Federal Register / Vol. 88, No. 180 / Tuesday, September 19, 2023 / Rules and Regulations 64353 

(b) Each commercial packaged boiler 

listed in table 2 of this paragraph (b) and 

manufactured on or after the effective 

date listed in Table 2 must meet the 

indicated energy conservation standard. 

TABLE 2 TO PARAGRAPH (b)—COMMERCIAL PACKAGED BOILER ENERGY CONSERVATION STANDARDS

Equipment category Subcategory Certified rated input 

Efficiency level— 

effective date: 

March 2, 2022 * 

Steam Commercial Packaged Boilers .............. Gas-fired—natural draft ................................... ≥300,000 Btu/h and ≤2,500,000 Btu/h ............. 79.0% ET. 

Steam Commercial Packaged Boilers .............. Gas-fired—natural draft ................................... >2,500,000 Btu/h ............................................. 79.0% ET. 

* Where ET is thermal efficiency. 

[FR Doc. 2023–19908 Filed 9–18–23; 8:45 am] 

BILLING CODE 6450–01–P 

DEFENSE NUCLEAR FACILITIES 

SAFETY BOARD 

10 CFR Part 1709 

[Docket No. DNFSB–2023–01] 

Debt Collection Procedures 

AGENCY: Defense Nuclear Facilities 

Safety Board. 

ACTION: Direct final rule; confirmation of 

effective date. 

SUMMARY: The Defense Nuclear 

Facilities Safety Board (DNFSB) is 

confirming the effective date of October 

10, 2023, for the direct final rule that 

was published in the Federal Register 

on July 11, 2023. 

DATES: The effective date of October 10, 

2023, for the direct final rule published 

on July 11, 2023, (88 FR 44031), is 

confirmed. 

ADDRESSES: DNFSB’s General Counsel 

web page: Go to https://www.dnfsb.gov/ 

office-general-counsel and click 

‘‘Federal Register Notices’’ to access 

publicly available information related to 

this rulemaking. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Hargrave, Associate General 

Counsel, Defense Nuclear Facilities 

Safety Board, 625 Indiana Avenue NW, 

Suite 700, Washington, DC 20004–2901, 

(202) 694–7000. 

SUPPLEMENTARY INFORMATION: On August 

30, 2021 (88 FR 44031), the DNFSB 

published a direct final rule to 

implement the Debt Collection Act 

(DCA), as amended, 31 U.S.C. 3701, et 

seq. The DCA governs the federal 

government’s debt collection activities. 

In accordance with this law, the 

Treasury Department and the 

Department of Justice jointly 

promulgated Federal Claims Collection 

Standards (FCCS), 31 CFR parts 900 

through 904. Agencies may adopt the 

FCCS without change or may prescribe 

agency regulations for collecting debts 

by administrative offset that are 

consistent with the FCCS. 31 U.S.C. 

3716. These regulations are required 

before an agency may collect a debt by 

administrative offset. 

In the direct final rule, the DNFSB 

stated that, if no significant adverse 

comments were received, the direct 

final rule would become effective on 

October 11, 2023. The DNFSB received 

one comment. The DNFSB evaluated the 

comment against the criteria described 

in the direct final rule and determined 

that the comment was not significant 

and adverse. Specifically, the 

commentator stated that the rule would 

be ‘‘great’’ due to ‘‘the added measure of 

structure and accountability that will 

result from this rule.’’ The comment was 

positive and supportive. The direct final 

rule will become effective as scheduled. 

Dated: September 7, 2023. 

Joyce Connery, 

Chair. 

[FR Doc. 2023–19718 Filed 9–18–23; 8:45 am] 

BILLING CODE 3670–01–P 

DEFENSE NUCLEAR FACILITIES 

SAFETY BOARD 

10 CFR Part 1710 

[Docket No. DNFSB–2023–02] 

RIN 3155–AA02 

Federal Employee Salary Offset 

Procedures for the Collection of a Debt 

Owed to the Federal Government 

AGENCY: Defense Nuclear Facilities 

Safety Board. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Defense Nuclear 

Facilities Safety Board (Board) is issuing 

interim regulations to govern the 

collection of debts owed to the Board 

and to the United States by federal 

employees. 

DATES: This interim final rule is 

effective October 19, 2023. Comments 

must be submitted on or before October 

19, 2023. 

ADDRESSES: You may submit comments 

at any time prior to the comment 

deadline by the following methods: 

Email: Send an email to comment@

dnfsb.gov. Please include ‘‘Federal 

Employee Offset Procedures’’ in the 

subject line of your email. 

Mail: Send hard copy comments to 

the Defense Nuclear Facilities Safety 

Board, Attn: Office of the General 

Counsel, 625 Indiana Avenue NW, Suite 

700, Washington, DC 20004–2901. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Hargrave, Associate General 

Counsel, Defense Nuclear Facilities 

Safety Board, 625 Indiana Avenue NW, 

Suite 700, Washington, DC 20004–2901, 

(202) 694–7000. 

SUPPLEMENTARY INFORMATION: 

I. Background 

These regulations implement the debt 

collection procedures provided under 

section 5 of the Debt Collection Act 

(DCA), as amended, codified at 5 U.S.C. 

5514. The DCA authorizes the federal 

government to collect debts by offset 

from the salaries of federal employees 

without the employee’s consent, 

provided that the employee is properly 

notified and given the opportunity to 

exercise certain administrative rights. 

The DCA, codified at 5 U.S.C. 5514, 

made changes in the way executive 

agencies collect debts owed to the 

federal government. The purpose of the 

DCA is to improve the ability of the 

government to collect money owed to it. 

The DCA requires each agency to 

establish a salary offset program for the 

collection of debts owed by federal 

employees to the federal government. 

Before an agency may collect a debt by 

salary offset, an employee-debtor must 

be provided with notice of the debt and 

the opportunity to (1) inspect and copy 

government records relating to the debt, 

(2) enter into a written repayment 

agreement, and (3) request an impartial 

hearing on the agency’s determination 

of the existence or the amount of the 

debt. The employee must notify the 

agency of his or her intent to exercise 

these rights within the time prescribed 

in the agency’s regulations. 


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64354 Federal Register / Vol. 88, No. 180 / Tuesday, September 19, 2023 / Rules and Regulations 

Office of Personnel Management 

(OPM) regulations govern the salary 

offset program and establish certain 

minimum standards and procedures 

that must be incorporated into each 

agency’s salary offset regulations. OPM’s 

regulations require each agency to 

submit proposed regulations to OPM for 

review and approval prior to becoming 

final rules. The Board sent a copy of its 

interim rule to OPM in compliance with 

5 CFR 550.1105. OPM approved the 

Board’s interim rule on salary offset on 

July 27, 2023. 

The Board is establishing a new part 

1710 in 10 CFR, chapter XVII, that 

would contain the provisions necessary 

to meet the requirements of the DCA. 

The new part 1710 provides procedures 

for the Board to collect debts owed to 

the federal government by 

administrative offset from a federal 

employee’s salary without his or her 

consent. This rule applies to all federal 

employees who owe debts to the Board 

and to current employees of the Board 

who owe debts to other federal agencies. 

The Board has determined that this 

document is interpretative because it 

merely implements a definitive 

statutory scheme and the requirements 

contained in regulations promulgated by 

OPM, codified in 5 CFR part 550, 

subpart K. Accordingly, no notice of 

proposed rulemaking is required 

pursuant to 5 U.S.C. 553(b)(A). In 

addition, because this rule relates to 

agency management and personnel, no 

notice of proposed rulemaking is 

required pursuant to 5 U.S.C. 553(a)(2). 

The Board, however, will consider any 

public comments before issuing a final 

rule. 

II. Regulatory Analysis 

Regulatory Flexibility Act 

Under the Regulatory Flexibility Act, 

5 U.S.C. 601–612, agencies must 

consider the impact of their rulemakings 

on ‘‘small entities’’ (small businesses, 

small organizations, and local 

governments) when publishing 

regulations subject to the notice and 

comment requirements of the 

Administrative Procedure Act. As noted 

in section I. Background above, the 

Board has determined that notice and 

the opportunity to comment are 

unnecessary because this interim rule is 

interpretative and relates to agency 

management and practice. Therefore, no 

analysis is required by the Regulatory 

Flexibility Act. 

Unfunded Mandates Reform Act of 1995 

This interim rule will not result in the 

expenditure by state, local, and tribal 

governments, in aggregate, or by the 

private sector, of $100,000,000 or more 

in any one year, and it will not 

significantly or uniquely affect small 

governments. Therefore, no actions are 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995, 2 U.S.C. 658 and 1501–03, 

1531–34. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This interim rule is not a major rule 

as defined by section 251 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, as amended, 5 

U.S.C. 804. This rule will not result in 

an annual effect on the economy of 

$100,000,000 or more; a major increase 

in costs or prices; or significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

companies to compete with foreignbased companies in domestic and 

export markets. 

Paperwork Reduction Act 

This interim rule contains no new 

reporting or recordkeeping requirements 

under the Paperwork Reduction Act 

(PRA) of 1995, 44 U.S.C. 3501 et seq. 

The adoption of the FCCS regulations 

does not require or request information 

from members of the public. Therefore, 

this rulemaking is not covered by the 

restrictions of the PRA. 

Executive Order 12988 and Executive 

Order 13132—Federalism 

According to Executive Orders 12988 

and 13132, agencies must state in clear 

language the preemptive effect, if any, of 

new regulations. The creation of this 

interim rule affects only how the Board 

collects debts owed by federal 

employees to the government by salary 

offset. It does not have any effect on 

preemption of state, tribal, or local 

government laws or otherwise have 

federalism implications. 

Congressional Review Act 

The Congressional Review Act, 5 

U.S.C. 801 et seq., provides that before 

a rule may take effect, the agency 

promulgating the rule must submit a 

rule report, which includes a copy of 

the rule, to each house of the Congress 

and to the Comptroller General of the 

United States. If the rule meets the 

definition of a major rule, the 

Comptroller General must provide a 

report to Congress and the rule may not 

take effect until 60 days after it has been 

published in the Federal Register. The 

Office of Information and Regulatory 

Affairs has designated this rule as not a 

major rule, as defined by 5 U.S.C. 

804(2). The Board is submitting the rule 

report to Congress and the Comptroller 

General of the United States. 

Finding of No Significant 

Environmental Impact 

Implementing these regulations will 

not result in significant impacts 

affecting the quality of the human 

environment, unavoidable adverse 

environmental effects, rejection of 

reasonable alternatives to the proposed 

action, or irreversible or irretrievable 

commitments of environmental 

resources. The agency has not consulted 

with any other agencies in making this 

determination. 

Executive Order12866—Regulatory 

Planning and Review 

Executive Order 12866 requires 

federal agencies submit significant 

regulatory actions to the Office of 

Management of Budget. This interim 

rule is not significant and will not have 

a significant impact on small entities. 

The interim rule implements statutory 

and regulatory requirements to collect 

employee debts as allowed by statute. 

III. Rulemaking Procedure 

The Board is publishing this interim 

rule without a prior proposal because it 

is interpretative as it merely implements 

a definitive statutory scheme and the 

requirements contained in regulations 

promulgated by OPM. The Board, 

however, will consider any comments 

before issuing the final rule. 

List of Subjects in 10 CFR Part 1710 

Debts, Claims, Salary offset. 

■ For the reasons described in the 

preamble, the Board amends chapter 

XVII of title 10, Code of Federal 

Regulations, by adding part 1710 to read 

as follows: 

PART 1710—FEDERAL EMPLOYEE 

SALARY OFFSET PROCEDURES FOR 

THE COLLECTION OF A DEBT OWED 

TO THE FEDERAL GOVERNMENT 

Subpart A—General Provisions 

Sec. 

1710.101 Scope. 

1710.103 Definitions. 

1710.105 Application. 

Subpart B—Notice, Hearing, and Salary 

Offset Process 

1710.107 Notice requirements before offset. 

1710.109 Hearing. 

1710.111 Procedures for salary offset. 

1710.113 Coordinating salary offset with 

other agencies. 

1710.115 Notice of salary offset from 

another agency. 

1710.117 Refunds. 

1710.119 Non-waiver of rights. 

1710.121 Interest, penalties, and 

administrative charges. 


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Authority: 5 U.S.C. 5514; 5 CFR part 550 

subpart K. 

Subpart A—General Provisions 

§ 1710.101 Scope. 

(a) This part provides procedures for 

the collection by administrative offset of 

a federal employee’s salary without his/ 

her consent to satisfy certain debts owed 

to the federal government. This part 

applies to all federal employees who 

owe debts to the Defense Nuclear 

Facilities Safety Board (Board) and to 

current employees of the Board who 

owe debts to other federal agencies. This 

part does not apply when the employee 

consents to recovery from his/her 

current pay account. 

(b) These procedures do not apply to 

debts or claims arising under: 

(1) The Internal Revenue Code of 

1954, as amended, 26 U.S.C. 1 et seq.; 

(2) The tariff laws of the United 

States; or 

(3) Any case where a collection of a 

debt is explicitly provided for or 

prohibited by another statute. 

(c) These procedures do not preclude 

the compromise, suspension, or 

termination of collection action where 

appropriate under the standards 

implementing the revised Federal 

Claims Collection Standards (FCCS), 31 

U.S.C. 3711 et seq., 31 CFR chapter IX, 

parts 900 through 904. 

(d) This part does not preclude an 

employee from requesting waiver of an 

overpayment under 5 U.S.C. 5584 or in 

any way questioning the amount or 

validity of the debt by submitting a 

subsequent claim to the Board. This part 

does not preclude an employee from 

requesting a waiver pursuant to other 

statutory provisions applicable to the 

particular debt being collected. 

(e) The Board is not limited to 

collection remedies contained in the 

revised FCCS. The FCCS is not intended 

to impair common law remedies. 

§ 1710.103 Definitions. 

Administrative charges are those 

amounts assessed by the Board to cover 

the costs of processing and handling 

delinquent debts due the government. 

Administrative offset means 

withholding money payable by the 

United States Government to, or held by 

the government for, a person to satisfy 

a debt the person owes the United States 

Government. 

Agency means any agency of the 

executive, legislative, and judicial 

branches of the federal government, 

including government corporations. 

Centralized salary offset computer 

matching describes the computerized 

process used to match delinquent debt 

records with federal salary payment 

records when the purpose of the match 

is to identify federal employees who 

owe debts to the federal government. 

Creditor agency means the 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. 

Debt and claim are used 

synonymously to refer to an amount of 

money, funds, or property that has been 

determined by an agency official to be 

owed to the United States from any 

person, organization, or entity, except 

another federal agency. For the purposes 

of administrative offset under 31 U.S.C. 

3716, the terms ‘‘debt’’ and ‘‘claim’’ 

include an amount of money, funds, or 

property owed by a person to a state 

(including past-due support being 

enforced by a state), the District of 

Columbia, American Samoa, Guam, the 

United States Virgin Islands, the 

Commonwealth of the Northern Mariana 

Islands, or the Commonwealth of Puerto 

Rico. 

Debt collection center means the 

Department of the Treasury or other 

government agency or division 

designated by the Secretary of the 

Treasury, with authority to collect debts 

on behalf of creditor agencies. 

Delinquent debt record refers to the 

information about a debt that an agency 

submits to Treasury when the agency 

refers the debt for collection by offset in 

accordance with the provision of 31 

U.S.C. 3716. 

Disbursing official means an official 

who has authority to disburse federal 

salary payments pursuant to 31 U.S.C. 

3321 or another law. 

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 remaining 

after the deduction of: 

(1) Any amount required by law to be 

withheld; 

(2) Amounts properly withheld for 

federal, state, or local income tax 

purposes; 

(3) Amounts deducted as health 

insurance premiums; 

(4) Amounts deducted as normal 

retirement contributions, not including 

amounts deducted for supplementary 

coverage; and 

(5) Amounts deducted as normal life 

insurance premiums, not including 

amounts deducted for supplementary 

coverage. 

Employee is any individual employed 

by any agency of the executive, 

legislative, and judicial branches of the 

federal government, including 

government corporations. 

FCCS means the Federal Claims 

Collection Standards jointly published 

by the Department of the Treasury and 

the Department of Justice at 31 CFR 

parts 900 through 904. 

Hearing official means an individual 

responsible for conducting any hearing 

with respect to the existence or amount 

of a debt claimed or the repayment 

schedule if not established by written 

agreement between the employee and 

the Board, and who renders a decision 

on the basis of this hearing. 

Paying agency means the agency that 

employs the individual who owes the 

debt and authorizes the payment of his/ 

her current pay. 

Salary offset means an administrative 

offset to collect a debt under 5 U.S.C. 

5514 by deduction(s) at one or more 

officially established pay intervals from 

the current pay account of an employee 

without his or her consent. 

Treasury means the Department of the 

Treasury. 

Waiver means the cancellation, 

remission, forgiveness, or non-recovery 

of a debt allegedly owed by an employee 

to an agency as permitted or required by 

5 U.S.C. 5584, 5 U.S.C. 8346(b), or any 

other law. 

§ 1710.105 Application. 

The regulations in this part are to be 

followed when: 

(a) The Board is owed a debt by an 

individual currently employed by 

another federal agency; 

(b) The Board is owed a debt by an 

individual who is a current employee of 

the Board; or 

(c) The Board employs an individual 

who owes a debt to another federal 

agency. 

Subpart B—Notice, Hearing, and 

Salary Offset Process 

§ 1710.107 Notice requirements. 

(a) Deductions under the authority of 

5 U.S.C. 5514 shall not be made unless 

the creditor agency provides the 

employee with written notice that he/ 

she owes a debt to the Federal 

government a minimum of 30 calendar 

days before salary offset is initiated. 

When the Board is the creditor agency, 

this notice of intent to offset an 

employee’s salary shall be handdelivered at work, or sent by registered 

mail, return receipt requested, to the 

employee’s most current address that is 

available to the Board. The written 

notice will contain: 

(1) A statement that the debt is owed 

and an explanation of its origin, nature, 

and amount; 

(2) The creditor agency’s intention to 

collect the debt by deducting from the 


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employee’s current disposable pay 

account until the debt and all 

accumulated interest are paid in full; 

(3) The amount and frequency of the 

intended deduction (stated as a fixed 

dollar amount or as a percentage of pay, 

not to exceed 15 percent of disposable 

pay) and the intention to continue the 

deduction until the debt is paid in full 

or otherwise resolved; 

(4) An explanation of interest, 

penalties, and administrative charges, 

including a statement that these charges 

will be assessed unless excused in 

accordance with the Federal Claims 

Collection Standards at 31 CFR parts 

900 through 904; 

(5) The employee’s right to inspect 

and copy government records pertaining 

to the debt or, if the employee or his or 

her representative cannot personally 

inspect the records, to request and 

receive a copy of these records; 

(6) If not previously provided, the 

opportunity (under terms agreeable to 

the Board) to establish a schedule for 

the voluntary repayment of the debt or 

to enter into a written agreement to 

establish a schedule for repayment of 

the debt in lieu of offset (31 CFR 901.2) 

(the agreement must be in writing, 

signed by the employee and the Board, 

and documented in the Board’s files); 

(7) The employee’s right to a hearing 

conducted by an official arranged for by 

the Board (an administrative law judge, 

or alternatively, a hearing official not 

under the control of the head of the 

agency) if a petition is filed as 

prescribed in § 1710.109; 

(8) The methods and time period for 

petitioning for hearings; 

(9) A statement that the timely filing 

of a petition for a hearing will stay the 

commencement of collection 

proceedings; 

(10) A statement that a final decision 

on the hearing will be issued not later 

than 60 days after the filing of the 

petition requesting the hearing unless 

the employee requests and the hearing 

official grants a delay in the 

proceedings; 

(11) A statement that any knowingly 

false or frivolous statements, 

representations, or evidence may subject 

the employee to: 

(i) Disciplinary procedures 

appropriate under 5 U.S.C. chapter 75, 

5 CFR part 752, or any other applicable 

statutes or regulations; 

(ii) Penalties under the False Claims 

Act, sections 3729–3731 of title 31, 

United States Code, or any other 

applicable statutory authority; or 

(iii) Criminal penalties under sections 

286, 287, 1001, and 1002 of title 18, 

United States Code or any other 

applicable statutory authority. 

(12) A statement of other rights and 

remedies available to the employee 

under statutes or regulations governing 

the program for which the collection is 

being made; and 

(13) Unless there are contractual or 

statutory provisions to the contrary, a 

statement that amounts paid on or 

deducted for the debt which are later 

waived or found not owed to the United 

States will be promptly refunded to the 

employee. 

(b) Entitlement to hearing: 

(1) An employee who has received a 

notice under paragraph (a) that his or 

her debt will be collected by means of 

salary offset may request a hearing 

concerning the existence or amount of 

the debt. 

(2) If a hearing is given, the employee 

is entitled to receive a written decision 

from the official holding the hearing on 

the following issues: 

(i) the determination of the creditor 

agency concerning the existence or 

amount of the debt; and 

(ii) The repayment schedule, if it was 

not established by written agreement 

between the employee and the creditor 

agency.’’ 

(c) Exceptions to entitlement to 

notice, hearing, written responses, and 

final decisions: 

(1) Any adjustment to pay arising out 

of any employee’s election of coverage 

or a change in coverage under a federal 

benefits program requiring periodic 

deductions from pay, if the amount to 

be recovered was accumulated over four 

pay periods or less; 

(2) A routine intra-agency adjustment 

of pay that is made to correct an 

overpayment of pay attributable to 

clerical or administrative errors or 

delays in processing pay documents, if 

the overpayment occurred within the 

four pay periods preceding the 

adjustment, and, at the time of such 

adjustment, or as soon thereafter as 

practical, the individual is provided 

written notice of the nature and the 

amount of the adjustment and point of 

contact for contesting such adjustment; 

or 

(3) Any adjustment to collect a debt 

amounting to $50 or less, if, at the time 

of such adjustment, or as soon thereafter 

as practical, the individual is provided 

written notice of the nature and the 

amount of the adjustment and a point of 

contact for contesting such adjustment. 

§ 1710.109 Hearing. 

(a) Request for hearing. An employee 

shall file a petition for a hearing in 

accordance with the instructions 

outlined in the creditor agency’s notice 

of salary offset. 

(1) If the Board is the creditor agency, 

a hearing may be requested by filing a 

written petition stating why the 

employee disputes the existence or 

amount of the debt or the repayment 

schedule if it was not established by 

written agreement between the 

employee and the Board. The employee 

shall sign the petition and fully identify 

and explain with reasonable specificity 

all the facts, evidence, and witnesses, if 

any, which the employee believes 

support his or her position. The petition 

for a hearing must be received no later 

than fifteen (15) calendar days after 

receipt of the notice of offset unless the 

employee can show that the delay in 

meeting the deadline date was because 

of circumstances beyond his or her 

control or because of failure to receive 

notice of the time limit (unless he or she 

was otherwise aware of it). 

(2) [Reserved] 

(b) Failure to submit timely request for 

hearing. If the employee fails to submit 

a request for hearing within the time 

period described in paragraph (a)(1) of 

this section, the employee will have 

waived the right to a hearing, and salary 

offset may be initiated. The Board, 

however, shall 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. 

(c) Hearing official. The Board must 

obtain the services of a hearing official 

who is not under the supervision or 

control of the Board. The Board may 

contact the Chief Financial Officer to 

request a hearing official. 

(d) Notice of hearing. After the 

employee requests a hearing, the 

designated hearing official shall inform 

the employee of the form of the hearing 

to be provided. For oral hearings, the 

notice shall set forth the date, time, and 

location of the hearing. For paper 

hearings, the notice shall notify the 

employee of the date by which he or she 

should submit written arguments to the 

designated hearing official. The hearing 

official shall give the employee 

reasonable time to submit 

documentation in support of the 

employee’s position. The hearing 

official shall schedule a new hearing 

date if requested by both parties. The 

hearing official shall give both parties 

reasonable notice of the time and place 

of a rescheduled hearing. 

(e) Oral hearing. The hearing official 

will conduct an oral hearing if he or she 

determines that 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 


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form of an evidentiary hearing, but may 

be conducted in a manner determined 

by the hearing official, including but not 

limited to: 

(1) Informal conferences with the 

hearing official, in which the employee 

and agency representative will be given 

full opportunity to present evidence, 

witnesses, and argument; 

(2) Informal meetings with an 

interview of the employee by the 

hearing official; or 

(3) Formal written submissions, with 

an opportunity for oral presentation. 

(f) Paper hearing. If the hearing 

official determines that an oral hearing 

is not necessary, he or she will make 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. 

(g) 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 will have waived the right to 

a hearing, and salary offset may be 

initiated. Further, the employee will 

have been deemed to admit the 

existence and amount of the debt as 

described in the notice of intent to 

offset. If the Board’s representative fails 

to appear at an oral hearing, the hearing 

official shall proceed with the hearing 

as scheduled and will make his or her 

determination based upon the oral 

testimony presented and the 

documentary evidence submitted by 

both parties. 

(h) Burden of proof. The Board will 

have 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. 

(i) Record. The hearing official shall 

maintain a summary record of any 

hearing provided by this part. Witnesses 

will testify under oath or affirmation in 

oral hearings. 

(j) Date of decision. The hearing 

official shall issue 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 the Board. 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, 

the Board shall waive 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. The 

written decision must include: 

(1) A statement of the facts presented 

to demonstrate the nature and origin of 

the alleged debt; 

(2) The hearing official’s analysis, 

findings, and conclusions; 

(3) The amount and validity of the 

debt; and 

(4) The repayment schedule, where 

appropriate. 

§ 1710.111 Procedures for salary offset. 

(a) Determination of disposable pay. 

The Board will determine an employee’s 

disposable pay (as defined in 

§ 1710.103) and will implement salary 

offset as described in paragraph (c) of 

this section, or when requested by 

another agency, as described in 

§ 1710.113(c). If the debtor is not 

employed by the Board, the Board will 

request the agency employing the debtor 

to determine the amount of the 

employee’s disposable pay and 

implement salary offset upon request. 

(b) When salary offset begins. 

Deductions will begin within three 

official pay periods following receipt of 

the creditor agency’s request for offset. 

(c) 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: 

(1) If the amount of the debt is equal 

to or less than 15 percent of the 

disposable pay, such debt generally will 

be collected in one lump sum payment; 

(2) Installment deductions will be 

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. An installment deduction may 

be less than 15 percent of disposable 

pay if the creditor agency has 

determined that smaller deductions are 

appropriate based on the employee’s 

ability to pay. 

(d) Final salary payment. After the 

employee has separated either 

voluntarily or involuntarily from the 

payment agency, the p]ayment 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 the debt. 

(e) Multiple debts. In instances where 

two or more creditor agencies are 

seeking salary offset, or where two or 

more debts are owed to a single creditor 

agency, the Board’s finance office may, 

at its discretion, determine whether one 

or more debts should be offset 

simultaneously within the 15 percent 

limitation. 

(f) Precedence of debts owed to the 

Board. For Board employees, debts 

owed to the Board generally take 

precedence over debts owed to other 

agencies. In the event that a debt to the 

Board is certified while an employee is 

subject to a salary offset to repay 

another agency, the Board’s finance 

office may decide whether to have that 

debt repaid in full before collecting its 

claim or whether changes should be 

made in the salary deduction being sent 

to the other agency. If debts owed to the 

Board can be collected in one pay 

period, the finance office may suspend 

the salary offset to the other agency for 

that pay period in order to liquidate the 

Board debt. 

(g) Order of debt collection. When an 

employee owes two or more debts, the 

best interests of the government shall be 

the primary consideration in 

determining the order of debt collection. 

The Board’s finance office, in making 

this determination, will be guided 

primarily by the statute of limitations 

that affects the collection of the debt(s). 

§ 1710.113 Coordinating salary offset with 

other agencies. 

(a) Responsibility of the Board as the 

creditor agency. The Chairperson or his 

or her designee shall coordinate debt 

collections with other agencies and 

shall, as appropriate: 

(1) Arrange for a hearing or special 

review upon proper petitioning by a 

federal employee; and 

(2) Prescribe, upon consultation with 

the General Counsel, such additional 

practices and procedures as may be 

necessary to carry out the intent of this 

regulation. 

(3) The designated salary offset 

coordinator will be responsible for: 

(i) Ensuring that each notice of intent 

to offset is consistent with the 

requirements of §§ 1710.107 and 

1710.111 of this part; 

(ii) Ensuring that each certification of 

debt that is sent to a paying agency is 

consistent with the requirements of 

paragraph (b) of this section; 

(iii) Obtaining hearing officials; and 

(iv) Ensuring that hearings are 

properly scheduled. 

(b) Requesting recovery from current 

paying agency. Upon completion of the 


ddrumheller on DSK120RN23PROD with RULES1
64358 Federal Register / Vol. 88, No. 180 / Tuesday, September 19, 2023 / Rules and Regulations 

procedures established in these 

regulations and pursuant to 5 U.S.C. 

5514, the Board must: 

(1) Certify, in writing, to the paying 

agency that the employee owes the debt, 

the amount and basis of the debt, the 

date on which payment(s) is due, the 

date the Government’s right to collect 

the debt first accrued, and that the 

Board’s regulations implementing 5 

U.S.C. 5514 have been approved by the 

Office of Personnel Management; 

(2) Advise the paying agency of the 

amount or percentage of disposable pay 

to be collected in each installment and 

the number and commencing date of the 

installments (if a date other than the 

next officially established pay period is 

required); 

(3) Advise the paying agency of the 

action(s) taken under 5 U.S.C. 5514(b) 

and give the date(s) action(s) were taken 

(unless the employee has consented to 

the salary offset in writing or signed a 

statement acknowledging receipt of the 

required procedures and the written 

consent or statement is forwarded to the 

paying agency); 

(4) Submit a debt claim certification 

containing the information specified in 

paragraphs (b)(1), (2), and (3) of this 

section and an installment agreement 

(or other instruction on the payment 

schedule), if applicable, to the paying 

agency; and 

(5) Submit the debt claim to the 

paying agency for collection if the 

employee is in the process of separating, 

and has not received a final salary 

check, or other final payment(s) from 

the paying agency. The Board must 

submit a properly certified claim to the 

agency responsible for making such 

payments before the collection can be 

made. 

(c) Separated employee. If the 

employee is already separated and all 

payments due from his or her former 

paying agency have been paid, the 

Board may request, unless otherwise 

prohibited, that money due and payable 

to the employee from the Civil Service 

Retirement and Disability Fund (5 CFR 

831.1801 et seq. or 5 CFR 845.401 et 

seq.), or other similar funds, be 

administratively offset to collect the 

debt (31 U.S.C. 3716 and the FCCS). 

(d) Employee transfer. When an 

employee transfers from one paying 

agency to another paying agency, the 

Board is not required to repeat the due 

process procedures described in 5 

U.S.C. 5514 and this subpart to resume 

the collection. The Board will submit a 

properly certified claim to the new 

paying agency and will subsequently 

review the debt to verify that the 

collection is continued by the new 

paying agency. 

§ 1710.115 Notice of salary offset from 

another agency. 

(a) Complete claim. When the Board 

receives a certified claim from a creditor 

agency, deductions should be scheduled 

to begin at the next officially established 

pay interval. The Board’s finance office 

will provide the employee with a notice 

that contains: 

(1) A statement that the Board has 

received a certified debt claim from the 

creditor agency; 

(2) The amount of the debt claim; 

(3) The date salary offset deductions 

will begin; 

(4) The amount of such deductions; 

and 

(5) A copy of the notice received from 

the creditor agency. 

(b) Notice of Claim. The Board’s 

finance office will provide a copy of the 

notice to the creditor agency and advise 

the creditor agency of the dollar amount 

to be offset and the pay period when the 

offset will begin. 

(c) Incomplete claim. When the Board 

receives an incomplete certification of 

debt from a creditor agency, it must 

return the debt claim with notice that 

procedures under 5 U.S.C. 5514 and 10 

CFR 1710.113 must be followed and a 

properly certified debt claim received 

before action will be taken to collect 

from the employee’s current pay 

account. 

(d) Review. The Board will not review 

the merits of the creditor agency’s 

determination with respect to the 

amount or validity of the debt certified 

by the creditor agency. 

(e) Employees who transfer from one 

paying agency to another. If, after the 

creditor agency has submitted the debt 

claim to the Board, the employee 

transfers from the Board to a different 

paying agency before the debt is 

collected in full, the Board will certify 

the total amount collected on the debt. 

One copy of the certification will be 

furnished to the employee and one copy 

to the creditor agency, along with notice 

of the employee’s transfer. 

§ 1710.117 Refunds. 

(a) The Board will refund promptly 

any amounts deducted to satisfy debts 

owed to the United States when the debt 

is waived, found not owed to the United 

States, or when directed by an 

administrative or judicial order. 

(b) Unless required or permitted by 

law or contract, refunds under this 

section may not bear interest. 

§ 1710.119 Non-waiver of rights. 

An employee’s involuntary payment 

of all or any part of a debt collected 

under these regulations will not be 

construed as a waiver of any rights that 

the employee may have under 5 U.S.C. 

5514 or any other provision of contract 

or law, unless there are statutes or 

contracts to the contrary. 

§ 1710.121 Interest, penalties, and 

administrative charges. 

Charges may be assessed for interest, 

penalties, and administrative charges in 

accordance with the FCCS, 31 CFR 

901.9. 

Dated: September 7, 2023. 

Joyce Connery, 

Chair. 

[FR Doc. 2023–19716 Filed 9–18–23; 8:45 am] 

BILLING CODE 3670–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 24 

[Docket ID OCC–2023–0005] 

RIN 1557–AF19 

National Bank Community 

Development Investments 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury. 

ACTION: Final rule; amendment of a 

form’s expiration date. 

SUMMARY: The OCC is making a 

nonsubstantive amendment to form 

‘‘CD–1—National Bank Community 

Development (Part 24) Investments’’ to 

reflect the current expiration date 

assigned by the Office of Management 

and Budget under the Paperwork 

Reduction Act. 

DATES: The final rule is effective on 

September 19, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Chandni Ohri, Director for Community 

Development, (202) 649–6420, 400 7th 

Street SW, Washington, DC 20219. If 

you are deaf, hard of hearing, or have a 

speech disability, please dial 7–1–1 to 

access telecommunications relay 

services. 

SUPPLEMENTARY INFORMATION: The OCC 

is amending 12 CFR part 24, Appendix 

1 to update the expiration date included 

on ‘‘CD–1—National Bank Community 

Development (Part 24) Investments’’ 

(CD–1 Form) to reflect the current 

August 31, 2025, expiration date 

assigned by the Office of Management 

and Budget (‘‘OMB’’) under the 

Paperwork Reduction Act. 


ddrumheller on DSK120RN23PROD with RULES1