8580 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 

under the plan), how can a plan sponsor 

identify which benefits are based on 

disability? 

3. For participants who have not yet 

retired: 

a. What practical issues should be 

considered as a result of the fact that 

their benefits are not yet fixed (for 

example, their benefits could vary as a 

result of future accruals, when they 

decide to retire and which optional form 

of benefit they select)? 

b. What practical issues should be 

considered in the case of a suspension 

of benefits that is combined with a 

reduction of future accruals or a 

reduction of section 432(e)(8) adjustable 

benefits (such as subsidized early 

retirement factors) under a 

rehabilitation plan? 

4. For participants who have retired, 

what practical issues should be 

considered regarding the section 

432(e)(9)(D)(ii) age limitations on 

suspensions, the application of the 

section 432(e)(9)(E) rules on benefit 

improvements, or other provisions? 

5. With respect to the section 

432(e)(9)(F) requirement to provide 

notice of the proposed suspension to 

plan participants and beneficiaries 

concurrently with the submission of the 

application for approval: 

a. What suggestions do commenters 

have for the steps that are needed to 

satisfy the requirement to provide notice 

to the plan participants and 

beneficiaries ‘‘who may be contacted by 

reasonable efforts,’’ including the 

application of that requirement to 

terminated vested participants? 

b. What practical issues do plan 

sponsors anticipate in providing 

individual estimates of the effect of the 

proposed suspensions on each 

participant and beneficiary? 

c. If the suspension is combined with 

other reductions as described in request 

number 3.b, how will the notice of 

proposed suspension interact with the 

notices required for those other 

reductions? 

d. What issues arise in coordinating 

benefit protections that are measured as 

of the date of suspension (such as the 

restriction on suspensions that apply to 

a participant or beneficiary who has 

attained age 75 as of the effective date 

of the suspension) with the timing of the 

application, notice, and voting process? 

6. With respect to item 5, please 

provide any examples of notices of 

proposed suspension that commenters 

would like to be considered in the 

development of a model notice. 

7. What issues arise in connection 

with the section 432(e)(9)(G)(ii) 

requirement to solicit comments on an 

application for suspension of benefits? 

a. Should the comments received 

from contributing employers, employee 

organizations, participants and 

beneficiaries, and other interested 

parties be made available to the public? 

b. How long should the comment 

period last? 

8. With respect to the section 

432(e)(9)(H) participant vote, what 

issues arise in connection with: 

a. Preparing the ballot, including 

developing a statement in opposition to 

the suspension compiled from 

comments and obtaining approval of the 

ballot within the statutory time 

constraints for conducting a vote; and 

b. Conducting the vote and obtaining 

certification of the results of the vote? 

9. What other practical issues do 

commenters anticipate will arise in the 

course of implementing these 

provisions? 

Timing of Applications and Notices 

Section 201(b)(7) of MPRA provides 

that, not later than 180 days after the 

date of the enactment of this Act, the 

Treasury Secretary, in consultation with 

the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, 

shall publish appropriate guidance to 

implement section 432(e)(9). In 

addition, section 432(e)(9)(F)(i) provides 

that no suspension of benefits may be 

made unless notice of the proposed 

suspension has been given by the plan 

sponsor concurrently with an 

application for approval of the 

suspension, and section 

432(e)(9)(F)(iii)(I) provides that notice 

must be ‘‘provided in a form and 

manner prescribed in guidance.’’ 

Section 432(e)(9)(G)(i) provides that the 

Treasury Secretary, in consultation with 

the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, 

shall approve an application for 

suspension upon finding that the plan 

has satisfied the criteria of section 

432(e)(9)(C), (D), (E), and (F). Because 

appropriate guidance is required to 

implement section 432(e)(9), including 

the procedures for the plan sponsor to 

submit an application for approval of a 

suspension of benefits and provide 

concurrent notice, a plan sponsor 

should not submit an application for a 

suspension of benefits until a date 

specified in that future guidance. 

Dated: February 11, 2015. 

David G. Clunie, 

Executive Secretary, Department of the 

Treasury. 

[FR Doc. 2015–03290 Filed 2–13–15; 11:15 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF JUSTICE 

Office of the Attorney General 

28 CFR Part 11 

[JMD Docket No. 152; A.G. Order No. 3493– 

2015] 

RIN 1105–NYD 

Department of Justice Debt Collection 

Regulations 

AGENCY: Department of Justice. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This rule proposes to amend 

the regulations that govern debt 

collection at the Department of Justice 

(Department) to bring the regulations 

into conformity with government-wide 

standards, to update or delete obsolete 

references, and to make other clarifying 

or technical changes. 

DATES: Written comments must be 

postmarked and electronic comments 

must be submitted on or before April 20, 

2015. Comments received by mail will 

be considered timely if they are 

postmarked on or before that date. The 

electronic Federal Docket Management 

System (FDMS) will accept comments 

until Midnight Eastern Time at the end 

of that day. 

ADDRESSES: The Department encourages 

that all comments be submitted 

electronically through http:// 

www.regulations.gov using the 

electronic comment form provided on 

that site. An electronic copy of this 

document is also available at the 

http://www.regulations.gov Web site for 

easy reference. Paper comments that 

duplicate the electronic submission are 

not necessary as all comments 

submitted to http://www.regulations.gov 

will be posted for public review and are 

part of the official docket record. Should 

you wish to submit written comments 

via regular or express mail, however, 

they should be sent to: Dennis Dauphin, 

Director, Debt Collection Management 

Staff, Justice Management Division, U.S. 

Department of Justice, Washington, DC 

20530. 

FOR FURTHER INFORMATION CONTACT: 

Dennis Dauphin, Director, Debt 

Collection Management Staff, or Morton 

J. Posner, Assistant General Counsel, 

Justice Management Division, U.S. 

Department of Justice, Washington, DC 

20530, (202) 514–5343 or (202) 514– 

3452. 

SUPPLEMENTARY INFORMATION: This rule 

updates the Department’s debt 

collection regulations at 28 CFR part 11, 

subpart A—Retention of Private Counsel 

for Debt Collection, Subpart B— 

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

Administration of Debt Collection, and 

Subpart C—Treasury Offset Program for 

Collection of Debts, and proposes a new 

Subpart D—Administrative Wage 

Garnishment. 

Subpart A sets forth the Department’s 

procedures governing the retention of 

private counsel for debt collection 

authorized in 31 U.S.C. 3718(b). The 

Federal Debt Recovery Act initiated a 

pilot program authorizing the 

Department to contract with private 

counsel on a provisional basis in a 

limited number of judicial districts. 

Public Law 99–578 (1986). The Debt 

Collection Improvement Act of 1996 

(DCIA), Public Law 104–134, sec. 31001, 

made the pilot program permanent and 

authorized the Department to contract 

with private counsel in as many judicial 

districts as necessary. The Department 

proposes to amend this rule by 

removing references to the private 

counsel program as a ‘‘pilot’’; by 

replacing the term ‘‘Contracting 

Officer’s Technical Representative 

(COTR)’’ with ‘‘Contracting Officer’s 

Representative (COR)’’ to align with the 

definitions in Federal Acquisition 

Regulation. See 48 CFR 1.602–2, 2.101; 

by adding the term ‘‘qualified HUBZone 

small business concerns’’ as defined in 

section 3(p)(5) of the Small Business 

Act, 15 U.S.C. 632(p)(5), to conform to 

the DCIA; and by changing the obsolete 

references to a federal procurement 

statute and to the database used for 

notifying the public of federal 

procurement bidding opportunities. 

Another change corrects a typographical 

error. 

Subpart B prescribes the standards 

and procedures for collecting a debt 

through administrative offset. The tenyear statute of limitations for 

administrative offset was repealed, 

Public Law 110–264, sec. 14219 

(codified at 31 U.S.C. 3716(e)), the 

Department of the Treasury deleted the 

limitations period from its regulation, 

74 FR 68149 (Dec. 23, 2009), and the 

Department proposes to delete the 

corresponding time limit from its own 

regulation. 

Subpart C prescribes the standards 

and procedures for submitting past due, 

legally enforceable debts to the 

Department of the Treasury for 

collection by offset. These standards 

and procedures are authorized under 

the offset provisions of the Deficit 

Reduction Act of 1984, and the DCIA, 

codified in relevant part at 31 U.S.C. 

3716 and 3720A, and the Department of 

the Treasury’s implementing regulations 

at 31 CFR 285.2 and 285.5. The 

Department proposes to amend this 

subpart to conform to subsequent legal 

changes. The obsolete ten-year statute of 

limitations is being removed. Because 

the DCIA now mandates that agencies 

report consumer debt to credit bureaus, 

31 U.S.C. 3711(e), it is no longer 

necessary to address the subject in 

Subpart C. The Department of the 

Treasury incorporated the Internal 

Revenue Service’s former tax refund 

offset program into the Treasury Offset 

Program, so references to it are being 

updated. Other revisions provide 

clarity, make technical corrections, or 

correct a typographical error. 

Proposed Subpart D would implement 

the Department’s authority under the 

DCIA, 31 U.S.C. 3720D, to collect past 

due indebtedness through 

administrative wage garnishment. Wage 

garnishment is a process whereby an 

employer withholds amounts from an 

employee’s wages and pays those 

amounts to the employee’s creditor in 

satisfaction of a withholding order. The 

DCIA authorizes Federal agencies to 

issue administrative wage withholding 

orders to garnish up to 15 percent of the 

disposable pay of a debtor to satisfy 

delinquent nontax debt owed to the 

United States. The Department of the 

Treasury’s implementing rule at 31 CFR 

285.11 provides that ‘‘[a]gencies shall 

prescribe regulations for the conduct of 

administrative wage garnishment 

hearings consistent with this section or 

shall adopt this section without change 

by reference.’’ The Department proposes 

to add a Subpart D consistent with 31 

CFR 285.11. Subpart D would apply to 

wages to be garnished by non-Federal 

employers. 

Regulatory Flexibility Act 

The Attorney General, in accordance 

with the Regulatory Flexibility Act (5 

U.S.C. 605(b)), has reviewed this 

regulation and by approving it certifies 

that this regulation will not have a 

significant economic impact on a 

substantial number of small entities. 

The Department proposes to collect 

delinquent nontax debt owed it through 

an administrative wage garnishment 

(AWG) process. When an AWG order is 

issued, employers (including small 

businesses) that employ workers from 

whom the Department is collecting a 

delinquent debt will be required to 

certify the employee’s employment and 

earnings, garnish wages, and remit 

withheld wages to the Department. Such 

procedures are mandated by Department 

of the Treasury regulations issued to 

implement the Debt Collection 

Improvement Act. Employment and 

salary information is contained in an 

employer’s payroll records. Therefore, it 

will not take a significant amount of 

time or result in a significant cost for an 

employer to certify employment and 

earnings. Employers of delinquent 

debtors may be subject at any time to 

garnishment orders issued by a court to 

collect delinquent debts of their 

employees owed to governmental or 

private creditors. The addition of an 

AWG process will not significantly 

increase the burden to which employers 

are already subject to collect the 

delinquent debt of their employees. 

Executive Orders 12866 and 13563— 

Regulatory Review 

This regulation has been drafted and 

reviewed in accordance with Executive 

Order 12866, ‘‘Regulatory Planning and 

Review,’’ section 1(b), Principles of 

Regulation, and in accordance with 

Executive Order 13563, ‘‘Improving 

Regulation and Regulatory Review,’’ 

section 1(b), General Principles of 

Regulation. 

The Department of Justice has 

determined that this rule is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866, section 3(f), 

Regulatory Planning and Review, and 

accordingly this rule has not been 

reviewed by the Office of Management 

and Budget. 

Further, both Executive Orders 12866 

and 13563 direct agencies to assess all 

costs and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. The 

Department has assessed the costs and 

benefits of this regulation and believes 

that the regulatory approach selected 

maximizes net benefits. 

Executive Order 12988—Civil Justice 

Reform 

This regulation meets the applicable 

standards set forth in sections 3(a) and 

3(b)(2) of Executive Order 12988. 

Executive Order 13132—Federalism 

This regulation will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this rule does not 

have sufficient federalism implications 

to warrant the preparation of a 

Federalism Assessment. 

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8582 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 

Unfunded Mandates Reform Act of 

1995 

This rule will not result in the 

expenditure by State, local and tribal 

governments, in the aggregate, or by the 

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

in any one year, and it will not 

significantly or uniquely affect small 

governments. Therefore, no actions were 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This rule is not a major rule as 

defined by section 251 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, 5 U.S.C. 804. This 

rule will not result in an annual effect 

on the economy of $100,000,000 or 

more; a major increase in costs or prices; 

or significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. 

Paperwork Reduction Act 

This rule imposes no information 

collection or record keeping 

requirements. 

List of Subjects in 28 CFR Part 11 

Administrative practice and 

procedure, Claims, Debt collection, 

Government contracts, Government 

employees, Income taxes, Lawyers, 

Wages. 

Accordingly, by virtue of the 

authority vested in me as Attorney 

General, including 5 U.S.C. 301 and 28 

U.S.C. 509 and 510, part 11 of title 28 

of the Code of Federal Regulations is 

proposed to be amended as follows: 

PART 11—DEBT COLLECTION 

■ 1. The authority citation for part 11 is 

revised to read as follows: 

Authority: 5 U.S.C. 301, 5514; 28 U.S.C. 

509, 510; 31 U.S.C. 3711, 3716, 3718, 3720A, 

3720D. 

Subpart A—Retention of Private 

Counsel for Debt Collection 

§ 11.1 [Amended] 

■ 2. Amend § 11.1 as follows: 

■ a. Remove the word ‘‘pilot’’ from the 

first sentence; and 

■ b. Remove the word ‘‘Adminstration’’ 

and add in its place the word 

‘‘Administration’’. 

§ 11.2 [Amended] 

■ 3. Amend § 11.2 as follows: 

■ a. In the heading, remove the words 

‘‘Pilot program’’ and add in their place 

the words ‘‘Private counsel debt 

collection program’’; 

■ b. In the first two sentences, remove 

the word ‘‘pilot’’; 

■ c. In the third sentence, remove the 

words ‘‘Contracting Officer’s Technical 

Representative (COTR)’’ and add in 

their place the words ‘‘Contracting 

Officer’s Representative (COR)’’; and 

■ d. In the fourth sentence, remove the 

term ‘‘COTRs’’ and add in its place the 

term ‘‘CORs’’. 

§ 11.3 [Amended] 

■ 4. Amend § 11.3 as follows: 

■ a. In the first sentence, remove the 

words ‘‘the Federal Property and 

Administrative Services Act of 1949, 41 

U.S.C. 251 et seq’’ and add in their place 

the words ‘‘41 U.S.C. 3307’’. 

■ b. In the second sentence, adding the 

phrase ‘‘and law firms that are qualified 

HUBZone small business concerns’’ 

after the phrase ‘‘socially and 

economically disadvantaged 

individuals’’; 

■ c. In the second sentence and third 

sentence, remove the word ‘‘pilot’’ and 

add in its place the word ‘‘program’’; 

and 

■ d. In the third sentence, remove the 

words ‘‘Commerce Business Daily’’ and 

add in their place the term 

‘‘FedBizOpps’’. 

Subpart B—Administration of Debt 

Collection 

§ 11.4 [Amended] 

■ 5. Amend § 11.4 as follows: 

■ a. Remove the second sentence of 

paragraph (a); and 

■ b. In paragraph (b)(3)(i), add the 

number ‘‘1’’ after the words ‘‘26 U.S.C.’’. 

■ 6. Revise the heading of subpart C to 

read as follows: 

Subpart C—Collection of Debts by 

Administrative and Tax Refund Offset 

■ 7. Revise § 11.10 to read as follows: 

§ 11.10 [Amended] 

(a) The provisions of 31 U.S.C. 3716 

allow the head of an agency to collect 

a debt through administrative offset. 

The provisions of 31 U.S.C. 3716 and 

3720A authorize the Secretary of the 

Treasury, acting through the Bureau of 

the Fiscal Service (BFS) and other 

Federal disbursing officials, to offset 

certain payments to collect delinquent 

debts owed to the United States. This 

subpart authorizes the collection of 

debts owed to the United States by 

persons, organizations, and other 

entities by means of offsetting Federal 

and certain state payments due to the 

debtor. It allows for collection of debts 

that are past due and legally enforceable 

through offset, regardless of whether the 

debts have been reduced to judgment. 

(b) Nothing in this subpart precludes 

the Department from pursuing other 

debt collection procedures to collect a 

debt that has been submitted to the 

Department of the Treasury under this 

subpart. The Department may use such 

debt collection procedures separately or 

in conjunction with the offset collection 

procedures of this subpart. 

■ 8. Amend § 11.11 by revising 

paragraphs (a) and (b), and adding a 

paragraph (e) to read as follows: 

§ 11.11 [Amended] 

(a) Debt. Debt means any amount of 

funds or property that has been 

determined by an appropriate official of 

the Federal Government to be owed to 

the United States by a person, 

organization, or entity other than 

another Federal agency. For purposes of 

this section, the term debt does not 

include debts arising under the Internal 

Revenue Code of 1986 (26 U.S.C. 1 et 

seq.), the tariff laws of the United States, 

or the Social Security Act (42 U.S.C. 301 

et seq.), except to the extent provided in 

sections 204(f) and 1631(b)(4) of such 

Act (42 U.S.C. 404(f) and 1383(b)(4)(A), 

respectively) and 31 U.S.C. 3716(c). 

Debts that have been referred to the 

Department of Justice by other agencies 

for collection are included in this 

definition. 

(b) Past due. A past due debt means 

a debt that has not been paid or 

otherwise resolved by the date specified 

in the initial demand for payment, or in 

an applicable agreement or other 

instrument (including a postdelinquency repayment agreement), 

unless other payment arrangements 

satisfactory to the Department have been 

made. Judgment debts remain past due 

until paid in full. 

* * * * * 

(e) Legally enforceable. Legally 

enforceable means that there has been a 

final agency determination that the debt, 

in the amount stated, is due, and there 

are no legal bars to collection by offset. 

■ 9. Amend § 11.12 as follows: 

■ a. Revise the section heading and 

paragraphs (a), (b)(2), (b)(3), and (c); 

■ b. Remove paragraph (b)(4); 

■ c. In paragraph (d)(5), remove the 

number ‘‘65’’ and add in its place the 

number ‘‘60’’; 

■ d. In paragraph (d)(6) and paragraph 

(e), remove the term ‘‘IRS’’ and add in 

its place the term ‘‘BFS’’; 

■ e. In the second sentence of paragraph 

(d)(6), remove the word ‘‘of’’ the second 

time it occurs and add in its place the 

word ‘‘or’’; and 

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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 8583 

■ f. Add paragraph (f). 

The addition and revisions read as 

follows: 

§ 11.12 Centralized offset. 

(a) The Department must refer any 

legally enforceable debt more than 120 

days past due to BFS for administrative 

offset purposes pursuant to 31 U.S.C. 

3716(c)(6). The Department must refer 

any past due, legally enforceable debt to 

BFS for tax refund offset purposes 

pursuant to 31 U.S.C. 3720A(a) at least 

once a year. Prior to referring debts for 

offset, the Department must certify to 

BFS compliance with the provisions of 

31 U.S.C. 3716(a) and 3720A(b). There 

is no time limit on when a debt can be 

collected by offset. 

(b) * * * 

(2) The Department intends to refer 

the debt to BFS for offset purposes; 

(3) The debtor has 60 days from the 

date of notice in which to present 

evidence that all or part of the debt is 

not past due, that the amount is not the 

amount currently owed, that the 

outstanding debt has been satisfied, or, 

if a judgment debt, that the debt has 

been satisfied, or that collection action 

on the debt has been stayed, before the 

debt is referred to BFS for offset 

purposes. 

* * * * * 

(c) If the debtor neither pays the 

amount due nor presents evidence that 

the amount is not past due or is satisfied 

or that collection action is stayed, the 

Department will refer the debt to BFS 

for offset purposes. 

* * * * * 

(f) In the event that more than one 

debt is owed, payments eligible for 

offset will be applied in the order in 

which the debts became past due. 

■ 10. Add a new § 11.13 to read as 

follows: 

§ 11.13 Non-centralized offset. 

(a) When offset under § 11.12 of this 

part is not available or appropriate, the 

Department may collect past due, 

legally enforceable debts through noncentralized administrative offset. See 31 

CFR 901.3(c). In these cases, the 

Department may offset a payment 

internally or make an offset request 

directly to a Federal payment agency. 

(b) At least 30 days prior to offsetting 

a payment internally or requesting a 

Federal payment agency to offset a 

payment, the Department will send 

notice to the debtor in accordance with 

the requirements of 31 U.S.C. 3716(a). 

When referring a debt for offset under 

this paragraph (b), the Department will 

certify, in writing, that the debt is valid, 

delinquent, and legally enforceable, and 

that there are no legal bars to collection 

by offset. In addition, the Department 

will certify its compliance with these 

regulations concerning administrative 

offset. See 31 CFR 901.3(c)(2)(ii). 

■ 11. Amend part 11 by adding a new 

subpart D to read as follows: 

Subpart D—Administrative Wage 

Garnishment 

§ 11.21 Administrative wage garnishment. 

(a) Purpose. In accordance with the 

Department of the Treasury governmentwide regulation at 31 CFR 285.11, this 

section provides procedures for the 

Department of Justice to collect money 

from a debtor’s disposable pay by means 

of administrative wage garnishment to 

satisfy delinquent nontax debt owed to 

the United States. 

(b) Scope. (1) This section shall apply 

notwithstanding any provision of State 

law. 

(2) Nothing in this section precludes 

the compromise of a debt or the 

suspension or termination of collection 

action in accordance with applicable 

law. See, for example, the Federal 

Claims Collection Standards (FCCS), 31 

CFR parts 900–904. 

(3) The receipt of payments pursuant 

to this section does not preclude the 

Department from pursuing other debt 

collection remedies, including the offset 

of Federal payments to satisfy 

delinquent nontax debt owed to the 

United States. The Department may 

pursue such debt collection remedies 

separately or in conjunction with 

administrative wage garnishment. 

(4) This section does not apply to the 

collection of delinquent nontax debt 

owed to the United States from the 

wages of Federal employees from their 

Federal employment. Federal pay is 

subject to the Federal salary offset 

procedures set forth in 5 U.S.C. 5514 

and other applicable laws. 

(5) Nothing in this section requires 

the Department to duplicate notices or 

administrative proceedings required by 

contract or other laws or regulations. 

(c) Definitions. As used in this section 

the following definitions shall apply: 

Agency means a department, agency, 

court, court administrative office, or 

instrumentality in the executive, 

judicial, or legislative branch of the 

Federal Government, including 

government corporations. For purposes 

of this section, agency means either the 

agency that administers the program 

that gave rise to the debt or the agency 

that pursues recovery of the debt. 

Business day means Monday through 

Friday. For purposes of computation, 

the last day of the period will be 

included unless it is a Federal legal 

holiday. 

Day means calendar day. For 

purposes of computation, the last day of 

the period will be included unless it is 

a Saturday, a Sunday, or a Federal legal 

holiday. 

Debt or claim means any amount of 

money, funds, or property that has been 

determined by an appropriate official of 

the Federal Government to be owed to 

the United States by an individual, 

including debt administered by a third 

party as an agent for the Federal 

Government. 

Debtor means an individual who owes 

a delinquent nontax debt to the United 

States. 

Delinquent nontax debt means any 

nontax debt that has not been paid by 

the date specified in the agency’s initial 

written demand for payment, or 

applicable agreement, unless other 

satisfactory payment arrangements have 

been made. For purposes of this section, 

the terms ‘‘debt’’ and ‘‘claim’’ are 

synonymous and refer to delinquent 

nontax debt. 

Disposable pay means that part of the 

debtor’s compensation (including, but 

not limited to, salary, bonuses, 

commissions, and vacation pay) from an 

employer remaining after the deduction 

of health insurance premiums and any 

amounts required by law to be withheld. 

For purposes of this section, ‘‘amounts 

required by law to be withheld’’ include 

amounts for deductions such as Social 

Security taxes and withholding taxes, 

but do not include any amount withheld 

pursuant to a court order. 

Employer means a person or entity 

that employs the services of others and 

that pays their wages or salaries. The 

term employer includes, but is not 

limited to, State and local Governments, 

but does not include an agency of the 

Federal Government. 

Evidence of service means 

information retained by the agency 

indicating the nature of the document to 

which it pertains, the date of mailing of 

the document, and to whom the 

document is being sent. Evidence of 

service may be retained electronically so 

long as the manner of retention is 

sufficient for evidentiary purposes. 

Garnishment means the process of 

withholding amounts from an 

employee’s disposable pay and the 

paying of those amounts to a creditor in 

satisfaction of a withholding order. 

Withholding order means any order 

for withholding or garnishment of pay 

issued by an agency, or judicial or 

administrative body. For purposes of 

this section, the terms ‘‘wage 

garnishment order’’ and ‘‘garnishment 

order’’ have the same meaning as 

‘‘withholding order.’’ 

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

(d) General rule. Whenever the agency 

determines that a delinquent debt is 

owed by an individual, the agency may 

initiate proceedings administratively to 

garnish the wages of the delinquent 

debtor. 

(e) Notice requirements. (1) At least 30 

days before the initiation of garnishment 

proceedings, the agency shall mail, by 

first class mail, to the debtor’s last 

known address, a written notice 

informing the debtor of: 

(i) The nature and amount of the debt; 

(ii) The intention of the agency to 

initiate proceedings to collect the debt 

through deductions from pay until the 

debt and all accumulated interest, 

penalties, and administrative costs are 

paid in full; and 

(iii) An explanation of the debtor’s 

rights, including those set forth in 

paragraph (e)(2) of this section, and the 

timeframe within which the debtor may 

exercise those rights. 

(2) The debtor shall be afforded the 

opportunity: 

(i) To inspect and copy agency 

records related to the debt; 

(ii) To enter into a written repayment 

agreement with the agency under terms 

agreeable to the agency; and 

(iii) For a hearing in accordance with 

paragraph (f) of this section concerning 

the existence or the amount of the debt 

or the terms of the proposed repayment 

schedule under the garnishment order. 

However, the debtor is not entitled to a 

hearing concerning the terms of the 

proposed repayment schedule if these 

terms have been established by written 

agreement under paragraph (e)(2)(ii) of 

this section. 

(3) The agency will retain evidence of 

service indicating the date of mailing of 

the notice. 

(f) Hearing— 

(1) Request for hearing. The agency 

shall provide a hearing, which at the 

agency’s option may be oral or written, 

if the debtor submits a written request 

for a hearing concerning the existence or 

amount of the debt or the terms of the 

repayment schedule (for repayment 

schedules established other than by 

written agreement under paragraph 

(e)(2)(ii) of this section). 

(2) Type of hearing or review. (i) For 

purposes of this section, whenever the 

agency is required to afford a debtor a 

hearing, the agency shall provide the 

debtor with a reasonable opportunity for 

an oral hearing when the agency 

determines that the issues in dispute 

cannot be resolved by review of the 

documentary evidence, as, for example, 

when the validity of the claim turns on 

the issue of credibility or veracity. 

(ii) If the agency determines that an 

oral hearing is appropriate, the time and 

location of the hearing shall be 

established by the agency. An oral 

hearing may, at the debtor’s option, be 

conducted either in person or by 

telephone conference. All travel 

expenses incurred by the debtor in 

connection with an in-person hearing 

will be borne by the debtor. All 

telephonic charges incurred during the 

hearing will be the responsibility of the 

agency. 

(iii) In those cases when an oral 

hearing is not required by this section, 

the agency shall nevertheless accord the 

debtor a ‘‘paper hearing,’’ that is, the 

agency will decide the issues in dispute 

based upon a review of the written 

record. The agency will establish a 

reasonable deadline for the submission 

of evidence. 

(3) Effect of timely request. Subject to 

paragraph (f)(12) of this section, if the 

debtor’s written request is received by 

the agency on or before the 15th 

business day following the mailing of 

the notice described in paragraph (e)(1) 

of this section, the agency shall not 

issue a withholding order under 

paragraph (g) of this section until the 

debtor has been provided the requested 

hearing and a decision in accordance 

with paragraphs (f)(9) and (f)(10) of this 

section has been rendered. 

(4) Failure to timely request a hearing. 

If the debtor’s written request is 

received by the agency after the 15th 

business day following the mailing of 

the notice described in paragraph (e)(1) 

of this section, the agency shall provide 

a hearing to the debtor. However, the 

agency will not delay issuance of a 

withholding order unless the agency 

determines that the delay in filing the 

request was caused by factors over 

which the debtor had no control, or the 

agency receives information that the 

agency believes justifies a delay or 

cancellation of the withholding order. 

(5) Hearing official. A hearing official 

may be any qualified individual, as 

determined by the head of the agency, 

including an administrative law judge. 

(6) Procedure. After the debtor 

requests a hearing, the hearing official 

shall notify the debtor of: 

(i) The date and time of a telephonic 

hearing; 

(ii) The date, time, and location of an 

in-person oral hearing; or 

(iii) The deadline for the submission 

of evidence for a written hearing. 

(7) Burden of proof. (i) The agency 

will have the initial burden of proving, 

by a preponderance of the evidence, the 

existence or amount of the debt. 

(ii) If the agency satisfies its initial 

burden, the debtor must prove, by a 

preponderance of the evidence, that no 

debt exists or that the amount of the 

debt is incorrect. In addition, the debtor 

may present evidence that the terms of 

the repayment schedule are unlawful or 

would cause a financial hardship to the 

debtor, or that collection of the debt 

may not be pursued due to operation of 

law. 

(8) Record. The hearing official must 

maintain a summary record of any 

hearing provided under this section. A 

hearing is not required to be a formal 

evidentiary-type hearing. However, 

witnesses who testify in in-person or 

telephonic hearings will do so under 

oath or affirmation. 

(9) Date of decision. The hearing 

official shall issue a written opinion 

stating the decision, as soon as 

practicable, but not later than 60 days 

after the date on which the request for 

such hearing was received by the 

agency. If an agency is unable to provide 

the debtor with a hearing and render a 

decision within 60 days after the receipt 

of the request for such hearing: 

(i) The agency may not issue a 

withholding order until the hearing is 

held and a decision rendered; or 

(ii) If the agency had previously 

issued a withholding order to the 

debtor’s employer, the agency must 

suspend the withholding order 

beginning on the 61st day after the 

receipt of the hearing request and 

continuing until a hearing is held and 

a decision is rendered. 

(10) Content of decision. The written 

decision shall include: 

(i) A summary of the facts presented; 

(ii) The hearing official’s findings, 

analysis, and conclusions; and 

(iii) The terms of any repayment 

schedules, if applicable. 

(11) Final agency action. The hearing 

official’s decision will be final agency 

action for purposes of judicial review 

under the Administrative Procedure Act 

(5 U.S.C. 701 et seq.). 

(12) Failure to appear. In the absence 

of good cause shown, a debtor who fails 

to appear at a hearing scheduled 

pursuant to paragraph (f)(3) of this 

section will be deemed as not having 

timely filed a request for a hearing. 

(g) Wage garnishment order. (1) 

Unless the agency receives information 

that the agency believes justifies a delay 

or cancellation of the withholding order, 

the agency will send, by first class mail, 

a withholding order to the debtor’s 

employer: 

(i) Within 30 days after the debtor 

fails to make a timely request for a 

hearing (i.e., within 15 business days 

after the mailing of the notice described 

in paragraph (e)(1) of this section), or, 

(ii) If a timely request for a hearing is 

made by the debtor, within 30 days after 

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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 8585 

a final decision is made by the agency 

to proceed with garnishment, or 

(iii) As soon as reasonably possible 

thereafter. 

(2) The withholding order sent to the 

employer under paragraph (g)(1) of this 

section shall be in a form prescribed by 

the Secretary of the Treasury. The 

withholding order shall contain the 

signature of, or the image of the 

signature of, the head of the agency or 

his/her delegatee. The order shall 

contain only the information necessary 

for the employer to comply with the 

withholding order. Such information 

includes the debtor’s name, address, 

and Social Security Number, as well as 

instructions for withholding and 

information as to where payments 

should be sent. 

(3) The agency will retain evidence of 

service indicating the date of mailing of 

the order. 

(h) Certification by employer. Along 

with the withholding order, the agency 

shall send to the employer a 

certification in a form prescribed by the 

Secretary of the Treasury. The employer 

shall complete and return the 

certification to the agency within the 

timeframe prescribed in the instructions 

to the form. The certification will 

address matters such as information 

about the debtor’s employment status 

and disposable pay available for 

withholding. 

(i) Amounts withheld. (1) After receipt 

of the garnishment order issued under 

this section, the employer shall deduct 

from all disposable pay paid to the 

applicable debtor during each pay 

period the amount of garnishment 

described in paragraph (i)(2) of this 

section. 

(2)(i) Subject to the provisions of 

paragraphs (i)(3) and (i)(4) of this 

section, the amount of garnishment 

shall be the lesser of: 

(A) The amount indicated on the 

garnishment order up to 15 percent of 

the debtor’s disposable pay; or 

(B) The amount calculated pursuant 

to the formula set forth in 15 U.S.C. 

1673(a)(2) (Restriction on Garnishment). 

The formula set forth at 15 U.S.C. 

1673(a)(2) is the amount by which a 

debtor’s disposable pay exceeds an 

amount equivalent to thirty times the 

Federal minimum wage. See 29 CFR 

870.10. 

(3) When a debtor’s pay is subject to 

withholding orders with priority the 

following shall apply: 

(i) Unless otherwise provided by 

Federal law, withholding orders issued 

under this section shall be paid in the 

amounts set forth under paragraph (i)(2) 

of this section and shall have priority 

over withholding orders that are served 

later in time. Notwithstanding the 

foregoing, withholding orders for family 

support shall have priority over 

withholding orders issued under this 

section. 

(ii) If amounts are being withheld 

from a debtor’s pay pursuant to a 

withholding order served on an 

employer before a withholding order 

issued pursuant to this section, or if a 

withholding order for family support is 

served on an employer at any time, the 

amounts withheld pursuant to the 

withholding order issued under this 

section shall be the lesser of: 

(A) The amount calculated under 

paragraph (i)(2) of this section, or 

(B) An amount equal to 25 percent of 

the debtor’s disposable pay less the 

amount(s) withheld under the 

withholding order(s) with priority. 

(iii) If a debtor owes more than one 

debt to the agency, the agency may issue 

multiple withholding orders provided 

that the total amount garnished from the 

debtor’s pay for such orders does not 

exceed the amount set forth in 

paragraph (i)(2) of this section. 

(4) An amount greater than that set 

forth in paragraphs (i)(2) and (i)(3) of 

this section may be withheld upon the 

written consent of the debtor. 

(5) The employer shall promptly pay 

to the agency all amounts withheld in 

accordance with the withholding order 

issued pursuant to this section. 

(6) An employer shall not be required 

to vary its normal pay and disbursement 

cycles in order to comply with the 

withholding order. 

(7) Any assignment or allotment by an 

employee of his earnings shall be void 

to the extent it interferes with or 

prohibits execution of the withholding 

order issued under this section, except 

for any assignment or allotment made 

pursuant to a family support judgment 

or order. 

(8) The employer shall withhold the 

appropriate amount from the debtor’s 

wages for each pay period until the 

employer receives notification from the 

agency to discontinue wage 

withholding. The garnishment order 

shall indicate a reasonable period of 

time within which the employer is 

required to commence wage 

withholding. 

(j) Exclusions from garnishment. The 

agency may not garnish the wages of a 

debtor who it knows has been 

involuntarily separated from 

employment until the debtor has been 

reemployed continuously for at least 12 

months. To qualify for this exclusion, 

upon the request of the agency, the 

debtor must inform the agency of the 

circumstances surrounding an 

involuntary separation from 

employment. 

(k) Financial hardship. (1) A debtor 

whose wages are subject to a wage 

withholding order under this section, 

may, at any time, request a review by 

the agency of the amount garnished, 

based on materially changed 

circumstances such as disability, 

divorce, or catastrophic illness that 

results in financial hardship. 

(2) A debtor requesting a review 

under paragraph (k)(1) of this section 

shall submit the basis for claiming that 

the current amount of garnishment 

results in a financial hardship to the 

debtor, along with supporting 

documentation. Agencies shall consider 

any information submitted in 

accordance with procedures and 

standards established by the agency. 

(3) If a financial hardship is found, 

the agency shall downwardly adjust, by 

an amount and for a period of time 

agreeable to the agency, the amount 

garnished to reflect the debtor’s 

financial condition. The agency will 

notify the employer of any adjustments 

to the amounts to be withheld. 

(l) Ending garnishment. (1) Once the 

agency has fully recovered the amounts 

owed by the debtor, including interest, 

penalties, and administrative costs 

consistent with the FCCS, the agency 

shall send the debtor’s employer 

notification to discontinue wage 

withholding. 

(2) At least annually, an agency shall 

review its debtors’ accounts to ensure 

that garnishment has been terminated 

for accounts that have been paid in full. 

(m) Actions prohibited by the 

employer. An employer may not 

discharge, refuse to employ, or take 

disciplinary action against the debtor 

due to the issuance of a withholding 

order under this section. 

(n) Refunds. (1) If a hearing official, at 

a hearing held pursuant to paragraph 

(f)(2) of this section, determines that a 

debt is not legally due and owing to the 

United States, the agency shall promptly 

refund any amount collected by means 

of administrative wage garnishment. 

(2) Unless required by Federal law or 

contract, refunds under this section 

shall not bear interest. 

(o) Right of action. The agency may 

sue any employer for any amount that 

the employer fails to withhold from 

wages owed and payable to an employee 

in accordance with paragraphs (g) and 

(i) of this section. However, a suit may 

not be filed before the termination of the 

collection action involving a particular 

debtor, unless earlier filing is necessary 

to avoid expiration of any applicable 

statute of limitations period. For 

purposes of this section, ‘‘termination of 

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8586 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules 

1Enclosure (3) to Navigation and Vessel 

Inspection Circular 04–08, Medical and Physical 

Evaluation Guidelines for Merchant Mariner 

Credentials, Item number 179, specifies that sleep 

apnea and other sleep disorders are subject to 

further review. Obstructive sleep apnea (OSA) is 

one specific type of sleep apnea and is, therefore, 

subject to further review under the same item 

number. 

the collection action’’ occurs when the 

agency has terminated collection action 

in accordance with the FCCS or other 

applicable standards. In any event, 

termination of the collection action will 

be deemed to have occurred if the 

agency has not received any payments 

to satisfy the debt from the particular 

debtor whose wages were subject to 

garnishment, in whole or in part, for a 

period of 1 year. 

Dated: February 3, 2015. 

Eric H. Holder, Jr. 

Attorney General. 

[FR Doc. 2015–02587 Filed 2–17–15; 8:45 am] 

BILLING CODE 4410–AR–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

46 CFR Part 10 

[Docket No. USCG–2015–0090] 

Medical Waivers for Merchant Mariner 

Credential Applicants With the 

Following Conditions: 

Cardiomyopathy; Diabetes Mellitus; 

Narcolepsy; and Obstructive Sleep 

Apnea 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed policy 

clarification and request for comments. 

SUMMARY: The Coast Guard is seeking 

public comment on the policy 

clarification proposed in this document 

regarding the specific medical 

documentation the Coast Guard will 

consider in determining whether a 

medical waiver is warranted for 

merchant mariners with 

cardiomyopathy, diabetes mellitus, or 

obstructive sleep apnea. Additionally, 

the proposed policy clarification 

specifies that narcolepsy, idiopathic 

hypersomnia, and other hypersomnias 

of central origin, are medically 

disqualifying and generally not 

waiverable due to significant risk of 

sudden and unpredictable 

incapacitation of individuals who have 

these conditions. 

DATES: Comments and related material 

must either be submitted to our online 

docket via http://www.regulations.gov 

on or before May 19, 2015 or reach the 

Docket Management Facility by that 

date. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2015–0090 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590– 

0001. 

(4) Hand delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this 

document, call or email Lieutenant 

Ashley Holm, Mariner Credentialing 

Program Policy Division (CG–CVC–4), 

U.S. Coast Guard, telephone 202–372– 

2357, email MMCPolicy@uscg.mil. If 

you have questions on viewing material 

in the docket, call Docket Operations at 

202–366–9826. 

SUPPLEMENTARY INFORMATION: 

I. Public Participation 

You may submit comments and 

related material regarding whether the 

policy clarification proposed in this 

document should be incorporated into 

final policy on the medical evaluation 

guidelines for mariners with 

cardiomyopathy, diabetes mellitus, 

narcolepsy or obstructive sleep apnea. 

All comments received will be posted, 

without change, to http://

www.regulations.gov and will include 

any personal information you have 

provided. 

Submitting comments: If you submit a 

comment, please include the docket 

number for this document (USCG– 

2015–0090) and provide a reason for 

each suggestion or recommendation. 

You may submit your comments and 

material online or by fax, mail or hand 

delivery, but please use only one of 

these means. We recommend that you 

include your name and a mailing 

address, an email address, or a 

telephone number in the body of your 

document so that we can contact you if 

we have questions regarding your 

submission. 

To submit your comment online, go to 

http://www.regulations.gov, type the 

docket number (USCG–2015–0090) in 

the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on ‘‘Submit a 

Comment’’ on the line associated with 

this document. 

If you submit your comments by mail 

or hand delivery, submit them in an 

unbound format, no larger than 8 1⁄2 by 

11 inches, suitable for copying and 

electronic filing. If you submit them by 

mail and would like to know that they 

reached the Facility, please enclose a 

stamped, self-addressed postcard or 

envelope. We will consider all 

comments and material received during 

the comment period. 

Viewing comments and documents: 

To view comments, go to http://

www.regulations.gov, type the docket 

number (USCG–2015–0090) in the 

‘‘SEARCH’’ box and click ‘‘SEARCH.’’ 

Click on ‘‘Open Docket Folder’’ on the 

line associated with this rulemaking. 

You may also visit the Docket 

Management Facility in Room W12–140 

on the ground floor of the Department 

of Transportation West Building, 1200 

New Jersey Avenue SE., Washington, 

DC 20590, between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. We have an agreement with 

the Department of Transportation to use 

the Docket Management Facility. 

Privacy Act: Anyone can search the 

electronic form of comments received 

into any of our dockets by the name of 

the individual submitting the comment 

(or signing the comment, if submitted 

on behalf of an association, business, 

labor union, etc.). You may review a 

Privacy Act system of records notice 

regarding our public dockets in the 

January 17, 2008, issue of the Federal 

Register (73 FR 3316). 

Background and Purpose 

46 CFR 10.302 contains the medical 

standards that merchant mariners must 

meet prior to being issued a merchant 

mariner credential (MMC). In cases 

where the mariner does not meet the 

medical standards in 46 CFR 10.302, 

waivers may be granted when the Coast 

Guard determines that extenuating 

circumstances warrant special 

consideration. See 46 CFR 10.303. 

Current Coast Guard guidance in 

Enclosure (3) to Navigation and Vessel 

Inspection Circular 04–08, Medical and 

Physical Evaluation Guidelines for 

Merchant Mariner Credentials (NVIC 

04–08), which is available at http://

www.uscg.mil/hq/cg5/nvic/pdf/2008/

NVIC%2004-08%20CH%201%20with%

20Enclosures%2020130607.pdf.), states 

that the conditions of cardiomyopathy, 

diabetes mellitus, narcolepsy and 

obstructive sleep apnea 1 require further 

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