This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

4189 

Vol. 72, No. 19 

Tuesday, January 30, 2007 

DEPARTMENT OF HOMELAND 

SECURITY 

Office of the Secretary 

6 CFR Part 11 

44 CFR Part 11 

[Docket No. DHS–2006–0009] 

RIN 1601–AA23 

Collection of Non-Tax Debts Owed to 

the Department of Homeland Security 

AGENCY: Office of the Secretary, DHS. 

ACTION: Interim final rule. 

SUMMARY: This interim final rule 

establishes the Department of Homeland 

Security’s debt collection regulations to 

conform to the Debt Collection Act of 

1982, as amended by the Debt 

Collection Improvement Act of 1996, 

the Federal Claims Collection 

Standards, and other laws applicable to 

the collection of non-tax debts owed to 

the Department of Homeland Security. 

This rule also promulgates regulations 

governing the offset of the Department 

of Homeland Security-issued payments 

to collect debts owed to other Federal 

agencies. 

DATES: This interim final rule is 

effective January 30, 2007. Written 

comments may be submitted to the 

Department of Homeland Security on or 

before March 1, 2007. 

ADDRESSES: You may submit comments, 

identified by DHS–2006–0009, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 866–466–5370. 

• Mail: Department of Homeland 

Security, Office of Financial 

Management, Mail Stop 0200, 245 

Murray Lane, SW., Bldg 410, 

Washington, DC 20528. 

• Hand Delivery / Courier: Office of 

Financial Management, Department of 

Homeland Security, Mail Stop 0200, 245 

Murray Lane, SW., Bldg 410, 

Washington, DC 20528–0200. 

FOR FURTHER INFORMATION CONTACT: Jean 

D. Francis, telephone number 202–447– 

5199. This is not a toll free call. 

SUPPLEMENTARY INFORMATION: 

I. Public Participation 

Interested persons are invited to 

participate in this rulemaking by 

submitting written data, views, or 

arguments on all aspects of the 

proposed rule. The Department of 

Homeland Security (DHS) also invites 

comments that relate to the economic, 

environmental, or federalism effects that 

might result from this proposed rule. 

Comments that will provide the most 

assistance in developing these 

procedures will reference a specific 

portion of the proposed rule, explain the 

reason for any recommended change, 

and include data, information, or 

authority that support such 

recommended change. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal information provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.regulations.gov. 

II. Background 

This interim final rule implements the 

DHS debt collection regulations to 

conform to the Debt Collection Act of 

1982, Public Law 97–365, 96 Stat. 1749 

(Oct. 25, 1982), as amended by the Debt 

Collection Improvement Act of 1996 

(DCIA), Public Law 104–134, 110 Stat. 

1321, 1358 (Apr. 26, 1996), the Federal 

Claims Collection Standards, 31 CFR 

parts 900 through 904, Debt Collection 

Authorities Under the Debt Collection 

Improvement Act of 1996, 31 CFR part 

285, and other laws applicable to the 

collection of non-tax debt owed to the 

Government. 

This interim final rule provides 

procedures for the collection of non-tax 

debts owed to DHS. This rule adopts the 

Government-wide debt collection 

standards promulgated by the 

Departments of the Treasury and Justice, 

known as the Federal Claims Collection 

Standards (FCCS), as revised on 

November 22, 2000 (65 FR 70390; 31 

CFR parts 900–904), and supplements 

the FCCS by prescribing procedures 

consistent with the FCCS, as necessary 

and appropriate for DHS operations. 

DHS components may, but are not 

required to, promulgate additional 

policies and procedures consistent with 

this regulation, the FCCS, and other 

applicable Federal laws, policies, and 

procedures. This regulation also 

provides the procedures for the 

collection of debts owed to other 

Federal agencies when a request for 

offset is received by DHS. 

This interim final rule does not apply 

to the collection of tax debts under the 

Internal Revenue Code of 1986, as 

amended, 26 U.S.C., and regulations, 

policies and procedures issued by the 

Internal Revenue Service. This 

regulation also does not apply to the 

collection of debts, by administrative 

offset, arising under the tariff laws of the 

United States, including, for example, 

duty bills, penalties, user fees, and 

liquidated damages, which are governed 

by the Tariff Act of 1930, as amended, 

19 U.S.C., nor to the collection of debts, 

nor procedures thereof, excepted by 31 

CFR parts 900 through 904. 

Nothing in this regulation precludes 

the use of collection remedies not 

contained in this regulation. For 

example, DHS may collect unused travel 

advances through offset of an 

employee’s pay under 5 U.S.C. 5705. 

DHS and other Federal agencies may 

simultaneously use multiple collection 

remedies to collect a debt, except as 

prohibited by law. 

Part 11, Subpart A, addresses the 

general provisions applicable to the 

collection of non-tax debts owed to 

DHS, including all its components. As 

stated in section 11.1 of this rule, 

nothing in this regulation requires DHS 

to duplicate notices or administrative 

proceedings required by contract, this 

regulation or other laws or regulations. 

Thus, for example, DHS is not required 

to provide a debtor with two hearings 

on the same issue merely because DHS 

uses two different collection tools, each 

of which requires that the debtor be 

provided with a hearing. 

This regulation describes the 

procedures to be followed by DHS when 

collecting debts owed to DHS. Among 

other things, this regulation specifically 


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4190 Federal Register / Vol. 72, No. 19 / Tuesday, January 30, 2007 / Rules and Regulations 

adopts the due process procedures of 

the FCCS. DHS is required to follow due 

process when using offset 

(administrative, tax refund and salary) 

to collect a debt, when garnishing a 

debtor’s wages, or before reporting a 

debt to a credit bureau. DHS is required 

to provide debtors with notice of the 

amount and type of debt, the intended 

collection action to be taken, how a 

debtor may pay the debt or make 

alternate repayment arrangements, how 

a debtor may review documents related 

to the debt, how a debtor may dispute 

the debt, and the consequences to the 

debtor if the debt is not paid. Notices 

may be sent by first-class mail and, if 

not returned by the United States Postal 

Service, DHS may presume that the 

notice was received. 

This regulation also explains the use 

of offset procedures and the 

circumstances under which DHS may 

waive interest, penalties, and 

administrative costs. This regulation 

also incorporates procedures for several 

collection remedies authorized by the 

Debt Collection Improvement Act of 

1996 (DCIA), such as administrative 

wage garnishment and barring 

delinquent debtors from obtaining 

additional Federal loan assistance. This 

regulation further authorizes suspension 

or termination of debt collection, and 

explains when DHS refers claims to the 

Department of Justice. 

Finally, this regulation prescribes the 

procedures for offset by DHS of debts 

owed to other federal agencies. 

III. Procedural Requirements 

A. Administrative Procedure Act 

DHS has determined that 

implementation of this rule without 

prior notice and the opportunity for 

public comment is warranted because 

this rule is one of agency procedure and 

practice and therefore is exempt from 

notice and comment rulemaking 

requirements under the Administrative 

Procedure Act (APA) at 5 U.S.C. 

553(b)(A) and (B). DHS, nonetheless, 

invites public comment and will 

consider any proposals to improve these 

rules. 

Additionally, good cause exists to 

make this rule effective upon 

publication. This interim final rule 

parallels the existing operational 

regulations of other cabinet-level 

agencies to effectuate the collection of 

non-tariff and non-tax debts to 

implement 31 U.S.C. 3711. Similar rules 

are already applied by DHS components 

that were transferred to DHS from the 

Departments of Justice, Treasury, and 

Transportation, as well as the Federal 

Emergency Management Agency. This 

interim final rule establishes uniform 

procedures throughout DHS. Since this 

rule parallels existing, long-standing 

rules that have already been subject to 

APA notice and comment procedures, 

we believe that publishing this rule with 

the usual notice and comment 

procedures is unnecessary. Further, 

making this rule effective upon 

publication will permit DHS 

components to utilize uniform debt 

collection tools immediately. 

Accordingly, the Department has 

determined that prior notice and public 

comment procedures would be 

impracticable and unnecessary pursuant 

to 5 U.S.C. 553(b)(B). 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

mandates that an agency conduct an 

RFA analysis when an agency is 

‘‘required by section 553 * * *, or any 

other law, to publish general notice of 

proposed rulemaking for any proposed 

rule, or publishes a notice of proposed 

rulemaking for an interpretative rule 

involving the internal revenue laws of 

the United States * * *.’’ 5 U.S.C. 

603(a). RFA analysis is not required 

when a rule is exempt from notice and 

comment rulemaking under 5 U.S.C. 

553(b). DHS has determined that good 

cause exists under 5 U.S.C. 553(b)(B) to 

exempt this rule from the notice and 

comment requirements of 5 U.S.C. 

553(b). Therefore no RFA analysis under 

5 U.S.C. 603 is required for this rule. 

C. Unfunded Mandates Reform Act of 

1995 

This rule will not result in the 

expenditure by State, local and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year, and it will not significantly or 

uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995. 

D. Small Business Regulatory 

Enforcement Act of 1996 

This rule is not a major rule, as 

defined by section 804 of the Small 

Business Regulatory Enforcement Act of 

1996. This rule will not result in an 

annual effect on the United States 

economy of $100 million or more, result 

in a major increase in costs or prices, or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

companies to compete with foreignbased companies in domestic and 

export markets. 

E. Paperwork Reduction Act of 1995 

This interim rule does not impose any 

reporting or recordkeeping requirements 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501 et seq.). 

F. Executive Order 12866 

DHS has determined that this 

rulemaking is not a significant 

regulatory action for the purposes of 

Executive Order 12866. DHS states, 

however, that it does not believe that 

adopting the standardized procedures 

for debt collection for those components 

that currently do not have debt 

collection procedures, and 

standardizing the debt collection 

procedures for those components of 

DHS that currently have applicable debt 

collection procedures will not have an 

annual effect on the economy of $100 

million or more, nor will the rules have 

other adverse economic effects. 

List of Subjects 

6 CFR Part 11 

Administrative practice and 

procedure, Claims, Debts, Garnishment 

of wages, Government employee, 

Hearing and appeal procedures, Pay 

administration, Salaries, Wages. 

44 CFR Part 11 

Claims, Government employees, 

Income taxes, Reporting and 

recordkeeping, Wages. 

Authority and Issuance 

■ For the reasons set forth above, 6 CFR 

and 46 CFR part 11 are amended as 

follows. 

6 CFR Chapter 1—Department of Homeland 

Security, Office of the Secretary 

■ 1. Part 11 is added to read as follows: 

PART 11—CLAIMS 

Subpart A—Debt Collection 

Sec. 

11.1 General application. 

11.2 Definitions. 

11.3 Demand for payment. 

11.4 Collection by administrative offset. 

11.5 Administrative wage garnishment. 

11.6 Reporting debts. 

11.7 Private collection agencies. 

11.8 Suspension or revocation of eligibility 

for loans and loan guarantees, licenses, 

permits, or privileges. 

11.9 Collection in installments. 

11.10 Interest, penalty charges, and 

administrative costs. 

11.11 Compromise. 

11.12 Suspending or terminating collection 

activity. 

11.13 Referrals to the Department of Justice. 

11.14 Receipt of offset requests by other 

Federal agencies. 

11.15 Applying the debt against DHS 

payments. 


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Authority: 5 U.S.C. 301, 5514; 26 U.S.C. 

6402, 31 U.S.C. 3701, 3711, 3716, 3717, 3718, 

3720A, 3720B, 3720D; Pub. L. 107–296, 116 

Stat. 2135 (6 U.S.C. 1 et seq.). 

§ 11.1 General application. 

(a) Application of Debt Collection 

Standards. The provisions of 31 CFR 

parts 285, 900–904, as amended by the 

Secretary of the Treasury and the 

Attorney General, are applicable to 

debts and debt procedures within the 

jurisdiction of the Department of 

Homeland Security. 

(b) Authority. The Chief Financial 

Officer of the Department of Homeland 

Security is delegated authority to 

administer this subpart and to 

redelegate authority under this subpart. 

(c) Application to DHS. This subpart 

provides procedures for the collection of 

DHS debts, and for collection of other 

debts owed to the United States when 

a request for offset of a DHS payment is 

received by the DHS from another 

federal agency. This subpart applies to 

all of DHS, including all of its 

components. It applies to the DHS when 

collecting a DHS debt, to persons who 

owe DHS debts, and to Federal agencies 

requesting offset of a payment issued by 

the DHS as a payment agency (including 

salary payments to DHS employees). 

(d) Exclusions. This subpart does not 

apply to debt arising from taxation 

under the Internal Revenue Act of 1986, 

as amended, or to any debt excepted 

from the FCCS, 31 CFR parts 900 

through 904. 

(e) Non-exclusive procedure or 

remedy. Nothing in this subpart 

precludes collection or disposition of 

any debt under statutes and regulations 

other than those described in this 

subpart. To the extent that the 

provisions of laws or other regulations 

apply, including the remission or 

mitigation of fines, penalties, forfeitures 

and debts arising under the tariff laws 

of the United States, DHS components 

are authorized to collect debts under 

those laws and regulations. DHS 

components and other Federal agencies 

may simultaneously use multiple 

collection remedies to collect a debt, 

except as prohibited by law. 

(f) Additional policies and 

procedures. DHS components may, but 

are not required to, promulgate 

additional policies and procedures 

consistent with this subpart and other 

applicable Federal law, policies, and 

procedures. 

(g) Duplication not required. Nothing 

in this subpart requires DHS to 

duplicate notices or administrative 

proceedings required by contract, this 

subpart, or other laws or regulations. 

(h) No private rights created. This 

subpart does not create any right or 

benefit, substantive or procedural, 

enforceable at law or in equity by a 

party against the United States, its 

agencies, its officers, or any other 

person, nor shall the failure of any DHS 

component to comply with any of the 

provisions of this subpart or 31 CFR 

parts 285, 900–904 be a defense to the 

collection of any debt or enforcement of 

any other law. 

§ 11.2 Definitions. 

In addition to the definitions 

provided in 31 CFR parts 285, 900–904, 

as used in this subpart: 

(a) Department of Homeland Security 

or DHS means the United States 

Department of Homeland Security and 

includes the Secretary and any DHS 

entity which reports directly or 

indirectly to the Secretary. 

(b) DHS debt means a debt owed to 

DHS by a person. 

(c) Secretary means the Secretary of 

Homeland Security. 

§ 11.3 Demand for payment. 

(a) Notice requirements. Generally, 

before DHS starts the collection actions 

described in this subpart, DHS sends a 

written notice to the debtor under 31 

CFR 901.2. The notice provided under 

this section includes notice of any and 

all actions DHS may take to offset the 

debt, including any notices required 

under 31 CFR parts 285, 900–904. 

(b) Exceptions to notice requirements. 

DHS may omit from any notice to a 

debtor any provision that is not legally 

required given the collection remedies 

to be applied to a particular debt. 

§ 11.4 Collection by administrative offset. 

(a) General Provisions for Offset. DHS 

will collect debts by administrative 

offset pursuant to 31 CFR parts 900–904. 

(b) Centralized Offset through the 

Treasury Offset Program. DHS adopts 

the provisions of 31 CFR 901.3. 

(c) Non-centralized Offset for DHS 

Debts. When centralized offset is not 

available or appropriate, DHS may 

collect delinquent DHS debts through 

non-centralized offset. In these cases, 

DHS may offset a payment internally or 

make a request directly to a Federal 

payment agency to offset a payment 

owed to the debtor. Before requesting a 

payment authorizing agency to conduct 

a non-centralized administrative offset, 

DHS will provide the debtor with the 

due process set forth in 31 CFR 

901.3(b)(4) and the notice requirements 

of 31 CFR 901.2 (unless the due process 

and notice requirements are not 

required under that part). DHS will 

provide the payment authorizing agency 

written certification that the debtor 

owes the past due, legally enforceable 

delinquent debt in the amount stated, 

and that DHS has fully complied with 

its regulations concerning 

administrative offset. 

(d) Hearing Procedures for Federal 

Employees. (1) Request for a hearing. A 

Federal employee who has received a 

notice that his or her DHS debt will be 

collected by means of salary offset may 

request a hearing concerning the 

existence or amount of the debt. The 

Federal employee also may request a 

hearing concerning the amount 

proposed to be deducted from the 

employee’s pay each pay period. The 

employee must send any request for 

hearing, in writing, to the office 

designated in the notice described in 

section 11.4(c). The request must be 

received by the designated office on or 

before the 15th calendar day following 

the employee’s receipt of the notice. The 

employee must sign the request and 

specify whether an oral or paper hearing 

is requested. If an oral hearing is 

requested, the employee must explain 

why the matter cannot be resolved by 

review of the documentary evidence 

alone. All travel expenses incurred by 

the Federal employee in connection 

with an in-person hearing will be borne 

by the employee. 

(2) Failure to submit timely request for 

hearing. If the employee fails to submit 

a request for hearing within the time 

period described in paragraph (d)(1) of 

this section, the employee will have 

waived the right to a hearing, and salary 

offset may be initiated. However, DHS 

should accept a late request for hearing 

if the employee can show that the late 

request was the result of circumstances 

beyond the employee’s control or 

because of a failure to receive actual 

notice of the filing deadline. 

(3) Hearing official. DHS must obtain 

the services of a hearing official who is 

not under the supervision or control of 

the Secretary. The DHS Chief Financial 

Officer will coordinate DHS efforts to 

obtain the services of a hearing official. 

(4) Notice of hearing. After the 

employee requests a hearing, the 

designated hearing official informs the 

employee of the form of the hearing to 

be provided. For oral hearings, the 

notice sets forth the date, time and 

location of the hearing. For paper 

hearings, the notice provides the 

employee the date by which he or she 

should submit written arguments to the 

designated hearing official. The hearing 

official gives the employee reasonable 

time to submit documentation in 

support of the employee’s position. The 

hearing official schedules a new hearing 

date if requested by both parties. The 

hearing official gives both parties 


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reasonable notice of the time and place 

of a rescheduled hearing. 

(5) Oral hearing. The hearing official 

conducts an oral hearing if he or she 

determines the matter cannot be 

resolved by review of documentary 

evidence alone (for example, when an 

issue of credibility or veracity is 

involved). The hearing need not take the 

form of an evidentiary hearing, but may 

be conducted in a manner determined 

by the hearing official, including but not 

limited to: 

(i) Informal conferences with the 

hearing official, in which the employee 

and agency representative will be given 

full opportunity to present evidence, 

witnesses and argument; 

(ii) Informal meetings with an 

interview of the employee by the 

hearing official; or 

(iii) Formal written submissions, with 

an opportunity for oral presentation. 

(6) Paper hearing. If the hearing 

official determines an oral hearing is not 

necessary, he or she makes the 

determination based upon a review of 

the available written record, including 

any documentation submitted by the 

employee in support of his or her 

position. 

(7) Failure to appear or submit 

documentary evidence. In the absence of 

good cause shown (for example, 

excused illness), if the employee fails to 

appear at an oral hearing or fails to 

submit documentary evidence as 

required for a paper hearing, the 

employee waives the right to a hearing, 

and salary offset may be initiated. 

Further, the employee is deemed to 

admit the existence and amount of the 

debt as described in the notice of intent 

to offset. If a DHS representative does 

not appear at an oral hearing, the 

hearing official shall proceed with the 

hearing as scheduled, and make his or 

her determination based upon the oral 

testimony presented and the 

documentary evidence submitted by 

both parties. 

(8) Burden of proof. DHS has the 

initial burden to prove the existence and 

amount of the debt. Thereafter, if the 

employee disputes the existence or 

amount of the debt, the employee must 

prove by a preponderance of the 

evidence that no debt exists or that the 

amount of the debt is incorrect. In 

addition, the employee may present 

evidence that the proposed terms of the 

repayment schedule are unlawful, 

would cause a financial hardship to the 

employee, or that collection of the debt 

may not be pursued due to operation of 

law. 

(9) Record. The hearing official 

maintains a summary record of any 

hearing provided by this subpart. 

Witnesses testify under oath or 

affirmation in oral hearings. 

(10) Date of decision. The hearing 

official issues a written opinion stating 

his or her decision, based upon 

documentary evidence and information 

developed at the hearing, as soon as 

practicable after the hearing but not 

later than 60 days after the date on 

which the request for hearing was 

received by DHS. If the employee 

requests a delay in the proceedings, the 

deadline for the decision may be 

postponed by the number of days by 

which the hearing was postponed. 

When a decision is not timely rendered, 

DHS waives penalties applied to the 

debt for the period beginning with the 

date the decision is due and ending on 

the date the decision is issued. 

(11) Content of decision. The written 

decision includes: 

(i) A statement of the facts presented 

to support the origin, nature, and 

amount of the debt; 

(ii) The hearing official’s findings, 

analysis, and conclusions; and 

(iii) The terms of any repayment 

schedules, if applicable. 

(12) Final agency action. The hearing 

official’s decision is final. 

(f) Waiver not precluded. Nothing in 

this subpart precludes an employee 

from requesting waiver of an 

overpayment under 5 U.S.C. 5584 or 

8346(b), 10 U.S.C. 2774, 32 U.S.C. 716, 

or other statutory authority. 

(g) Salary offset process. (1) 

Determination of disposable pay. The 

Chief Financial Officer consults with 

the appropriate DHS payroll office to 

determine the amount of a DHS 

employee’s disposable pay and will 

implement salary offset when requested 

to do so by a DHS component or another 

federal agency. If the debtor is not 

employed by DHS, the agency 

employing the debtor will determine the 

amount of the employee’s disposable 

pay and implement salary offset upon 

request. 

(2) Amount of salary offset. The 

amount to be offset from each salary 

payment will be up to 15 percent of a 

debtor’s disposable pay, as follows: 

(i) If the amount of the debt is equal 

to or less than 15 percent of the 

disposable pay, such debt generally is 

collected in one lump sum payment; or 

(ii) Installment deductions are made 

over a period of no greater than the 

anticipated period of employment. An 

installment deduction will 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 or the 

creditor agency has determined that 

smaller deductions are appropriate 

based on the employee’s ability to pay. 

(3) Final salary payment. After the 

employee has separated either 

voluntarily or involuntarily from the 

payment agency, the payment agency 

may make a lump sum deduction 

exceeding 15 percent of disposable pay 

from any final salary or other payments 

pursuant to 31 U.S.C. 3716 in order to 

satisfy a debt. 

(h) Payment agency’s responsibilities. 

(1) As required by 5 CFR 550.1109, if 

the employee separates from the 

payment agency from which DHS 

requested salary offset, the payment 

agency must certify the total amount of 

its collection and notify DHS and the 

employee of the amounts collected. If 

the payment agency is aware that the 

employee is entitled to payments from 

the Civil Service Retirement Fund and 

Disability Fund, the Federal Employee 

Retirement System, or other similar 

payments, it must provide written 

notification to the agency responsible 

for making such retirement payments 

that the debtor owes a debt, the amount 

of the debt, and that DHS has complied 

with the provisions of this section. DHS 

must submit a properly certified claim 

to the new payment agency before the 

collection can be made. 

(2) If the employee is already 

separated from employment and all 

payments due from his or her former 

payment agency have been made, DHS 

may request that money due and 

payable to the employee from the Civil 

Service Retirement Fund and Disability 

Fund, the Federal Employee Retirement 

System, or other similar funds, is 

administratively offset to collect the 

debt. Generally, DHS will collect such 

monies through the Treasury Offset 

Program as described in this section. 

(3) When an employee transfers to 

another agency, DHS should resume 

collection with the employee’s new 

payment agency in order to continue 

salary offset. 

§ 11.5 Administrative wage garnishment. 

DHS may collect debts from a debtor’s 

wages by means of administrative wage 

garnishment in accordance with the 

requirements of 31 U.S.C. 3720D under 

the procedures established in 31 CFR 

285.11. 

§ 11.6 Reporting debts. 

DHS will report delinquent debts to 

credit bureaus and other automated 

databases in accordance with 31 U.S.C. 

3711(e), 31 CFR 901.4, and the Office of 

Management and Budget Circular A–

129, ‘‘Policies for Federal Credit 

Programs and Non-tax Receivables,’’

which may be found at http:// 


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Federal Register / Vol. 72, No. 19 / Tuesday, January 30, 2007 / Rules and Regulations 4193 

www.fms.treas.gov/debt. At least sixty 

(60) days prior to reporting a delinquent 

debt to a consumer reporting agency, 

DHS sends a notice to the debtor in 

accordance with 6 CFR 11.3. DHS may 

authorize the Treasury Department’s 

Financial Management Service to report 

to credit bureaus those delinquent debts 

that have been transferred to the 

Financial Management Service for 

administrative offset. 

§ 11.7 Private collection agencies. 

DHS will transfer delinquent DHS 

debts to the Treasury Department’s 

Financial Management Service to obtain 

debt collection services provided by 

private collection agencies. 

§ 11.8 Suspension or revocation of 

eligibility for loans and loan guarantees, 

licenses, permits, or privileges. 

The authority to extend financial 

assistance in the form of a loan, loan 

guarantee, or loan insurance to any 

person delinquent on a nontax debt 

owed to DHS is delegated to the Chief 

Financial Officer. 

§ 11.9 Collection in installments. 

DHS may accept payment of a DHS 

debt in regular installments, in 

accordance with the provisions of 31 

CFR 901.8 and policies and procedures 

adopted by the Chief Financial Officer 

(CFO). The CFO will consult the Office 

of General Counsel regarding a legally 

enforceable written agreement from the 

debtor. 

§ 11.10 Interest, penalty charges, and 

administrative costs. 

(a) Assessment and notice. DHS shall 

assess interest, penalties and 

administrative costs on DHS debts in 

accordance with 31 U.S.C. 3717 and 31 

CFR 901.9. Administrative costs of 

processing and handling a delinquent 

debt shall be determined by DHS. 

(b) Waiver of interest, penalties, and 

administrative costs. DHS may waive 

interest, penalties, and administrative 

costs, or any portion thereof, under the 

criteria in the FCCS, or when it 

determines the collection of these 

charges would be against equity and 

good conscience or not in the best 

interests of the United States. The 

authority to waive interest, penalties 

and administrative costs is delegated to 

the Chief Financial Officer. The DHS 

Chief Financial Officer shall issue 

written guidance on maintaining 

records of waivers. 

(c) Accrual during suspension of debt 

collection. Interest and related charges 

will not accrue during the period a 

hearing official does not render a timely 

decision. 

§ 11.11 Compromise. 

DHS may compromise a debt in 

accordance with the provisions of 31 

CFR part 902. The Chief Financial 

Officer is authorized to compromise 

debts owed to DHS. No debt over 

$10,000 may be compromised without 

the concurrence of the Office of the 

General Counsel. 

§ 11.12 Suspending or terminating 

collection activity. 

DHS will suspend or terminate 

collection activity, or discharge 

indebtedness, in accordance with 31 

CFR part 903. The Chief Financial 

Officer is delegated authority to suspend 

or terminate collection activity, or to 

discharge indebtedness regarding debts 

owed to DHS, but for any such action 

involving a debt over $10,000, the Chief 

Financial Officer must obtain the 

concurrence of the Office of the General 

Counsel. The Chief Financial Officer is 

authorized to act on behalf of the 

Secretary in selling a debt, and in 

determining whether or not it is in the 

best interests of the United States to do 

so. 

§ 11.13 Referrals to the Department of 

Justice. 

Referrals of debts to the Department of 

Justice for collection will be by the 

General Counsel. 

§ 11.14 Receipt of offset requests by other 

Federal agencies. 

Other Federal agencies send noncentralized offset requests to DHS at: 

U.S. Department of Homeland Security, 

Attn: Chief Financial Officer, Mail Stop 

0200, Washington, DC 20528–0200. 

Those agencies must comply with 31 

CFR 901.3 when forwarding the requests 

to DHS. DHS does not review the merits 

of the creditor agency’s determination 

with regard to the existence or the 

amount of the debt. When two or more 

agencies are seeking offsets from 

payments made to the same person, or 

when two or more debts are owed to a 

single creditor agency, DHS may 

determine the order in which the debts 

will be collected or whether one or more 

debts should be collected by offset 

simultaneously. For the purposes of this 

section, debts owed to DHS generally 

take precedence over debts owed to 

other agencies, but DHS may pay a debt 

to another agency prior to collecting for 

DHS. DHS determines the order of debt 

collection based upon the best interests 

of the United States. 

§ 11.15 Applying the debt against DHS 

payments. 

(a) Notice to the Debtor. DHS sends a 

written notice to the debtor indicating a 

certified debt claim was received from 

the creditor agency, the amount of the 

debt claimed to be owed by the creditor 

agency, the estimated date the offset 

will begin (if more than one payment), 

and the amount of the deduction(s). For 

employees, DHS generally begins 

deductions from pay at the next 

officially established pay interval. 

Deductions continue until DHS knows 

the debt is paid in full or until 

otherwise instructed by the creditor 

agency. Alternatively, the amount offset 

may be an amount agreed upon, in 

writing, by the debtor and the creditor 

agency. If a DHS employee retires or 

resigns, or if his or her employment 

ends before collection of the debt is 

complete, DHS continues to offset, 

under 31 U.S.C. 3716, up to 100% of an 

employee’s subsequent payments until 

the debt is paid or otherwise resolved. 

Such payments include a debtor’s final 

salary payment, lump-sum leave 

payment, and other payments payable to 

the debtor by DHS. See 31 U.S.C. 3716 

and 5 CFR 550.1104(l) and 550.1104(m). 

If the employee is separated from DHS 

before the debt is paid in full, DHS will 

certify to the creditor agency the total 

amount of its collection. If DHS is aware 

the employee is entitled to payments 

from the Civil Service Retirement and 

Disability Fund, Federal Employee 

Retirement System, or other similar 

payments, DHS provides written notice 

to the agency making such retirement 

payments that the debtor owes a debt 

(including the amount) and that the 

provisions of 5 CFR 550.1109 have been 

fully complied with. The creditor 

agency is responsible for submitting a 

certified claim to the agency responsible 

for making such payments before 

collection may begin. Generally, 

creditor agencies will collect such 

monies through the Treasury Offset 

Program as described in section 11.4. 

(b) Notice to the debtor. DHS provides 

to the debtor a copy of any notices sent 

to the creditor agency under this 

subpart. 

(c) Transfer of employee debtor to 

another Federal agency. If an employee 

debtor transfers to another Federal 

agency before the debt is paid in full, 

DHS notifies the creditor agency and 

provides it a certification of the total 

amount of its collection on the debt. The 

creditor agency is responsible for 

submitting a certified claim to the 

debtor’s new employing agency before 

collection may begin. 

* * * * * 


ycherry on PROD1PC64 with RULES
4194 Federal Register / Vol. 72, No. 19 / Tuesday, January 30, 2007 / Rules and Regulations 

44 CFR Chapter 1—Federal Emergency 

Management Agency, Department of 

Homeland Security 

Subchapter A—General 

PART 11—[AMENDED] 

■ 2. The authority citation for part 11 

continues to read as follows: 

Authority: 31 U.S.C. 3701 et seq. 

Subpart C—[Removed] 

■ 3. Subpart C, consisting of §§ 11.30 

through 11.65, is removed and reserved. 

Dated: January 24, 2007. 

Michael Chertoff, 

Secretary. 

[FR Doc. 07–387 Filed 1–25–07; 2:42 pm] 

BILLING CODE 4410–10–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–25988; Directorate 

Identifier 2006–NM–113–AD; Amendment 

39–14884; AD 2007–01–12] 

RIN 2120–AA64 

Airworthiness Directives; Dassault 

Model Mystere-Falcon 50 and 900, and 

Falcon 900EX Airplanes; and Model 

Falcon 2000 and Falcon 2000EX 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Dassault Model Mystere-Falcon 50 and 

900, and Falcon 900EX airplanes; and 

Model Falcon 2000 and Falcon 2000EX 

airplanes. This AD requires an 

inspection of the identification plates of 

the outboard slats to determine the type 

of identification plates and the part 

numbers. For certain airplanes, this AD 

also requires a revision to the 

Limitations and Normal Procedures 

sections of the airplane flight manual to 

provide procedures for operation in 

icing conditions; and replacement of the 

anti-icing manifold with an anti-icing 

manifold of the correct type design if 

necessary. For certain airplanes, this AD 

also requires related investigative and 

corrective actions if necessary. This AD 

results from a finding that the outboard 

slats for Model Mystere-Falcon 50 

airplanes have been erroneously 

authorized, in limited cases, as 

interchangeable for use on Model 

Mystere-Falcon 900 and Falcon 900EX 

airplanes; and Model Falcon 2000 and 

Falcon 2000EX airplanes. We are 

issuing this AD to prevent failure of the 

anti-icing manifold of the outboard 

slats, which could result in loss of 

control of the airplane. 

DATES: This AD becomes effective 

March 6, 2007. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in the AD 

as of March 6, 2007. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

dms.dot.gov or in person at the Docket 

Management Facility, U.S. Department 

of Transportation, 400 Seventh Street, 

SW., Nassif Building, Room PL–401, 

Washington, DC. 

Contact Dassault Falcon Jet, P.O. Box 

2000, South Hackensack, New Jersey 

07606, for service information identified 

in this AD. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue, SW., Renton, Washington 

98057–3356; telephone (425) 227–1137; 

fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Examining the Docket 

You may examine the airworthiness 

directive (AD) docket on the Internet at 

http://dms.dot.gov or in person at the 

Docket Management Facility office 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The Docket Management Facility office 

(telephone (800) 647–5227) is located on 

the plaza level of the Nassif Building at 

the street address stated in the 

ADDRESSES section. 

Discussion 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to certain Dassault Model 

Mystere-Falcon 50 and 900, and Falcon 

900EX airplanes; and Model Falcon 

2000 and Falcon 2000EX airplanes. That 

NPRM was published in the Federal 

Register on October 5, 2006 (71 FR 

58755). That NPRM proposed to require 

an inspection of the identification plates 

of the outboard slats to determine the 

type of identification plates and the part 

numbers. For certain airplanes, that 

NPRM also proposed to require a 

revision to the Limitations and Normal 

Procedures sections of the airplane 

flight manual to provide procedures for 

operation in icing conditions; and 

replacement of the anti-icing manifold 

with an anti-icing manifold of the 

correct type design if necessary. For 

certain airplanes, that NPRM also 

proposed to require related investigative 

and corrective actions if necessary. 

Comments 

We provided the public the 

opportunity to participate in the 

development of this AD. We have 

considered the comments received. 

Request To Incorporate by Reference 

During the NPRM Rulemaking Phase 

The Modification and Replacement 

Parts Association (MARPA) states that, 

typically, ADs are based on service 

information originating with the type 

certificate holder or its suppliers. 

MARPA adds that manufacturer service 

documents are privately authored 

instruments generally having copyright 

protection against duplication and 

distribution. MARPA notes that when a 

service document is incorporated by 

reference into a public document, such 

as an AD, it loses its private, protected 

status and becomes a public document. 

MARPA adds that if a service document 

is used as a mandatory element of 

compliance, it should not simply be 

referenced, but should be incorporated 

into the regulatory document; by 

definition, public laws must be public, 

which means they cannot rely upon 

private writings. 

We understand MARPA’s comment 

concerning incorporation by reference. 

The Office of the Federal Register (OFR) 

requires that documents that are 

necessary to accomplish the 

requirements of the AD be incorporated 

by reference during the final rule phase 

of rulemaking. This final rule 

incorporates by reference the documents 

necessary for the accomplishment of the 

actions required by this AD. Further, we 

point out that while documents that are 

incorporated by reference do become 

public information, they do not lose 

their copyright protection. For that 

reason, we advise the public to contact 

the manufacturer to obtain copies of the 

referenced service information. 

Request To Publish Service Information 

Online 

MARPA adds that incorporated by 

reference service documents should be 

made available to the public by 

publication in the Docket Management 

System (DMS), keyed to the action that 

incorporates them. MARPA notes that 

the stated purpose of the incorporation 

by reference method is brevity, to keep 

from expanding the Federal Register 

needlessly by publishing documents 

already in the hands of the affected 

individuals; traditionally, ‘‘affected 

individuals’’ means aircraft owners and 


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