This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

11905 

Vol. 86, No. 38 

Monday, March 1, 2021 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT 

22 CFR Part 213 

RIN 0412–AA96 

Claims—Collection Regulation 

AGENCY: U.S. Agency for International 

Development. 

ACTION: Proposed rule. 

SUMMARY: The U.S. Agency for 

International Development (USAID) 

seeks public comment on a proposed 

rule to revise its regulation on claims 

collection in its entirety to incorporate 

applicable statutory and regulatory 

provisions and to make other changes. 

Specifically, an amendment made by 

the Digital Accountability and 

Transparency Act of 2014 (DATA Act) 

requires USAID to refer to the Secretary 

of the Treasury all past-due, legally 

enforceable, non-tax debt that are over 

120 days delinquent. The changes will 

maximize the effectiveness of USAID’s 

claim-collection procedures. 

DATES: Comments must be received no 

later than March 31, 2021. 

ADDRESSES: Address all comments 

concerning this proposed rule to 

Dorothea Malloy, Office of the Chief 

Financial Officer, United States Agency 

for International Development, 1300 

Pennsylvania Avenue NW, USAID 

Annex, Room 8.80C, Washington, DC 

20523. Submit comments, identified by 

title of the action and Regulatory 

Information Number (RIN) by any of the 

following methods: 

1. Through the Federal eRulemaking

Portal at http://www.regulations.gov by 

following the instructions for submitting 

comments. 

2. By mail, addressed to USAID,

Office of the Chief Financial Officer, 

1300 Pennsylvania Avenue NW, USAID 

Annex, Room 8.80C, Washington, DC 

20523. 

FOR FURTHER INFORMATION CONTACT: 

Dorothea Malloy, Telephone: (202) 916– 

2518; or Email: dmalloy@usaid.gov. 

SUPPLEMENTARY INFORMATION: 

A. Instructions

All comments must be in writing and

submitted through one of the methods 

specified in the ADDRESSES section 

above. All submissions must include the 

title of the action and RIN for this 

rulemaking. Please include your name, 

title, organization, postal address, 

telephone number, and email address in 

the text of the message. 

Please note that USAID recommends 

sending all comments to the Federal 

eRulemaking Portal because securityscreening precautions have slowed the 

delivery and dependability of surface 

mail to USAID in Washington, DC. 

USAID will make comments available 

at http://www.regulations.gov for public 

review without change, including any 

personal information provided. We 

recommend that you do not submit 

information that you consider 

Confidential Business Information (CBI) 

or any information otherwise protected 

from disclosure by statute. 

USAID will only address substantive 

comments on the rule. USAID might not 

consider comments that are 

insubstantial or outside the scope of the 

proposed rule. 

B. Request for Comments

USAID requests comments on its

proposed rule to revise our claimcollection regulations to comply with 

the Digital Accountability and 

Transparency Act of 2014 (DATA Act) 

and to update claims-collections 

definitions and references. 

I. Background

This rulemaking proposes revisions to

part 213 of title 22 of the Code of 

Federal Regulations (CFR), USAID’s 

claim-collection regulation, to conform 

to a statutory requirement that Federal 

Departments and Agencies must refer all 

past-due, legally enforceable, non-tax 

debt that is delinquent for more than 

120 days, including non-tax debt 

administered by a third party that is 

acting as an agent for the Federal 

Government, to the Secretary of the 

Treasury for the purposes of 

administrative offset. The proposed rule 

also updates claims-collection 

definitions to align with the Debt 

Collection Improvement Act of 1996, 

and specifies that the Bureau of the 

Fiscal Service is the Agency within the 

U.S. Department of the Treasury to 

which USAID refers delinquent debts. 

The changes will maximize the 

effectiveness of USAID’s claimcollection procedures. 

II. Regulatory Findings

Executive Orders 12866, 13563, and 

13771 

USAID has drafted this proposed rule 

in accordance with Executive Orders 

(E.O.s) 12866 and 13563, which direct 

Federal Departments and Agencies to 

assess all the 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 equality). E.O. 13563 emphasizes 

the importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. USAID has reviewed the 

regulation to ensure its consistency with 

the regulatory philosophy and 

principles set forth in E.O.s 12866 and 

13563 and finds that the benefits of 

issuing this rule outweigh any costs, 

which the Agency assesses to be 

minimal. The Office of Information and 

Regulatory Affairs within the Office of 

Management and Budget (OMB/OIRA) 

has determined that this rule is not a 

‘‘significant regulatory action’’ as 

defined in E.O. 12866 and, accordingly, 

has not reviewed it. OMB/OIRA also has 

determined that this rule is not an 

‘‘economically significant regulatory 

action’’ under Section 3(f)(1) of E.O. 

12866. This proposed rule is not subject 

to the requirements of E.O. 13771 

because OMB has determined it to be 

non-significant within the meaning of 

E.O. 12866. 

Regulatory Flexibility Act 

USAID certifies that this rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Consequently, the Agency has not 

prepared a regulatory-flexibility 

analysis. 

Small Business Regulatory Enforcement 

Fairness Act 

This rule is not a ‘‘major rule’’ as 

defined by the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (Section 804(2) of Title 5 of the 

United States Code [U.S.C.]). This rule 

will not result in an annual effect on the 

U.S. economy of $100 million or more; 

11906 Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 

a major increase in costs or prices; or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of U.S.-based companies to 

compete with foreign-based companies 

in domestic and import markets. 

Unfunded Mandates Reform Act 

This proposed rule will not result in 

the expenditure by State, local, and 

tribal governments, in the aggregate, or 

by the private sector, of $100 million or 

more in any year, and it will not 

significantly or uniquely affect small 

governments. Therefore, USAID has 

deemed no actions were necessary 

under the provisions of the Unfunded 

Mandates Reform Act of 1995 (2 U.S.C. 

1531 et seq.). 

Executive Order 13132 

This rule will not have a substantial 

direct effect on the States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. In accordance 

with E.O. 13132, USAID has determined 

that this rule does not have sufficient 

federalism implications to warrant the 

preparation of a Federalism Summary 

Impact Statement. 

Executive Order 12988 

In accordance with E.O. 12988, the 

Office of the General Counsel at USAID 

has determined that this rule does not 

unduly burden the judicial system and 

meets the requirements of Sections 3(a) 

and 3(b)(2) of the Executive order. 

Executive Order 13175 

USAID has determined that this rule 

would not have substantial direct effects 

on one or more Indian Tribes, the 

relationship between the Federal 

Government and Indian Tribes, or the 

distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes (E.O. 

13175). 

Paperwork Reduction Act 

This rule does not contain 

information-collection requirements, 

and therefore a submission to OMB 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501 et seq.) is not 

required. 

List of Subjects in 22 CFR Part 213 

Claims, Government employees, 

Income taxes, Wages. 

For the reasons stated in the 

preamble, USAID proposes to amend 

part 213 of title 22 of the CFR as 

follows: 

PART 213—CLAIMS COLLECTION 

■ 1. The authority citation for part 213 

is revised to read as follows: 

Authority: 22 U.S.C. 2381(a); 31 U.S.C. 

902(a); 31 U.S.C. 3701–3719; 5 U.S.C. 5514; 

31 CFR part 285; 31 CFR parts 900 through 

904. 

■ 2. Revise the heading for subpart A to 

read as follows: 

Subpart A—General Provisions 

■ 3. Revise § 213.1 to read as follows: 

§ 213.1 Purpose and scope. 

(a) Purpose. This part prescribes 

standards and procedures for the 

collection and disposal of claims due to 

the United States from the U.S. Agency 

for International Development (USAID). 

This part covers USAID’s administrative 

actions to collect claims/debts 

(including administrative and salary 

offsets; compromise; suspension or 

termination of collection actions; 

transfer and/or referral of claims to the 

U.S. Departments of the Treasury and 

Justice). The terms ‘‘claim’’ and ‘‘debt’’ 

are synonymous and interchangeable. 

They refer to an amount of money, 

funds, or property that an appropriate 

USAID official has determined to be due 

to the United States from any person, 

organization, or entity except another 

Federal Department or Agency. 

(b) Scope. The standards and 

procedures in this part are applicable to 

all claims and debts for which a statute, 

regulation, or contract does not 

prescribe different standards or 

procedures. 

(c) Applicability. This part does not 

apply to USAID: 

(1) Claims arising out of loans for 

which compromise and collection 

authority is conferred by Section 

635(g)(2) of the Foreign Assistance Act 

of 1961, as amended; 

(2) Claims arising from investmentguaranty operations for which 

settlement and arbitration authority is 

conferred by Section 635(l) of the 

Foreign Assistance Act of 1961, as 

amended; 

(3) Claims against any foreign country 

or any political subdivision thereof, or 

any public international organization; 

(4) Claims where the Chief Financial 

Officer (CFO) determines that the 

achievement of the purposes of the 

Foreign Assistance Act of 1961, as 

amended, or any other provision of law 

administered by USAID require a 

different course of action; 

(5) Claims owed USAID by other 

Federal Departments and Agencies. 

Such debts will be resolved by 

negotiation between the Departments/ 

Agencies; and 

(6) Claims that appear to be 

fraudulent, false, or misrepresented by a 

party with an interest in the claim 

except to the extent provided in § 213.4. 

■ 4. Amend § 213.2 by revising 

paragraphs (d) through (o) and adding 

paragraphs (p) through (s) to read as 

follows: 

§ 213.2 Definitions. 

* * * * * 

(d) Claim (or Debt) means an amount 

of money, funds, or property that a 

USAID official has determined to be due 

the United States from any person, 

organization, or entity, except another 

Federal Department or Agency. As used 

in this part, the terms ‘‘debt’’ and 

‘‘claim’’ are synonymous and 

interchangeable. 

(e) CFO means the Chief Financial 

Officer of USAID or a USAID official 

delegated by the CFO to act on the 

CFO’s behalf. 

(f) Compromise means that the 

creditor Agency accepts less than the 

full amount of an outstanding debt in 

full satisfaction of the entire amount of 

the debt. 

(g) Creditor Agency means the Federal 

Department or Agency to which the debt 

is owed, including a debt-collection 

center when acting on behalf of a 

creditor Agency in matters pertaining to 

the collection of a debt. 

(h) Debtor means an individual, 

organization, association, corporation, 

or a State or local government indebted 

to the United States, or a person or 

entity with legal responsibility for 

assuming the debtor’s obligation. 

(i) Delinquent debt means any debt 

that is past due and is legally 

enforceable. A debt is past due if it has 

not been paid by the date specified in 

the Agency’s initial written demand for 

payment notice or applicable agreement 

or instrument (including a postdelinquency payment agreement) unless 

the parties involved have made other 

satisfactory payment arrangements. 

(j) Discharge of indebtedness means 

the release of a debtor from personal 

liability for a debt. Further collection 

action is prohibited. 

(k) Disposable pay means that part of 

current basic pay, special pay, incentive 

pay, retired pay, retainer pay, or, in the 

case of an employee not entitled to basic 

pay, other authorized pay, which 

remains after the deduction of any 

amount required by law to be withheld 

(other than deductions to execute 

garnishment orders) in accordance with 

5 CFR parts 581 and 582. Among the 

legally required deductions that must be 

applied first to determine disposable 

pay are levies pursuant to the Internal 

Revenue Code (Title 26 of the United 

Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 11907 

States Code) and deductions described 

in 5 CFR 581.105(b) through (f). These 

deductions include, but are not limited 

to, Social Security withholdings; 

Federal, State, and local tax 

withholdings; health-insurance 

premiums; retirement contributions; 

and life-insurance premiums. 

(l) Employee means a current U.S. 

Direct-Hire employee of the Federal 

Government, including a current 

member of the Armed Forces or a 

Reserve of the Armed Forces. 

(m) Employee salary offset means the 

administrative collection of a debt by 

deductions at one or more officially 

established pay intervals from the 

current pay account of an employee 

without the employee’s consent. 

(n) Person means an individual, firm, 

partnership, corporation, association, 

and, except for purposes of 

administrative offsets under subpart C 

of this part and interest, penalties, and 

administrative costs under subpart B of 

this part, includes State and local 

governments and Indian tribes and 

components of tribal governments. 

(o) Recoupment is a special method 

for adjusting debts that arise under the 

same transaction or occurrence. For 

example, obligations that arise under 

the same contract generally are subject 

to recoupment. 

(p) Suspension means the temporary 

cessation of active debt collection 

pending the occurrence of an 

anticipated event. 

(q) Termination means the cessation 

of all active debt-collection action for 

the foreseeable future. 

(r) Waiver means the decision to forgo 

the collection of a debt owed to the 

United States, as provided for by a 

specific statute and according to the 

standards set out under that statute. 

(s) Withholding order means any 

order for the withholding or 

garnishment of pay issued by USAID or 

a judicial or administrative body. For 

the purposes of this part, ‘‘wagegarnishment order’’ and ‘‘garnishment 

order’’ have the same meaning as 

‘‘withholding order.’’ 

§ 213.3 [Removed] 

■ 5. Remove § 213.3. 

§ 213.4 [Redesignated as § 213.3 and 

Amended] 

■ 6. Redesignate § 213.4 as § 213.3, and 

amend newly redesignated § 213.3 by 

revising paragraph (a) to read as follows: 

§ 213.3 Other remedies. 

(a) This part does not supersede or 

require the omission or duplication of 

administrative proceedings required by 

contract, statute, or regulation (e.g., 

resolution of audit findings under grants 

or contracts; or appeal provisions under 

grants or contracts). 

* * * * * 

§ 213.5 [Redesignated as § 213.4 and 

Amended] 

■ 7. Redesignate § 213.5 as § 213.4 and 

revise newly redesignated § 213.4 to 

read as follows: 

§ 213.4 Fraud claims. 

(a) The CFO will refer a claim that 

appears to be fraudulent, false, or 

misrepresented by a party that has an 

interest in the claim to the USAID Office 

of Inspector General (OIG). The OIG has 

the responsibility for investigating or 

referring the matter, where appropriate, 

to the U.S. Department of Justice (DOJ). 

The OIG has the responsibility to 

provide the results of the investigation 

on a timely basis to the CFO for any 

further action. 

(b) The CFO will not administratively 

compromise, terminate, or suspend 

collection action, or otherwise dispose 

of a claim that appears to be fraudulent, 

false, or misrepresented by a party that 

has an interest in the claim, without the 

approval of DOJ. 

§ 213.6 [Redesignated as § 213.5 and 

Amended] 

■ 8. Redesignate § 213.6 as § 213.5 and 

revise newly redesignated § 213.5 to 

read as follows: 

§ 213.5 Subdivision of claims not 

authorized. 

USAID will not subdivide a claim to 

avoid the $100,000 limit on the 

Agency’s authority to compromise a 

claim, suspend collection action on a 

claim, or terminate collection action on 

a claim. A debtor’s liability that arises 

from a particular transaction or contract 

is a single claim. 

§ 213.7 [Redesignated as § 213.6] 

■ 9. Redesignate § 213.7 as § 213.6. 

■ 10. Revise the heading for subpart B 

to read as follows: 

Subpart B—Collection Actions 

§ 213.8 [Redesignated as § 213.7 and 

Amended] 

■ 11. Redesignate § 213.8 as § 213.7 and 

amend newly redesignated § 213.7 by 

revising paragraph (a) to read as follows: 

§ 213.7 Collection—general. 

(a) The CFO takes action to collect all 

debts owed the United States that arise 

out of USAID’s activities, and to reduce 

debt delinquencies. Collection actions 

may include sending at least one written 

demand for payment notice to the 

debtor’s last-known address provided in 

the records of USAID. Other appropriate 

action may proceed the written demand 

for payment notice, including 

immediate referral to DOJ for litigation, 

when such action is necessary to protect 

the Federal Government’s interest. 

* * * * * 

§ 213.9 [Redesignated as § 213.8 and 

Amended] 

■ 12. Redesignate § 213.9 as § 213.8 and 

amend newly redesignated § 213.8 by: 

■ a. Revising the section heading and 

paragraphs (a) introductory text, (a)(4), 

(5), (7), (8), (10), and (11); 

■ b. Adding paragraph (a)(12); and 

■ c. Revising paragraph (b). 

The revisions and addition read as 

follows: 

§ 213.8 Written demand for payment 

notice. 

(a) When an Agency official 

determines that a debt is owed to 

USAID, the Agency sends a written 

demand for payment notice to the 

debtor. Unless otherwise provided by 

agreement, contract, or order, the 

written demand for payment notice 

informs the debtor of: 

* * * * * 

(4) Any rights available to the debtor 

to review the debt, or to have recovery 

of the debt waived (by citing the 

available review or waiver authority, the 

conditions for review or waiver, and the 

effects of the review or waiver request 

on the collection of the debt); 

(5) The date on which debt payment 

is due, which will be not more than 30 

days from the date the written demandfor-payment notice is mailed or handdelivered; 

* * * * * 

(7) The debt is considered delinquent 

if it is not paid on the due date provided 

in the initial written demand-ofpayment notice; 

(8) The imposition of interest charges, 

penalties, and administrative costs that 

USAID may assess against a delinquent 

debt, and the date when such charges 

apply; 

* * * * * 

(10) The Agency will refer delinquent 

debt unpaid at 90 days from the initial 

written demand for payment notice to 

the Bureau of the Fiscal Service (Fiscal 

Service) within the U.S. Department of 

the Treasury. Statute requires the 

referral of delinquent debt to Fiscal 

Service no later than 120 days from the 

initial written demand-for-payment 

notice. Fiscal Service will use means 

available to the Federal Government for 

collecting a debt, including 

administrative wage-garnishment, the 

use of collection agencies, and reporting 

11908 Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 

the indebtedness to a credit-reporting 

bureau (see § 213.15); 

(11) The address, telephone number, 

and name of the person available to 

discuss the debt; and 

(12) The possibility of referral to DOJ 

for litigation if USAID cannot collect the 

debt administratively. 

(b) USAID will respond promptly to 

written communications from the 

debtor, generally within 30 days of 

receipt of such a communication. 

§ 213.10 [Redesignated as § 213.9 and 

Amended] 

■ 13. Redesignate § 213.10 as § 213.9 

and amend newly redesignated § 213.9 

by revising the section heading and 

paragraphs (a) and (c) and adding (e) to 

read as follows: 

§ 213.9 Agency review requirements. 

(a) For purposes of this section, 

whenever USAID must afford a debtor a 

review within the Agency, USAID shall 

provide the debtor with a reasonable 

opportunity for a review when the 

debtor requests reconsideration of the 

debt in question. The review may 

include the examination of documents, 

internal discussions with relevant 

officials, and discussion by letter or 

orally with the debtor, at USAID’s 

discretion. For the offset of current 

Federal salary under 5 U.S.C. 5514 for 

certain debts, an employee may request 

an outside hearing. See §§ 213.21 and 

213.22 when USAID is the creditor 

Agency. 

* * * * * 

(c) This section does not require an 

oral hearing with respect to debt 

collection in which the agency has 

determined that review of the written 

record is an adequate means to correct 

a prior mistake. 

* * * * * 

(e) If, after review, USAID either 

sustains or amends its determination, it 

shall notify the debtor of its intent to 

collect the sustained or amended debt. 

The notification to collect the sustained 

or amended debt will include accrued 

interest on the sustained or amended 

debt, calculated from the date of 

delinquency. If USAID has suspended 

collection actions previously, it will reinstitute them unless it receives 

payment of the sustained or amended 

amount, or the debtor has made a 

proposal for a payment plan to which 

the Agency agrees, by the date specified 

in the notification of USAID’s decision. 

§ 213.11 [Redesignated as § 213.10 and 

Amended] 

■ 14. Redesignate § 213.11 as § 213.10 

and amend newly redesignated § 213.10 

by revising paragraph (b) to read as 

follows: 

§ 213.10 Aggressive collection actions; 

documentation. 

* * * * * 

(b) USAID documents all 

administrative collection actions in the 

claim file, along with the basis for any 

compromise, termination, or suspension 

of collection actions. USAID retains this 

documentation, which may include the 

Claims-Collection Litigation Report 

(CCLR) provided in § 213.24, in the 

appropriate debt file. 

§ 213.12 [Redesignated as § 213.11 and 

Amended] 

■ 15. Redesignate § 213.12 as § 213.11 

and amend newly redesignated § 213.11 

by revising the section heading and 

paragraphs (a)(1) and (e) to read as 

follows: 

§ 213.11 Interest, penalties, and 

administrative costs. 

(a) * * * 

(1) Interest begins to accrue on all 

delinquent debts starting from the day 

after the payment due date established 

in the initial written demand-forpayment notice to the debtor. USAID 

will assess an annual rate of interest that 

is equal to the U.S. Department of the 

Treasury Current Value of Funds Rate 

(CVFR) unless a different rate is 

necessary to protect the interest of the 

Federal Government. USAID will notify 

the debtor of the basis for its finding 

that a different rate is necessary to 

protect the interest of the Government. 

* * * * * 

(e) Waivers for the collection of 

interest, penalties, and administrative 

costs. (1) The CFO will waive the 

collection of interest and administrative 

charges on the portion of the debt paid 

within 30 days after the date on which 

interest begins to accrue. The CFO may 

extend this 30-day period, on a case-bycase basis, when he or she determines 

that such action is in the best interest of 

the Federal Government. A decision to 

extend or not to extend the payment 

period is final, and is not subject to 

further review. 

(2) The CFO may (without regard to 

the amount of the debt) waive the 

collection of all or part of accrued 

interest, penalties, or administrative 

costs, when he or she determines that— 

(i) A waiver is justified under the 

standards for the compromise of claims 

under § 213.25; or 

(ii) Collection of these charges would 

be against equity and good conscience, 

or is not in the best interest of the 

United States. 

(3) The CFO may make a decision to 

waive interest, penalties, or 

administrative costs at any time. 

§ 213.13 [Redesignated as § 213.12 and 

Amended] 

■ 16. Redesignate § 213.13 as § 213.12 

and revise newly redesignated § 213.12 

to read as follows: 

§ 213.12 Interest, penalties, and 

administrative costs pending consideration 

of debt waiver or review. 

Interest, penalties, and administrative 

costs will continue to accrue on a debt 

during a review by USAID and during 

a waiver of indebtedness consideration 

by the Agency; except that USAID will 

not assess interest, penalties, and 

administrative costs where a statute or 

a regulation specifically prohibits the 

collection of the debt during the period 

of the Agency’s review or consideration 

of a debt waiver. 

■ 17. Add new § 213.13 to read as 

follows: 

§ 213.13 Waivers of indebtedness. 

The CFO may grant waivers of 

indebtedness for certain types of debt 

identified in Federal statutes under the 

following waiver authorities: 

(a) Waiver authorities—(1) Debts that 

arise out of erroneous payments of pay 

and allowances, and of travel, 

transportation, and relocation expenses 

and allowances. Title 5 U.S.C. 5584 

provides the authority for waiving, in 

whole or in part, debts that arise out of 

erroneous payments of pay or 

allowances, travel, transportation, or 

relocation expenses and allowances to 

an employee of USAID, if collection 

would be against equity and good 

conscience, or not in the best interests 

of the United States: 

(i) The CFO may not grant a waiver 

if there exists in connection with the 

claim an indication of fraud, 

misrepresentation, fault, or lack of good 

faith on the part of the employee or any 

other person who has an interest in 

obtaining a waiver. 

(ii) Fault is considered to exist if, in 

light of the circumstances, the employee 

knew, or should have known through 

the exercise of due diligence, that an 

error existed, but he or she failed to take 

corrective action. What an employee 

should have known is evaluated under 

a reasonable-person standard. However, 

employees are expected to have a 

general understanding of the Federal 

pay system applicable to them. 

(iii) An employee with notice that a 

payment might be erroneous is expected 

to make provisions for eventual 

repayment. Financial hardship is not a 

basis for granting a waiver for an 

Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 11909 

employee who was on notice of an 

erroneous payment. 

(iv) If the deciding official finds no 

indication of fraud, misrepresentation, 

fault, or lack of good faith on the part 

of the employee or any other person 

who has an interest in obtaining a 

waiver of the claim, the employee is not 

automatically entitled to a waiver. 

Before granting a waiver, the deciding 

official also must determine that 

collection of the claim against an 

employee would be against equity and 

good conscience, or not in the best 

interests of the United States. Factors to 

consider when determining if collection 

of a claim against an employee would be 

against equity and good conscience, or 

not in the best interests of the United 

States, include, but are not limited to, 

the following: 

(A) Whether collection of the claim 

would cause serious financial hardship 

to the employee from whom the Agency 

seeks collection; 

(B) Whether, because of the erroneous 

payment, the employee either has 

relinquished a valuable right or changed 

positions for the worse, regardless of his 

or her financial circumstances; 

(C) The time elapsed between the 

erroneous payment and the discovery of 

the error and notification of the 

employee; 

(D) Whether failure to make 

restitution would result in unfair gain to 

the employee; and 

(E) Whether recovery of the claim 

would be unconscionable under the 

circumstances. 

(2) Debts that arise out of advances in 

pay (5 U.S.C. 5524a); situations of 

Authorized or Ordered Departures (5 

U.S.C. 5522); or allowances and 

differentials for employees stationed 

abroad (5 U.S.C. 5922). Title 5 U.S.C. 

5524a, 5522, or 5922 provide authority 

for waiving, in whole or in part, a debt 

that arises out of such an advance 

payment if it is shown that recovery 

would be against equity and good 

conscience, or against the public 

interest: 

(i) Factors to consider when 

determining if recovery of an advance 

payment would be against equity and 

good conscience, or against the public 

interest, include, but are not limited to, 

the following: 

(A) Death of the employee; 

(B) Retirement of the employee for 

disability; 

(C) Inability of the employee to return 

to duty because of disability (supported 

by an acceptable medical certificate); 

and 

(D) Whether failure to repay would 

result in unfair gain to the employee. 

(ii) [Reserved] 

(3) Debts that arise out of employee 

training expenses. Title 5 U.S.C. 4108 

provides the authority for waiving, in 

whole or in part, a debt that arises out 

of employee training expenses if it is 

shown that recovery would be against 

equity and good conscience, or against 

the public interest: 

(i) Factors to consider when 

determining if recovery of a debt that 

arises out of employee training expenses 

would be against equity and good 

conscience, or against the public 

interest, include, but are not limited to, 

the following: 

(A) Death of the employee; 

(B) Retirement of the employee for 

disability; 

(C) Inability of the employee to return 

to duty because of disability (supported 

by an acceptable medical certificate); 

and 

(D) Whether failure to repay would 

result in unfair gain to the employee. 

(ii) [Reserved] 

(4) Under-withholding of lifeinsurance premiums. Title 5 U.S.C. 

8707(d) provides the authority for 

waiving the collection of unpaid 

deductions that result from the underwithholding of premiums under the 

Federal Employees’ Group Life 

Insurance Program if the individual is 

without fault and recovery would be 

against equity and good conscience, or 

against the public interest: 

(i) Fault is considered to exist if, in 

light of the circumstances, the employee 

knew, or should have known through 

the exercise of due diligence, that an 

error existed, but he or she failed to take 

corrective action: 

(ii) Factors to consider when 

determining whether the recovery of 

unpaid deduction that results from 

under-withholding would be against 

equity and good conscience, or against 

the public interest, include, but are not 

limited to, the following: 

(A) Whether collection of the claim 

would cause serious financial hardship 

to the individual from whom the 

Agency seeks collection; 

(B) The time elapsed between the 

failure to withhold properly and the 

discovery of the failure and notification 

of the individual; 

(C) Whether failure to make 

restitution would result in unfair gain to 

the individual; and 

(D) Whether recovery of the claim 

would be unconscionable under the 

circumstances. 

(5) Student-Loan Repayment Program 

service agreements. Title 5 U.S.C. 5379 

provides for waiving, in whole or in 

part, debt that arises from the StudentLoan Repayment Program if it is shown 

that recovery would be against equity 

and good conscience, or against the 

public interest: 

(i) Factors to consider when 

determining if recovery of a debt that 

arises out of the Student-Loan 

Repayment Program would be against 

equity and good conscience, or against 

the public interest, include, but are not 

limited to, the following: 

(A) Death of the employee; 

(B) Retirement of the employee for 

disability; 

(C) Inability of the employee to return 

to duty because of disability (supported 

by an acceptable medical certificate); 

and 

(D) Whether failure to repay would 

result in unfair gain to the employee. 

(ii) [Reserved] 

(b) [Reserved] 

■ 18. Amend § 213.14 by revising the 

introductory text to read as follows: 

§ 213.14 Contracting for collection 

services. 

USAID has entered into a crossservicing agreement with the Bureau of 

the Fiscal Service (Fiscal Service) of the 

U.S. Department of the Treasury. Fiscal 

Service is authorized to take all 

appropriate action to enforce the 

collection of accounts referred to it in 

accordance with applicable statutory 

and regulatory requirements. Fiscal 

Service bases any applicable fees on the 

funds collected, and will collect such 

fees from the debtor along with the 

original amount of the indebtedness. 

After referral, Fiscal Service will be 

solely responsible for the maintenance 

of the delinquent debtor records in its 

possession, and for updating the 

accounts as necessary. Fiscal Service 

may take any of the following collection 

actions on USAID’s behalf: 

* * * * * 

■ 19. Amend § 213.15 by revising the 

section heading, introductory text, and 

paragraphs (b) introductory text, 

(b)(2)(ii) and (iii), and (c) and removing 

paragraph (d) to read as follows: 

§ 213.15 Use of credit-reporting bureaus. 

USAID reports delinquent debts owed 

to it to appropriate credit-reporting 

bureaus through the cross-servicing 

agreement with the Bureau of the Fiscal 

Service (Fiscal Service) at the U.S. 

Department of the Treasury. 

* * * * * 

(b) Before referring claims to Fiscal 

Service and disclosing debt information 

to credit-reporting bureaus, USAID will 

have done the following: 

* * * * * 

(2) * * * 

(ii) If the debtor does not pay the debt 

90 days after receiving the initial 

written demand-for-payment notice, 

11910 Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 

USAID intends to refer the debt to Fiscal 

Service and disclose to a creditreporting agency the information 

authorized for disclosure by this 

subpart; and 

(iii) The debtor can request an Agency 

review or waiver, where applicable. 

(c) Before submitting information to a 

credit-reporting bureau, USAID will 

provide a written statement to Fiscal 

Service that the Agency has taken all 

required actions. Additionally, Fiscal 

Service thereafter will update the 

accounts as necessary during the period 

it holds the account information. 

§ 213.17 [Amended] 

■ 20. Amend § 213.17 in the first 

sentence by adding the words ‘‘or she’’ 

after the word ‘‘he.’’ 

§ 213.19 [Amended] 

■ 21. Amend § 213.19 in the first 

sentence of paragraph (a) by removing 

the word ‘‘penalty’’ and adding 

‘‘penalties,’’ in its place. 

■ 22. Revise the heading for subpart C 

to read as follows: 

Subpart C—Administrative and Salary 

Offset 

■ 23. Amend § 213.20 by: 

■ a. Revising paragraphs (a)(1), (a)(2)(ii), 

(a)(3)(i), and (b); 

■ b. Removing paragraph (c); 

■ c. Redesignating paragraphs (d) 

through (h) as paragraphs (c) through 

(g); 

■ d. Revising newly redesignated 

paragraphs (d) heading and (d)(1); and 

■ e. In newly redesignated paragraphs 

(f)(1) and (f)(2)(ii), removing ‘‘creditor 

agency’’ and adding ‘‘creditor Agency’’ 

in its place. 

The revisions read as follows: 

§ 213.20 Administrative offset of nonemployee debts. 

* * * * * 

(a) * * * 

(1) The CFO collects debts by 

administrative offset only after USAID 

has sent the debtor a written demandfor-payment notice that outlines the 

type and amount of the debt, the 

intention of the Agency to use 

administrative offset to collect the debt, 

and explaining the debtor’s rights under 

31 U.S.C. 3716. 

(2) * * * 

(ii) The opportunity for a review 

within USAID of the Agency’s decision 

related to the claim(s); and 

* * * * * 

(3) * * * 

(i) The offset is in the nature of a 

recoupment; 

* * * * * 

(b) Interagency offset. The CFO may 

offset a debt owed to another Federal 

Department or Agency from amounts 

due or payable by USAID to the debtor, 

or may request another Federal 

Department or Agency to offset a debt 

owed to USAID. The CFO, through 

USAID’s cross-servicing arrangement 

with the Bureau of the Fiscal Service 

(Fiscal Service) within the U.S. 

Department of the Treasury, may 

request the Internal Revenue Service to 

offset an overdue debt from a Federal 

income-tax refund due to the debtor. 

Fiscal Service may also garnish the 

salary of a private-sector employee 

when reasonable attempts to obtain 

payment have failed. USAID will make 

interagency offsets from an employee’s 

salary in accordance with the 

procedures contained in §§ 213.22 and 

213.23. 

* * * * * 

(d) Review of a decision to offset the 

debt. (1) USAID will not offset the debt 

while a debtor is seeking review of the 

debt under this section, or under 

another statute, regulation, or contract. 

However, interest, penalties, and 

administrative costs will continue to 

accrue during this period, unless 

otherwise waived by the CFO. The CFO 

may initiate offset as soon as practical 

after the completion of a review, or after 

a debtor waives the opportunity to 

request review. 

* * * * * 

■ 24. Amend § 213.21 by revising 

paragraph (b) to read as follows: 

§ 213.21 Employee salary offset—general. 

* * * * * 

(b) Scope. The provisions of this 

section apply to collection by salary 

offset under 5 U.S.C. 5514 of debts owed 

USAID and debts owed to other Federal 

Departments and Agencies by USAID’s 

employees. USAID will make every 

effort reasonably and lawfully possible 

to collect administratively any amounts 

owed by its employees prior to initiating 

collection by salary offset. An amount 

advanced to an employee for per diem 

or mileage allowances in accordance 

with 5 U.S.C. 5705, but not used for 

allowable travel expenses, is recoverable 

from the employee by salary offset 

without regard to the due-process 

provisions in § 213.22. This section does 

not apply to debts for which another 

statute collection explicitly provides for, 

or prohibits, salary offset (e.g., travel 

advances under 5 U.S.C. 5705 and 

employee-training expenses under 5 

U.S.C. 4108). 

* * * * * 

■ 25. Amend § 213.22 by revising the 

section heading and paragraphs (c)(4) 

and (9), (d), (f) heading, (f)(1), (g), (k)(1), 

(n) introductory text, and (n)(1) and (3) 

to read as follows: 

§ 213.22 Salary offset when USAID is the 

creditor Agency. 

* * * * * 

(c) * * * 

(4) An explanation of the 

requirements concerning interest, 

penalties, and administrative costs; 

* * * * * 

(9) That the filing of a request for 

hearing within 15 days of receipt of the 

original notification will stay the 

assessment of interest, penalties, and 

administrative costs, and the 

commencement of collection 

proceedings; 

* * * * * 

(d) Request for a hearing. An 

employee may request a hearing by 

filing a written, signed request to the 

Office of the Chief Financial Officer, 

United States Agency for International 

Development, 1300 Pennsylvania 

Avenue NW, USAID Annex, Room 

8.80D, Washington, DC 20523–4601. 

The request must state the basis upon 

which the employee disputes the 

proposed collection of the debt. The 

employee must sign the request, and 

USAID must receive it within 15 days 

of his or her receipt of the notification 

of proposed deductions. The employee 

should submit, in writing, all facts, 

evidence, and witnesses that support his 

or her position to the CFO within 15 

days of the date of the request for a 

hearing. The CFO will arrange for the 

services of a hearing official not under 

the control of USAID, and will provide 

the hearing official with all documents 

relating to the claim. 

* * * * * 

(f) Form of hearing, written response, 

and final decision. (1) Normally, a 

hearing will consist of the hearing 

official’s making a decision based on a 

review of the claims file and any 

materials submitted by the debtor. 

However, in instances in which the 

hearing official determines that the 

validity of the debt turns on an issue of 

veracity or credibility that the review of 

documentary evidence cannot resolve, 

the hearing official, at his or her 

discretion, may afford the debtor an 

opportunity for an oral hearing. Such an 

oral hearing will consist of a conference 

before a hearing official in which the 

employee and the Agency will have the 

opportunity to present evidence, 

witnesses, and argument. If desired, the 

employee may be represented by an 

individual of his or her choice. The 

Agency shall maintain a summary 

Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 11911 

record of oral hearings provided under 

the procedures in this section. 

* * * * * 

(g) Request for waiver. In certain 

instances, an employee may have a 

statutory right to request a waiver of 

overpayment of pay or allowances (e.g., 

5 U.S.C. 5584 or 5 U.S.C. 5724(i)). When 

an employee requests waiver 

consideration under a right authorized 

by statute, the Agency will suspend 

further collection on the debt until it 

makes a final administrative decision on 

the waiver request. However, when it 

appears that an employee’s resignation, 

termination, or other action may 

prejudice the Government’s ability to 

recover the debt, the suspension of 

recovery is not required. During the 

period of the suspension, USAID will 

not assess interest, penalties, charges, 

and administrative costs against the 

debt. The Agency will not duplicate, for 

purposes of salary offset, any of the 

procedures already provided the debtor 

under a request for waiver. See § 213.13. 

* * * * * 

(k) * * * 

(1) Deductions to liquidate an 

employee’s debt will begin on the date 

stated in the Agency’s written demandfor-payment notice of intention to 

collect, from the employee’s current pay 

unless he or she has paid the debt or 

filed a timely request for a hearing on 

issues for which a hearing is 

appropriate. 

* * * * * 

(n) Interest, penalties, and 

administrative cost. USAID will assess 

interest, penalties, and administrative 

costs on debts collected under the 

procedures in this section. Interest, 

penalties, and administrative costs will 

continue to accrue during the period 

that the debtor is seeking a review of the 

debt or requesting a waiver. The 

following guidelines apply to the 

assessment of these costs on debts 

collected by salary offset: 

(1) USAID will start to assess interest 

on all debts not collected by the 

payment due date specified in the initial 

written demand-for-payment notice. 

USAID will waive the collection of 

interest and administrative charges on 

the portion of the debt paid within 30 

days after the date on which interest 

begins to accrue. 

* * * * * 

(3) Deductions by administrative 

offset normally begin prior to the time 

for assessment of a penalty. Therefore, 

USAID will not assess a penalty charge 

unless deductions occur more than 90 

days from the due date in the initial 

written demand-for-payment notice. 

* * * * * 

■ 26. Amend § 213.23 by: 

■ a. Revising the section heading; 

■ b. Removing ‘‘creditor agency’’ and 

‘‘creditor agency’s’’ and adding 

‘‘creditor Agency’’ and ‘‘creditor 

Agency’s’’, respectively, in their places 

everywhere they appear; and 

■ c. Revising paragraph (b). 

The revisions read as follows: 

§ 213.23 Salary offset when USAID is not 

the creditor Agency. 

* * * * * 

(b) Requests to USAID by another 

Agency to offset salary. Requests for 

salary offset must be sent to the Office 

of the Chief Financial Officer, United 

States Agency for International 

Development, 1300 Pennsylvania 

Avenue NW, USAID Annex, Room 

8.80D, Washington, DC 20523–4601. 

* * * * * 

■ 27. Revise the heading for subpart D 

to read as follows: 

Subpart D—Compromise of Claims 

■ 28. Revise § 213.24 to read as follows: 

§ 213.24 General. 

The CFO may compromise claims for 

money or property when the principal 

balance of a claim, exclusive of interest, 

penalties, and administrative costs, does 

not exceed $100,000. Where the claim 

exceeds $100,000, the authority to 

accept the compromise rests with DOJ. 

The CFO may reject an offer of 

compromise in any amount. DOJ’s 

approval is not required if the Agency 

rejects a compromise offer. When the 

claim exceeds $100,000 and the CFO 

recommends acceptance of a 

compromise offer, he or she will refer 

the claim with his or her 

recommendation to DOJ for approval. 

The referral may be in the form of the 

Claims-Collection Litigation Report 

(CCLR) and will outline the basis for 

USAID’s recommendation. USAID refers 

compromise offers for claims in excess 

of $100,000 to the Commercial 

Litigation Branch of the Civil Division 

of the Department of Justice, 

Washington, DC 20530, unless 

otherwise provided by DOJ’s delegations 

or procedures. 

■ 29. Revise § 213.25 to read as follows: 

§ 213.25 Standards for the compromise of 

claims. 

(a) The CFO may compromise a claim 

pursuant to this section if USAID cannot 

collect the full amount because: 

(1) The debtor is unable to pay the full 

amount of the debt within reasonable 

time, as verified through credit reports 

or other financial information; 

(2) The Federal Government is unable 

to collect the debt in full within a 

reasonable time by enforced collection 

proceedings; 

(3) The cost of collecting the debt 

does not justify the enforced collection 

of the full amount; or 

(4) There is significant doubt 

concerning the Government’s ability to 

prove its case in court; 

(b) In evaluating the debtor’s inability 

to pay, the CFO may consider, among 

other factors, the following: 

(1) Age and health of the debtor; 

(2) Present and potential income; 

(3) Inheritance prospects; 

(4) The possibility that assets have 

been concealed or improperly 

transferred by the debtor; 

(5) The availability of assets or 

income which may be realized by 

enforced collection proceedings; or 

(6) The applicable exemptions 

available to the debtor under State and 

Federal law in determining the Federal 

Government’s ability to enforce 

collection; 

(c) The CFO may compromise a claim, 

or recommend acceptance of a 

compromise to DOJ, where there is 

significant doubt concerning the Federal 

Government’s ability to prove its case in 

court for the full amount of the claim, 

either because of the legal issues 

involved or because of a bona fide 

dispute as to the facts. The amount 

accepted in compromise in such cases 

will fairly reflect the probability of 

prevailing on the legal issues involved, 

considering fully the availability of 

witnesses and other evidentiary data 

required to support the Government’s 

claim. In determining the litigative risks 

involved, USAID will give proportionate 

weight to the likely amount of court 

costs and attorney fees the Government 

could incur if it is unsuccessful in 

litigation; 

(d) The CFO may compromise a 

claim, or recommend acceptance of a 

compromise to DOJ, if the cost of 

collection does not justify the enforced 

collection of the full amount of the debt. 

The amount accepted in compromise in 

such cases may reflect an appropriate 

discount for the administrative and 

litigative costs of collection, taking into 

consideration the time it will take to 

effect collection. Costs of collection 

might be a substantial factor in the 

settlement of small claims, but normally 

will not carry great weight in the 

settlement of large claims. In 

determining whether the cost of 

collection justifies enforced collection 

of the full amount, USAID may consider 

the positive effect that enforced 

collection of the claim could have on 

the collection of other similar claims; 

(e) To assess the merits of a 

compromise offer, the CFO should 

11912 Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 

obtain a current financial statement 

from the debtor, executed under penalty 

of perjury, that shows the debtor’s 

assets, liabilities, income and expense; 

and 

(f) The CFO may compromise 

statutory penalties, forfeitures, or debts 

established as an aid to enforcement, 

and to compel compliance, when he or 

she determines that accepting the offer 

will serve the Agency’s enforcement 

policy adequately, in terms of 

deterrence and securing compliance 

(both present and future). 

Subpart E—Suspension or Termination 

of Collection Action 

§ 213.29 [Amended] 

■ 30. Amend § 213.29 by removing 

‘‘penalty charges’’ and adding 

‘‘penalties,’’ in its place. 

■ 31. Amend § 213.30 by: 

■ a. Revising the section heading; 

■ b. In paragraph (c), adding the words 

‘‘or her’’ after ‘‘his’’; and 

■ c. Revising paragraphs (d) 

introductory text and (e). 

The revisions read as follows: 

§ 213.30 Standards for suspension of 

collection action. 

* * * * * 

(d) The CFO may suspend collection 

activities on debts of $100,000 or less 

during the pendency of a permissive 

waiver or administrative review when 

there is no statutory requirement and he 

or she determines that: 

* * * * * 

(e) The CFO will decline to suspend 

collection when he or she determines 

that the request for waiver or 

administrative review is frivolous, or 

that the debtor made it primarily to 

delay collection. 

§ 213.31 [Amended] 

■ 32. Amend § 213.31 in the first 

sentence by removing the word 

‘‘penalty’’ and adding ‘‘penalties,’’ in its 

place. 

■ 33. Amend § 213.32 by revising the 

section heading and the introductory 

text to read as follows: 

§ 213.32 Standards for termination of 

collection action. 

The CFO may terminate collection 

action on a debt when he or she 

determines that: 

* * * * * 

■ 34. Revise § 213.34 to read as follows: 

§ 213.34 Debts discharged in bankruptcy. 

The CFO generally terminates 

collection activity on a debt discharged 

in bankruptcy, regardless of the amount. 

USAID may continue collection activity, 

however, subject to the provisions of the 

Bankruptcy Code for any payments 

provided under a plan of reorganization. 

The CFO will seek legal advice by the 

Office of the USAID General Counsel if 

he or she believes that any claims or 

offsets might have survived the 

discharge of a debtor. 

Subpart F—Discharge of Indebtedness 

and Reporting Requirements 

■ 35. Revise § 213.35 to read as follows: 

§ 213.35 Discharging indebtedness— 

general. 

(a) Before discharging a delinquent 

debt (also referred to as a close out of 

the debt), the CFO must take all 

appropriate steps to collect such debt, 

including (as applicable), the following: 

(1) Administrative offset; 

(2) Tax-refund offset; 

(3) Offset of Federal salary; 

(4) Referral to private collection 

contractors; 

(5) Referral to Federal Departments or 

Agencies that are operating a debtcollection center; 

(6) Reporting delinquencies to creditreporting bureaus; 

(7) Garnishing the wages of a 

delinquent debtor; and 

(8) Litigation or foreclosure. 

(b) The CFO will make a 

determination that collection action is 

no longer warranted and request that 

litigation counsel release any liens of 

record that are securing the debt. 

Discharge of indebtedness is distinct 

from the termination or suspension of 

collection activity, and the Internal 

Revenue Code might apply. When the 

CFO suspends or terminates collection 

action on a debt, the debt remains 

delinquent, and USAID may pursue 

further collection action at a later date 

in accordance with the standards set 

forth in this part. When a debt is 

discharged in full or in part, further 

collection action is prohibited, and 

USAID must terminate debt-collection 

action. 

■ 36. Revise § 213.36 to read as follows: 

§ 213.36 Reporting to Department of the 

Treasury’s Internal Revenue Service. 

Upon discharge of indebtedness, 

USAID must report the discharged debt 

as income to the debtor to the IRS in 

accordance with the requirements of 26 

U.S.C. 6050P and 26 CFR 1.6050P–1. 

USAID may request Fiscal Service to file 

such a discharge debt report to the IRS 

on the Agency’s behalf. 

■ 37. Revise the heading for subpart G 

to read as follows: 

Subpart G—Referrals to the U.S. 

Department of Justice 

■ 38. Amend § 213.37 by revising the 

section heading and paragraph (a) to 

read as follows: 

§ 213.37 Referrals to the U.S. Department 

of Justice. 

(a) The CFO, through USAID’s crossservicing agreement with Fiscal Service 

and by direct action, refers to DOJ for 

litigation all claims on which the 

Federal Government has taken 

aggressive collection actions but which 

could not be collected, compromised, 

suspended, or terminated. USAID makes 

such referrals as early as possible, 

consistent with aggressive Agency 

collection action, and within the period 

for bringing a timely suit against the 

debtor. Unless otherwise provided by 

DOJ’s regulations or procedures, USAID 

refers for litigation debts of more than 

$2,500 but less than $1 million to DOJ’s 

Nationwide Central Intake Facility, as 

required by the instructions for the 

Claims-Collection Litigation Report 

(CCLR). USAID shall refer debts of more 

than $1 million to the Civil Division at 

DOJ. 

* * * * * 

■ 39. Revise the heading for subpart H 

to read as follows: 

Subpart H—Mandatory Transfer of 

Delinquent Debt to U.S. Department of 

the Treasury 

■ 40. Revise § 213.38 to read as follows: 

§ 213.38 Mandatory transfer of debts to 

Department of the Treasury’s Bureau of the 

Fiscal Service—general. 

(a) USAID’s procedures call for the 

transfer of legally enforceable debt to 

Fiscal Service 90 days from the date 

provided on the Agency’s initial written 

demand-for-payment notice issued to 

the debtor. A debt is legally enforceable 

if the Agency has made a final 

determination that the debt, in the 

amount stated, is due and there are no 

legal bars to collection action. A debt is 

not considered legally enforceable for 

purposes of mandatory transfer to Fiscal 

Service if a debt is the subject of a 

pending administrative review process 

required by statute or regulation and 

collection action during the review 

process is prohibited. 

(b) Except as set forth in paragraph (a) 

of this section, USAID will transfer any 

debt covered by this part that is more 

than 120 days delinquent to Fiscal 

Service for debt-collection services. A 

debt is considered 120 days delinquent 

for purposes of this section if it is 120 

days past due and is legally enforceable. 

■ 41. Amend § 213.39 by: 

Federal Register / Vol. 86, No. 38 / Monday, March 1, 2021 / Proposed Rules 11913 

1For a history of the ozone NAAQS, please visit 

https://www.epa.gov/ground-level-ozone-pollution/ 

table-historical-ozone-national-ambient-air-qualitystandards-naaqs. For information on EPA’s periodic 

review of the ozone NAAQS, please visit https://

www.epa.gov/naaqs/ozone-o3-air-qualitystandards. 

■ a. Revising the introductory text; and 

■ b. Adding a period at the end of 

paragraph (f). 

The revision and addition read as 

follows: 

§ 213.39 Exceptions to mandatory transfer. 

USAID is not required to transfer a 

debt to the Financial Management 

Service (FMS) of the U.S. Department of 

the Treasury pursuant to § 214.37(b) 

during such period of time that the debt: 

* * * * * 

Kent Kuyumjian, 

Deputy Chief Financial Officer. 

[FR Doc. 2021–03385 Filed 2–26–21; 8:45 am] 

BILLING CODE 6116–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 96 

46 CFR Parts 71, 115, and 176 

[Docket No. USCG–2020–0123] 

RIN 1625–AC65 

Safety Management Systems for 

Domestic Passenger Vessels 

AGENCY: Coast Guard, DHS. 

ACTION: Advance notice of proposed 

rulemaking; correction. 

SUMMARY: The Coast Guard is correcting 

an advance notice of proposed 

rulemaking (ANPRM) published in the 

Federal Register of January 15, 2021, 

seeking public comment on the 

potential use of Safety Management 

Systems (SMSs) to improve safety and 

reduce marine casualties on board U.S.- 

flagged passenger vessels. The ANPRM 

contained an incorrect internal crossreference in the list of questions for the 

public. 

DATES: March 1, 2021. 

FOR FURTHER INFORMATION CONTACT: For 

information about this document, call or 

email Lieutenant Kimberly Gates, Vessel 

and Facility Operating Standards 

Division (CG–OES–2), U.S. Coast Guard; 

telephone 202–372–1455, email 

kimberly.m.gates@uscg.mil. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2021–01058, beginning on page 3899 in 

the issue of January 15, 2021, make the 

following correction in the 

SUPPLEMENTARY INFORMATION section: 

On page 3902 in the third column, in 

the paragraph for Question 19, replace 

the text ‘‘question 4’’ with the text 

‘‘question 6.’’ 

The corrected Question 19 reads as 

follows: ‘‘How would the costs and 

benefits of expanding other existing 

regulations, as detailed in question 6, 

differ from the costs and benefits of 

requiring SMSs for all passenger 

vessels?’’ 

Dated: February 19, 2021. 

M.T. Cunningham, 

Chief, Office of Regulations and 

Administrative Law, U.S. Coast Guard. 

[FR Doc. 2021–04011 Filed 2–26–21; 8:45 am] 

BILLING CODE 9110–04–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R06–OAR–2020–0343; FRL–10016– 

31–Region 6] 

Air Plan Approval; Texas; Clean Air 

Act Requirements for Enhanced 

Vehicle Inspection and Maintenance 

and Nonattainment New Source 

Review 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: Pursuant to the Federal Clean 

Air Act (CAA or the Act), the 

Environmental Protection Agency (EPA) 

is proposing to approve portions of two 

State Implementation Plan (SIP) 

revisions submitted by the State of 

Texas for the 2008 8-hour ozone 

National Ambient Air Quality Standard 

(NAAQS). The SIP revisions proposed 

for approval describe how CAA 

requirements for vehicle Inspection and 

Maintenance (I/M) and Nonattainment 

New Source Review (NNSR) are met in 

the Dallas-Fort Worth (DFW) and 

Houston-Galveston-Brazoria (HGB) 

serious ozone nonattainment areas. 

DATES: Written comments must be 

received on or before March 31, 2021. 

ADDRESSES: Submit your comments, 

identified by Docket No. EPA–R06– 

OAR–2020–0343, at https://

www.regulations.gov or via email to 

paige.carrie@epa.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from Regulations.gov. 

The EPA may publish any comment 

received to its public docket. Do not 

submit electronically any information 

you consider to be Confidential 

Business Information (CBI) or other 

information whose disclosure is 

restricted by statute. Multimedia 

submissions (audio, video, etc.) must be 

accompanied by a written comment. 

The written comment is considered the 

official comment and should include 

discussion of all points you wish to 

make. The EPA will generally not 

consider comments or comment 

contents located outside of the primary 

submission (i.e., on the web, cloud, or 

other file sharing system). For 

additional submission methods, please 

contact Carrie Paige, 214–665–6521, 

paige.carrie@epa.gov. For the full EPA 

public comment policy, information 

about CBI or multimedia submissions, 

and general guidance on making 

effective comments, please visit https:// 

www.epa.gov/dockets/commenting-epadockets. 

Docket: The index to the docket for 

this action is available electronically at 

www.regulations.gov. While all 

documents in the docket are listed in 

the index, some information may not be 

publicly available due to docket file size 

restrictions or content (e.g., CBI). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Carrie Paige, EPA Region 6 Office, 

Infrastructure and Ozone Section, 214– 

665–6521, paige.carrie@epa.gov. Out of 

an abundance of caution for members of 

the public and our staff, the EPA Region 

6 office may be closed to the public to 

reduce the risk of transmitting COVID– 

19. We encourage the public to submit 

comments via https://

www.regulations.gov, as there will be a 

delay in processing mail and no courier 

or hand deliveries will be accepted. 

Please call or email the contact listed 

above if you need alternative access to 

material indexed but not provided in 

the docket. 

SUPPLEMENTARY INFORMATION: 

Throughout this document wherever 

‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean 

the EPA. 

I. Background 

On March 12, 2008, the EPA revised 

both the primary and secondary NAAQS 

for ozone to a level of 0.075 parts per 

million (ppm) to provide increased 

protection of public health and the 

environment (73 FR 16436, March 27, 

2008).1 The 2008 ozone NAAQS retains 

the same general form and averaging 

time as the 0.08 ppm NAAQS set in 

1997 but is set at a more protective 

level. Specifically, the 2008 ozone 

NAAQS is attained when the 3-year 

average of the annual fourth-highest 

daily maximum 8-hour average ambient 

air quality ozone concentrations is less