63278 Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Rules and Regulations

Approved: September 3, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set out in the

preamble, 38 CFR part 36 is amended as

set forth below.

PART 36—LOAN GUARANTY

1. The authority citation for part 36

continues to read as follows:

Authority: 38 U.S.C. 501, 3701–3704, 3707,

3710–3714, 3719, 3720, 3729, 3762, unless

otherwise noted.

2. In § 36.4232, paragraph (e)(1) is

amended by removing ‘‘(e)(4)’’ and

adding, in its place, ‘‘(e)(5)’’; paragraphs

(e)(2) and (e)(3) are amended by

removing ‘‘paragraphs (e)(4) and’’ and

adding, in its place, ‘‘paragraph’’; and

by redesignating paragraph (e)(4) as

paragraph (e)(5); by adding a new

paragraph (e)(4); and by revising the

parenthetical at the end of the section to

read as follows:

§ 36.4232 Allowable fees and charges;

manufactured home unit.

* * * * *

(e) * * *

(4) The lender is required to pay to

the Secretary electronically through the

Automated Clearing House (ACH)

system the fees described in paragraphs

(e)(1) and (e)(2) of this section and any

late fees and interest due on them. This

shall be paid to a collection agent by

operator-assisted telephone, terminal

entry, or central processing unit-tocentral processing unit (CPU-to-CPU)

transmission. The collection agent will

be identified by the Secretary. The

lender shall provide the collection agent

with the following: authorization for

payment of the funding fee (including

late fees and interest) along with the

following information: VA lender ID

number; four-digit personal

identification number; dollar amount of

debit; VA loan number; OJ (office of

jurisdiction) code; closing date; loan

amount; information about whether the

payment includes a shortage, late

charge, or interest; veteran name; loan

type; sale amount; downpayment;

whether the veteran is a reservist; and

whether this is a subsequent use of

entitlement. For all transactions

received prior to 8:15 p.m. on a

workday, VA will be credited with the

amount paid to the collection agent at

the opening of business the next

banking day.

(Authority: 38 U.S.C. 3729(a))

* * * * *

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

numbers 2900–0474 and 2900–0516.)

3. Section 36.4254 is amended by

redesignating paragraphs (d)(4) and

(d)(5) as paragraphs (d)(5) and (d)(6),

respectively; by adding a new paragraph

(d)(4); and by adding a parenthetical at

the end of the section to read as follows:

§ 36.4254 Fees and charges.

* * * * *

(d) * * *

(4) The lender is required to pay to

the Secretary electronically through the

Automated Clearing House (ACH)

system the fees described in paragraphs

(d)(1) and (d)(2) of this section and any

late fees and interest due on them. This

shall be paid to a collection agent by

operator-assisted telephone, terminal

entry, or CPU-to-CPU transmission. The

collection agent will be identified by the

Secretary. The lender shall provide the

collection agent with the following:

authorization for payment of the

funding fee (including late fees and

interest) along with the following

information: VA lender ID number; fourdigit personal identification number;

dollar amount of debit; VA loan

number; OJ (office of jurisdiction) code;

closing date; loan amount; information

about whether the payment includes a

shortage, late charge, or interest; veteran

name; loan type; sale amount;

downpayment; whether the veteran is a

reservist; and whether this is a

subsequent use of entitlement. For all

transactions received prior to 8:15 p.m.

on a workday, VA will be credited with

the amount paid to the collection agent

at the opening of business the next

banking day.

(Authority: 38 U.S.C. 3729(a))

* * * * *

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

number 2900–0474.)

4. Section 36.4312 is amended by

redesignating paragraph (e)(4) as

paragraph (e)(5); by adding a new

paragraph (e)(4); and by revising the

parenthetical at the end of the section to

read as follows:

§ 36.4312 Charges and fees.

* * * * *

(e) * * *

(4) The lender is required to pay to

the Secretary electronically through the

Automated Clearing House (ACH)

system the fees described in paragraphs

(e)(1) and (e)(2) of this section and any

late fees and interest due on them. This

shall be paid to a collection agent by

operator-assisted telephone, terminal

entry, or CPU-to-CPU transmission. The

collection agent will be identified by the

Secretary. The lender shall provide the

collection agent with the following:

authorization for payment of the

funding fee (including late fees and

interest) along with the following

information: VA lender ID number; fourdigit personal identification number;

dollar amount of debit; VA loan

number; OJ (office of jurisdiction) code;

closing date; loan amount; information

about whether the payment includes a

shortage, late charge, or interest; veteran

name; loan type; sale amount;

downpayment; whether the veteran is a

reservist; and whether this is a

subsequent use of entitlement. For all

transactions received prior to 8:15 p.m.

on a workday, VA will be credited with

the amount paid to the collection agent

at the opening of business the next

banking day.

(Authority: 38 U.S.C. 3729(a))

* * * * *

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

numbers 2900–0474 and 2900–0516.)

[FR Doc. 97–30709 Filed 11–26–97; 8:45 am]

BILLING CODE 8320–01–P

POSTAL SERVICE

39 CFR Part 966

Rules of Practice in Proceedings

Relative to Administrative Offsets

Initiated Against Former Employees of

the Postal Service

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: The Judicial Officer of the

Postal Service hereby revises the rules

of procedure governing the conduct of

hearings relative to administrative

offsets initiated by the Postal Service.

This revision transfers the authority to

pursue a claim from the Postal

Inspection Service to other Postal

Service officials, and expands the types

of debt that can be considered in these

proceedings. Part 966 is renamed to

reflect these changes.

EFFECTIVE DATE: November 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Administrative Judge Norman D.

Menegat, (202) 268–2138.

SUPPLEMENTARY INFORMATION: Acting in

accordance with authority delegated

under 39 CFR 226.2(e)(1)(iv), the

Judicial Officer revises as set forth

below 39 CFR Part 966, the rules of

practice governing proceedings relative

to administrative offsets initiated by the

Postal Service. The rules in this part

apply to any hearing on the Postal

Service’s determination of the existence

or amount of a debt owed the Postal
Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Rules and Regulations 63279

Service by a former postal employee or

on the terms of the Postal Service’s

proposed debt repayment schedule.

The purpose of the revision is to

transfer the authority to pursue a claim

against a former employee from the

Postal Inspection Service to other Postal

Service officials. Under the previous

rules, the Inspection Service initially

asserted a claim against the former

employee, received and acted upon the

former employee’s request for

reconsideration and represented the

Postal Service in any hearing requested

by the former employee under Part 966.

Under the revised rules, the claim will

be initially asserted by the Postal

Service’s Minneapolis Accounting

Service Center. Reconsideration of the

claim, if sought by the former employee,

is to be requested from the former

employee’s Postmaster/Installation

Head, and the General Counsel or that

officer’s designee will represent the

Postal Service in any hearing under Part

966.

The types of debt that could be

considered in these proceedings were

previously limited to those ‘‘based on a

loss from the mails or from Postal

Service revenues.’’ That limitation has

been removed, and these procedures

apply to debts the Postal Service

determines the former employee owes,

regardless of the basis of the debt.

Additionally, the new rules provide that

a former employee whose liability or

offset schedule was finally determined

while he or she was employed by the

Postal Service may not obtain a hearing

on the same debt or offset schedule

under these procedures after separating

from the Postal Service. The revised

regulation includes other minor,

clarifying changes, including that an

oral hearing may be held by telephone

or video conference as well as in person.

These revisions are changes in agency

rules of procedure that do not

substantially affect any rights or

obligations of private parties. Therefore,

it is appropriate for their adoption by

the Postal Service to become effective

immediately.

List of Subjects in 39 CFR Part 966

Administrative practice and

procedure, Claims, Debt Collection Act,

rules of practice, Postal Service.

Accordingly, the Postal Service

revises 39 CFR Part 966 to read as set

forth below:

PART 966—RULES OF PRACTICE IN

PROCEEDINGS RELATIVE TO

ADMINISTRATIVE OFFSETS INITIATED

AGAINST FORMER EMPLOYEES OF

THE POSTAL SERVICE

Sec.

Sec. 966.1 Authority for rules.

Sec. 966.2 Scope of rules.

Sec. 966.3 Definitions.

Sec. 966.4 Petition for a hearing and

supplement to petition.

Sec. 966.5 Effect of petition filing.

Sec. 966.6 Filing, docketing and serving

documents; computation of time;

representation of parties.

Sec. 966.7 Answer to petition.

Sec. 966.8 Authority and responsibilities of

Hearing Official or Judicial Officer.

Sec. 966.9 Opportunity for oral hearing.

Sec. 966.10 Initial decision.

Sec. 966.11 Appeal.

Sec. 966.12 Waiver of rights.

Sec. 966.13 Ex parte communications.

Authority: 39 U.S.C. 204, 401, 2601.

§ 966.1 Authority for rules.

These rules of practice are issued by

the Judicial Officer pursuant to

authority delegated by the Postmaster

General.

§ 966.2 Scope of rules.

The rules in this part apply to any

petition filed by a former postal

employee:

(a) To challenge the Postal Service’s

determination that he or she is liable to

the Postal Service for a debt incurred in

connection with his or her Postal

Service employment; and/or

(b) To challenge the administrative

offset schedule proposed by the Postal

Service for collecting any such debt.

§ 966.3 Definitions.

(a) Administrative offset refers to the

withholding of money payable by the

Postal Service or the United States to, or

held by the Postal Service or the United

States for, a former employee in order to

satisfy a debt determined to be owed by

the former employee to the Postal

Service.

(b) Debt refers to any amount

determined by the Postal Service to be

owed to the Postal Service by a former

employee.

(c) Former employee refers to an

individual whose employment with the

Postal Service has ceased. An employee

is considered formally separated from

the Postal Service rolls as of close of

business on the effective date of his or

her separation. Postal Service Form 50.

(d) General Counsel refers to the

General Counsel of the Postal Service,

and includes a designated

representative.

(e) Hearing Official refers to an

Administrative Law Judge qualified to

hear cases under the Administrative

Procedure Act, an Administrative Judge

appointed under the Contract Disputes

Act of 1978, or any other qualified

person licensed to practice law

designated by the Judicial Officer to

preside over a hearing conducted

pursuant to this part.

(f) Judicial Officer refers to the

Judicial Officer, Associate Judicial

Officer, or Acting Judicial Officer of the

Postal Service.

(g) Postmaster/Installation Head

refers to the top management official at

a particular post office or installation

when an alleged debt owed by a former

employee was incurred, or to that

official’s successor, or to the department

head who had general supervisory

responsibility for a former employee at

Area Offices or National Headquarters

when an alleged debt owed by that

former employee was incurred, or to

that official’s successor. Where the

former employee was a Postmaster/

Installation Head, the term refers to the

official to whom the Postmaster/

Installation Head reported when an

alleged debt owed by that former

employee was incurred, or to that

official’s successor. Where the former

employee was in the Inspection Service,

the term refers to the former employee’s

immediate supervisor when an alleged

debt owed by that former employee was

incurred, or to that official’s successor.

Where the former employee was in the

Office of Inspector General, the term

refers to the Inspector General, or to the

Inspector General’s delegate.

(h) Reconsideration refers to the

review of an alleged debt and/or the

proposed offset schedule conducted by

the Postmaster/Installation Head at the

request of a former employee alleged to

be indebted to the Postal Service.

(i) Recorder refers to the Recorder,

Judicial Officer Department, United

States Postal Service, 475 L’Enfant

Plaza, SW., Washington, DC 20260–

6100.

§ 966.4 Petition for a hearing and

supplement to petition.

(a) A former employee who is alleged

to be responsible for a debt to the Postal

Service may petition for a hearing under

this part, provided:

(1) Liability for the debt and/or the

proposed offset schedule has not been

established under Part 452.3 or Part

462.3 of the Employee & Labor Relations

Manual;

(2) He or she has received a Notice

from the Minneapolis Accounting

Service Center (or its successor

installation) informing him or her of the

debt and an offset schedule to satisfy the

debt and of the right to request
63280 Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Rules and Regulations

reconsideration by the Postmaster/

Installation Head; and

(3) He or she has requested and

received reconsideration of the

existence or amount of the alleged debt

and/or the offset schedule proposed by

the Postal Service.

(b) Within thirty (30) calendar days

after the date of receipt of the

Postmaster/Installation Head’s written

decision upon reconsideration, the

former employee must file a written,

signed petition, requesting a written or

oral hearing, with the Recorder, Judicial

Officer Department, United States Postal

Service, 475 L’Enfant Plaza, SW.,

Washington, DC 20260–6100.

(c) The petition must include the

following:

(1) The words, ‘‘Petition for Review

Under 39 CFR Part 966’’;

(2) The former employee’s name and

social security number;

(3) The former employee’s home

address and telephone number, and any

other address and telephone number at

which the former employee may be

contacted about these proceedings;

(4) A statement of the date the former

employee received the Postmaster/

Installation Head’s written decision

upon reconsideration of the alleged

debt, and a copy of the decision;

(5) A statement indicating whether

the former employee requests an oral

hearing or a decision based solely on

written submissions;

(6) If the former employee requests an

oral hearing, a statement describing the

evidence he or she will produce which

makes an oral hearing necessary,

including a list of witnesses, with their

addresses, whom the former employee

expects to call; a summary of the

testimony the witnesses are expected to

present; the city requested for the

hearing site, with justification for

holding the hearing in that city; and at

least three proposed dates for the

hearing at least forty-five (45) days after

the filing of the petition;

(7) A statement of the grounds upon

which the former employee objects to

the Postal Service’s determination of the

debt or to the administrative offset

schedule proposed by the Postal Service

for collecting any such debt. This

statement should identify with

reasonable specificity and brevity the

facts, evidence, and legal arguments, if

any, which support the former

employee’s position; and

(8) Copies of all records in the former

employee’s possession which relate to

the debt and which the former employee

may enter into the record of the hearing.

(d) The former employee may, if

necessary, file with the Recorder

additional information as a supplement

to the petition at any time prior to the

filing of the answer to the petition under

§ 966.7, or at such later time as

permitted by the Hearing Official upon

a showing of good cause.

§ 966.5 Effect of petition filing.

Upon receipt and docketing of the

former employee’s petition, the

Recorder will notify the General

Counsel that the petition has been filed

and that a timely filed petition stays

further collection action.

§ 966.6 Filing, docketing and serving

documents; computation of time;

representation of parties.

(a) Filing. All documents required

under this part must be filed by the

former employee or the General Counsel

in triplicate with the Recorder. (Normal

Recorder office business hours are

between 8:15 a.m. and 4:45 p.m., eastern

standard or daylight saving time as

appropriate during the year.) The

Recorder will transmit a copy of each

document filed to the other party, and

the original to the Hearing Official.

(b) Docketing. The Recorder will

maintain a docket record of proceedings

under this part and will assign each

petition a docket number. After

notification of the docket number, the

former employee and General Counsel

should refer to it on any further filings

regarding the petition.

(c) Time computation. A filing period

under the rules in this part excludes the

day the period begins, and includes the

last day of the period unless the last day

is a Saturday, Sunday, or legal holiday,

in which event the period runs until the

close of business on the next business

day.

(d) Representation of parties. After the

filing of the petition, further document

transmittals for, or communications

with, the Postal Service shall be through

its representative, the General Counsel.

If a former employee is represented by

an attorney authorized to practice law in

any of the United States or the District

of Columbia or a territory of the United

States, further transmissions of

documents and other communications

with the former employee shall be made

through his or her attorney rather than

directly with the former employee.

§ 966.7 Answer to petition.

Within thirty (30) days after the date

of receipt of the petition, the General

Counsel shall file an answer to the

petition, and attach all available

relevant records and documents in

support of the Postal Service’s claim, or

the administrative offset schedule

proposed by the Postal Service for

collecting any such claim; a statement of

whether the Postal Service concurs in,

or objects to, an oral hearing, if the

former employee requests one, with the

reason(s) for the Postal Service’s

objection; a list of witnesses the Postal

Service intends to call if an oral hearing

is requested and the request is granted;

a synopsis of the testimony of each

witness; a statement of concurrence or

objection to the proposed location and

dates for the oral hearing; and a

statement of the basis for the

determination of debt or offset schedule

if not contained in the relevant records

or documents. If the former employee

files a supplement to the petition, the

General Counsel may file any

supplemental answer and records to

support the position of the Postal

Service within twenty (20) calendar

days from the date of receipt of the

supplement filed with the Recorder.

§ 966.8 Authority and responsibilities of

Hearing Official or Judicial Officer.

(a) In processing a case under this

part, the Hearing Official’s authority

includes, but is not limited to, the

following:

(1) Ruling on all offers, motions, or

requests by the parties;

(2) Issuing any notices, orders, or

memoranda to the parties concerning

the hearing procedures;

(3) Conducting telephone conferences

with the parties to expedite the

proceedings (a memorandum of a

telephone conference will be

transmitted to both parties);

(4) Determining if an oral hearing is

necessary, the type of oral hearing that

would be appropriate, and setting the

place, date, and time for such hearing;

(5) Administering oaths or

affirmations to witnesses;

(6) Conducting the hearing in a

manner to maintain discipline and

decorum while assuring that relevant,

reliable, and probative evidence is

elicited on the issues in dispute, and

that irrelevant, immaterial, or

repetitious evidence is excluded;

(7) Establishing the record in the case;

(8) Issuing an initial decision or one

on remand; and

(9) Granting, at the request of either

party, reasonable time extensions.

(b) The Judicial Officer, in addition to

possessing such authority as is

described elsewhere in this part, shall

possess all of the authority and

responsibilities of a Hearing Official.

§ 966.9 Opportunity for oral hearing.

An oral hearing generally will be held

only in those cases which, in the

opinion of the Hearing Official, cannot

be resolved by a review of the

documentary evidence, such as when
Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Rules and Regulations 63281

the existence, or amount, of a debt turns

on issues of credibility or veracity. An

oral hearing includes an in-person

hearing, a telephonic hearing, or a

hearing by video conference. When the

Hearing Official determines that an oral

hearing is not necessary, the decision

shall be based solely on written

submissions.

§ 966.10 Initial decision.

(a) After the receipt of written

submissions or after the conclusion of

the hearing and the receipt of any posthearing briefs, the Hearing Official shall

issue a written initial decision,

including findings of fact and

conclusions of law, which the Hearing

Official relied upon in determining

whether the former employee is

indebted to the Postal Service, or in

upholding or revising the administrative

offset schedule proposed by the Postal

Service for collecting a former

employee’s debt. When the Judicial

Officer presides at a hearing he or she

shall issue a final or a tentative

decision.

(b) The Hearing Official shall

promptly send to each party a copy of

the initial or tentative decision, and a

statement describing the right of appeal

to the Judicial Officer in accordance

with § 966.11.

§ 966.11 Appeal.

The initial or tentative decision will

become final and an order to that effect

will be issued by the Judicial Officer

thirty (30) days after issuance and

receipt by the parties of the initial or

tentative decision unless the Judicial

Officer, in his discretion, grants review

upon appeal by either party, or on his

own motion. If an appeal is denied, the

initial or tentative decision becomes the

final agency decision upon the issuance

of such denial. The Judicial Officer’s

decision on appeal is the final agency

decision with no further right of appeal

within the agency.

§ 966.12 Waiver of rights.

The Hearing Official may determine

the former employee has waived his or

her right to a hearing and administrative

offset may be initiated if the former

employee:

(a) Files a petition for hearing after the

end of the prescribed thirty (30) day

period, and fails to demonstrate to the

satisfaction of the Hearing Official good

cause for the delay;

(b) Has received notice to appear at an

oral hearing but fails to do so without

showing circumstances beyond the

former employee’s control;

(c) Fails to file required submissions

or to comply with orders of the Hearing

Official; or

(d) Files a withdrawal of his or her

petition for a hearing with the Recorder.

§ 966.13 Ex parte communications.

Ex parte communications between a

Hearing Official or his or her staff and

a party shall not be made. This

prohibition does not apply to

procedural matters. A memorandum of

any communication between the

Hearing Official and a party will be

transmitted to both parties.

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 97–30010 Filed 11–26–97; 8:45 am]

BILLING CODE 7710–12–P