11660 Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Proposed Rules 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 285 

[Docket No. Fiscal–2021–0007] 

RIN 1530–AA21 

Debt Collection Authorities Under the 

Debt Collection Improvement Act of 

1996 

AGENCY: Bureau of the Fiscal Service, 

Fiscal Service, Treasury. 

ACTION: Notice of proposed rulemaking 

with request for comment. 

SUMMARY: The Department of the 

Treasury (‘‘Treasury’’), Bureau of the 

Fiscal Service (‘‘Fiscal Service’’), 

proposes to amend its regulations 

regarding the Treasury Offset Program 

(‘‘TOP’’) and the Cross-Servicing 

program. The primary reason for doing 

so is to inform the public about how 

Fiscal Service will use Social Security 

numbers in mailings, as required by the 

Social Security Number Fraud 

Prevention Act of 2017, which requires 

Fiscal Service to have final regulations 

in place by September 15, 2022. 

DATES: Comments must be received by 

May 2, 2022. 

ADDRESSES: Fiscal Service participates 

in the U.S. Government’s eRulemaking 

Initiative by publishing rulemaking 

information on www.regulations.gov. 

Regulations.gov offers the public the 

ability to comment on, search, and view 

publicly available rulemaking materials, 

including comments received on rules. 

Instructions for comment submission: 

Comments on this proposed rule, 

identified by docket FISCAL–2021– 

0007, should only be submitted using 

the Federal eRulemaking Portal at 

regulations.gov. Follow the instructions 

on the website for submitting 

comments. 

All submissions received must 

include the agency name (‘‘Bureau of 

the Fiscal Service’’) and docket number 

(‘‘FISCAL–2021–0007’’) for this 

rulemaking. In general, comments will 

be published on Regulations.gov 

without change, including any business 

or personal information provided. 

Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

FOR FURTHER INFORMATION CONTACT: 

Tawanna Edmonds, Director, 

Receivables Management & Debt 

Services Division, Debt Management 

Services, Bureau of the Fiscal Service at 

(202) 874–6810. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Legal Authorities. The Debt Collection 

Improvement Act of 1996 (‘‘DCIA’’), 

Public Law 104–134, 110 Stat. 1321–358 

et seq. (April 26, 1996), among other 

things, authorized Federal agencies to 

refer Federal nontax debt to Treasury for 

collection services. See 31 U.S.C. 

3711(g). The DCIA also authorized 

Federal disbursing officials to withhold 

eligible Federal nontax payments to pay 

the payee’s delinquent nontax debt 

owed to the United States. See 31 U.S.C. 

3716(c). The DCIA also provided that 

Federal nontax payments may be offset 

to collect delinquent debt owed to 

States, including past-due support, and 

that payments made by States may be 

offset to collect delinquent nontax debt 

owed to the United States. See 31 U.S.C. 

3716(h). Further, Federal tax refund 

payments may be offset to collect 

nontax debt owed to the United States 

and debt owed to States, including pastdue support. See 26 U.S.C. 6402, 31 

U.S.C. 3720A, and 42 U.S.C. 664. 

Cross-Servicing program. Fiscal 

Service administers the Cross-Servicing 

program, through which it provides 

delinquent nontax debt collection 

services pursuant to 31 U.S.C. 3711(g). 

Centralized Receivables Service. 

Fiscal Service administers the 

Centralized Receivables Service, or CRS, 

through which it provides invoicing and 

early delinquent debt collection services 

to Federal agencies under 31 U.S.C. 

3711(g). 

Treasury Offset Program. Fiscal 

Service administers a centralized offset 

program, known as the Treasury Offset 

Program, or TOP, through which it 

offsets payments to collect debts. 

Revision of Existing Regulations. 

Fiscal Service promulgated 31 CFR 

285.12 to implement 31 U.S.C. 3711(g). 

Among other things, the regulation 

codified at 31 CFR 285.12 describes the 

procedures and criteria for transferring 

delinquent debt to Treasury. It also 

explains the statutory exceptions to this 

requirement and the standards under 

which the Secretary of the Treasury will 

determine whether to grant exemptions 

to this requirement. 

Fiscal Service promulgated 31 CFR 

part 285, subpart A to implement the 

centralized offset of payments through 

TOP, pursuant to the Debt Collection 

Improvement Act of 1996. 

Fiscal Service proposes to revise the 

regulations codified at 31 CFR part 285, 

subpart A, and 31 CFR 285.12 (together, 

the ‘‘existing regulations’’) for several 

reasons. The primary reason for doing 

so is to inform the public about how 

Fiscal Service will use Social Security 

numbers in mailings, as required by the 

Social Security Number Fraud 

Prevention Act of 2017, which requires 

Fiscal Service to have final regulations 

in place by September 15, 2022. The 

proposed rule also adds definitions for 

previously undefined terms and 

rewords certain provisions for clarity, 

consistent with the requirements of the 

Plain Writing Act of 2010 and Executive 

Order 12866 (Sept. 1993). 

II. Section Analysis 

This section describes, section-bysection, the reasoning for the proposed 

revision (the ‘‘proposed rule’’) of the 

existing regulations. Fiscal Service 

acknowledges that many of the 

provisions regarding the use of SSNs is 

repetitive. This repetition is necessary 

given the current structure of the rules. 

Fiscal Service may address this 

repetition in a subsequent regulation. 

285.1(q)—Social Security Numbers 

The proposed rule would add 

§ 285.1(q) to address how Fiscal Service 

uses SSNs in TOP for offset of Federal 

nontax payments to collect past-due 

support, as required by the SSN Act. 

285.3(m)—Social Security Numbers 

The proposed rule would add 

§ 285.3(m) to address how Fiscal Service 

uses SSNs in TOP for offset of Federal 

tax payments to collect past-due 

support, as required by the SSN Act. 

285.5(l)—Social Security Numbers 

The proposed rule would add 

§ 285.5(l) to address how Fiscal Service 

uses SSNs in TOP for offset of Federal 

nontax payments to collect nontax debts 

owed to the United States, including 

offset of Federal tax refunds (see 

§ 285.2), Federal benefit payments (see 

§ 285.4), and Federal salary payments 

(see § 285.7), as required by the SSN 

Act. 

285.6(n)—Social Security Numbers 

The proposed rule would add 

§ 285.6(n) to address how Fiscal Service 

uses SSNs in TOP for offset of Federal 

nontax payments to collect state debts 

and the offset of payments made by 

States to collect Federal nontax debts, as 

required by the SSN Act. 

285.8(k)—Social Security Numbers 

The proposed rule would add 

§ 285.8(k) to address how Fiscal Service 

uses SSNs in TOP for offset of Federal 

tax payments to collect certain debts 

owed by States, as required by the SSN 

Act. 


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285.12(a)—Definitions 

Centralized Receivables Service. The 

proposed rule would add a definition 

for the term ‘‘Centralized Receivables 

Service,’’ which is not used in the 

existing regulation. The Centralized 

Receivable Service, or CRS, is a program 

established by Fiscal Service to assist 

Federal agencies in the management of 

current, non-tax receivables. CRS aims 

to increase collections and prevent 

delinquencies while allowing agencies 

to focus on important core missions. 

CRS also provides early delinquent debt 

collection services. While Federal 

agencies are generally required to refer 

Federal nontax delinquent debts over 

120 days delinquent (or, in some cases, 

180 days delinquent) to the CrossServicing program, Federal agencies 

may use CRS in their discretion. The 

proposed rule describes the CRS 

program to inform the public of the 

existence of this program and to comply 

with the SSN Act, which requires Fiscal 

Service to address how it uses SSNs in 

its mailings. See § 285.12(k) of the 

proposed rule. 

Cross-Servicing program. The 

proposed rule would add a definition 

for the term ‘‘Cross-Servicing program,’’ 

which is used but undefined by the 

existing regulation. The proposed rule 

would also remove language from 

§ 285.12(b) describing the term ‘‘crossservicing.’’ 

Days delinquent. The proposed rule 

would add a definition for the term 

‘‘days delinquent,’’ which is used but 

undefined by the existing regulation. 

The definition is intended to provide 

additional clarity, but not substantively 

change the meaning of the term. 

Debt collection center. The proposed 

rule would make conforming changes 

given the definitions for ‘‘Federal 

agency’’ and ‘‘Secretary.’’ 

Debtor. The proposed rule would add 

a definition for the term ‘‘debtor,’’ 

which is used but undefined by the 

existing regulation. The definition is 

intended to provide additional clarity, 

but not substantively change the 

meaning of the term. 

Delinquent or past-due. The proposed 

rule would add a definition for the term 

‘‘delinquent or past-due,’’ which is used 

but undefined by the existing 

regulation. The definition is intended to 

provide additional clarity, but not 

substantively change the meaning of the 

term. The proposed rule would also 

remove language from § 285.12(c)(3) that 

included a description of the meaning of 

the term ‘‘past-due.’’ 

Federal agency. The proposed rule 

would replace the term ‘‘agency’’ with 

‘‘Federal agency.’’ The definition itself 

would remain unchanged. This 

proposed change is intended to provide 

clarity, but not a substantive change in 

meaning. 

Legally enforceable. The proposed 

rule would add a definition for the term 

‘‘legally enforceable,’’ which is used but 

undefined by the existing regulation. 

The definition is similar to the 

definition for ‘‘legally enforceable’’ that 

is used in regulations governing Fiscal 

Service’s administration of the Treasury 

Offset Program. See 31 CFR 285.5(b). An 

agency may have made a final agency 

determination that the debt is owed and 

is legally enforceable, even if the debtor 

has or may in the future appeal the debt 

with the agency or otherwise dispute 

the debt. If an agency has complied with 

due process prerequisites and if the 

agency’s regulations do not preclude 

collection during an appeal, a pending 

appeal will not preclude the agency 

from referring the debt to the CrossServicing program for collection 

purposes. Debts that are not legally 

enforceable may not be referred to the 

Cross-Servicing program for collection 

purposes. The proposed rule would also 

remove language from § 285.12(c)(3), 

which included a description of the 

meaning of the term ‘‘legally 

enforceable.’’ 

Person. The proposed revision to the 

definition ‘‘person’’ is not a substantive 

change. It is intended to clarify that, for 

the purposes of this regulation, a person 

(and therefore a debtor) cannot be the 

United States. 

285.12(b)—In General 

The existing regulation describes the 

requirement for Federal agencies to refer 

delinquent debts to Treasury for 

collection action, exceptions to this 

requirement, and what actions Fiscal 

Service will take on referred debt. The 

existing regulation does not describe 

CRS. The proposed rule expands the 

scope of this regulation from the CrossServicing program to include both the 

Cross-Servicing program and CRS. 

285.12(c)—Mandatory Transfer of Debts 

to Fiscal Service’s Cross-Servicing 

Program 

The proposed rule would amend the 

title to paragraph (c) to make clear that 

the provisions of paragraph (c) apply 

only to the Cross-Servicing program, 

and not also to CRS, which is not 

mentioned in the existing regulation. 

The proposed rule would reorganize 

paragraph (c) for clarity and to eliminate 

unnecessary language. The proposed 

rule would clarify that debts are not 

subject to mandatory transfer if they are 

not legally enforceable or if they are 

below the threshold established by 

Fiscal Service. 

It would use the term ‘‘centralized 

offset’’ which refers to offset through 

TOP, rather than the term 

‘‘administrative offset,’’ which can 

include non-centralized offsets 

performed outside of TOP. 

The proposed rule would define the 

terms ‘‘legally enforceable’’ and ‘‘past 

due’’ in the definition section of the 

regulation, rather than embedding the 

definitions into the substantive 

provisions of the regulation. 

The proposed rule would eliminate 

the provision permitting agencies to 

combine individual debts for purposes 

of meeting the $25 threshold (or such 

other threshold as Fiscal Service may 

determine). The permissibility of 

aggregating debts into a single debt file 

may be addressed in separate guidance 

that Fiscal Service may issue. 

285.12(d)—Exceptions to Mandatory 

Transfer 

The proposed rule would amend 

paragraph (d)(1), which addresses 

exceptions to the requirement that 

agencies refer delinquent debt to the 

Cross-Servicing program. As described 

below, this proposed rule would delete 

paragraph (e), which addresses the 

schedule of private collection 

contractors. The proposed rule would 

restore the statutory exemption standard 

regarding private collection contractors. 

The proposed rule would move 

concepts from current paragraph (d)(6), 

which addresses the servicing and 

collection of debts by third parties, to 

paragraph (d)(1)(vi). 

The proposed rule would amend 

paragraph (d)(4), which addresses 

internal offset, to streamline and clarify 

the language. 

The proposed rule would amend 

paragraph (d)(5), which addresses 

requests for exemption of classes of debt 

from the requirement to refer debts to 

the Cross-Servicing program, by adding 

a title to the paragraph for clarity. 

As described above, the proposed rule 

would delete paragraph (d)(6), which 

addresses the servicing and collection of 

debts by third parties, as those concepts 

were moved to paragraph (d)(1)(vi). 

285.12(e)—Schedule of Private 

Collection Contractors 

The proposed rule would delete 

paragraph (e), as it merely repeats the 

statutory requirement that Fiscal Service 

maintain a schedule of private 

collection contractors. To the extent an 

agency determines that referral of a debt 

to its own private collection contractor 

rather than referral to Fiscal Service’s 

Cross-Servicing program is appropriate, 


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the agency should request an exemption 

from referral under the procedures 

specified in paragraph (d)(5). 

285.12(i)—Certification 

The proposed rule would substitute 

the word ‘‘delegatee’’ to ‘‘delegate.’’ The 

change in terminology is intended to 

make the language of the regulation 

consistent with other uses of the term. 

It is not intended to result in a 

substantive change in meaning. 

285.12(j)—Fees 

The proposed rule would delete 

unnecessary language regarding the 

term ‘‘debt collection centers,’’ which is 

defined in paragraph (a). It would also 

clarify that the fees are charged to 

Federal agencies (as opposed to 

debtors), regardless of whether a Federal 

agency passes on the amount of fees 

charged with regard to a particular debt 

to the debtor. It would also clarify that 

Fiscal Service and other debt collection 

centers have broad flexibility regarding 

how they calculate fees. 

285.12(k)—Social Security Numbers 

The proposed rule would add 

§ 285.12(k) to address how Fiscal 

Service will use SSNs in its CrossServicing program and in CRS, as 

required by the SSN Act. 

III. Procedural Analyses 

Federalism 

This proposed rule has been reviewed 

under Executive Order 13132, 

Federalism. This proposed rule would 

not have substantial direct effects on 

States, on the relationship between the 

National Government and the States, or 

on distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this proposed rule 

does not have sufficient federalism 

implications to warrant the preparation 

of a federalism summary impact 

statement. 

Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because this proposed rule 

would not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq. 

Regulatory Flexibility Act Analysis 

It is hereby certified that the proposed 

rule would not have a significant 

economic impact on a substantial 

number of small entities because this 

proposed rule only impacts persons 

who receive payments from Federal 

agencies or States and who are 

delinquent on debts owed to Federal 

agencies or States. Accordingly, an 

initial regulatory flexibility analysis 

under the Regulatory Flexibility Act is 

not required. Fiscal Service seeks 

comment on whether the certification 

made herein should be reconsidered 

and, if so, on what basis. 

Regulatory Planning and Review 

This proposed rule does not meet the 

criteria for a ‘‘significant regulatory 

action’’ as defined in Executive Order 

12866. Therefore, the regulatory review 

procedures contained therein do not 

apply. 

Unfunded Mandates Act of 1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, 2 U.S.C. 

1532 (Unfunded Mandates Act), 

requires that the agency prepare a 

budgetary impact statement before 

promulgating any rule likely to result in 

a Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of the 

Unfunded Mandates Act also requires 

the agency to identify and consider a 

reasonable number of regulatory 

alternatives before promulgating the 

rule. We have determined that this 

proposed rule would not result in 

expenditures by State, local, and tribal 

governments, or by the private sector, of 

$100 million or more in any one year. 

Accordingly, we have not prepared a 

budgetary impact statement or 

specifically addressed any regulatory 

alternatives. 

List of Subjects in 31 CFR Part 285 

Administrative practice and 

procedure, Black lung benefits, Child 

support, Child welfare, Claims, Credit, 

Debts, Disability benefits, Federal 

employees, Garnishment of wages, 

Hearing and appeal procedures, Income 

taxes, Loan programs, Payments, 

Privacy, Railroad retirement, Railroad 

unemployment insurance, Salaries, 

Social Security benefits, Supplemental 

Security Income, Taxes, Unemployment 

compensation, Veteran’s benefits, 

Wages. 

For the reasons set forth in the 

preamble, Fiscal Service proposes to 

amend 31 CFR part 285 as follows: 

PART 285—DEBT COLLECTION 

AUTHORITIES UNDER THE DEBT 

COLLECTION IMPROVEMENT ACT OF 

1996 

■ 1. The authority citation for part 285 

continues to read as follows: 

Authority: 5 U.S.C. 5514; 26 U.S.C. 6402; 

31 U.S.C. 321, 3701, 3711, 3716, 3719, 

3720A, 3720B, 3720D; 42 U.S.C. 664; E.O. 

13019, 61 FR 51763, 3 CFR, 1996 Comp., p. 

216. 

■ 2. In § 285.1, add paragraph (q) to read 

as follows: 

§ 285.1 Collection of past-due support by 

administrative offset. 

* * * * * 

(q) Social Security numbers. Fiscal 

Service will ensure that an individual’s 

Social Security number will not be 

visible on the outside of any package it 

sends by mail. In addition, Fiscal 

Service generally will redact or partially 

redact Social Security numbers in 

documents it sends by mail; however, to 

administer administrative offset, Fiscal 

Service (and other disbursing officials) 

may include Social Security numbers in 

mailed documents, including, for 

example: 

(1) In interoffice and interagency 

communications; 

(2) In notices, including notices to the 

debtor or payee that an offset has or will 

occur, when the Social Security number 

is (or is embedded in) a creditor 

agency’s account number, debt 

identification number, or debtor 

identification number; 

(3) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s offset activities; and 

(4) When required by law. 

■ 3. In § 285.3, add paragraph (m) to 

read as follows: 

§ 285.3 Offset of tax refund payments to 

collect past-due support. 

* * * * * 

(m) Social Security numbers. Fiscal 

Service will to ensure that an 

individual’s Social Security number 

will not be visible on the outside of any 

package it sends by mail. In addition, 

Fiscal Service generally will redact or 

partially redact Social Security numbers 

in documents it sends by mail; however, 

to administer the tax refund offset 

program, Fiscal Service (and other 

disbursing officials) may include Social 

Security numbers in mailed documents, 

including, for example: 

(1) In interoffice and interagency 

communications; 

(2) In notices, including notices to the 

debtor or payee that an offset has or will 

occur, when the Social Security number 

is (or is embedded in) a creditor 


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agency’s account number, debt 

identification number, or debtor 

identification number; and 

(3) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s offset activities; 

(4) When required by law. 

■ 4. In § 285.5, add paragraph (l) to read 

as follows: 

§ 285.5 Centralized offset of Federal 

payments to collect nontax debts owed to 

the United States. 

* * * * * 

(l) Social Security numbers. Fiscal 

Service will ensure that an individual’s 

Social Security number will not be 

visible on the outside of any package it 

sends by mail. In addition, Fiscal 

Service generally will redact or partially 

redact Social Security numbers in 

documents it sends by mail; however, to 

administer the Treasury Offset Program, 

Fiscal Service (and other disbursing 

officials) may include Social Security 

numbers in mailed documents, 

including, for example: 

(1) In interoffice and interagency 

communications; 

(2) In notices, including notices to the 

debtor or payee that an offset has or will 

occur, when the Social Security number 

is (or is embedded in) a creditor 

agency’s account number, debt 

identification number, or debtor 

identification number; 

(3) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s offset activities; and 

(4) When required by law. 

■ 5. In § 285.6, add paragraph (n) to read 

as follows: 

§ 285.6 Administrative offset under 

reciprocal agreements with states. 

* * * * * 

(n) Social Security numbers. Fiscal 

Service will ensure that an individual’s 

Social Security number will not be 

visible on the outside of any package it 

sends by mail. In addition, Fiscal 

Service generally will redact or partially 

redact Social Security numbers in 

documents it sends by mail; however, to 

administer administrative offset, Fiscal 

Service (and other disbursing officials) 

may include Social Security numbers in 

mailed documents, including, for 

example: 

(1) In interoffice and interagency 

communications; 

(2) In notices, including notices to the 

debtor or payee that an offset has or will 

occur, when the Social Security number 

is (or is embedded in) a creditor 

agency’s account number, debt 

identification number, or debtor 

identification number; 

(3) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s offset activities; and 

(4) When required by law. 

■ 6. In § 285.8, add paragraph (k) to read 

as follows: 

§ 285.8 Offset of tax refund payments to 

collect certain debts owed to States. 

* * * * * 

(k) Social Security numbers. Fiscal 

Service will ensure that an individual’s 

Social Security number will not be 

visible on the outside of any package it 

sends by mail. In addition, Fiscal 

Service generally will redact or partially 

redact Social Security numbers in 

documents it sends by mail; however, to 

administer the tax refund offset 

program, Fiscal Service (and other 

disbursing officials) may include Social 

Security numbers in mailed documents, 

including, for example: 

(1) In interoffice and interagency 

communications; 

(2) In notices, including notices to the 

debtor or payee that an offset has or will 

occur, when the Social Security number 

is (or is embedded in) a creditor 

agency’s account number, debt 

identification number, or debtor 

identification number; 

(3) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s offset activities; and 

(4) When required by law. 

■ 7. § 285.12 is amended by: 

■ a. Removing the words ‘‘an agency’’ 

and ‘‘An agency’’ and adding in their 

place the words ‘‘a Federal agency’’ and 

‘‘A Federal agency’’, respectively; 

■ b. Removing the words ‘‘the agency’’ 

and ‘‘the agency’s’’ and adding in their 

place the words ‘‘the Federal agency’’ 

and ‘‘the Federal agency’s’’, 

respectively; 

■ c. In paragraph (a): 

■ i. Removing the definition for 

‘‘Agency’’, 

■ ii. Adding in alphabetical order 

definitions for ‘‘Centralized Receivables 

Service,’’ ‘‘Cross-Servicing program,’’ 

and ‘‘Days delinquent’’; 

■ iii. Removing the words ‘‘Secretary of 

the Treasury’’ and adding in their place 

the words ‘‘Secretary’’ in the definition 

for ‘‘Debt collection center’’; 

■ iv. Adding in alphabetical order 

definitions for ‘‘Debtor,’’ ‘‘Delinquent or 

past-due,’’ ‘‘Federal agency,’’ and 

‘‘Legally enforceable’’; and 

■ v. Removing the words ‘‘a Federal 

agency’’ and adding in their place the 

words ‘‘the United States or a Federal 

agency’’ in the definition for ‘‘Person’’; 

■ d. Revising paragraphs (b), (c), and 

(d)(1)(iii); 

■ e. Removing the word ‘‘or’’ at the end 

of paragraph (d)(1)(v); 

■ f. Redesignating paragraph (d)(1)(vi) 

as paragraph (d)(1)(vii); 

■ g. Adding a new paragraph (d)(1)(vi), 

■ h. Revising paragraphs (d)(4) and 

(d)(5) introductory text; 

■ i. Removing paragraph (d)(6); 

■ j. Removing and reserving paragraph 

(e); 

■ k. In paragraph (i), removing the 

words ‘‘delegatee’’ and ‘‘the Federal 

agency’’ and adding in their place the 

words ‘‘delegate’’ and ‘‘the debt’’, 

respectively; 

■ l. Revising paragraph (j); and 

■ m. Adding paragraph (k). 

The revisions and additions read as 

follows: 

§ 285.12 Transfer of debts to Treasury for 

collection. 

(a) * * * 

Centralized Receivables Service 

means the program through which 

Fiscal Service provides servicing, 

pursuant to 31 U.S.C. 3711(g), for 

Federal nontax debt from the point at 

which a creditor agency establishes a 

debt until the debt is paid, otherwise 

resolved, or referred to the CrossServicing program for further action. 

* * * * * 

Cross-Servicing program means the 

program through which Fiscal Service 

provides delinquent nontax debt 

collection services pursuant to 31 U.S.C. 

3711(g). 

Days delinquent refers to the number 

of days that a debt has been in a 

delinquent status. For administrative 

debts (e.g., debts arising from fines, 

penalties, and overpayments), the first 

day of delinquency generally is the date 

of the creditor agency’s initial written 

demand for payment. For debts that 

arise from the extension of credit 

through direct loans, loan guarantees, or 

insurance, the date of delinquency 

generally is the due date specified in the 

applicable agreement or instrument. 

* * * * * 

Debtor means a person who owes a 

debt. 

Delinquent or past-due refers to the 

status of a debt and means a debt has 

not been paid by the date specified in 

the creditor agency’s initial written 

demand for payment, or other 

applicable agreement or instrument, 

unless other payment arrangements 

satisfactory to the creditor agency have 

been made. 

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. 

* * * * * 


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Legally enforceable refers to a 

characteristic of a debt and means there 

has been a final agency determination 

that the debt, in the amount stated, is 

due, and there are no legal bars to 

collection. A debt would not be legally 

enforceable, for example, if the debt is: 

(1) The subject of a pending 

administrative review required by a 

statute or regulation that prohibits 

collection action during the review 

process; or 

(2) Governed by a statute that 

precludes collection. 

(b) In general. Fiscal Service and 

other debt collection centers may take 

debt collection action on behalf of one 

or more Federal agencies or a unit or 

subagency thereof. Fiscal Service 

provides these services through its 

Cross-Servicing program and its 

Centralized Receivables Service. 

(c) Mandatory transfer of debts to 

Fiscal Service’s Cross-Servicing 

program. (1) A debt is considered 

eligible for transfer to the CrossServicing program only if it is past due 

and is legally enforceable. 

(2) Except as set forth in paragraphs 

(c)(3) and (d) of this section, a creditor 

agency must transfer any eligible debt 

that is over $25 (or such other amount 

as Fiscal Service may determine) to the 

Cross-Servicing program by no later 

than 120 days delinquent if the creditor 

agency relies on the Cross-Servicing 

program to submit the transferred debts 

for centralized offset on the creditor 

agency’s behalf or, otherwise, by no 

more than 180 days delinquent. 

(3) If a final agency determination 

resulting from an administrative appeal 

or review process is not made until after 

the time specified in paragraph (c)(2) of 

this section, the creditor agency must 

transfer such debt to the Cross-Servicing 

program within 30 days after the date of 

the final decision. 

(4) For accounting and reporting 

purposes, the debt remains on the books 

and records of the Federal agency, 

which transferred the debt. 

(5) On behalf of the creditor agency, 

Fiscal Service will take appropriate 

action to collect or compromise the 

transferred debt, or to suspend or 

terminate collection action thereon. 

Appropriate action to collect a debt may 

include referral to another debt 

collection center, a private collection 

contractor, or the Department of Justice 

for litigation. The creditor agency must 

advise Fiscal Service, in writing, of any 

specific statutory or regulatory 

requirements pertaining to its debt and 

will agree, in writing, to a collection 

strategy, which includes parameters for 

entering into compromise and 

repayments agreements with debtors. 

(d) * * * 

(1) * * * 

(iii) Is at a private collection 

contractor if the debt has been referred 

to a private collection contractor for a 

period of time determined by the 

Secretary; 

* * * * * 

(vi) Is being serviced and/or collected 

in accordance with applicable statutes 

and/or regulations by third parties, such 

as private lenders or guaranty agencies; 

or 

* * * * * 

(4) A debt is being collected by 

internal offset if a creditor agency 

expects the debt to be collected in full 

within three (3) years from the date of 

delinquency through the withholding of 

funds payable to the debtor by the 

creditor agency, or if the creditor agency 

has issued notice to the debtor of the 

creditor agency’s intent to offset such 

funds. 

(5) The secretary may exempt classes 

of debt from mandatory referral. 

* * * * * 

(j) Fees. Fiscal Service and other debt 

collection centers may charge Federal 

agencies fees sufficient to cover the full 

cost of providing debt collection 

services authorized by this section. 

Fiscal Service and other debt collection 

centers may calculate fees in any 

manner designed to cover up to the full 

cost of providing these services, 

including based on a percentage of 

collections received on account of a 

debt while it was being serviced under 

this section or a flat fee based on actions 

taken under this section by Fiscal 

Service or another debt collection center 

with regard to a debt or group of debts. 

Such fees may be determined based on 

overall program costs and need not be 

based on costs related to the collection 

of a specific debt. Fiscal Service and 

debt collection centers are authorized to 

retain fees from amounts collected and 

may deposit and use such fees in 

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

charged by Fiscal Service and other debt 

collection centers may be added to the 

debt as an administrative cost if 

authorized under 31 U.S.C. 3717(e). 

(k) Social Security numbers. When 

conducting activities for or related to its 

Centralized Receivables Service or 

Cross-Servicing program, Fiscal Service 

will ensure that an individual’s Social 

Security number will not be visible on 

the outside of any package it sends by 

physical mail or in the subject line of an 

email. In addition, Fiscal Service 

generally will redact or partially redact 

Social Security numbers in documents 

it sends by mail; however, to administer 

these programs, Fiscal Service may 

include Social Security numbers in 

mailed documents, including, for 

example: 

(1) In interoffice and interagency 

communications; 

(2) In communications with private 

collection contractor and agents that 

assist Fiscal Service in its debt 

collection activities; 

(3) In notices and letters, including 

demand letters and notices to employers 

regarding wage garnishment, when the 

Social Security number is (or is 

embedded in) a creditor agency’s 

account number, debt identification 

number, or debtor identification 

number; 

(4) In notices to employers regarding 

wage garnishment; 

(5) In response to a request of a debtor 

or a debtor’s representative for records 

of Fiscal Service’s collection activities; 

and 

(6) When required by law. 

David A. Lebryk, 

Fiscal Assistant Secretary. 

[FR Doc. 2022–03584 Filed 3–1–22; 8:45 am] 

BILLING CODE 4810–AS–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 and 81 

[EPA–R09–OAR–2021–0869; FRL–9503–01– 

R9] 

Maintenance Plan and Redesignation 

Request; Nogales PM2.5 Planning Area; 

Arizona 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to approve 

the ‘‘FINAL SIP Revision: Nogales PM2.5

Maintenance Plan and Redesignation 

Request (2006 Fine Particulate 

NAAQS)’’ (‘‘Nogales Maintenance Plan’’ 

or ‘‘Plan’’) as a revision to the state 

implementation plan (SIP) for the State 

of Arizona. The Nogales Maintenance 

Plan includes, among other elements, an 

emissions inventory consistent with 

attainment, a maintenance 

demonstration, contingency provisions, 

and a motor vehicle emissions budget 

for the ten-year maintenance period. 

The EPA is also proposing to approve 

the State of Arizona’s request to 

redesignate the Nogales area from 

nonattainment to attainment for the 24- 

hour national ambient air quality 

standard (NAAQS or ‘‘standard’’) for 

particulate matter of 2.5 micrometers or 

less (PM2.5). The EPA is proposing these 


lotter on DSK11XQN23PROD with PROPOSALS1