19136 Federal Register / Vol. 72, No. 73 / Tuesday, April 17, 2007 / Proposed Rules 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 112 

[DOD–2007–OS–0025] 

RIN 0790–AI08 

Indebtedness of Military Personnel 

AGENCY: Department of Defense. 

ACTION: Proposed rule. 

SUMMARY: This part contains uniform 

Department of Defense policies for 

indebtedness of Military Personnel. This 

updated rule contains editorial changes 

only as required for internal Department 

of Defense mandated reconsideration 

every five years. 

DATES: Comments must be received by 

June 18, 2007. 

ADDRESSES: You may submit comments, 

identified by docket number and or RIN 

number and title, by any of the 

following methods: Federal 

eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: 

Lieutenant Colonel Mark Gingras, Office 

of the Deputy Under Secretary of 

Defense for Program Integration, 4000 

Defense Pentagon, Washington, DC 

20301–4000. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ 

It has been determined that 32 CFR 

part 123 is not a significant regulatory 

action. The rule does not: 

(1) Have an annual effect to the 

economy of $100 million or more or 

adversely affect in a material way the 

economy; a section of the economy; 

productivity; competition; jobs; the 

environment; public health or safety; or 

State, local, or tribal governments or 

communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another Agency; 

(3) Materially alter the budgetary 

impact of entitlements, grants, user fees, 

or loan programs, or the rights and 

obligations of recipients thereof; or 

(4) Raise novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in this Executive Order. 

Unfunded Mandates Reform Act (Sec. 

202, Pub. L. 104–4) 

It has been certified that this rule does 

not contain a Federal mandate that may 

result in the expenditure by State, local 

and tribal governments, in aggregate, or 

by the private sector, of $100 million or 

more in any one year. 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. 601) 

It has been certified that this rule is 

not subject to the Regulatory Flexibility 

Act (5 U.S.C. 601) because it would not, 

if promulgated, have a significant 

economic impact on a substantial 

number of small entities. 

Public Law 96–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

It has been certified that this rule does 

impose reporting or recordkeeping 

requirements under the Paperwork 

Reduction Act of 1995. The reporting 

and recordkeeping requirements have 

been submitted to OMB for review. 

Executive Order 13132, ‘‘Federalism’’ 

It has been certified that this rule does 

not have federalism implications, as set 

forth in Executive Order 13132. This 

rule does not have substantial direct 

effects on: 

(1) The States; 

(2) The relationship between the 

National Government and the States; or 

(3) The distribution of power and 

responsibilities among the various 

levels of government. 

List of Subjects in 32 CFR Part 112 

Claims, Credit, Military personnel. 

Accordingly, 32 CFR Part 112 is 

proposed to be revised as follows: 

PART 112—INDEBTEDNESS OF 

MILITARY PERSONNEL 

Sec. 

112.1 Purpose. 

112.2 Applicability and scope. 

112.3 Definitions. 

112.4 Policy. 

112.5 Processing of debt complaints. 

112.6 Processing of involuntary allotments. 

112.7 Responsibilities. 

Authority: 5 U.S.C. 5520a(k) and 10 U.S.C. 

113(d). 

§ 112.1 Purpose. 

This part: 

(a) Updates DoD policies and assigns 

responsibilities governing delinquent 

indebtedness of members of the Military 

Services and prescribes policy for 

processing involuntary allotments from 

the pay of military members to satisfy 

judgment indebtedness in accordance 

with 5 U.S.C. 5520a(k). 

(b) Establishes responsibility for 

procedures implementing 5 U.S.C. 

5520a(k), 15 U.S.C. 1601 note, 1601–

1614, 1631–1646, 1661–1665a, 1666–

1666j, and 1667–1667e (‘‘Truth in 

Lending Act’’), and 15 U.S.C. 1601 note, 

and 1692–1692o (‘‘Fair Debt Collection 

Practices Act’’). 

§ 112.2 Applicability and scope. 

(a) This part applies to the Office of 

the Secretary of Defense, the Military 

Departments (including the Coast Guard 

when it is not operating as a Service in 

the Navy, under agreement with the 

Department of Homeland Security), the 

Chairman of the Joint Chiefs of Staff, the 

Combatant Commands, the Office of the 

Inspector General of the Department of 

Defense, the Defense Agencies, the DoD 

Field Activities, and all other 

organizational entities in the 

Department of Defense (hereafter 

referred to collectively as the ‘‘DoD 

Components’’). 

(b) This part does not apply to: 

(1) Indebtedness of a member of the 

Military Services to the Federal 

Government. 

(2) Processing of indebtedness claims 

to enforce judgments against military 

members for alimony or child support. 

(3) Claims by State or municipal 

governments under the processing 

guidelines for complaints, including tax 

collection actions. 

§ 112.3 Definitions. 

(a) Absence. A member’s lack of an 

‘‘appearance,’’ at any stage of the 

judicial process, as evidenced by failing 

to physically attend court proceedings; 

failing to be represented at court 

proceedings by counsel of the member’s 

choosing; or failing to timely respond to 

pleadings, orders, or motions. 

(b) Court. A court of competent 

jurisdiction within any State, territory, 

or possession of the United States. 

(c) Debt Collector. An agency or agent 

engaged in the collection of debts 

described under 15 U.S.C. 1601 note 

and 1692–1692o (‘‘Fair Debt Collection 

Practices Act’’). 

(d) Exigencies of Military Duty. A 

military assignment or mission-essential 

duty that, because of its urgency, 

importance, duration, location, or 

isolation, necessitates the absence of a 


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Federal Register / Vol. 72, No. 73 / Tuesday, April 17, 2007 / Proposed Rules 19137 

1Copies may be obtained from the DoD Directives 

Web page at: http://www.dtic.mil/whs/directives. 

2See footnote 1 to § 112.4(a)(1). 

member of the Military Services from 

appearance at a judicial proceeding or 

prevents the member from being able to 

respond to a notice of application for an 

involuntary allotment. Exigency of 

military duty is normally presumed 

during periods of war, national 

emergency, or when the member is 

deployed. 

(e) Judgment. A final judgment must 

be a valid, enforceable order or decree, 

by a court from which no appeal may 

be taken, or from which no appeal has 

been taken within the time allowed, or 

from which an appeal has been taken 

and finally decided. The judgment must 

award a sum certain amount and specify 

that the amount is to be paid by an 

individual who, at the time of 

application for the involuntary 

allotment, is a member of the Military 

Services. 

(f) Just Financial Obligation. A legal 

debt acknowledged by the military 

member in which there is no reasonable 

dispute as to the facts or the law; or one 

reduced to judgment that conforms to 

Sections 501–591 of title 50 Appendix, 

United States Code (The 

Servicemembers Civil Relief Act, as 

amended). 

(g) Member of the Military Services. 

For the purposes of this Part, any 

member of the Regular Army, Air Force, 

Navy, Marine Corps, or Coast Guard, 

and any member of a Reserve 

component of the Army, Air Force, 

Navy, Marine Corps, or Coast Guard 

(including the Army National Guard of 

the United States and the Air National 

Guard of the United States) on active 

duty pursuant to 10 U.S.C. 672 for a 

period in excess of 180 days at the time 

an application for involuntary allotment 

is received by the Director, DFAS, or 

Commanding Officer, Coast Guard Pay 

and Personnel Center. The following 

shall not be considered members: 

(1) Retired personnel, including those 

placed on the temporary or permanent 

disabled retired list; and 

(2) Personnel in a prisoner of war or 

missing in action status, as determined 

by the Secretary of the Military 

Department concerned. 

§ 112.4 Policy. 

(a) Members of the Military Services 

are expected to pay their just financial 

obligations in a proper and timely 

manner. A Service member’s failure to 

pay a just financial obligation may 

result in disciplinary action under the 

Uniform Code of Military Justice (10 

U.S.C. 801–940) or a claim pursuant to 

Article 139 of the Uniform Code of 

Military Justice. Except as stated in this 

section, and in paragraphs (a)(1) and 

(a)(2) of this section, the DoD 

Components have no legal authority to 

require members to pay a private debt 

or to divert any part of their pay for 

satisfaction of a private debt. 

(1) Legal process instituted in civil 

courts to enforce judgments against 

military personnel for the payment of 

alimony or child support shall be acted 

on pursuant to 42 U.S.C. 651–665, and 

Part 7, Chapter 7, Section B. of 

Department of Defense Regulation 

7000.14–R Volume 7.1

(2) Involuntary allotments under 5 

U.S.C. 5520a(k) shall be established in 

accordance with this part. 

(b) Whenever possible, indebtedness 

disputes should be resolved through 

amicable means. Claimants may contact 

military members by having 

correspondence forwarded through the 

military locator services for an 

appropriate fee, as provided under DoD 

Instruction 7230.7.2

§ 112.5 Processing of debt complaints. 

(a) Debt complaints meeting the 

requirements of this Part and 

procedures established by the Under 

Secretary of Defense for Personnel and 

Readiness, as required by § 112.7(a)(1) 

shall receive prompt processing 

assistance from commanders. 

(b) Assistance in indebtedness matters 

shall not be extended to those creditors: 

(1) Who have not made a bona fide 

effort to collect the debt directly from 

the military member; 

(2) Whose claims are patently false 

and misleading; or 

(3) Whose claims are obviously 

exorbitant. 

(c) Some States have enacted laws 

prohibiting creditors from contacting a 

debtor’s employer about indebtedness or 

communicating facts on indebtedness to 

an employer unless certain conditions 

are met. The conditions that must be 

met to remove this prohibition are 

generally such things as reduction of a 

debt to judgment or obtaining written 

permission of the debtor. 

(1) At DoD installations in States 

having such laws, the processing of debt 

complaints shall not be extended to 

those creditors who are in violation of 

the State law. Commanders may advise 

creditors that this rule has been 

established because it is the general 

policy of the Military Services to 

comply with State law when that law 

does not infringe upon significant 

military interests. 

(2) The rule in paragraph(c)(1) of this 

section shall govern even though a 

creditor is not licensed to do business 

in the State where the debtor is located. 

A similar practice shall be started in any 

State enacting a similar law regarding 

debt collection. 

(3) Pursuant to 15 U.S.C. 1601 note 

and 1692–1692o (‘‘Fair Debt Collection 

Practices Act’’), contact by a debt 

collector with third parties, such as 

commanding officers, for aiding debt 

collection is prohibited without a court 

order or the debtor’s prior consent given 

directly to the debt collector. Creditors 

are generally exempt from this 

requirement, but only when they collect 

on their own behalf. 

§ 112.6 Processing of involuntary 

allotments. 

Pursuant to 5 U.S.C. 5520a(k): 

(a) In those cases in which the 

indebtedness of a military member has 

been reduced to a judgment, an 

application for an involuntary allotment 

from the member’s may be made under 

procedures prescribed by the Under 

Secretary of Defense for Personnel and 

Readiness. Such procedures shall 

provide the exclusive remedy available. 

(b) An involuntary allotment from a 

member’s pay shall not be permitted in 

any indebtedness case in which: 

(1) Exigencies of military duty caused 

the absence of the member from the 

judicial proceeding at which the 

judgment was rendered; or 

(2) There has not been compliance 

with the procedural requirements of the 

Servicemembers Civil Relief Act 50 

U.S.C. Appendix, sections 501–591. 

§ 112.7 Responsibilities. 

(a) The Under Secretary of Defense for 

Personnel and Readiness shall: 

(1) In consultation with the Under 

Secretary of Defense (Comptroller), 

establish procedures for the processing 

of debt complaints and involuntary 

allotments. 

(2) Have policy oversight on the 

assistance to be provided by military 

authorities to creditors of military 

personnel who have debt complaints, 

and on involuntary allotment of military 

pay. 

(b) The Under Secretary of Defense 

(Comptroller) shall: 

(1) Establish, as necessary, procedures 

supplemental to those promulgated by 

the Under Secretary of Defense for 

Personnel and Readiness to administer 

and process involuntary allotments from 

the pay of members of the Military 

Services; this includes the authority to 

promulgate forms necessary for the 

efficient administration and processing 

of involuntary allotments. 

(2) Ensure that the Director, Defense 

Finance and Accounting Service: 

(i) Implements procedures established 

by the Under Secretary of Defense for 


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19138 Federal Register / Vol. 72, No. 73 / Tuesday, April 17, 2007 / Proposed Rules 

3See footnote 1 to § 112.4(a)(1). 

Personnel and Readiness and The Under 

Secretary of Defense (Comptroller). 

(ii) Considers whether 

Servicemembers Civil Relief Act 50 

U.S.C. Appendix, sections 501–591 has 

been complied with pursuant to 5 

U.S.C. 5520a(k) prior to establishing an 

involuntary allotment against the pay of 

a member of the Military Services. 

(iii) Publishes, prints, stocks, 

redistributes, and revises DoD forms 

necessary to process involuntary 

allotments. 

(c) The Heads of the DoD Components 

shall urge military personnel to meet 

their just financial obligations, since 

failure to do so damages their credit 

reputation and affects the public image 

of all DoD personnel. See DoD Directive 

5500.7.3

(d) The Secretaries of the Military 

Departments shall: 

(1) Establish, as necessary, procedures 

to administer and process involuntary 

allotments from the pay of members of 

the Military Services. This includes 

designating those commanders, or other 

officials who may act in the absence of 

the commander, who shall be 

responsible for determining whether a 

member’s absence from a judicial 

proceeding was caused by exigencies of 

military duty, and establishing appeal 

procedures regarding such 

determinations. 

(2) Require commanders to counsel 

members to pay their just debts, 

including complying, as appropriate, 

with court orders and judgments for the 

payments of alimony or child support. 

(3) Emphasize prompt command 

action to assist with the processing of 

involuntary allotment applications. 

(e) The Chief, Office of Personnel and 

Training, for the Coast Guard shall: 

(1) Establish, as necessary, procedures 

supplemental to those promulgated by 

the Under Secretary of Defense for 

Personnel and Readiness to administer 

and process involuntary allotment from 

the pay of members of the Military 

Services; this includes the authority to 

promulgate forms necessary for the 

efficient administration and processing 

of involuntary allotments. 

(2) Ensure that the Commanding 

Officer, Coast Guard Pay and Personal 

Center: 

(i) Implements procedures established 

by the Under Secretary of Defense for 

Personnel and Readiness and Chief, 

Office of Personnel and Training. 

(ii) Considers whether the 

Servicemembers Civil Relief Act, as 

amended (50 U.S.C. Appendix, sections 

501–591) has been complied with 

pursuant to 5 U.S.C. 5520a(k) prior to 

establishing an involuntary allotment 

against the pay of a member of the 

Military Services. 

(iii) Acts as the Coast Guard manager 

for forms necessary to process 

involuntary allotments. 

Dated: April 11, 2007. 

C.R. Choate, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. E7–7292 Filed 4–16–07; 8:45 am] 

BILLING CODE 5001–06–P 

LIBRARY OF CONGRESS 

Copyright Royalty Board 

37 CFR Part 381 

[Docket No. 2006–2 CRB NCBRA] 

Noncommercial Educational 

Broadcasting Statutory License 

AGENCY: Copyright Royalty Board, 

Library of Congress. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Copyright Royalty Judges 

are publishing for comment certain 

royalty rates, proposed by the parties in 

the proceeding to determine the rates 

and terms for the noncommercial 

educational broadcasting statutory 

license contained in the Copyright Act. 

DATES: Comments and objections, if any, 

are due on or before May 17, 2007. 

ADDRESSES: An original, five paper 

copies, and one electronic copy in 

Portable Document Format (PDF) on 

compact disk (an optical data storage 

medium such as a CD–ROM, CD–R or 

CD–RW) or floppy diskette of a 

comment or objection must be delivered 

to the Copyright Royalty Board in one 

of the following ways: If hand delivered 

by a private party, the comment or 

objection should be brought to the 

Copyright Office Public Information 

Office in the James Madison Memorial 

Building, Room LM–401, 101 

Independence Avenue, SE., Monday 

through Friday, between 8:30 a.m. and 

5 p.m., and the envelope must be 

addressed as follows: Copyright Royalty 

Board, Library of Congress, James 

Madison Memorial Building, 101 

Independence Avenue, SE., 

Washington, DC 20559–6000. If 

delivered by a commercial courier 

(excluding overnight delivery services 

such as Federal Express, United Parcel 

Service and similar overnight delivery 

services), the comment or objection 

must be delivered to the Congressional 

Courier Acceptance Site (CCAS) located 

at 2nd and D Street, NE., Monday 

through Friday, between 8:30 a.m. and 

4 p.m., and the envelope must be 

addressed as follows: Copyright Royalty 

Board, Library of Congress, James 

Madison Memorial Building, 101 

Independence Avenue, SE., 

Washington, DC 20559–6000. If a 

comment or objection is sent by mail 

(including overnight delivery using 

United States Postal Service Express 

Mail), the envelope must be addressed 

to: Copyright Royalty Board, P.O. Box 

70977, Southwest Station, Washington, 

DC 20024–0977. Comments and 

objections may not be delivered by 

means of overnight delivery services 

such as Federal Express, United Parcel 

Service, etc., due to delays in processing 

receipt of such deliveries. 

FOR FURTHER INFORMATION CONTACT: Gina 

Giuffreda, Attorney-Advisor. Telephone 

(202) 707–7658. Telefax (202) 252–3423. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 118 of the Copyright Act, title 

17 of the United States Code, establishes 

a statutory license for the use of certain 

copyrighted works in connection with 

noncommercial television and radio 

broadcasting. The terms and rates for 

this statutory license have been adjusted 

periodically by the Librarian of 

Congress and appear in 37 CFR Part 253. 

However, the Copyright Royalty and 

Distribution Reform Act of 2004, Pub. L. 

No. 108–419, transferred jurisdiction 

over these rates and terms to the 

Copyright Royalty Judges. 17 U.S.C. 

801(b)(1). This is a window year for the 

establishment of new rates and terms for 

the 2008–2012 license period. 

On January 9, 2006, pursuant to 17 

U.S.C. 803(b)(1)(A)(i)(V), the Copyright 

Royalty Judges published a notice in the 

Federal Register announcing 

commencement of proceedings under 17 

U.S.C. 118 and requesting interested 

parties to submit their petitions to 

participate. 71 FR 1453 (January 9, 

2006). Petitions to participate were 

received from: the American Council on 

Education (‘‘ACE’’); the National Music 

Publishers Association, Inc. (‘‘NMPA’’); 

the Harry Fox Agency (‘‘HFA’’); the 

National Religious Broadcasters 

Noncommercial Music License 

Committee (‘‘NRBNMLC’’); Royalty 

Logic, Inc.; the American Society of 

Composers, Authors and Publishers 

(‘‘ASCAP’’); Broadcast Music, Inc. 

(‘‘BMI’’); SESAC, Inc.; National Public 

Radio (‘‘NPR’’); the Corporation for 

Public Broadcasting (‘‘CPB’’); the Public 

Broadcasting Service (‘‘PBS’’); and the 

Church Music Publishers Association, 

Inc. The Judges set the timetable for the 

three-month negotiation period, see 17 

U.S.C. 803(b)(3), and directed the 


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