel designated in the                (Commission) to clarify application
                                                                                                     notice, but the hearing will be                        requirements and standards for review
                                             § 1261.507 Civil Service Retirement and                 conducted by an official not under the                 of projects, add a subpart to provide for
                                                                                                     supervision or control of the NASA                     registration of grandfathered projects,
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                                             Disability Fund.
                                             *      *    *     *     *                               Administrator. The Agency Chief                        and revise requirements dealing with
                                                                                                     Financial Officer is authorized to                     hearings and enforcement actions.
                                                (e) * * *                                            appoint an administrative law judge or                 These rules are designed to enhance the
                                                (3) Provide or not provide a live,                   other Federal executive branch                         Commission’s existing authorities to
                                             telephonic, or video-teleconference                     employee or official on a reimbursable                 manage the water resources of the basin
                                             hearing.                                                or other basis. Notice of the name and                 and add regulatory clarity.


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Document Created: 2018-11-14 10:17:20
Document Modified: 2018-11-14 10:17:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis direct final rule is effective August 28, 2017. Comments due on or before July 31, 2017. If adverse comments are received, NASA will publish a timely withdrawal of the rule in the Federal Register.
ContactBryan R. Diederich, Office of the General Counsel, NASA Headquarters, telephone (202) 358-0216.
FR Citation82 FR 29383 
RIN Number2700-AD83

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