Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 18869 

FDC date State City Airport FDC No. Subject 

03/21/07 ............. MN WARROAD .......... WARROAD INTL—SWEDE CARLSON FIELD.7/5383 ILS RWY 31, AMDT 1. 

03/26/07 ............. SC BEAUFORT .......... BEAUFORT COUNTY ........................ 7/6551 RADAR–1, AMDT 3. 

03/29/07 ............. CA LONG BEACH ..... LONG BEACH/DAUGHERTY FIELD 7/6572 RNAV (RNP) RWY 12, ORIG. 

04/05/07 ............. FL TAMPA ................. TAMPA INTL ...................................... 7/7163 RNAV (RNP) Y RWY 18L, ORIG–B. 

04/05/07 ............. FL FORT LAUDERDALE.FORT LAUDERDALE/HOLLYWOOD 

INTL.

7/7165 RNAV (RNP) Z RWY 9R, ORIG–A. 

04/05/07 ............. FL FORT LAUDERDALE.FORT LAUDERDALE/HOLLYWOOD 

INTL.

7/7166 RNAV (RNP) Y RWY 9L, ORIG–A. 

04/05/07 ............. SC BARNWELL ......... BARNWELL COUNTY ....................... 7/7240 TAKEOFF MINIMUMS AND OBSTACLE DP, AMDT 1. 

05/04/07 ............. FL FORT LAUDERDALE.FORT LAUDERDALE/HOLLYWOOD 

INTL.

7/7164 RNAV (RNP) Z RWY 27R, ORIG–A. 

[FR Doc. E7–7061 Filed 4–13–07; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Office of the Secretary 

15 CFR Parts 19, 21 and 22 

[Docket Number: 070216039–7040–01] 

RIN: 0605–AA24 

Commerce Debt Collection 

AGENCY: Office of the Chief Financial 

Officer and Assistant Secretary for 

Administration, Department of 

Commerce. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule revises the 

Department of Commerce (Commerce 

Department or Commerce) debt 

collection regulations to conform to the 

Debt Collection Improvement Act of 

1996, the revised Federal Claims 

Collection Standards, and other laws 

applicable to the collection of non-tax 

debts owed to the Commerce 

Department. This rule also revises 

Commerce’s regulations governing the 

offset of Commerce-issued payments to 

collect debts owed to other Federal 

agencies. 

DATES: This rule is effective May 16, 

2007; comments must be received on or 

before May 16, 2007. 

ADDRESSES: Send comments to the 

Deputy Chief Financial Officer, Office of 

Financial Management, Department of 

Commerce, 1401 Constitution Avenue, 

NW., Room 6827, Washington, DC 

20230. Comments also may be 

submitted by electronic mail to 

OFMOffice@doc.gov. 

FOR FURTHER INFORMATION CONTACT: Lisa 

Casias, Deputy Chief Financial Officer 

and Director for Financial Management, 

Office of Financial Management, at 

(202) 482–1207, Department of 

Commerce, 1401 Constitution Avenue, 

NW., Room 6827, Washington, DC 

20230. This document is available for 

downloading from the Department of 

Commerce, Office of Financial 

Management’s Web site at the following 

address: http://osec.doc.gov/ofm/ 

OFM%20Publications.htm. 

SUPPLEMENTARY INFORMATION: 

Background 

This rule revises and replaces 

Department of Commerce (Commerce 

Department or Commerce) debt 

collection regulations found at 15 CFR 

Parts 19, 21 and 22 to conform to the 

Debt Collection Improvement Act of 

1996 (DCIA), Public Law 104–134, 110 

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

revised Federal Claims Collection 

Standards, 31 CFR Chapter IX (Parts 900 

through 904), and other laws applicable 

to the collection of non-tax debt owed 

to the Government. 

This regulation provides procedures 

for the collection of non-tax debts owed 

to Commerce Department entities. 

Commerce adopts the Government-wide 

debt collection standards promulgated 

by the Departments of the Treasury and 

Justice, known as the Federal Claims 

Collection Standards (FCCS), as revised 

on November 22, 2000 (65 FR 70390), 

and supplements the FCCS by 

prescribing procedures consistent with 

the FCCS, as necessary and appropriate 

for Commerce operations. This 

regulation also provides the procedures 

for the collection of debts owed to other 

Federal agencies when a request for 

offset is received by Commerce. 

This regulation does not apply to the 

collection of tax debts, which is 

governed by the Internal Revenue Code 

of 1986 (26 U.S.C. 1 et seq.) and 

regulations, policies and procedures 

issued by the Internal Revenue Service. 

This regulation does not contain a 

section regarding the delegation of debt 

collection authority within the 

Commerce Department. The delegation 

is contained in the Department of 

Commerce Credit and Debt Management 

Operating Procedures Handbook 

(currently available at http:// 

www.osec.doc.gov/ofm/credit/ 

cover.htm), and does not need to be 

included in the revised regulation. 

Nothing in this regulation precludes 

the use of collection remedies not 

contained in this regulation. For 

example, Commerce entities may collect 

unused travel advances through setoff of 

an employee’s pay under 5 U.S.C. 5705. 

Commerce entities and other Federal 

agencies may simultaneously use 

multiple collection remedies to collect a 

debt, except as prohibited by law. 

Commerce entities may, but are not 

required to, promulgate additional 

policies and procedures consistent with 

this regulation, the FCCS, and other 

applicable Federal laws, policies, and 

procedures, subject to the approval of 

the Deputy Chief Financial Officer. 

Section Analysis 

Subpart A—Sections 19.1 Through 19.3 

Subpart A of this regulation addresses 

the general provisions applicable to the 

collection of non-tax debts owed to 

Commerce, including to offices and 

bureaus (collectively referred to as 

Commerce entities). Commerce offices 

currently include the Office of the 

Secretary of Commerce, and the Office 

of Inspector General. Commerce bureaus 

currently include the Bureau of Industry 

and Security, the Economics and 

Statistics Administration (including the 

Bureau of Economic Analysis, and the 

Bureau of the Census), the Economic 

Development Administration, the 

International Trade Administration, the 

Minority Business Development 

Agency, the National Oceanic and 

Atmospheric Administration, the 

National Telecommunications and 

Information Administration, the U.S. 

Patent and Trademark Office, and the 

Technology Administration (including 

the National Institute of Standards and 

Technology, and the National Technical 

Information Service). 


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As stated in Section 19.2 of this 

interim final rule, nothing in this 

regulation requires a Commerce entity 

to duplicate notices or administrative 

proceedings required by contract, this 

regulation or other laws or regulations, 

including but not limited to financial 

assistance awards or related regulations 

(including those relating to grants, 

cooperative agreements, loans or loan 

guarantees). Thus, for example, a 

Commerce entity is not required to 

provide a debtor with two hearings on 

the same issue merely because the entity 

uses two different collection tools, each 

of which requires that the debtor be 

provided with a hearing. 

Subpart B—Sections 19.4 Through 19.19 

Subpart B of this regulation describes 

the procedures to be followed by 

Commerce entities when collecting 

debts owed to the Commerce 

Department. Among other things, 

subpart B outlines the due process 

procedures Commerce entities are 

required to follow when using offset 

(administrative, tax refund and salary) 

to collect a Commerce debt, when 

garnishing a debtor’s wages, or before 

reporting a Commerce debt to a credit 

bureau. Specifically, Commerce entities 

are required to provide debtors with 

notice of the amount and type of 

Commerce debt, the intended collection 

action to be taken, how a debtor may 

pay the Commerce debt or make 

alternate repayment arrangements, how 

a debtor may review documents related 

to the Commerce debt, how a debtor 

may dispute the Commerce debt, and 

the consequences to the debtor if the 

Commerce debt is not paid. This 

regulation does not require Commerce 

entities to send notices by certified mail. 

The Commerce Department has 

determined that the certified mail 

requirement imposes an unnecessary 

administrative burden and expense. 

Notices may be sent by first-class mail, 

and if not returned by the United States 

Postal Service, Commerce entities may 

presume that the notice was received. 

See Rosenthal v. Walker, 111 U.S. 185 

(1884); Mahon v. Credit Bureau of 

Placer County Incorporated, 171 F.3d 

1197 (9th Cir. 1999). Nothing in these 

regulations precludes the use of other 

forms of delivery of notice which are 

either required by statute or contract or 

are intended to effect prompt delivery of 

the notice under appropriate 

circumstances, including the use of 

certified mail, express mail or hand 

delivery. 

Subpart B also explains the 

circumstances under which Commerce 

entities may waive interest, penalties 

and administrative costs. 

This regulation updates Commerce 

Department procedures to reflect 

changes required by the DCIA. For 

example, the DCIA centralized the use 

of offset by requiring agencies to refer 

debts delinquent more than 180 days to 

the Financial Management Service for 

offset. See 31 U.S.C. 3716(c)(6). The 

Financial Management Service 

disburses millions of Federal payments 

annually and is required to offset 

payments to persons who owe 

delinquent debts to the Government. 

Prior to the DCIA, agencies were 

required to contact the particular agency 

issuing a payment in order to initiate 

the offset of a Federal payment. This 

regulation also incorporates procedures 

for several collection remedies 

authorized by the DCIA, such as 

administrative wage garnishment and 

barring delinquent debtors from 

obtaining additional Federal loan 

assistance. 

This regulation does not specify the 

dollar threshold for which legal 

approval of compromises or suspension 

or termination of debt collection activity 

is required. This information is 

contained in the Department of 

Commerce Credit and Debt Management 

Operating Procedures Handbook 

(currently located at http:// 

www.osec.doc.gov/ofm/credit/ 

cover.htm). 

Subpart C—Sections 19.20 and 19.21 

Subpart C of this regulation describes 

the procedures to be followed when a 

Federal agency, other than a Commerce 

entity, would like to use the offset 

process to collect a debt from a non-tax 

payment issued by the Commerce 

Department as a payment agency. This 

is distinguished from the offset of 

payments disbursed by the Treasury 

Department’s Financial Management 

Service in its capacity as disbursing 

agency for the Federal Government. The 

offset of payments disbursed by the 

Financial Management Service, 

including tax refund payments issued 

by the Internal Revenue Service and 

social security benefit payments issued 

by the Social Security Administration, 

is conducted through the Treasury 

Offset Program and is governed by 

regulations found at 31 CFR part 285, as 

well as agency-specific regulations. 

Subpart C of this regulation governs the 

process for offsets that occur on an ad 

hoc, case-by-case basis to collect debts 

from payments made by the Commerce 

Department to its employees, its 

vendors, its financial assistance award 

recipients (including recipients of 

grants, cooperative agreements, loans or 

loan guarantees), and others to whom 

the Commerce Department is required 

or authorized to pay. While centralized 

offset through the Treasury Offset 

Program is the Government’s primary 

offset collection tool, this regulation 

provides the procedures to be used 

when centralized offset is otherwise not 

available or appropriate. An agency’s 

use of the non-centralized 

administrative offset process shall not 

provide grounds to invalidate any offset 

on the basis that centralized offset was 

not used. 

Regulatory Analysis 

E.O. 12866, Regulatory Review 

This rule is not a significant 

regulatory action as defined in 

Executive Order 12866. 

Administrative Procedure Act 

The Commerce Department is 

promulgating this interim final rule 

without prior notice and opportunity for 

public comment pursuant to the 

Administrative Procedure Act, 5 U.S.C. 

553 (APA) because this rule is exempt 

under 5 U.S.C. 553(a)(2). This regulation 

provides procedures for the collection of 

non-tax debts owed to Commerce 

Department entities. Commerce adopts 

the Government-wide debt collection 

standards promulgated by the 

Departments of the Treasury and Justice, 

known as the Federal Claims Collection 

Standards (FCCS), as revised on 

November 22, 2000 (65 FR 70390), and 

supplements the FCCS by prescribing 

procedures consistent with the FCCS, as 

necessary and appropriate for 

Commerce operations. This regulation 

also provides the procedures for the 

collection of debts owed to other 

Federal agencies when a request for 

offset is received by Commerce. 

Although prior notice of this rulemaking 

and opportunity for public comment are 

not required under the APA (see 5 

U.S.C. 553(b)), the public is invited to 

submit comments on the interim final 

rule. 

Regulatory Flexibility Act 

Because notice of proposed 

rulemaking and opportunity for 

comment are not required pursuant to 5 

U.S.C. 553, or any other law, the 

analytical requirements of the 

Regulatory Flexibility act (5 U.S.C. 601, 

et seq.) are inapplicable. Therefore, a 

regulatory flexibility analysis is not 

required and has not been prepared. 

List of Subjects in 15 CFR Part 19 

Administrative practice and 

procedure, Claims, Debts, Garnishment 

of wages, Government employee, 

Hearing and appeal procedures, Pay 

administration, Salaries, Wages. 


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Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 18871 

Authority and Issuance 

For the reasons set forth in the 

preamble, and under the authority of 31 

U.S.C. 3701, et seq., the Commerce 

Department amends 15 CFR subtitle A 

as follows: 

■ 1. Part 19 is revised to read as follows: 

PART 19—COMMERCE DEBT 

COLLECTION 

Subpart A—General Provisions 

Sec. 

19.1 What definitions apply to the 

regulations in this Part? 

19.2 Why has the Commerce Department 

issuing these regulations and what do 

they cover? 

19.3 Do these regulations adopt the Federal 

Claims Collection Standards (FCCS)? 

Subpart B—Procedures to Collect 

Commerce Debts 

19.4 What notice will Commerce entities 

send to a debtor when collecting a 

Commerce debt? 

19.5 How will Commerce entities add 

interest, penalty charges, and 

administrative costs to a Commerce 

debt? 

19.6 When will Commerce entities allow a 

debtor to pay a Commerce debt in 

installments instead of one lump sum? 

19.7 When will Commerce entities 

compromise a Commerce debt? 

19.8 When will Commerce entities suspend 

or terminate debt collection on a 

Commerce debt? 

19.9 When will Commerce entities transfer 

a Commerce debt to the Treasury 

Department’s Financial Management 

Service for collection? 

19.10 How will Commerce entities use 

administrative offset (offset of non-tax 

Federal payments) to collect a Commerce 

debt? 

19.11 How will Commerce entities use tax 

refund offset to collect a Commerce debt? 

19.12 How will Commerce entities offset a 

Federal employee’s salary to collect a 

Commerce debt? 

19.13 How will Commerce entities use 

administrative wage garnishment to 

collect a Commerce debt from a debtor’s 

wages? 

19.14 How will Commerce entities report 

Commerce debts to credit bureaus? 

19.15 How will Commerce entities refer 

Commerce debts to private collection 

agencies? 

19.16 When will Commerce entities refer 

Commerce debts to the Department of 

Justice? 

19.17 Will a debtor who owes a Commerce 

or other Federal agency debt, and 

persons controlled by or controlling such 

debtors, be ineligible for Federal loan 

assistance, grants, cooperative 

agreements, or other sources of Federal 

funds or for Federal licenses, permits or 

privileges? 

19.18 How does a debtor request a special 

review based on a change in 

circumstances such as catastrophic 

illness, divorce, death, or disability? 

19.19 Will Commerce entities issue a 

refund if money is erroneously collected 

on a Commerce debt? 

Subpart C—Procedures for Offset of 

Commerce Department Payments to Collect 

Debts Owed to Other Federal Agencies 

19.20 How do other Federal agencies use 

the offset process to collect debts from 

payments issued by a Commerce entity? 

19.21 What does a Commerce entity do 

upon receipt of a request to offset the 

salary of a Commerce entity employee to 

collect a debt owed by the employee to 

another Federal agency? 

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

Subpart A—General Provisions 

§ 19.1 What definitions apply to the 

regulations in this Part? 

As used in this Part: 

Administrative offset or offset means 

withholding funds payable by the 

United States (including funds payable 

by the United States on behalf of a state 

government) to, or held by the United 

States for, a person to satisfy a debt 

owed by the person. The term 

‘‘administrative offset’’ can include, but 

is not limited to, the offset of Federal 

salary, vendor, retirement, and Social 

Security benefit payments. The terms 

‘‘centralized administrative offset’’ and 

‘‘centralized offset’’ refer to the process 

by which the Treasury Department’s 

Financial Management Service offsets 

Federal payments through the Treasury 

Offset Program. 

Administrative wage garnishment 

means the process by which a Federal 

agency orders a non-Federal employer 

to withhold amounts from a debtor’s 

wages to satisfy a debt, as authorized by 

31 U.S.C. 3720D, 31 CFR 285.11, and 

this Part. 

Agency or Federal 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. 

Commerce debt means a debt owed to 

a Commerce entity by a person. 

Commerce Department means the 

United States Department of Commerce. 

Commerce entity means a component 

of the Commerce Department, including 

offices or bureaus. Commerce offices 

currently include the Office of the 

Secretary of Commerce, and the Office 

of Inspector General. Commerce bureaus 

currently include the Bureau of Industry 

and Security, the Economics and 

Statistics Administration (including the 

Bureau of Economic Analysis, and the 

Bureau of the Census), the Economic 

Development Administration, the 

International Trade Administration, the 

Minority Business Development 

Agency, the National Oceanic and 

Atmospheric Administration, the 

National Telecommunications and 

Information Administration, the U.S. 

Patent and Trademark Office, and the 

Technology Administration (including 

the National Institute of Standards and 

Technology, and the National Technical 

Information Service). 

Creditor agency means any Federal 

agency that is owed a debt. 

Day means calendar day except when 

express reference is made to business 

day, which reference shall mean 

Monday through Friday. For purposes of 

time computation, the last day of the 

period provided will be included in the 

calculation unless that day is a 

Saturday, a Sunday, or a Federal legal 

holiday; in which case, the next 

business day will be included. 

Debt 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 a person. As used 

in this Part, the term ‘‘debt’’ can include 

a Commerce debt but does not include 

debts arising under the Internal Revenue 

Code of 1986 (26 U.S.C. 1 et seq.). 

Debtor means a person who owes a 

debt to the United States. 

Delinquent debt means a debt that has 

not been paid by the date specified in 

the agency’s initial written demand for 

payment or applicable agreement or 

instrument (including a postdelinquency payment agreement) unless 

other satisfactory payment arrangements 

have been made. 

Delinquent Commerce debt means a 

delinquent debt owed to a Commerce 

entity. 

Disposable pay has the same meaning 

as that term is defined in 5 CFR 

550.1103. 

Employee or Federal employee means 

a current employee of the Commerce 

Department or other Federal agency, 

including a current member of the 

uniformed services, including the Army, 

Navy, Air Force, Marine Corps, Coast 

Guard, Commissioned Corps of the 

National Oceanic and Atmospheric 

Administration, and Commissioned 

Corps of the Public Health Service, 

including the National Guard and the 

reserve forces of the uniformed services. 

FCCS means the Federal Claims 

Collection Standards, which were 

jointly published by the Departments of 

the Treasury and Justice and codified at 

31 CFR Parts 900–904. 

Financial Management Service means 

the Financial Management Service, a 

bureau of the Treasury Department, 

which is responsible for the centralized 

collection of delinquent debts through 


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18872 Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 

the offset of Federal payments and other 

means. 

Payment agency or Federal payment 

agency means any Federal agency that 

transmits payment requests in the form 

of certified payment vouchers, or other 

similar forms, to a disbursing official for 

disbursement. The payment agency may 

be the agency that employs the debtor. 

In some cases, the Commerce 

Department may be both the creditor 

agency and payment agency. 

Person means an individual, 

corporation, partnership, association, 

organization, State or local government 

or any other type of entity other than a 

Federal agency. 

Salary offset means a type of 

administrative offset to collect a debt 

under 5 CFR 5514 by deductions(s) at 

one or more officially established pay 

intervals from the current pay account 

of an employee without his or her 

consent. 

Secretary means the Secretary of 

Commerce. 

Tax refund offset is defined in 31 CFR 

285.2(a). 

§ 19.2 Why has the Commerce Department 

issuing these regulations and what do they 

cover? 

(a) Scope. This Part provides 

procedures for the collection of 

Commerce debts. This Part also 

provides procedures for collection of 

other debts owed to the United States 

when a request for offset of a payment 

for which Commerce is the payment 

agency is received by the Commerce 

Department from another agency (for 

example, when a Commerce Department 

employee owes a debt to the United 

States Department of Education). 

(b) Applicability. (1) This Part applies 

to the Commerce Department when 

collecting a Commerce debt, to persons 

who owe Commerce debts, to persons 

controlled by or controlling persons 

who owe Federal agency debts, and to 

Federal agencies requesting offset of a 

payment issued by the Commerce 

Department as a payment agency 

(including salary payments to 

Commerce Department employees). 

(2) This Part does not apply to tax 

debts nor to any debt for which there is 

an indication of fraud or 

misrepresentation, as described in 

§ 900.3 of the FCCS, unless the debt is 

returned by the Department of Justice to 

the Commerce Department for handling. 

(3) Nothing in this Part precludes 

collection or disposition of any debt 

under statutes and regulations other 

than those described in this Part. See, 

for example, 5 U.S.C. 5705, 

Advancements and Deductions, which 

authorizes Commerce entities to recover 

travel advances by offset of up to 100% 

of a Federal employee’s accrued pay. 

See, also, 5 U.S.C. 4108, governing the 

collection of training expenses. To the 

extent that the provisions of laws, other 

regulations, and Commerce Department 

enforcement policies differ from the 

provisions of this Part, those provisions 

of law, other regulations, and Commerce 

Department enforcement policies apply 

to the remission or mitigation of fines, 

penalties, and forfeitures, and to debts 

arising under the tariff laws of the 

United States, rather than the provisions 

of this Part. 

(c) Additional policies and 

procedures. Commerce entities may, but 

are not required to, promulgate 

additional policies and procedures 

consistent with this Part, the FCCS, and 

other applicable Federal law, policies, 

and procedures, subject to the approval 

of Deputy Chief Financial Officer. 

(d) Duplication not required. Nothing 

in this Part requires a Commerce entity 

to duplicate notices or administrative 

proceedings required by contract, this 

Part, or other laws or regulations, 

including but not limited to those 

required by financial assistance awards 

such as grants, cooperative agreements, 

loans or loan guarantees. 

(e) Use of multiple collection 

remedies allowed. Commerce entities 

and other Federal agencies may 

simultaneously use multiple collection 

remedies to collect a debt, except as 

prohibited by law. This Part is intended 

to promote aggressive debt collection, 

using for each debt all available and 

appropriate collection remedies. These 

remedies are not listed in any 

prescribed order to provide Commerce 

entities with flexibility in determining 

which remedies will be most efficient in 

collecting the particular debt. 

(f) All citations in this Part, such as 

to statutes, regulations and the 

Department of Commerce Credit and 

Debt Management Operating Procedures 

Handbook, are intended to be references 

to cited sources as each currently stands 

and as each may be amended from time 

to time. 

§ 19.3 Do these regulations adopt the 

Federal Claims Collection Standards 

(FCCS)? 

This Part adopts and incorporates all 

provisions of the FCCS. This Part also 

supplements the FCCS by prescribing 

procedures consistent with the FCCS, as 

necessary and appropriate for 

Commerce Department operations. 

Subpart B—Procedures to Collect 

Commerce Debts 

§ 19.4 What notice will Commerce entities 

send to a debtor when collecting a 

Commerce debt? 

(a) Notice requirements. Commerce 

entities shall aggressively collect 

Commerce debts. Commerce entities 

shall promptly send at least one written 

notice to a debtor informing the debtor 

of the consequences of failing to pay or 

otherwise resolve a Commerce debt. The 

notice(s) shall be sent to the debtor at 

the most current address of the debtor 

in the records of the Commerce entity 

collecting the Commerce debt. 

Generally, before starting the collection 

actions described in §§ 19.5 and 19.9 

through 19.17 of this Part, Commerce 

entities will send no more than two 

written notices to the debtor. The 

notice(s) explain why the Commerce 

debt is owed, the amount of the 

Commerce debt, how a debtor may pay 

the Commerce debt or make alternate 

repayment arrangements, how a debtor 

may review non-privileged documents 

related to the Commerce debt, how a 

debtor may dispute the Commerce debt, 

the collection remedies available to 

Commerce entities if the debtor refuses 

or otherwise fails to pay the Commerce 

debt, and other consequences to the 

debtor if the Commerce debt is not paid. 

Except as otherwise provided in 

paragraph (b) of this section, the written 

notice(s) shall explain to the debtor: 

(1) The nature and amount of the 

Commerce debt, and the facts giving rise 

to the Commerce debt; 

(2) How interest, penalties, and 

administrative costs are added to the 

Commerce debt, the date by which 

payment should be made to avoid such 

charges, and that such assessments must 

be made unless excused in accordance 

with 31 CFR 901.9 (see § 19.5 of this 

Part); 

(3) The date by which payment 

should be made to avoid the enforced 

collection actions described in 

paragraph (a)(6) of this section; 

(4) The Commerce entity’s willingness 

to discuss alternative payment 

arrangements and how the debtor may 

enter into a written agreement to repay 

the Commerce debt under terms 

acceptable to the Commerce entity (see 

§ 19.6 of this Part); 

(5) The name, address, and telephone 

number of a contact person or office 

within the Commerce entity; 

(6) The Commerce entity’s intention 

to enforce collection by taking one or 

more of the following actions if the 

debtor fails to pay or otherwise resolve 

the Commerce debt: 


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(i) Offset. Offset the debtor’s Federal 

payments, including income tax 

refunds, salary, certain benefit payments 

(such as Social Security), retirement, 

vendor, travel reimbursements and 

advances, and other Federal payments 

(see §§ 19.10 through 19.12 of this Part); 

(ii) Private collection agency. Refer 

the Commerce debt to a private 

collection agency (see § 19.15 of this 

Part); 

(iii) Credit bureau reporting. Report 

the Commerce debt to a credit bureau 

(see § 19.14 of this Part); 

(iv) Administrative wage garnishment. 

Garnish the individual debtor’s wages 

through administrative wage 

garnishment (see § 19.13 of this Part); 

(v) Litigation. Refer the Commerce 

debt to the Department of Justice to 

initiate litigation to collect the 

Commerce debt (see § 19.16 of this Part); 

(vi) Treasury Department’s Financial 

Management Service. Refer the 

Commerce debt to the Financial 

Management Service for collection (see 

§ 19.9 of this Part); 

(7) That Commerce debts over 180 

days delinquent must be referred to the 

Financial Management Service for the 

collection actions described in 

paragraph (a)(6) of this section (see 

§ 19.9 of this Part); 

(8) How the debtor may inspect and 

copy non-privileged records related to 

the Commerce debt; 

(9) How the debtor may request a 

review of the Commerce entity’s 

determination that the debtor owes a 

Commerce debt and present evidence 

that the Commerce debt is not 

delinquent or legally enforceable (see 

§§ 19.10(c) and 19.11(c) of this Part); 

(10) How a debtor who is an 

individual may request a hearing if the 

Commerce entity intends to garnish the 

debtor’s private sector (i.e., non-Federal) 

wages (see § 19.13(a) of this Part), 

including: 

(i) The method and time period for 

requesting a hearing; 

(ii) That a request for a hearing, timely 

filed on or before the 15th business day 

following the date of the mailing of the 

notice, will stay the commencement of 

administrative wage garnishment, but 

not other collection procedures; and 

(iii) The name and address of the 

office to which the request for a hearing 

should be sent. 

(11) How a debtor who is an 

individual and a Federal employee 

subject to Federal salary offset may 

request a hearing (see § 19.12(e) of this 

Part), including: 

(i) The method and time period for 

requesting a hearing; 

(ii) That a request for a hearing, timely 

filed on or before the 15th day following 

receipt of the notice, will stay the 

commencement of salary offset, but not 

other collection procedures; 

(iii) The name and address of the 

office to which the request for a hearing 

should be sent; 

(iv) That the Commerce entity will 

refer the Commerce debt to the debtor’s 

employing agency or to the Financial 

Management Service to implement 

salary offset, unless the employee files 

a timely request for a hearing; 

(v) That a final decision on the 

hearing, if requested, will be issued at 

the earliest practical date, but not later 

than 60 days after the filing of the 

request for a hearing, unless the 

employee requests and the hearing 

official grants a delay in the 

proceedings; 

(vi) That any knowingly false or 

frivolous statements, representations, or 

evidence may subject the Federal 

employee to penalties under the False 

Claims Act (31 U.S.C. 3729–3731) or 

other applicable statutory authority, and 

criminal penalties under 18 U.S.C. 286, 

287, 1001, and 1002, or other applicable 

statutory authority; 

(vii) That unless prohibited by 

contract or statute, amounts paid on or 

deducted for the Commerce debt which 

are later waived or found not owed to 

the United States will be promptly 

refunded to the employee; and 

(viii) That proceedings with respect to 

such Commerce debt are governed by 5 

U.S.C. 5514 and 31 U.S.C. 3716. 

(12) How the debtor may request a 

waiver of the Commerce debt, if 

applicable. See, for example, § 19.5 and 

§ 19.12(f) of this Part. 

(13) How the debtor’s spouse may 

claim his or her share of a joint income 

tax refund by filing Form 8379 with the 

Internal Revenue Service (see http:// 

www.irs.gov); 

(14) How the debtor may exercise 

other rights and remedies, if any, 

available to the debtor under 

programmatic statutory or regulatory 

authority under which the Commerce 

debt arose. 

(15) That certain debtors and, if 

applicable, persons controlled by or 

controlling such debtors, may be 

ineligible for Federal Government loans, 

guaranties and insurance, grants, 

cooperative agreements or other sources 

of Federal funds (see 28 U.S.C. 3201(e); 

31 U.S.C. 3720B, 31 CFR 285.13, and 

§ 19.17(a) of this Part); 

(16) If applicable, the Commerce 

entity’s intention to deny, suspend or 

revoke licenses, permits or privileges 

(see § 19.17(b) of this Part); and 

(17) That the debtor should advise the 

Commerce entity of a bankruptcy 

proceeding of the debtor or another 

person liable for the Commerce debt 

being collected. 

(b) Exceptions to notice requirements. 

A Commerce entity may omit from a 

notice to a debtor one or more of the 

provisions contained in paragraphs 

(a)(6) through (a)(17) of this section if 

the Commerce entity, in consultation 

with its legal counsel, determines that 

any provision is not legally required 

given the collection remedies to be 

applied to a particular Commerce debt. 

(c) Respond to debtors; comply with 

FCCS. Commerce entities should 

respond promptly to communications 

from debtors and comply with other 

FCCS provisions applicable to the 

administrative collection of debts. See 

31 CFR part 901. 

§ 19.5 How will Commerce entities add 

interest, penalty charges, and 

administrative costs to a Commerce debt? 

(a) Assessment and notice. Commerce 

entities shall assess interest, penalties 

and administrative costs on Commerce 

debts in accordance with the provisions 

of 31 U.S.C. 3717 and 31 CFR 901.9. 

Interest shall be charged in accordance 

with the requirements of 31 U.S.C. 

3717(a). Penalties shall accrue at a rate 

of not more than 6% per year or such 

other higher rate as authorized by law. 

Administrative costs, that is, the costs of 

processing and handling a delinquent 

debt, shall be determined by the 

Commerce entity collecting the debt, as 

directed by the Office of the Deputy 

Chief Financial Officer. Commerce 

entities may have additional policies 

regarding how interest, penalties, and 

administrative costs are assessed on 

particular types of debts, subject to the 

approval of the Deputy Chief Financial 

Officer. Commerce entities are required 

to explain in the notice to the debtor 

described in § 19.4 of this Part how 

interest, penalties, costs, and other 

charges are assessed, unless the 

requirements are included in a contract 

or other legally binding agreement. 

(b) Waiver of interest, penalties, and 

administrative costs. Unless otherwise 

required by law or contract, Commerce 

entities may not charge interest if the 

amount due on the Commerce debt is 

paid within 30 days after the date from 

which the interest accrues. See 31 

U.S.C. 3717(d). Commerce entities may 

waive interest, penalties, and 

administrative costs, or any portion 

thereof, when it would be against equity 

and good conscience or not in the 

United States’ best interest to collect 

such charges, in accordance with 

Commerce guidelines for such waivers. 

Legal counsel approval to waive such 

charges is required. See Department of 

Commerce Credit and Debt Management 


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Operating Standards and Procedures 

Handbook (currently at http:// 

www.osec.doc.gov/ofm/credit/ 

cover.htm). 

(c) Accrual during suspension of debt 

collection. In most cases, interest, 

penalties and administrative costs will 

continue to accrue during any period 

when collection has been suspended for 

any reason (for example, when the 

debtor has requested a hearing). 

Commerce entities may suspend accrual 

of any or all of these charges when 

accrual would be against equity and 

good conscience or not in the United 

States’ best interest, in accordance with 

Commerce guidelines for such waivers. 

See Department of Commerce Credit 

and Debt Management Operating 

Standards and Procedures Handbook 

(currently at http://www.osec.doc.gov/ 

ofm/credit/cover.htm). 

§ 19.6 When will Commerce entities allow 

a debtor to pay a Commerce debt in 

installments instead of one lump sum? 

If a debtor is financially unable to pay 

the Commerce debt in one lump sum, a 

Commerce entity may accept payment 

of a Commerce debt in regular 

installments, in accordance with the 

provisions of 31 CFR 901.8 and the 

Commerce entity’s policies and 

procedures. 

§ 19.7 When will Commerce entities 

compromise a Commerce debt? 

If a Commerce entity cannot collect 

the full amount of a Commerce debt, the 

Commerce entity may compromise the 

Commerce debt in accordance with the 

provisions of 31 CFR part 902 and the 

Commerce entity’s policies and 

procedures. Legal counsel approval to 

compromise a Commerce debt is 

required as described in Department of 

Commerce Credit and Debt Management 

Operating Standards and Procedures 

Handbook (currently at http:// 

www.osec.doc.gov/ofm/credit/ 

cover.htm). 

§ 19.8 When will Commerce entities 

suspend or terminate debt collection on a 

Commerce debt? 

If, after pursuing all appropriate 

means of collection, a Commerce entity 

determines that a Commerce debt is 

uncollectible, the Commerce entity may 

suspend or terminate debt collection 

activity in accordance with the 

provisions of 31 CFR part 903 and the 

Commerce entity’s policies and 

procedures. Legal counsel approval to 

suspend or terminate collection on a 

Commerce debt is required as described 

in Department of Commerce Credit and 

Debt Management Operating Standards 

and Procedures Handbook (currently at 

http://www.osec.doc.gov/ofm/credit/ 

cover.htm). Termination of debt 

collection activity by a Commerce entity 

does not discharge the indebtedness. 

§ 19.9 When will Commerce entities 

transfer a Commerce debt to the Treasury 

Department’s Financial Management 

Service for collection? 

(a) Commerce entities will transfer 

any Commerce debt that is more than 

180 days delinquent to the Financial 

Management Service for debt collection 

services, a process known as ‘‘crossservicing.’’ See 31 U.S.C. 3711(g) and 31 

CFR 285.12. Commerce entities may 

transfer Commerce debts delinquent 180 

days or less to the Financial 

Management Service in accordance with 

the procedures described in 31 CFR 

285.12. The Financial Management 

Service takes appropriate action to 

collect or compromise the transferred 

Commerce debt, or to suspend or 

terminate collection action thereon, in 

accordance with the statutory and 

regulatory requirements and authorities 

applicable to the Commerce debt and 

the collection action to be taken. See 31 

CFR 285.12(b) and 285.12(c)(2). 

Appropriate action can include, but is 

not limited to, contact with the debtor, 

referral of the Commerce debt to the 

Treasury Offset Program, private 

collection agencies or the Department of 

Justice, reporting of the Commerce debt 

to credit bureaus, and administrative 

wage garnishment. 

(b) At least sixty (60) days prior to 

transferring a Commerce debt to the 

Financial Management Service, 

Commerce entities will send notice to 

the debtor as required by § 19.4 of this 

Part. Commerce entities will certify to 

the Financial Management Service, in 

writing, that the Commerce debt is 

valid, delinquent, legally enforceable, 

and that there are no legal bars to 

collection. In addition, Commerce 

entities will certify their compliance 

with all applicable due process and 

other requirements as described in this 

Part and other Federal laws. See 31 CFR 

285.12(i) regarding the certification 

requirement. 

(c) As part of its debt collection 

process, the Financial Management 

Service uses the Treasury Offset 

Program to collect Commerce debts by 

administrative and tax refund offset. See 

31 CFR 285.12(g). The Treasury Offset 

Program is a centralized offset program 

administered by the Financial 

Management Service to collect 

delinquent debts owed to Federal 

agencies and states (including past-due 

child support). Under the Treasury 

Offset Program, before a Federal 

payment is disbursed, the Financial 

Management Service compares the 

name and taxpayer identification 

number (TIN) of the payee with the 

names and TINs of debtors that have 

been submitted by Federal agencies and 

states to the Treasury Offset Program 

database. If there is a match, the 

Financial Management Service (or, in 

some cases, another Federal disbursing 

agency) offsets all or a portion of the 

Federal payment, disburses any 

remaining payment to the payee, and 

pays the offset amount to the creditor 

agency. Federal payments eligible for 

offset include, but are not limited to, 

income tax refunds, salary, travel 

advances and reimbursements, 

retirement and vendor payments, and 

Social Security and other benefit 

payments. 

§ 19.10 How will Commerce entities use 

administrative offset (offset of non-tax 

Federal payments) to collect a Commerce 

debt? 

(a) Centralized administrative offset 

through the Treasury Offset Program. (1) 

In most cases, the Financial 

Management Service uses the Treasury 

Offset Program to collect Commerce 

debts by the offset of Federal payments. 

See § 19.9(c) of this Part. If not already 

transferred to the Financial Management 

Service under § 19.9 of this Part, 

Commerce entities will refer Commerce 

debt over 180 days delinquent to the 

Treasury Offset Program for collection 

by centralized administrative offset. See 

31 U.S.C. 3716(c)(6); 31 CFR part 285, 

subpart A; and 31 CFR 901.3(b). 

Commerce entities may refer to the 

Treasury Offset Program for offset any 

Commerce debt that has been 

delinquent for 180 days or less. 

(2) At least sixty (60) days prior to 

referring a Commerce debt to the 

Treasury Offset Program, in accordance 

with paragraph (a)(1) of this section, 

Commerce entities will send notice to 

the debtor in accordance with the 

requirements of § 19.4 of this Part. 

Commerce entities will certify to the 

Financial Management Service, in 

writing, that the Commerce debt is 

valid, delinquent, legally enforceable, 

and that there are no legal bars to 

collection by offset. In addition, 

Commerce entities will certify their 

compliance with the requirements 

described in this Part. 

(b) Non-centralized administrative 

offset for Commerce debts. (1) When 

centralized administrative offset 

through the Treasury Offset Program is 

not available or appropriate, Commerce 

entities may collect past-due, legally 

enforceable Commerce debts through 

non-centralized administrative offset. 

See 31 CFR 901.3(c). In these cases, 

Commerce entities may offset a payment 


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internally or make an offset request 

directly to a Federal payment agency. If 

the Federal payment agency is another 

Commerce entity, the Commerce entity 

making the request shall do so through 

the Deputy Chief Financial Officer as 

described in § 19.20(c) of this Part. 

(2) At least thirty (30) days prior to 

offsetting a payment internally or 

requesting a Federal payment agency to 

offset a payment, Commerce entities 

will send notice to the debtor in 

accordance with the requirements of 

§ 19.4 of this Part. When referring a 

Commerce debt for offset under this 

paragraph (b), Commerce entities 

making the request will certify, in 

writing, that the Commerce debt is 

valid, delinquent, legally enforceable, 

and that there are no legal bars to 

collection by offset. In addition, 

Commerce entities will certify their 

compliance with these regulations 

concerning administrative offset. See 31 

CFR 901.3(c)(2)(ii). 

(c) Administrative review. The notice 

described in § 19.4 of this Part shall 

explain to the debtor how to request an 

administrative review of a Commerce 

entity’s determination that the debtor 

owes a Commerce debt and how to 

present evidence that the Commerce 

debt is not delinquent or legally 

enforceable. In addition to challenging 

the existence and amount of the 

Commerce debt, the debtor may seek a 

review of the terms of repayment. In 

most cases, Commerce entities will 

provide the debtor with a ‘‘paper 

hearing’’ based upon a review of the 

written record, including 

documentation provided by the debtor. 

Commerce entities shall provide the 

debtor with a reasonable opportunity for 

an oral hearing when the debtor 

requests reconsideration of the 

Commerce debt and the Commerce 

entity determines that the question of 

the indebtedness cannot be resolved by 

review of the documentary evidence, for 

example, when the validity of the 

Commerce debt turns on an issue of 

credibility or veracity. Unless otherwise 

required by law, an oral hearing under 

this section is not required to be a 

formal evidentiary hearing, although 

Commerce entities should carefully 

document all significant matters 

discussed at the hearing. Commerce 

entities may suspend collection through 

administrative offset and/or other 

collection actions pending the 

resolution of a debtor’s dispute. 

(d) Procedures for expedited offset. 

Under the circumstances described in 

31 CFR 901.3(b)(4)(iii), Commerce 

entities may effect an offset against a 

payment to be made to the debtor prior 

to sending a notice to the debtor, as 

described in § 19.4 of this Part, or 

completing the procedures described in 

paragraph (b)(2) and (c) of this section. 

Commerce entities shall give the debtor 

notice and an opportunity for review as 

soon as practicable and promptly refund 

any money ultimately found not to have 

been owed to the Government. Legal 

counsel approval to effect such prenotice offset is required as described in 

Department of Commerce Credit and 

Debt Management Operating Standards 

and Procedures Handbook (currently at 

http://www.osec.doc.gov/ofm/credit/ 

cover.htm). 

§ 19.11 How will Commerce entities use 

tax refund offset to collect a Commerce 

debt? 

(a) Tax refund offset. In most cases, 

the Financial Management Service uses 

the Treasury Offset Program to collect 

Commerce debts by the offset of tax 

refunds and other Federal payments. 

See § 19.9(c) of this Part. If not already 

transferred to the Financial Management 

Service under § 19.9 of this Part, 

Commerce entities will refer to the 

Treasury Offset Program any past-due, 

legally enforceable Commerce debt for 

collection by tax refund offset. See 26 

U.S.C. 6402(d), 31 U.S.C. 3720A and 31 

CFR 285.2. 

(b) Notice. At least sixty (60) days 

prior to referring a Commerce debt to 

the Treasury Offset Program, Commerce 

entities will send notice to the debtor in 

accordance with the requirements of 

§ 19.4 of this Part. Commerce entities 

will certify to the Financial 

Management Service’s Treasury Offset 

Program, in writing, that the Commerce 

debt is past due and legally enforceable 

in the amount submitted and that the 

Commerce entities have made 

reasonable efforts to obtain payment of 

the Commerce debt as described in 31 

CFR 285.2(d). In addition, Commerce 

entities will certify their compliance 

with all applicable due process and 

other requirements described in this 

Part and other Federal laws. See 31 

U.S.C. 3720A(b) and 31 CFR 285.2. 

(c) Administrative review. The notice 

described in § 19.4 of this Part shall 

provide the debtor with at least 60 days 

prior to the initiation of tax refund offset 

to request an administrative review as 

described in § 19.10(c) of this Part. 

Commerce entities may suspend 

collection through tax refund offset and/ 

or other collection actions pending the 

resolution of the debtor’s dispute. 

§ 19.12 How will Commerce entities offset 

a Federal employee’s salary to collect a 

Commerce debt? 

(a) Federal salary offset. (1) Salary 

offset is used to collect debts owed to 

the United States by Commerce 

Department and other Federal 

employees. If a Federal employee owes 

a Commerce debt, Commerce entities 

may offset the employee’s Federal salary 

to collect the Commerce debt in the 

manner described in this section. For 

information on how a Federal agency 

other than a Commerce entity may 

collect debt from the salary of a 

Commerce Department employee, see 

§§ 19.20 and 19.21, subpart C, of this 

Part. 

(2) Nothing in this Part requires a 

Commerce entity to collect a Commerce 

debt in accordance with the provisions 

of this section if Federal law allows 

otherwise. See, for example, 5 U.S.C. 

5705 (travel advances not used for 

allowable travel expenses are 

recoverable from the employee or his 

estate by setoff against accrued pay and 

other means) and 5 U.S.C. 4108 

(recovery of training expenses). 

(3) Commerce entities may use the 

administrative wage garnishment 

procedure described in § 19.13 of this 

Part to collect a Commerce debt from an 

individual’s non-Federal wages. 

(b) Centralized salary offset through 

the Treasury Offset Program. As 

described in § 19.9(a) of this Part, 

Commerce entities will refer Commerce 

debts to the Financial Management 

Service for collection by administrative 

offset, including salary offset, through 

the Treasury Offset Program. When 

possible, Commerce entities should 

attempt salary offset through the 

Treasury Offset Program before applying 

the procedures in paragraph (c) of this 

section. See 5 CFR 550.1108 and 

550.1109. 

(c) Non-centralized salary offset for 

Commerce debts. When centralized 

salary offset through the Treasury Offset 

Program is not available or appropriate, 

Commerce entities may collect 

delinquent Commerce debts through 

non-centralized salary offset. See 5 CFR 

550.1109. In these cases, Commerce 

entities may offset a payment internally 

or make a request directly to a Federal 

payment agency to offset a salary 

payment to collect a delinquent 

Commerce debt owed by a Federal 

employee. If the Federal payment 

agency is another Commerce entity, the 

Commerce entity making the request 

shall do so through the Deputy Chief 

Financial Officer as described in 

§ 19.20(c) of this Part. At least thirty (30) 

days prior to offsetting internally or 

requesting a Federal agency to offset a 

salary payment, Commerce entities will 

send notice to the debtor in accordance 

with the requirements of § 19.4 of this 

Part. When referring a Commerce debt 

for offset, Commerce entities will certify 


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to the payment agency, in writing, that 

the Commerce debt is valid, delinquent 

and legally enforceable in the amount 

stated, and there are no legal bars to 

collection by salary offset. In addition, 

Commerce entities will certify that all 

due process and other prerequisites to 

salary offset have been met. See 5 U.S.C. 

5514, 31 U.S.C. 3716(a), and this section 

for a description of the due process and 

other prerequisites for salary offset. 

(d) When prior notice not required. 

Commerce entities are not required to 

provide prior notice to an employee 

when the following adjustments are 

made by a Commerce entity to a 

Commerce employee’s pay: 

(1) Any adjustment to pay arising out 

of any employee’s election of coverage 

or a change in coverage under a Federal 

benefits program requiring periodic 

deductions from pay, if the amount to 

be recovered was accumulated over four 

pay periods or less; 

(2) A routine intra-agency adjustment 

of pay that is made to correct an 

overpayment of pay attributable to 

clerical or administrative errors or 

delays in processing pay documents, if 

the overpayment occurred within the 

four pay periods preceding the 

adjustment, and, at the time of such 

adjustment, or as soon thereafter as 

practical, the individual is provided 

written notice of the nature and the 

amount of the adjustment and point of 

contact for contesting such adjustment; 

or 

(3) Any adjustment to collect a 

Commerce 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. 

(e) Hearing procedures—(1) Request 

for a hearing. A Federal employee who 

has received a notice that his or her 

Commerce debt will be collected by 

means of salary offset may request a 

hearing concerning the existence or 

amount of the Commerce debt. The 

Federal employee also may request a 

hearing concerning the amount 

proposed to be deducted from the 

employee’s pay each pay period. The 

employee must send any request for 

hearing, in writing, to the office 

designated in the notice described in 

§ 19.4. See § 19.4(a)(11). The request 

must be received by the designated 

office on or before the 15th day 

following the employee’s receipt of the 

notice. The employee must sign the 

request and specify whether an oral or 

paper hearing is requested. If an oral 

hearing is requested, the employee must 

explain why the matter cannot be 

resolved by review of the documentary 

evidence alone. All travel expenses 

incurred by the Federal employee in 

connection with an in-person hearing 

will be borne by the employee. See 31 

CFR 901.3(a)(7). 

(2) Failure to submit timely request for 

hearing. If the employee fails to submit 

a request for hearing within the time 

period described in paragraph (e)(1) of 

this section, the employee will have 

waived the right to a hearing, and salary 

offset may be initiated. However, 

Commerce entities should accept a late 

request for hearing if the employee can 

show that the late request was the result 

of circumstances beyond the employee’s 

control or because of a failure to receive 

actual notice of the filing deadline. 

(3) Hearing official. Commerce 

entities must obtain the services of a 

hearing official who is not under the 

supervision or control of the Secretary. 

Commerce entities may contact the 

Deputy Chief Financial Officer as 

described in § 19.20(c) of this Part or an 

agent of any Commerce agency 

designated in Appendix A to 5 CFR part 

581 (List of Agents Designated to Accept 

Legal Process) to request a hearing 

official. 

(4) Notice of hearing. After the 

employee requests a hearing, the 

designated hearing official shall inform 

the employee of the form of the hearing 

to be provided. For oral hearings, the 

notice shall set forth the date, time and 

location of the hearing. For paper 

hearings, the notice shall notify the 

employee of the date by which he or she 

should submit written arguments to the 

designated hearing official. The hearing 

official shall give the employee 

reasonable time to submit 

documentation in support of the 

employee’s position. The hearing 

official shall schedule a new hearing 

date if requested by both parties. The 

hearing official shall give both parties 

reasonable notice of the time and place 

of a rescheduled hearing. 

(5) Oral hearing. The hearing official 

will conduct an oral hearing if he or she 

determines that the matter cannot be 

resolved by review of documentary 

evidence alone (for example, when an 

issue of credibility or veracity is 

involved). The hearing need not take the 

form of an evidentiary hearing, but may 

be conducted in a manner determined 

by the hearing official, including but not 

limited to: 

(i) Informal conferences with the 

hearing official, in which the employee 

and agency representative will be given 

full opportunity to present evidence, 

witnesses and argument; 

(ii) Informal meetings with an 

interview of the employee by the 

hearing official; or 

(iii) Formal written submissions, with 

an opportunity for oral presentation. 

(6) Paper hearing. If the hearing 

official determines that an oral hearing 

is not necessary, he or she will make the 

determination based upon a review of 

the available written record, including 

any documentation submitted by the 

employee in support of his or her 

position. See 31 CFR 901.3(a)(7). 

(7) Failure to appear or submit 

documentary evidence. In the absence of 

good cause shown (for example, 

excused illness), if the employee fails to 

appear at an oral hearing or fails to 

submit documentary evidence as 

required for a paper hearing, the 

employee will have waived the right to 

a hearing, and salary offset may be 

initiated. Further, the employee will 

have been deemed to admit the 

existence and amount of the Commerce 

debt as described in the notice of intent 

to offset. If the Commerce entity 

representative fails to appear at an oral 

hearing, the hearing official shall 

proceed with the hearing as scheduled, 

and make his or her determination 

based upon the oral testimony presented 

and the documentary evidence 

submitted by both parties. 

(8) Burden of proof. Commerce 

entities will have the initial burden to 

prove the existence and amount of the 

Commerce debt. Thereafter, if the 

employee disputes the existence or 

amount of the Commerce debt, the 

employee must prove by a 

preponderance of the evidence that no 

such Commerce debt exists or that the 

amount of the Commerce debt is 

incorrect. In addition, the employee 

may present evidence that the proposed 

terms of the repayment schedule are 

unlawful, would cause a financial 

hardship to the employee, or that 

collection of the Commerce debt may 

not be pursued due to operation of law. 

(9) Record. The hearing official shall 

maintain a summary record of any 

hearing provided by this Part. Witnesses 

will testify under oath or affirmation in 

oral hearings. See 31 CFR 901.3(a)(7). 

(10) Date of decision. The hearing 

official shall issue a written opinion 

stating his or her decision, based upon 

documentary evidence and information 

developed at the hearing, as soon as 

practicable after the hearing, but not 

later than 60 days after the date on 

which the request for hearing was 

received by the Commerce entity. If the 

employee requests a delay in the 

proceedings, the deadline for the 

decision may be postponed by the 

number of days by which the hearing 


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was postponed. When a decision is not 

timely rendered, the Commerce entity 

shall waive interest and penalties 

applied to the Commerce debt for the 

period beginning with the date the 

decision is due and ending on the date 

the decision is issued. 

(11) Content of decision. The written 

decision shall include: 

(i) A statement of the facts presented 

to support the origin, nature, and 

amount of the Commerce debt; 

(ii) The hearing official’s findings, 

analysis, and conclusions; and 

(iii) The terms of any repayment 

schedules, if applicable. 

(12) Final agency action. The hearing 

official’s decision shall be final. 

(f) Waiver not precluded. Nothing in 

this Part precludes an employee from 

requesting waiver of an overpayment 

under 5 U.S.C. 5584 or 8346(b), 10 

U.S.C. 2774, 32 U.S.C. 716, or other 

statutory authority. Commerce entities 

may grant such waivers when it would 

be against equity and good conscience 

or not in the United States’ best interest 

to collect such Commerce debts, in 

accordance with those authorities, 5 

CFR 550.1102(b)(2), and Commerce 

policies and procedures. See 

Department of Commerce Credit and 

Debt Management Operating Standards 

and Procedures Handbook (currently at 

http://www.osec.doc.gov/ofm/credit/ 

cover.htm). 

(g) Salary offset process—(1) 

Determination of disposable pay. The 

Deputy Chief Financial Officer will 

consult with the appropriate Commerce 

entity payroll office to determine the 

amount of a Commerce Department 

employee’s disposable pay (as defined 

in § 19.1 of this Part) and will 

implement salary offset when requested 

to do so by a Commerce entity, as 

described in paragraph (c) of this 

section, or another agency, as described 

in § 19.20 of this Part. If the debtor is 

not employed by the Commerce 

Department, the agency employing the 

debtor will determine the amount of the 

employee’s disposable pay and will 

implement salary offset upon request. 

(2) When salary offset begins. 

Deductions shall begin within three 

official pay periods following receipt of 

the creditor agency’s request for offset. 

(3) Amount of salary offset. The 

amount to be offset from each salary 

payment will be up to 15 percent of a 

debtor’s disposable pay, as follows: 

(i) If the amount of the Commerce 

debt is equal to or less than 15 percent 

of the disposable pay, such Commerce 

debt generally will be collected in one 

lump sum payment; 

(ii) Installment deductions will be 

made over a period of no greater than 

the anticipated period of employment. 

An installment deduction will not 

exceed 15 percent of the disposable pay 

from which the deduction is made 

unless the employee has agreed in 

writing to the deduction of a greater 

amount or the creditor agency has 

determined that smaller deductions are 

appropriate based on the employee’s 

ability to pay. 

(4) Final salary payment. After the 

employee has separated either 

voluntarily or involuntarily from the 

payment agency, the payment agency 

may make a lump sum deduction 

exceeding 15 percent of disposable pay 

from any final salary or other payments 

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

satisfy a Commerce debt. 

(h) Payment agency’s responsibilities. 

(1) As required by 5 CFR 550.1109, if 

the employee separates from the 

payment agency from which a 

Commerce entity has requested salary 

offset, the payment agency must certify 

the total amount of its collection and 

notify the Commerce entity and the 

employee of the amounts collected. If 

the payment agency is aware that the 

employee is entitled to payments from 

the Civil Service Retirement Fund and 

Disability Fund, the Federal Employee 

Retirement System, or other similar 

payments, it must provide written 

notification to the payment agency 

responsible for making such payments 

that the debtor owes a Commerce debt, 

the amount of the Commerce debt, and 

that the Commerce entity has complied 

with the provisions of this section. 

Commerce entities must submit a 

properly certified claim to the new 

payment agency before the collection 

can be made. 

(2) If the employee is already 

separated from employment and all 

payments due from his or her former 

payment agency have been made, 

Commerce entities may request that 

money due and payable to the employee 

from the Civil Service Retirement Fund 

and Disability Fund, the Federal 

Employee Retirement System, or other 

similar funds, be administratively offset 

to collect the Commerce debt. Generally, 

Commerce entities will collect such 

monies through the Treasury Offset 

Program as described in § 19.9(c) of this 

Part. 

(3) When an employee transfers to 

another agency, Commerce entities 

should resume collection with the 

employee’s new payment agency in 

order to continue salary offset. 

§ 19.13 How will Commerce entities use 

administrative wage garnishment to collect 

a Commerce debt from a debtor’s wages? 

(a) Commerce entities are authorized 

to collect Commerce debts from an 

individual debtor’s wages by means of 

administrative wage garnishment in 

accordance with the requirements of 31 

U.S.C. 3720D and 31 CFR 285.11. This 

Part adopts and incorporates all of the 

provisions of 31 CFR 285.11 concerning 

administrative wage garnishment, 

including the hearing procedures 

described in 31 CFR 285.11(f). 

Commerce entities may use 

administrative wage garnishment to 

collect a delinquent Commerce debt 

unless the debtor is making timely 

payments under an agreement to pay the 

Commerce debt in installments (see 

§ 19.6 of this Part). At least thirty (30) 

days prior to initiating an administrative 

wage garnishment, Commerce entities 

will send notice to the debtor in 

accordance with the requirements of 

§ 19.4 of this Part, including the 

requirements of § 19.4(a)(10) of this Part. 

For Commerce debts referred to the 

Financial Management Service under 

§ 19.9 of this Part, Commerce entities 

may authorize the Financial 

Management Service to send a notice 

informing the debtor that administrative 

wage garnishment will be initiated and 

how the debtor may request a hearing as 

described in § 19.4(a)(10) of this Part. If 

a debtor makes a timely request for a 

hearing, administrative wage 

garnishment will not begin until a 

hearing is held and a decision is sent to 

the debtor. See 31 CFR 285.11(f)(4). 

Even if a debtor’s hearing request is not 

timely, Commerce entities may suspend 

collection by administrative wage 

garnishment in accordance with the 

provisions of 31 CFR 285.11(f)(5). All 

travel expenses incurred by the debtor 

in connection with an in-person hearing 

will be borne by the debtor. 

(b) This section does not apply to 

Federal salary offset, the process by 

which Commerce entities collect 

Commerce debts from the salaries of 

Federal employees (see § 19.12 of this 

Part). 

§ 19.14 How will Commerce entities report 

Commerce debts to credit bureaus? 

Commerce entities shall report 

delinquent Commerce debts to credit 

bureaus in accordance with the 

provisions of 31 U.S.C. 3711(e), 31 CFR 

901.4, and the Office of Management 

and Budget Circular A–129, ‘‘Policies 

for Federal Credit Programs and Non-tax 

Receivables.’’ For additional 

information, see Financial Management 

Service’s ‘‘Guide to the Federal Credit 

Bureau Program,’’ which currently may 


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18878 Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 

be found at http://www.fms.treas.gov/ 

debt. At least sixty (60) days prior to 

reporting a delinquent Commerce debt 

to a consumer reporting agency, 

Commerce entities will send notice to 

the debtor in accordance with the 

requirements of § 19.4 of this Part. 

Commerce entities may authorize the 

Financial Management Service to report 

to credit bureaus those delinquent 

Commerce debts that have been 

transferred to the Financial Management 

Service under § 19.9 of this Part. 

§ 19.15 How will Commerce entities refer 

Commerce debts to private collection 

agencies? 

Commerce entities will transfer 

delinquent Commerce debts to the 

Financial Management Service to obtain 

debt collection services provided by 

private collection agencies. See § 19.9 of 

this Part. 

§ 19.16 When will Commerce entities refer 

Commerce debts to the Department of 

Justice? 

(a) Compromise or suspension or 

termination of collection activity. 

Commerce entities shall refer Commerce 

debts having a principal balance over 

$100,000, or such higher amount as 

authorized by the Attorney General, to 

the Department of Justice for approval of 

any compromise of a Commerce debt or 

suspension or termination of collection 

activity. See § § 19.7 and 19.8 of this 

Part; 31 CFR 902.1; 31 CFR 903.1. 

(b) Litigation. Commerce entities shall 

promptly refer to the Department of 

Justice for litigation delinquent 

Commerce debts on which aggressive 

collection activity has been taken in 

accordance with this Part and that 

should not be compromised, and on 

which collection activity should not be 

suspended or terminated. See 31 CFR 

part 904. Commerce entities may 

authorize the Financial Management 

Service to refer to the Department of 

Justice for litigation those delinquent 

Commerce debts that have been 

transferred to the Financial Management 

Service under § 19.9 of this Part. 

§ 19.17 Will a debtor who owes a 

Commerce or other Federal agency debt, 

and persons controlled by or controlling 

such debtors, be ineligible for Federal loan 

assistance, grants, cooperative 

agreements, or other sources of Federal 

funds or for Federal licenses, permits or 

privileges? 

(a) Delinquent debtors are ineligible 

for and barred from obtaining Federal 

loans or loan insurance or guaranties. 

As required by 31 U.S.C. 3720B and 31 

CFR 901.6, Commerce entities will not 

extend financial assistance in the form 

of a loan, loan guarantee, or loan 

insurance to any person delinquent on 

a debt owed to a Federal agency. The 

Commerce Department may issue 

standards under which the Commerce 

Department may determine that persons 

controlled by or controlling such 

delinquent debtors are similarly 

ineligible in accordance with 31 CFR 

285.13(c)(2). This prohibition does not 

apply to disaster loans. Commerce 

entities may extend credit after the 

delinquency has been resolved. See 31 

CFR 285.13. Waivers of ineligibility may 

be granted by the Secretary or designee 

on a person by person basis in 

accordance with 31 CFR 285.13(g). 

However, such authority may not be 

delegated below the Deputy Chief 

Financial Officer. 

(b) A debtor who has a judgment lien 

against the debtor’s property for a debt 

to the United States is not eligible to 

receive grants, loans or funds directly or 

indirectly from the United States until 

the judgment is paid in full or otherwise 

satisfied. This prohibition does not 

apply to funds to which the debtor is 

entitled as beneficiary. The Commerce 

Department may promulgate regulations 

to allow for waivers of this ineligibility. 

See 28 U.S.C. 3201(e). 

(c) Suspension or revocation of 

eligibility for licenses, permits, or 

privileges. Unless prohibited by law, 

Commerce entities with the authority to 

do so under the circumstances should 

deny, suspend or revoke licenses, 

permits, or other privileges for any 

inexcusable or willful failure of a debtor 

to pay a debt. The Commerce entity 

responsible for distributing the licenses, 

permits, or other privileges will 

establish policies and procedures 

governing suspension and revocation for 

delinquent debtors. If applicable, 

Commerce entities will advise the 

debtor in the notice required by § 19.4 

of this Part of the Commerce entities’

ability to deny, suspend or revoke 

licenses, permits or privileges. See 

§ 19.4(a)(16) of this Part. 

(d) To the extent that a person 

delinquent on a Commerce debt is not 

otherwise barred under § 19.17(a)(c) of 

this Part from becoming or remaining a 

recipient of a Commerce grant or 

cooperative agreement, it is Commerce 

policy that no award of Federal funds 

shall be made to a Commerce grant or 

cooperative agreement applicant who 

has an outstanding delinquent 

Commerce debt until: 

(1) The delinquent Commerce debt is 

paid in full, 

(2) A negotiated repayment schedule 

acceptable to Commerce is established 

and at least one payment is received, or 

(3) Other arrangements satisfactory to 

Commerce are made. 

§ 19.18 How does a debtor request a 

special review based on a change in 

circumstances such as catastrophic illness, 

divorce, death, or disability? 

(a) Material change in circumstances. 

A debtor who owes a Commerce debt 

may, at any time, request a special 

review by the applicable Commerce 

entity of the amount of any offset, 

administrative wage garnishment, or 

voluntary payment, based on materially 

changed circumstances beyond the 

control of the debtor such as, but not 

limited to, catastrophic illness, divorce, 

death, or disability. 

(b) Inability to pay. For purposes of 

this section, in determining whether an 

involuntary or voluntary payment 

would prevent the debtor from meeting 

essential subsistence expenses (e.g., 

costs incurred for food, housing, 

clothing, transportation, and medical 

care), the debtor shall submit a detailed 

statement and supporting documents for 

the debtor, his or her spouse, and 

dependents, indicating: 

(1) Income from all sources; 

(2) Assets; 

(3) Liabilities; 

(4) Number of dependents; 

(5) Expenses for food, housing, 

clothing, and transportation; 

(6) Medical expenses; 

(7) Exceptional expenses, if any; and 

(8) Any additional materials and 

information that the Commerce entity 

may request relating to ability or 

inability to pay the amount(s) currently 

required. 

(c) Alternative payment arrangement. 

If the debtor requests a special review 

under this section, the debtor shall 

submit an alternative proposed payment 

schedule and a statement to the 

Commerce entity collecting the 

Commerce debt, with supporting 

documents, showing why the current 

offset, garnishment or repayment 

schedule imposes an extreme financial 

hardship on the debtor. The Commerce 

entity will evaluate the statement and 

documentation and determine whether 

the current offset, garnishment, or 

repayment schedule imposes extreme 

financial hardship on the debtor. The 

Commerce entity shall notify the debtor 

in writing of such determination, 

including, if appropriate, a revised 

offset, garnishment, or payment 

schedule. If the special review results in 

a revised offset, garnishment, or 

repayment schedule, the Commerce 

entity will notify the appropriate 

Federal agency or other persons about 

the new terms. 


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Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 18879 

§ 19.19 Will Commerce entities issue a 

refund if money is erroneously collected on 

a Commerce debt? 

Commerce entities shall promptly 

refund to a debtor any amount collected 

on a Commerce debt when the 

Commerce debt is waived or otherwise 

found not to be owed to the United 

States, or as otherwise required by law. 

Refunds under this Part shall not bear 

interest unless required by law. 

Subpart C—Procedures for Offset of 

Commerce Department Payments To 

Collect Debts Owed to Other Federal 

Agencies 

§ 19.20 How do other Federal agencies use 

the offset process to collect debts from 

payments issued by a Commerce entity? 

(a) Offset of Commerce entity 

payments to collect debts owed to other 

Federal agencies. (1) In most cases, 

Federal agencies submit debts to the 

Treasury Offset Program to collect 

delinquent debts from payments issued 

by Commerce entities and other Federal 

agencies, a process known as 

‘‘centralized offset.’’ When centralized 

offset is not available or appropriate, 

any Federal agency may ask a 

Commerce entity (when acting as a 

‘‘payment agency’’) to collect a debt 

owed to such agency by offsetting funds 

payable to a debtor by the Commerce 

entity, including salary payments issued 

to Commerce entity employees. This 

section and § 19.21 of this subpart C 

apply when a Federal agency asks a 

Commerce entity to offset a payment 

issued by the Commerce entity to a 

person who owes a debt to the United 

States. 

(2) This subpart C does not apply to 

Commerce debts. See § § 19.10 through 

19.12 of this Part for offset procedures 

applicable to Commerce debts. 

(3) This subpart C does not apply to 

the collection of non-Commerce debts 

through tax refund offset. See 31 CFR 

285.2 for tax refund offset procedures. 

(b) Administrative offset (including 

salary offset); certification. A Commerce 

entity will initiate a requested offset 

only upon receipt of written 

certification from the creditor agency 

that the debtor owes the past-due, 

legally enforceable debt in the amount 

stated, and that the creditor agency has 

fully complied with all applicable due 

process and other requirements 

contained in 31 U.S.C. 3716, 5 U.S.C. 

5514, and the creditor agency’s 

regulations, as applicable. Offsets will 

continue until the debt is paid in full or 

otherwise resolved to the satisfaction of 

the creditor agency. 

(c) Where a creditor agency makes 

requests for offset. Requests for offset 

under this section shall be sent to the 

Department of Commerce, ATTN: 

Deputy Chief Financial Officer, 1401 

Constitution Avenue, NW., Room 6827, 

Washington, DC 20230. The Deputy 

Chief Financial Officer will forward the 

request to the appropriate Commerce 

entity for processing in accordance with 

this subpart C. 

(d) Incomplete certification. A 

Commerce entity will return an 

incomplete debt certification to the 

creditor agency with notice that the 

creditor agency must comply with 

paragraph (b) of this section before 

action will be taken to collect a debt 

from a payment issued by a Commerce 

entity. 

(e) Review. A Commerce entity is not 

authorized to review the merits of the 

creditor agency’s determination with 

respect to the amount or validity of the 

debt certified by the creditor agency. 

(f) When Commerce entities will not 

comply with offset request. A Commerce 

entity will comply with the offset 

request of another agency unless the 

Commerce entity determines that the 

offset would not be in the best interests 

of the United States, or would otherwise 

be contrary to law. 

(g) Multiple debts. When two or more 

creditor agencies are seeking offsets 

from payments made to the same 

person, or when two or more debts are 

owed to a single creditor agency, the 

Commerce entity that has been asked to 

offset the payments may determine the 

order in which the debts will be 

collected or whether one or more debts 

should be collected by offset 

simultaneously. 

(h) Priority of debts owed to 

Commerce entity. For purposes of this 

section, debts owed to a Commerce 

entity generally take precedence over 

debts owed to other agencies. The 

Commerce entity that has been asked to 

offset the payments may determine 

whether to pay debts owed to other 

agencies before paying a debt owed to 

a Commerce entity. The Commerce 

entity that has been asked to offset the 

payments will determine the order in 

which the debts will be collected based 

on the best interests of the United 

States. 

§ 19.21 What does a Commerce entity do 

upon receipt of a request to offset the 

salary of a Commerce entity employee to 

collect a debt owed by the employee to 

another Federal agency? 

(a) Notice to the Commerce employee. 

When a Commerce entity receives 

proper certification of a debt owed by 

one of its employees, the Commerce 

entity will begin deductions from the 

employee’s pay at the next officially 

established pay interval. The Commerce 

entity will send a written notice to the 

employee indicating that a certified debt 

claim has been received from the 

creditor agency, the amount of the debt 

claimed to be owed by the creditor 

agency, the date deductions from salary 

will begin, and the amount of such 

deductions. 

(b) Amount of deductions from 

Commerce employee’s salary. The 

amount deducted under § 19.20(b) of 

this Part will be the lesser of the amount 

of the debt certified by the creditor 

agency or an amount up to 15% of the 

debtor’s disposable pay. Deductions 

shall continue until the Commerce 

entity knows that the debt is paid in full 

or until otherwise instructed by the 

creditor agency. Alternatively, the 

amount offset may be an amount agreed 

upon, in writing, by the debtor and the 

creditor agency. See § 19.12(g) (salary 

offset process). 

(c) When the debtor is no longer 

employed by the Commerce entity. (1) 

Offset of final and subsequent 

payments. If a Commerce entity 

employee retires or resigns or if his or 

her employment ends before collection 

of the debt is complete, the Commerce 

entity will continue to offset, under 31 

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

employee’s subsequent payments until 

the debt is paid or otherwise resolved. 

Such payments include a debtor’s final 

salary payment, lump-sum leave 

payment, and other payments payable to 

the debtor by the Commerce entity. See 

31 U.S.C. 3716 and 5 CFR 550.1104(l) 

and 550.1104(m). 

(2) Notice to the creditor agency. If the 

employee is separated from the 

Commerce entity before the debt is paid 

in full, the Commerce entity will certify 

to the creditor agency the total amount 

of its collection. If the Commerce entity 

is aware that the employee is entitled to 

payments from the Civil Service 

Retirement and Disability Fund, Federal 

Employee Retirement System, or other 

similar payments, the Commerce entity 

will provide written notice to the 

agency making such payments that the 

debtor owes a debt (including the 

amount) and that the provisions of 5 

CFR 550.1109 have been fully complied 

with. The creditor agency is responsible 

for submitting a certified claim to the 

agency responsible for making such 

payments before collection may begin. 

Generally, creditor agencies will collect 

such monies through the Treasury 

Offset Program as described in § 19.9(c) 

of this Part. 

(3) Notice to the debtor. The 

Commerce entity will provide to the 

debtor a copy of any notices sent to the 


cprice-sewell on PROD1PC66 with RULES
18880 Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / Rules and Regulations 

1Preventing Undue Discrimination and 

Preference in Transmission Service, Order No. 890, 

72 FR 12266 (March 15, 2007), FERC Stats. & Regs. 

¶ 31,241 at P 443 (2007), reh’g pending. 

2Staff also requests that a representative of 

WECC’s Transmission Expansion Planning Policy 

Committee attend these technical conferences. 

creditor agency under paragraph (c)(2) 

of this section. 

(d) When the debtor transfers to 

another Federal agency—(1) Notice to 

the creditor agency. If the debtor 

transfers to another Federal agency 

before the debt is paid in full, the 

Commerce entity will notify the creditor 

agency and will certify the total amount 

of its collection on the debt. The 

Commerce entity will provide a copy of 

the certification to the creditor agency. 

The creditor agency is responsible for 

submitting a certified claim to the 

debtor’s new employing agency before 

collection may begin. 

(2) Notice to the debtor. The 

Commerce entity will provide to the 

debtor a copy of any notices and 

certifications sent to the creditor agency 

under paragraph (d)(1) of this section. 

(e) Request for hearing official. A 

Commerce entity will provide a hearing 

official upon the creditor agency’s 

request with respect to a Commerce 

entity employee. See 5 CFR 550.1107(a). 

PART 21—[REMOVED AND 

RESERVED] 

■ 2. Remove and reserve part 21. 

PART 22—[REMOVED AND 

RESERVED] 

■ 3. Remove and reserve part 22. 

Dated: April 5, 2007. 

Lisa Casias, 

Deputy Chief Financial Officer and Director 

for Financial Management, Department of 

Commerce. 

[FR Doc. E7–6699 Filed 4–13–07; 8:45 am] 

BILLING CODE 3510–FA–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 35 and 37 

[Docket Nos. RM05–17–000 and RM05–25–

000; Order No. 890] 

Preventing Undue Discrimination and 

Preference in Transmission Service 

Issued April 6, 2007. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Final Rule; Notice of Technical 

Conferences. 

SUMMARY: On February 16, 2007, the 

Federal Energy Regulatory Commission 

issued Order No. 890, which amended 

the regulations and the pro forma open 

access transmission tariff (OATT). The 

Commission’s staff is convening 

technical conferences to review and 

discuss the ‘‘strawman’’ proposals 

regarding the processes for transmission 

planning required by the Final Rule. 

DATES: Conference dates: 

June 4–7, 2007, Little Rock, Arkansas. 

June 13, 2007, Park City, Utah. 

June 28–29, 2007, Pittsburgh, 

Pennsylvania. 

FOR FURTHER INFORMATION CONTACT: 

Daniel Hedberg (Technical 

Information), Office of Energy Markets 

and Reliability, Federal Energy 

Regulatory Commission, 888 First 

Street, NE., Washington, DC 20426, 

(202) 502–6243. 

W. Mason Emnett (Legal Information), 

Office of the General Counsel—Energy 

Markets, Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426, (202) 502–6540. 

SUPPLEMENTARY INFORMATION:

Notice of Technical Conferences 

Take notice that Commission staff 

will convene technical conferences on 

the following dates in the following 

cities to review and discuss the 

‘‘strawman’’ proposals regarding 

processes for transmission planning 

required by the Final Rule issued in this 

proceeding on February 16, 2007.1 Staff 

expects all transmission providers and/ 

or regional representatives to participate 

in the technical conference for their 

particular region, although all interested 

persons, including other transmission 

providers, are invited to attend each 

conference. 

Date Location Transmission provider participants 

June 4–7, 2007 .................... Little Rock, AR ................... Entities located in the states represented in the Southeastern Association of Regulatory Utility Commissioners (SEARUC) and entities located in the Southwest 

Power Pool footprint, presenting on June 4–5 and 6–7, respectively. 

June 13, 2007 ...................... Park City, Utah ................... Entities located within the ColumbiaGrid and Northern Tier Transmission Group 

footprints and other northern WECC regions.2

June 28–29, 2007 ................ Pittsburgh, PA .................... Entities located within the Midwest ISO, PJM, New York ISO, and ISO New England footprints and adjacent areas. 

TBD ...................................... TBD .................................... Entities located in the West other than those attending the June 13, 2007 conference in Park City, Utah.2

A further notice with a detailed 

agenda for each conference will be 

issued in advance of the conferences. In 

the event a transmission provider is 

uncertain as to which technical 

conference is the appropriate forum for 

discussion of its ‘‘strawman’’ proposal, 

such transmission providers should 

contact Commission staff in advance to 

discuss the matter. 

For further information about these 

conferences, please contact: 

W. Mason Emnett, Office of the 

General Counsel—Energy Markets, 

Federal Energy Regulatory Commission, 

888 First Street, NE., Washington, DC 

20426, (202) 502–6461, 

Mason.Emnett@ferc.gov. 

Daniel Hedberg, Office of Energy 

Markets and Reliability, Federal Energy 

Regulatory Commission, 888 First 

Street, NE., Washington, DC 20426, 

(202) 502–6243, 

Daniel.Hedberg@ferc.gov. 

Philis J. Posey, 

Acting Secretary. 

[FR Doc. E7–7085 Filed 4–13–07; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Monetary Offices 

31 CFR Part 82 

Prohibition on the Exportation, 

Melting, or Treatment of 5-Cent and 

One-Cent Coins 

AGENCY: United States Mint, Treasury. 

ACTION: Final Rule. 

SUMMARY: To protect the coinage of the 

United States, the United States Mint is 

adopting a final rule that prohibits the 


cprice-sewell on PROD1PC66 with RULES