Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 10419 

Treasury determines such a sale is in 

the best interests of the United States. 

Since the discharge of a debt precludes 

any further collection action, including 

the sale of a delinquent debt, the 

Secretary may not discharge a debt until 

the requirements of 31 U.S.C. 3711(i) 

have been meet. 

(c) Upon discharge of an 

indebtedness, the Secretary must report 

the discharge to the IRS in accordance 

with the requirements of 26 U.S.C. 

6050P and 26 CFR 1.6050P–1. The 

Secretary may request that Treasury or 

Treasury-designated debt collection 

centers file such a discharge report to 

the IRS on the Department’s behalf. 

(d) When discharging a debt, the 

Secretary must request that litigation 

counsel release any liens of record 

securing the debt. 

Subpart E—Referrals to the 

Department of Justice 

§ 30.33 Prompt referral. 

(a)(1) The Secretary promptly shall 

refer to Justice for litigation debts on 

which aggressive collection activity has 

been taken in accordance with subpart 

B of this part, and that cannot be 

compromised, or on which collection 

activity cannot be suspended or 

terminated, in accordance with subpart 

D of this part. 

(2) The Secretary may refer to Justice 

for litigation those debts arising out of 

activities of, or referred or transferred 

for collection services to, the 

Department. 

(b)(1) Debts for which the principal 

amount is over $1,000,000, or such 

other amount as the Attorney General 

may direct, exclusive of interest, 

penalties, and administrative costs shall 

be referred to the Civil Division or other 

division responsible for litigating such 

debts at the Department of Justice, 

Washington DC. 

(2) Debts for which the principal 

amount is $1,000,000 or less, or such 

other amount as the Attorney General 

may direct, exclusive of interest, 

penalties, and administrative costs shall 

be referred to the Nationwide Central 

Intake Facility at Justice as required by 

the CCLR instructions. 

(c)(1) Consistent with aggressive 

agency collection activity and the 

standards contained in this part and 31 

CFR parts 900 through 904, debts shall 

be referred to Justice as early as 

possible, and, in any event, well within 

the period for initiating timely lawsuits 

against the debtors. 

(2) The Secretary shall make every 

effort to refer delinquent debts to Justice 

for litigation within one year of the date 

such debts last became delinquent. In 

the case of guaranteed or insured loans, 

the Secretary will make every effort to 

refer these delinquent debts to Justice 

for litigation within one year from the 

date the loan was presented to the 

Department for payment or reinsurance. 

(d) Justice has exclusive jurisdiction 

over debts referred to it pursuant to this 

subpart. Upon referral of a debt to 

Justice, the Secretary shall: 

(1) Immediately terminate the use of 

any administrative collection activities 

to collect the debt; 

(2) Advise Justice of the collection 

activities utilized to date, and their 

result; and 

(3) Refrain from having any contact 

with the debtor and direct all debtor 

inquiries concerning the debt to Justice. 

(e) After referral of a debt under this 

subpart, the Secretary shall immediately 

notify the Department of Justice of any 

payments credited by the Department to 

the debtor’s account. Pursuant to 31 

CFR 904.1(b), after referral of the debt 

under this subpart, Justice shall notify 

the Secretary of any payment received 

from the debtor. 

§ 30.34 Claims Collection Litigation 

Report. 

(a)(1) Unless excepted by Justice, the 

Secretary will complete the CCLR, 

accompanied by a signed Certificate of 

Indebtedness, to refer all 

administratively uncollectible claims to 

the Department of Justice for litigation. 

(2) The Secretary shall complete all of 

the sections of the CCLR appropriate to 

each debt as required by the CCLR 

instructions, and furnish such other 

information as may be required in 

specific cases. 

(b) The Secretary shall indicate 

clearly on the CCLR the actions that the 

Department wishes Justice to take with 

respect to the referred debt. The 

Secretary may indicate specifically any 

of a number of litigation activities 

which Justice may pursue, including 

enforced collection, judgement lien 

only, renew judgement lien only, renew 

judgement lien and enforced collection, 

program enforcement, foreclosure only, 

and foreclosure and deficiency 

judgment. 

(c) The Secretary also shall use the 

CCLR to refer a debt to Justice for the 

purpose of obtaining approval of a 

proposal to compromise the debt, or to 

suspend or terminate administrative 

collection activity of the debt. 

§ 30.35 Preservation of evidence. 

The Secretary will maintain and 

preserve all files and records that may 

be needed by Justice to prove the 

Department’s claim in court. When 

referring debts to Justice for litigation, 

certified copies of the documents that 

form the basis for the claim should be 

provided along with the CCLR. Upon its 

request, the original documents will be 

provided to Justice. 

§ 30.36 Minimum amount of referrals. 

(a) Except as in paragraph (b) of this 

section, claims of less than $2,500 

exclusive of interest, penalties, and 

administrative costs, or such other 

amount as the Attorney General may 

prescribe, shall not be referred for 

litigation. 

(b) The Secretary shall not refer 

claims of less than the minimum 

amount unless: 

(1) Litigation to collect such smaller 

amount is important to ensure 

compliance with the policies and 

programs of the Department; 

(2) The claim is being referred solely 

for the purpose of securing a judgment 

against the debtor, which will be filed 

as a lien against the debtor’s property 

pursuant to 28 U.S.C. 3201 and returned 

to the Department for enforcement; or 

(3) The debtor has the clear ability to 

pay the claim and the Government 

effectively can enforce payment, with 

due regard for the exemptions available 

to the debtor under State and Federal 

law and the judicial remedies available 

to the Government. 

(c) The Secretary should consult with 

the Financial Litigation Staff of the 

Executive Office for United States 

Attorneys in Justice prior to referring 

claims valued at less than the minimum 

amount. 

Dated: November 27, 2006. 

Michael O. Leavitt, 

Secretary. 

Editorial Note: This document was 

received at the Office of the Federal Register 

on March 2, 2007. 

[FR Doc. E7–4002 Filed 3–7–07; 8:45 am] 

BILLING CODE 4150–26–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Office of the Secretary 

45 CFR Part 33 

RIN 0991–AB19 

Salary Offset 

AGENCY: Department of Health and 

Human Services. 

ACTION: Final rule. 

SUMMARY: The Department of Health and 

Human Services (HHS) adds specific 

rules concerning involuntary salary 


pwalker on PROD1PC71 with RULES
10420 Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 

offset by adding a new part 33 to title 

45 CFR. The rule implements 5 U.S.C. 

5514, as amended by the salary offset 

provisions of the Debt Collection 

Improvement Act of 1996 (DCIA), as 

implemented by the Office of Personnel 

Management at 5 CFR part 550, subpart 

K. Involuntary salary offset was 

previously included in the Department’s 

more general claims collection 

regulations at 45 CFR part 30. 

DATES: Effective Date: March 8, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey S. Davis, Associate General 

Counsel, General Law Division, Office 

of the General Counsel, Department of 

Health and Human Services, Room 4760 

Cohen Building, 330 Independence 

Avenue, SW., Washington, DC 20201. 

SUPPLEMENTARY INFORMATION: 

Background 

Current HHS regulations at 45 CFR 

part 30 provide standards and 

procedures for the collection and 

disposition of debts owed the United 

States, including collection by 

administrative offset. Standards and 

procedures for collection of debts from 

the current pay of federal employees by 

involuntary salary offset had been 

included in the administrative offset 

provisions of part 30. Those regulations, 

which this final rule replaces, are based 

on the Debt Collection Act of 1982 

(DCA), Public Law No. 97–365, and 

were implemented on a governmentwide basis by the Federal Claims 

Collection Standards (FCCS), set forth at 

4 CFR part 101, issued by the 

Department of Justice and General 

Accounting Office on March 9, 1984 (49 

FR 8889 (1984)), and the salary offset 

regulations set forth at 5 CFR part 550, 

subpart K, issued by the Office of 

Personnel Management on July 3, 1984 

(49 FR 27472). The current HHS rules 

are in the process of being amended to 

comply with the Debt Collection 

Improvement Act of 1996 (DCIA), Public 

Law No. 104–134, as implemented by 

the Department of Treasury and the 

Department of Justice at 31 CFR 900–

904. Since there are specific rules that 

apply to salary offset that go beyond 

those applicable to administrative offset 

generally, and because salary offset has 

a separate statutory basis, the 

Department takes this opportunity to 

segregate the salary offset provisions 

and provide separate guidance to 

specifically address the standards and 

procedures applicable to salary offset. 

Basic Provisions 

This rule prescribes the Department’s 

standards and procedures for the 

collection of debts owed by Federal 

employees to the United States through 

involuntary salary offset, including 

changes made by the DCIA. Briefly, 

such changes provide for centralized 

computer matching through the 

Department of Treasury, an exclusion 

from the prior notice and hearing 

requirements for certain pay 

adjustments, and a priority for Federal 

tax levies. This regulation is 

inapplicable to U.S. Public Health 

Service Commissioned Corps officers 

and retirees, as, pursuant to 37 U.S.C. 

1001, the U.S. Public Health Service 

Commissioned Corps follows 

regulations relating to active duty and 

retired pay and allowances, including 

the collection of indebtedness, set forth 

in the Department of Defense Financial 

Management Regulation, DOD 7000.14–

R. 

Authority: 5 U.S.C. 5514 

This rule was published as a proposed 

rule on July 13, 2004 (69 FR 42022) and 

provided for a 60-day comment period 

ending on September 13, 2004. We 

received no comments concerning the 

proposed rule and are finalizing the rule 

as proposed with only minor clarifying 

changes to § 33.10. In § 33.10(b), we 

clarify that the employee can agree in 

writing to a greater deduction, as 

outlined in § 33.8. In § 33.10(c)(2), we 

inserted the word ‘‘deemed’’ in front of 

‘‘financially unable to pay.’’

Reporting and Recordkeeping 

Requirements 

For purposes of the Paperwork 

Reduction Act, 44 U.S.C. chapter 35, 

this rule will impose no new reporting 

or recordkeeping requirements on any 

member of the public. 

Economic Impact 

We have examined the impact of this 

rule as required by Executive Order (EO) 

12866 (September 1993, Regulatory 

Planning and Review), as amended by 

EO 13258 (February 2002, Amending 

EO 12866 on Regulatory Planning and 

Review), the Regulatory Flexibility Act 

(RFA) (September 19, 1980; Pub. L. No. 

96–354); the Unfunded Mandated 

Reform Act of 1995 (UMRA, Pub. L. No. 

104–4); and EO 13132 (August 1999, 

Federalism). EO 12866, as amended by 

EO 13258, directs agencies to assess all 

costs and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize the benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). A regulatory impact analysis 

must be prepared for major rules with 

economically significant effects ($100 

million or more in 1 year). We have 

determined that the rule is consistent 

with the principals set forth in the EO, 

and we find that the rule would not 

have an effect on the economy that 

exceeds $100 million in any one year. 

In addition, this rule is not a major rule 

as defined at 5 U.S.C. 804(2). In 

accordance with the provisions of the 

EO, the rule has been reviewed by the 

Office of Management and Budget. 

Under the RFA, 5 U.S.C. 605(b), if a 

rule has a significant impact on a 

substantial number of small entities, an 

agency must analyze regulatory options 

that would minimize any significant 

impact of the rule on small entities and 

determined it will not have any effect. 

This rule only affects Federal 

employees. The agency has considered 

the effect that this rule would have on 

small entities. I hereby certify, under 5 

U.S.C 605(b), that the rule will not have 

a significant economic impact on a 

substantial number of small entities, 

including small businesses, small 

organizations and small local 

governments. Therefore, a regulatory 

flexibility analysis is not required by 5 

U.S.C. 603. Section 202 of the UMRA 

also requires that agencies assess 

anticipated costs and benefits before 

issuing any rule that may result in 

expenditure in any one year by State, 

local, or tribunal governments, in the 

aggregate, or by the private sector, of 

$100 million. As noted above, we find 

that the rule would not have an effect 

of this magnitude on the economy. 

Therefore, no further analysis is 

required under the UMRA. EO 13132 

establishes certain requirements that an 

agency must meet when it promulgates 

a final rule that imposes substantial 

direct requirement costs on State and 

local governments, preempts State law, 

or otherwise has federalism 

implications. We have reviewed the rule 

under the threshold criteria of EO 13132 

and have determined that this proposed 

rule would not have substantial direct 

impact on States, or on the distribution 

of power and responsibilities among the 

various levels of government. As there 

are no federalism implications, a 

federalism impact statement is not 

required. 

Alternatives Considered 

Title 5 CFR part 550, subpart K, 

provides the standards to be used by 

Federal agencies to prepare regulations 

implementing 5 U.S.C. 5514. There is 

little room for us to consider 

alternatives, but where the Department 

has discretion (i.e., in § 33.1, specifying 

that the regulations cover Governmentwide collections and in § 33.6, 

specifying that if the petition for hearing 


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Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 10421 

is untimely, the Secretary may grant the 

request if the employee can establish 

that the delay was the result of 

circumstances beyond the employee’s 

control, or that the employee failed to 

receive actual notice of the filing 

deadline), we drafted the rule to 

maximize the Department’s debt 

collection ability and make the process 

fair as possible to debtors. 

These regulations were submitted to 

the Office of Personnel Management for 

review prior to publication of this final 

rule, as required by 5 CFR part 550, 

subpart K. 

List of Subjects in 45 CFR Part 33 

Administrative practice and 

procedure, Claims, Debts, Claims, Debt 

collection, Hearings, Wages, Salary 

offset, and Government employees. 

■ For the reasons set forth in the 

preamble, HHS adds 45 CFR part 33 as 

follows: 

PART 33—SALARY OFFSET 

Sec. 

33.1 Purpose, authority, and scope. 

33.2 Definitions. 

33.3 General rule. 

33.4 Notice requirements before offset. 

33.5 Review of department records relating 

to the debt. 

33.6 Hearings. 

33.7 Obtaining the services of a hearing 

official. 

33.8 Voluntary repayment agreement in lieu 

of salary offset. 

33.9 Special review. 

33.10 Procedures for salary offset. 

33.11 Salary offset when the Department is 

the creditor agency but not the paying 

agency. 

33.12 Salary offset when the Department is 

the paying agency but not the creditor 

agency. 

33.13 Interest, penalties, and administrative 

costs. 

33.14 Non-waiver of rights. 

33.15 Refunds. 

33.16 Additional administrative collection. 

Authority: 5 U.S.C. 5514; 5 CFR Part 550, 

Subpart K. 

§ 33.1 Purpose, authority, and scope. 

(a) Purpose. This part prescribes the 

Department’s standards and procedures 

for the collection of debts owed by 

Federal employees to the United States 

through involuntary salary offset. 

(b) Authority. 5 U.S.C. 5514; 5 CFR 

Part 550, subpart K. 

(c) Scope. (1) This part applies to 

internal and Government-wide 

collections of debts owed by Federal 

employees by administrative offset from 

the current pay account of the debtor 

without his or her consent. 

(2) The procedures contained in this 

part do not apply to any case where an 

employee consents to collection through 

deduction(s) from the employee’s pay 

account, or to debts arising under the 

Internal Revenue Code or the tariff laws 

of the United States, or where another 

statute explicitly provides for, or 

prohibits, collection of a debt by salary 

offset (e.g., travel advances in 5 U.S.C. 

5705 and employee training expenses in 

5 U.S.C. 4108). 

(3) This part does not preclude an 

employee from requesting waiver of an 

erroneous payment under 5 U.S.C. 5584, 

10 U.S.C. 2774, or 32 U.S.C. 716, or in 

any way questioning the amount or 

validity of a debt, in the manner 

prescribed by the Secretary. Similarly, 

this part does not preclude an employee 

from requesting waiver of the collection 

of a debt under any other applicable 

statutory authority. 

(4) Nothing in this part precludes the 

compromise of the debt, or the 

suspension or termination of collection 

actions, in accordance with part 30 of 

this title. 

§ 33.2 Definitions. 

In this part—

Administrative offset means 

withholding funds payable by the 

United States to, or held by the United 

States for, a person to satisfy a debt 

owed by the payee. 

Agency means an executive 

department or agency; a military 

department; the United States Postal 

Service; the Postal Rate Commission; 

the United States Senate; the United 

States House of Representatives; and 

court, court administrative office, or 

instrumentality in the judicial or 

legislative branches of the Government; 

or a Government Corporation. 

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. 

Day means calendar day. For 

purposes of computation, the last day of 

the period will be included unless it is 

a Saturday, Sunday, or a Federal 

holiday, in which case the next business 

day will be considered the last day of 

the period. 

Debt means an amount determined by 

an appropriate official to be owed to the 

United States from sources which 

include loans insured or guaranteed by 

the United States and all other amounts 

due the United States from fees, leases, 

rents, royalties, services, sales of real or 

personal property, overpayments, 

penalties, damages, interest, fines and 

forfeitures (except those arising under 

the Uniform Code of Military Justice), 

and all other similar sources. 

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 in 

accordance with 31 U.S.C. 3711(g). 

Debtor means a Federal employee 

who owes a debt to the United States. 

Delinquent debt means a debt which 

the debtor does not pay or otherwise 

resolve by the date specified in the 

initial demand for payment, or in an 

applicable written repayment agreement 

or other instrument, including a postdelinquency repayment agreement. 

Department means the Department of 

Health and Human Services, its Staff 

Divisions, Operating Divisions, and 

Regional Offices. 

Disposable pay means that part of the 

debtor’s current basic, special, 

incentive, retired, and retainer pay, or 

other authorized pay, remaining after 

deduction of amounts required by law 

to be withheld. For purposes of 

calculating disposable pay, legally 

required deductions that must be 

applied first include: Tax levies 

pursuant to the Internal Revenue Code 

(title 26, United States Code); properly 

withheld taxes, FICA, Medicare; health 

and life insurance premiums; and 

retirement contributions. Amounts 

deducted under garnishment orders, 

including child support garnishment 

orders, are not legally required 

deductions for calculating disposable 

pay. 

Employee means any individual 

currently employed by an agency, as 

defined in this section, including 

seasonal and temporary employees and 

current members of the Armed Forces or 

a Reserve of the Armed Forces 

(Reserves). 

Evidence of service means 

information retained by the Department 

indicating the nature of the document to 

which it pertains, the date of mailing 

the document, and the address and 

name of the debtor to whom it is being 

sent. A copy of the dated and signed 

written notice of intent to offset 

provided to the debtor pursuant to this 

part may be considered evidence of 

service for purposes of this part. 

Evidence of service may be retained 

electronically so long as the manner of 

retention is sufficient for evidentiary 

purposes. 

Hearing means a review of the 

documentary evidence to confirm the 

existence or amount of a debt or the 

terms of a repayment schedule. If the 

Secretary determines that the issues in 

dispute cannot be resolved by such a 

review, such as when the validity of the 

claim turns on the issue of credibility or 


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10422 Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 

veracity, the Secretary may provide an 

oral hearing. 

Hearing official means a Departmental 

Appeals Board administrative law judge 

or appropriate alternate as outlined in 

§ 33.7(a)(2). 

Paying agency means the agency 

employing the individual and 

authorizing the payment of his or her 

current pay. 

Salary offset means an administrative 

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

5514 owed by a federal employee 

through deductions at one or more 

officially established pay intervals from 

the current pay account of the employee 

without his or her consent. 

Secretary means the Secretary of 

Health and Human Services, or the 

Secretary’s designee within any Staff 

Division, Operating Division or Regional 

Office. 

Waiver means the cancellation, 

remission, forgiveness, or non-recovery 

of a debt owed by an employee to this 

Department or another agency as 

required or permitted by 5 U.S.C. 5584, 

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

or any other law. 

§ 33.3 General rule. 

(a) Whenever a delinquent debt is 

owed to the Department by an 

employee, the Secretary may, subject to 

paragraphs (b) through (d) of this 

section, involuntarily offset the amount 

of the debt from the employee’s 

disposable pay. 

(b) Unless provided by another statute 

pertaining to a particular type of debt 

(e.g., 42 U.S.C. 292r, Health 

professionals education, 42 U.S.C. 297b, 

Nurse education), the Department may 

not initiate salary offset to collect a debt 

more than 10 years after the 

Government’s right to collect the debt 

first accrued, unless facts material to the 

Government’s right to collect the debt 

were not known and could not 

reasonably have been known by the 

official or officials of the Government 

who were charged with the 

responsibility to discover and collect 

such debts. 

(c) Except as provided in paragraph 

(d) of this section, prior to initiating 

collection through salary offset under 

this part, the Secretary must first 

provide the employee with the 

following: 

(1) Written notice of intent to offset as 

described in § 33.4; and 

(2) An opportunity to petition for a 

hearing, and, if a hearing is provided, to 

receive a written decision from the 

hearing official within 60 days on the 

following issues: 

(i) The determination of the 

Department concerning the existence or 

amount of the debt; and 

(ii) The repayment schedule, unless it 

was established by written agreement 

between the employee and Department. 

(d) The provisions of paragraph (c) of 

this section do not apply to: 

(1) Any adjustment to pay arising out 

of an employee’s election of coverage or 

a change in coverage under a federal 

benefits program requiring periodic 

deduction 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. 

§ 33.4 Notice requirements before offset. 

(a) At least 30 days before the 

initiation of salary offset under this part, 

the Secretary shall mail, by first class 

mail, to the employee’s last known 

address, a written notice informing the 

debtor of the following: 

(1) The Secretary has reviewed the 

records relating to the debt and has 

determined that a debt is owed, the 

amount of the debt, and the facts giving 

rise to the debt; 

(2) The Secretary’s intention to collect 

the debt by means of deduction from the 

employee’s current disposable pay 

account until the debt and all 

accumulated interest, penalties, and 

administrative costs are paid in full; 

(3) The amount, stated either as a 

fixed dollar amount or as a percentage 

of pay not to exceed 15 percent of 

disposable pay, the frequency, the 

commencement date, and the duration 

of the intended deductions; 

(4) An explanation of the 

Department’s policies concerning the 

assessment of interest, penalties, and 

administrative costs, stating that such 

assessments must be made unless 

waived in accordance with 31 CFR 

901.9 and § 30.18 of this title; 

(5) The employee’s right to inspect 

and copy all records of the Department 

pertaining to the debt or, if the 

employee or the employee’s 

representative cannot personally inspect 

the records, to request and receive 

copies of such records; 

(6) If not previously provided, the 

opportunity to establish a schedule for 

the voluntary repayment of the debt 

through offset, or to enter into an 

agreement to establish a schedule for 

repayment of the debt in lieu of offset, 

provided the agreement is in writing, 

signed by both the employee and the 

Department, and documented in the 

Department’s files; 

(7) The right to a hearing conducted 

by an impartial hearing official with 

respect to the existence and amount of 

the debt, or the repayment schedule, so 

long as a petition is filed by the 

employee as prescribed in § 33.6; 

(8) Time limitations and other 

procedures or conditions for inspecting 

Department records pertaining to the 

debt, establishing an alternative 

repayment agreement, and requesting a 

hearing; 

(9) The name, address, and telephone 

number of the person or office within 

the Department who may be contacted 

concerning the procedures for 

inspecting Department records, 

establishing an alternative repayment 

agreement, and requesting a hearing; 

(10) The name and address of the 

office within the Department to which 

the petition for a hearing should be sent, 

which generally will be the Operating 

Division or Staff Division responsible 

for collecting the debt; 

(11) A timely and properly filed 

petition for a hearing will stay the 

commencement of the collection 

proceeding; 

(12) The Department will initiate 

action to effect salary offset not less than 

30 days from the date of mailing the 

notice of intent, unless the employee 

properly files a timely petition for a 

hearing, 

(13) A final decision on a hearing, if 

one is requested, will be issued at the 

earliest practical date, but 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 proceeding; 

(14) Knowingly false or frivolous 

statements, representations or evidence 

may subject the employee to: 

(i) Disciplinary procedures 

appropriate under chapter 75 of title 5, 

United States Code; part 752 of title 5, 

Code of Federal Regulations; or any 

other applicable statutes or regulations; 


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Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 10423 

(ii) Penalties under the False Claims 

Act, 31 U.S.C. 3729–3731, or under any 

other applicable statutory authority; and 

(iii) Criminal penalties under 18 

U.S.C. 286, 287, 1001, and 1002, or 

under any other applicable statutory 

authority; 

(15) Any other rights and remedies 

available to the employee under statutes 

or regulations governing the program for 

which the collection is being made; 

(16) Unless there are applicable 

contractual or statutory provisions to 

the contrary, 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; and 

(17) Proceedings with respect to such 

debt are governed by 5 U.S.C. 5514. 

(b) The Secretary will retain evidence 

of service indicating the date of mailing 

of the notice. 

§ 33.5 Review of department records 

relating to the debt. 

(a) To inspect or copy Department 

records relating to the debt, the 

employee must send a written request to 

the Department official or office 

designated in the notice of intent to 

offset stating his or her intention. The 

written request must be received by the 

Department within 15 days from the 

employee’s receipt of the notice. 

(b) In response to a timely request as 

described in paragraph (a) of this 

section, the designated Department 

official shall notify the employee of the 

location and time when the employee 

may inspect and copy such records. If 

the employee or employee’s 

representative is unable to personally 

inspect such records as the result of 

geographical or other constraints, the 

Department shall arrange to send copies 

of such records to the employee. 

§ 33.6 Hearings. 

(a) Petitions for hearing. (1) To request 

a hearing concerning the existence or 

amount of the debt or the offset 

schedule established by the Department, 

the employee must send a written 

petition to the office designated in the 

notice of intent to offset, see 

§ 33.4(a)(10), within 15 days of receipt 

of the notice. 

(2) The petition must: 

(i) Be signed by the employee; 

(ii) Fully identify and explain with 

reasonable specificity all the facts, 

evidence, and witnesses, if any, that the 

employee believes support his or her 

position; and 

(iii) Specify whether an oral or paper 

hearing is requested. If an oral hearing 

is requested, the request should explain 

why the matter cannot be resolved by 

review of the documentary evidence 

alone. 

(3) The timely filing of a petition for 

hearing shall stay any further collection 

proceedings. 

(b) Failure to timely request. (1) If the 

petition for hearing is filed after the 15- 

day period provided for in paragraph 

(a)(1) of this section, the Secretary may 

grant the request if the employee can 

establish that the delay was the result of 

circumstances beyond the employee’s 

control, or that the employee failed to 

receive actual notice of the filing 

deadline. 

(2) An employee waives the right to 

a hearing, and will have his or her 

disposable pay offset in accordance with 

the offset schedule established by the 

Department, if the employee: 

(i) Fails to file a timely request for a 

hearing, unless such failure is excused; 

or 

(ii) Fails to appear at an oral hearing, 

of which the employee was notified, 

unless the hearing official determines 

that the failure to appear was due to 

circumstances beyond the employee’s 

control. 

(c) Form of hearings. (1) General. 

After the employee requests a hearing, 

the hearing official shall notify the 

employee of the form of the hearing to 

be provided. If the hearing will be oral, 

the notice shall set forth the date, time, 

and location of the hearing. If the 

hearing will be a review of the written 

record, the employee shall be notified 

that he or she should submit evidence 

and arguments in writing to the hearing 

official by a specified date, after which 

the record shall be closed. The date 

specified shall give the employee 

reasonable time to submit 

documentation. 

(2) Oral hearing. An employee who 

requests an oral hearing shall be 

provided an oral hearing if the hearing 

official determines that the matter 

cannot be resolved by review of 

documentary evidence alone because an 

issue of credibility or veracity is 

involved. Where an oral hearing is 

appropriate, the hearing is not an 

adversarial adjudication and need not 

take the form of an evidentiary hearing, 

i.e., the rules of evidence need not 

apply. Oral hearings may take the form 

of, but are not limited to: 

(i) Informal conferences with the 

hearing official in which the employee 

and agency representative will be given 

full opportunity to present evidence, 

witnesses, and arguments; 

(ii) Informal meetings in which the 

hearing official interviews the 

employee; or 

(iii) Formal written submissions with 

an opportunity for oral presentations. 

(3) Paper hearing. If the hearing 

official determines that an oral hearing 

is not necessary, the hearing official will 

make the determination based upon a 

review of the available written record. 

(4) Record. The hearing official shall 

maintain a summary record of any 

hearing conducted under this part. 

Witnesses who testify in oral hearings 

will do so under oath or affirmation. 

(d) Written decision. (1) Date of 

decision. The hearing officer 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 sixty (60) 

days after the date on which the hearing 

petition was received by the creditor 

agency, unless the employee requested 

a delay in the proceedings, in which 

case the 60-day decision period shall be 

extended by the number of days by 

which the hearing was postponed. The 

recipient of an employee’s request for a 

hearing must forward the request 

expeditiously to the Departmental 

Appeals Board so as to not jeopardize 

the Boards’s ability to issue a decision 

within this 60-day period. 

(2) Content of decision. The written 

decision shall include: 

(i) A statement of the facts presented 

to support the origin, nature, and 

amount of the debt; 

(ii) The hearing official’s findings, 

analysis, and conclusions, including a 

determination whether the employee’s 

petition for hearing was baseless and 

resulted from an intent to delay creditor 

agency collection activity; and 

(iii) The terms of any repayment 

schedule, if applicable. 

(e) Failure to appear. In the absence 

of good cause shown, an employee who 

fails to appear at a hearing shall be 

deemed, for the purpose of this part, to 

admit the existence and amount of the 

debt as described in the notice of intent. 

If the representative of the creditor 

agency fails to appear, the hearing 

official shall proceed with the hearing 

as scheduled and make a determination 

based upon oral testimony presented 

and the documentary evidence 

submitted by both parties. With the 

agreement of both parties, the hearing 

official shall schedule a new hearing 

date, and both parties shall be given 

reasonable notice of the time and place 

of the new hearing. 

§ 33.7 Obtaining the services of a hearing 

official. 

(a)(1) When the Department is the 

creditor agency, the office designated in 

§ 33.4(a)(10) shall schedule a hearing, if 

one is requested by an employee, before 

a hearing official. 


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10424 Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 

(2) When the Department cannot 

provide a prompt and appropriate 

hearing before an administrative law 

judge or a hearing official furnished 

pursuant to another lawful arrangement, 

the office designated in § 33.4(a)(10) 

may: 

(i) When the debtor is not an 

employee of the Department, contact an 

agent of the employee’s paying agency 

designated in 5 CFR part 581, Appendix 

A, to arrange for a hearing official; or 

(ii) When the debtor is an employee 

of the Department, contact an agent of 

any agency designated in 5 CFR part 

581, Appendix A, to arrange for a 

hearing official. 

(b)(1) When another agency is the 

creditor agency, it is the responsibility 

of that agency to arrange for a hearing 

if one is requested. The Department will 

provide a hearing official upon the 

request of a creditor agency when the 

debtor is employed by the Department 

and the creditor agency cannot provide 

a prompt and appropriate hearing before 

a hearing official furnished pursuant to 

another lawful arrangement. 

(2) Services rendered to a creditor 

agency under paragraph (b)(1) of this 

section will be provided on a fully 

reimbursable basis pursuant to the 

Economy Act of 1932, as amended, 31 

U.S.C. 1535. 

(c) The determination of a hearing 

official designated under this section is 

considered to be an official certification 

regarding the existence and amount of 

the debt for purposes of executing salary 

offset under 5 U.S.C. 5514 and this part. 

A creditor agency may make a 

certification to the Secretary of the 

Treasury under 5 CFR 550.1108 or a 

paying agency under 5 CFR 550.1109 

regarding the existence and amount of 

the debt based on the certification of a 

hearing official. If a hearing official 

determines that a debt may not be 

collected via salary offset, but the 

creditor agency finds that the debt is 

still valid, the creditor agency may still 

seek collection of the debt through other 

means, such as offset of other Federal 

payments or litigation. 

§ 33.8 Voluntary repayment agreement in 

lieu of salary offset. 

(a)(1) In response to the notice of 

intent to offset, the employee may 

propose to establish an alternative 

schedule for the voluntary repayment of 

the debt by submitting a written request 

to the Department official designated in 

the notice of intent to offset. An 

employee who wishes to repay the debt 

without salary offset shall also submit a 

proposed written repayment agreement. 

The proposal shall admit the existence 

of the debt, and the agreement must be 

in such form that it is legally 

enforceable. The agreement must: 

(i) Be in writing; 

(ii) Be signed by both the employee 

and the Department; 

(iii) Specify all the terms of the 

arrangement for payment; and 

(iv) Contain a provision accelerating 

the debt in the event of default by the 

employee, but such an increase may not 

result in a deduction that exceeds 15 

percent of the employee’s disposable 

pay unless the employee has agreed in 

writing to deduction of a greater 

amount. 

(2) Any proposal under paragraph 

(a)(1) of this section must be received by 

the Department within 30 days of the 

date of the notice of intent to offset. 

(b) In response to a timely request as 

described in paragraph (a) of this 

section, the designated Department 

official shall notify the employee 

whether the proposed repayment 

schedule is acceptable. It is within the 

Secretary’s discretion to accept a 

proposed alternative repayment 

schedule, and to set the necessary terms 

of a voluntary repayment agreement. 

(c) No voluntary repayment agreement 

will be binding on the Secretary unless 

it is in writing and signed by both the 

Secretary and the employee. 

§ 33.9 Special review. 

(a) A Department employee subject to 

salary offset or a voluntary repayment 

agreement may, at any time, request a 

special review by the Secretary of the 

amount of the salary offset or voluntary 

repayment installments, based on 

materially changed circumstances, such 

as, but not limited to, catastrophic 

illness, divorce, death, or disability. 

(b)(1) In determining whether an 

offset would prevent the employee from 

meeting essential subsistence expenses, 

e.g., food, housing, clothing, 

transportation, and medical care, the 

employee shall submit a detailed 

statement and supporting documents for 

the employee, his or her spouse, and 

dependents indicating: 

(i) Income from all sources; 

(ii) Assets and liabilities; 

(iii) Number of dependents; 

(iv) Food, housing, clothing, 

transportation, and medical expenses; 

and 

(v) Exceptional and unusual expenses, 

if any. 

(2) When requesting a special review 

under this section, the employee shall 

file an alternative proposed offset or 

payment schedule and a statement, with 

supporting documents as described in 

paragraph (b)(1) of this section, stating 

why the current salary offset or 

payments result in an extreme financial 

hardship to the employee. 

(c)(1) The Secretary shall evaluate the 

statement and supporting documents, 

and determine whether the original 

offset or repayment schedule imposes 

extreme financial hardship on the 

employee. 

(2) Within 30 calendar days of the 

receipt of the request and supporting 

documents, the Secretary shall notify 

the employee in writing of such 

determination, including, if appropriate, 

a revised offset or repayment schedule. 

(d) If the special review results in a 

revised offset or repayment schedule, 

the Secretary shall provide a new 

certification to the paying agency. 

§ 33.10 Procedures for salary offset. 

(a) Method and source of deductions. 

Unless the employee and the Secretary 

have agreed to an alternative repayment 

arrangement under § 33.8, a debt shall 

be collected in lump sum or by 

installment deductions at officially 

established pay intervals from an 

employee’s current pay account. 

(b) Limitation on amount of 

deduction. Ordinarily, the size of 

installment deductions must bear a 

reasonable relationship to the size of the 

debt and the employee’s ability to pay. 

However, the amount deducted for any 

pay period must not exceed 15 percent 

of the disposable pay from which the 

deduction is made, unless the employee 

has agreed in writing to the deduction 

of a greater amount, as outlined in 

§ 33.8. 

(c) Duration of deductions. (1) Lump 

sum. If the amount of the debt is equal 

to or less than 15 percent of the 

employee’s disposable pay for an 

officially established pay interval, the 

debt generally will be collected in one 

lump-sum deduction. 

(2) If the employee is deemed 

financially unable to pay in one lumpsum or the amount of the debt exceeds 

15 percent of the employee’s disposable 

pay for an officially established pay 

interval, the debt shall be collected in 

installments. Except as provided in 

paragraphs (e) and (f) of this section, 

installment deductions must be made 

over a period not greater than the 

anticipated period of active duty or 

employment. 

(d) When deductions may begin. (1) 

Deductions will begin on the date stated 

in the notice of intent, unless an 

alternative repayment agreement under 

§ 33.8 has been accepted or the 

employee has filed a timely request for 

a hearing. 

(2) If the employee files a timely 

petition for hearing as provided in 

§ 33.6, deductions will begin after the 

hearing official has provided the 

employee with a hearing and a final 


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Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 10425 

written decision has been rendered in 

favor of the Department. 

(e) Liquidation from final check. If an 

employee retires, resigns, or the period 

of employment ends before collection of 

the debt is completed, the remainder of 

the debt will be offset under 31 U.S.C. 

3716 from subsequent payments of any 

nature (e.g., final salary payment or 

lump-sum leave) due the employee from 

the paying agency as of the date of 

separation. 

(f) Recovery from other payments due 

a separated employee. If the debt cannot 

be satisfied by offset from any final 

payment due the employee on the date 

of separation, the Secretary will 

liquidate the debt, where appropriate, 

by administrative offset under 31 U.S.C. 

3716 from later payments of any kind 

due the former employee (e.g., lump 

sum leave payment). 

§ 33.11 Salary offset when the Department 

is the creditor agency but not the paying 

agency. 

(a) Centralized administrative offset. 

(1) Under 31 U.S.C. 3716, the 

Department shall notify the Secretary of 

the Treasury of all past-due, legally 

enforceable debts which are 180 days 

delinquent for purposes of collection by 

centralized administrative offset. This 

includes debts which the Department 

seeks to recover from the pay account of 

an employee of another agency via 

salary offset. The Secretary of the 

Treasury and other Federal disbursing 

officials will match payments, including 

Federal salary payments, against these 

debts. Where a match occurs, and all the 

requirements for offset have been met, 

the payments will be offset to collect the 

debt. 

(2) Prior to offset of the pay account 

of an employee, the Department must 

comply with the requirements of 5 

U.S.C. 5514; 5 CFR part 550, subpart K, 

and this part. Specific procedures for 

notifying the Secretary of the Treasury 

of a debt for purposes of collection by 

administrative offset, including salary 

offset, are contained in 31 CFR parts 285 

and 901 and part 30 of this title. 

(b) Non-centralized administrative 

offset. When salary offset through 

centralized administrative offset under 

paragraph (a) of this section is not 

possible, the Department may attempt to 

collect a debt through non-centralized 

administrative offset in accordance with 

part 30 of this title. 

(1) Format of the request. Upon 

completion of the procedures 

established in this part and pursuant to 

5 U.S.C. 5514, the Department shall: 

(i) 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 

Departmental regulations implementing 

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

the Office of Personnel Management. 

(ii) If the collection is to be made in 

installments, advise the paying agency 

of the number of installments to be 

collected, the amount or percentage of 

disposable pay to be collected in each 

installment, and the commencement 

date of the installments, if a date other 

than the next officially established pay 

period is required. 

(iii) Unless the employee has 

consented in writing to the salary 

deductions or signed a statement 

acknowledging receipt of the required 

procedures and this written consent or 

statement is forwarded to the paying 

agency, advise the paying agency of the 

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

this part, and give the date(s) the 

action(s) was taken. 

(2) Requesting recovery from current 

paying agency. (i) Except as otherwise 

provided in this paragraph, the 

Department shall submit a certified debt 

claim containing the information 

specified in paragraph (a) of this 

section, and an installment agreement, 

or other instruction on the payment 

schedule, if applicable, to the 

employee’s paying agency. 

(ii) If the employee is in the process 

of separating from the Federal 

Government, the Department shall 

submit the certified debt claim to the 

employee’s paying agency for collection 

as provided in § 33.10(e). The paying 

agency must certify the total amount of 

its collection on the debt and send a 

copy of the certification to the employee 

and another copy to the Department. If 

the paying agency’s collection does not 

fully satisfy the debt, and the paying 

agency is aware that the employee is 

entitled to payments from the Civil 

Service Retirement and Disability Fund, 

or other similar payments that may be 

due the employee from other Federal 

Government sources, the paying agency 

will provide written notification of the 

outstanding debt to the agency 

responsible for making such payments 

to the employee, stating the employee 

owes a debt, the amount of the debt, and 

that the provisions of this section have 

been fully complied with. The 

Department must submit a properly 

certified claim to the agency responsible 

for making such payments before the 

collection can be made. 

(iii) If the employee is already 

separated and all payments due from 

the employee’s former paying agency 

have been paid, the Department 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 or 5 CFR 845.401) or other 

similar funds, be administratively offset 

to collect the debt. See 31 U.S.C. 3716 

and 31 CFR 901.3. 

(iv) If the employee transfers to 

another paying agency, the Department 

must submit a properly certified debt 

claim to the new paying agency before 

collection can be resumed; however, the 

Department need not repeat the due 

process procedures described in 5 

U.S.C. 5514 and this part. The 

Department shall review the debt to 

ensure that collection is resumed by the 

new paying agency. 

§ 33.12 Salary offset when the Department 

is the paying agency but not the creditor 

agency. 

(a) Format of the request. (1) When 

the Department is the paying agency 

and another agency is the creditor 

agency, the creditor agency must certify, 

in writing, to the Department 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 creditor 

agency’s regulations implementing 5 

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

Office of Personnel Management. 

(2) If the collection is to be made in 

installments, the creditor agency must 

also advise the Department of the 

number of installments to be collected, 

the amount or percentage of disposable 

pay to be collected in each installment, 

and the commencement date of the 

installments, if a date other than the 

next officially established pay period is 

required. 

(3) Unless the employee has 

consented in writing to the salary 

deductions or signed a statement 

acknowledging receipt of the required 

procedures and the written consent or 

statement is forwarded to the 

Department, the creditor agency must 

advise the Department of the action(s) 

taken under 5 U.S.C. § 5514, and give 

the date(s) the action(s) was taken. 

(b) Requests for recovery. (1) 

Complete claim. When the Department 

receives a properly certified debt claim 

from a creditor agency, deductions 

should be scheduled to begin 

prospectively at the next officially 

established pay interval. The employee 

must receive written notice as described 

in § 33.10 that the Department has 

received a certified debt claim from the 

creditor agency, including the amount, 

and written notice of the date 

deductions from salary will commence 

and the amount of such deductions. 


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10426 Federal Register / Vol. 72, No. 45 / Thursday, March 8, 2007 / Rules and Regulations 

(2) Incomplete claim. When the 

Department receives an incomplete debt 

claim from a creditor agency, the 

Secretary shall return the debt claim 

with a notice that procedures under 5 

U.S.C. 5514 and 5 CFR part 550, subpart 

K, must be provided and a properly 

certified debt claim received before 

action will be taken to collect from the 

employee’s current pay account. 

(c) Review. The Secretary is not 

required or authorized to review the 

merits of the determination with respect 

to the amount or validity of the debt 

certified by the creditor agency. 

(d) Employees separating. If an 

employee begins separation action 

before the Department collects the total 

debt due the creditor agency, the 

following actions will be taken: 

(1) To the extent possible, the balance 

owed the creditor agency will be 

liquidated from a final salary check, or 

other final payments of any nature due 

the employee from the Department; 

(2) The Secretary will certify the total 

amount of the Department’s collection 

on the debt and send a copy of the 

certification to the employee and 

another copy to the creditor agency; and 

(3) If the Department’s collection does 

not fully satisfy the debt, and the 

Secretary is aware that the employee is 

entitled to payments from the Civil 

Service Retirement and Disability Fund, 

or other similar payments that may be 

due the employee from other Federal 

Government sources, the Secretary will 

provide written notification of the 

outstanding debt to the agency 

responsible for making such payments 

to the employee. The written 

notification shall state that the 

employee owes a debt, the amount of 

the debt, and that the provisions of this 

section have been fully complied with. 

The Department shall furnish a copy of 

this written notification to the creditor 

agency so that it can file a properly 

certified debt claim with the agency 

responsible for making such payments. 

(e) Employees who transfer to another 

paying agency. If, after the creditor 

agency has submitted a debt claim to the 

Department, the employee transfers 

from the Department to a different 

paying agency before the debt is 

collected in full, the Secretary shall: 

(1) Certify the total amount of the 

collection made on the debt; and 

(2) Furnish a copy of the certification 

to the employee and another copy to the 

creditor agency along with notice of the 

employee’s transfer. 

§ 33.13 Interest, penalties, and 

administrative costs. 

Debts owed to the Department shall 

be assessed interest, penalties and 

administrative costs in accordance with 

45 CFR 30.18. 

§ 33.14 Non-waiver of rights. 

An employee’s involuntary payment 

of all or any portion of a debt collected 

under this part shall not be construed as 

a waiver of any rights which the 

employee may have under 5 U.S.C. 5514 

or any other provision of law or 

contract, unless there are statutory or 

contractual provisions to the contrary. 

§ 33.15 Refunds. 

(a) The Secretary shall promptly 

refund any amounts paid or deducted 

under this part when: 

(1) A debt is waived or otherwise 

found not owing to the United States; or 

(2) The employee’s paying agency is 

directed by administrative or judicial 

order to refund amount deducted from 

the employee’s current pay. 

(b) Unless required or permitted by 

law or contract, refunds shall not bear 

interest. 

§ 33.16 Additional administrative 

collection action. 

Nothing contained in this part is 

intended to preclude the use of any 

other appropriate administrative 

remedy. 

Dated: November 27, 2006. 

Michael O. Leavitt, 

Secretary. 

[FR Doc. E7–4005 Filed 3–7–07; 8:45 am] 

BILLING CODE 4150–26–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 060606150–6240–02; I.D. 

030107A] 

Magnuson-Stevens Fishery 

Conservation and Management Act 

Provisions; Fisheries of the 

Northeastern United States; Northeast 

Multispecies Fishery; Modification of 

the Gear Restrictions and Georges 

Bank Yellowtail Flounder Trip Limits 

for the U.S./Canada Management Area 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Temporary rule; gear 

restriction, trip limit. 

SUMMARY: NMFS announces that the 

Administrator, Northeast (NE) Region, 

NMFS (Regional Administrator), is 

eliminating the haddock separator trawl 

requirement, which was temporarily 

implemented on June 19, 2006, for all 

limited access NE multispecies vessels 

fishing with trawl gear on a NE 

multispecies day-at-sea (DAS), and is 

reducing from 10,000 lb (4,536 kg) to 

5,000 lb (2,268 kg) the trip limit for 

Georges Bank (GB) yellowtail flounder 

for all NE multispecies vessels fishing 

without a haddock separator trawl on a 

NE multispecies DAS in the Eastern 

U.S./Canada Area. This temporary 

reduction in the GB yellowtail flounder 

trip limit is effective through April 30, 

2007. A projection based on available 

catch and discard information indicates 

that removal of the haddock separator 

trawl requirement and establishment of 

a 5,000–lb (2,268 kg) trip limit for GB 

yellowtail flounder in the Eastern U.S./ 

Canada Area will help vessels achieve 

the total allowable catch (TAC) limits 

established for the shared U.S./Canada 

stocks of cod, haddock, and yellowtail 

flounder while preventing the GB 

yellowtail flounder TAC from being 

exceeded before the end of the 2006 

fishing year on April 30, 2007. This 

action is therefore intended to provide 

increased opportunities to harvest the 

healthy Eastern GB haddock TAC and 

maximize the harvest of the GB 

yellowtail flounder. This action is 

authorized by the regulations 

implementing Framework 42 to the NE 

Multispecies Fishery Management Plan 

(FMP) under the authority of the 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act). 

DATES: Effective March 5, 2007, through 

April 30, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Mark Grant, Fishery Management 

Specialist, (978) 281–9145, fax (978) 

281–9135. 

SUPPLEMENTARY INFORMATION: The U.S. 

portion of the U.S./Canada Area TACs 

for GB cod, GB haddock, and GB 

yellowtail flounder for the 2006 fishing 

year (May 1, 2006–April 30, 2007) were 

specified at 374 mt, 7,480 mt, and 2,070 

mt, respectively, on April 28, 2006 (71 

FR 25095). Pursuant to 

§ 648.85(a)(3)(iv)(E), once the available 

TAC for GB cod, GB haddock, or GB 

yellowtail flounder is projected to be 

caught, the Regional Administrator is 

required to close the Eastern U.S./ 

Canada Area to all NE multispecies DAS 

vessels for the remainder of the fishing 

year. The FMP requires trawl vessels 

issued a valid limited access NE 

multispecies permit and fishing under a 

NE multispecies DAS in the Eastern 

U.S./Canada Area to fish with either a 

haddock separator trawl or a flounder 

net. Prohibitions governing the gear 


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