Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Rules and Regulations 49093 

EQUAL EMPLOYMENT OPPORTUNITY 

COMMISSION 

29 CFR Part 1650 

Debt Collection 

AGENCY: Equal Employment 

Opportunity Commission. 

ACTION: Final rule. 

SUMMARY: The Equal Employment 

Opportunity Commission (EEOC) is 

revising its regulation on debt collection 

to reflect organizational changes, to 

update statutory and regulatory 

citations, and to clarify the procedures. 

DATES: This rule is effective August 20, 

2008. 

FOR FURTHER INFORMATION CONTACT: 

Thomas J. Schlageter, Assistant Legal 

Counsel, at (202) 663–4668 (voice), or 

Lynn T. Dickinson, Senior Attorney, 

Office of Legal Counsel, at (202) 663–

4640 (voice), or (202) 663–7026 (TTY). 

This final rule is also available in the 

following formats: large print, braille, 

electronic file on computer disk, and 

audio-tape. Copies may be obtained 

from the EEOC’s Publication Center by 

calling 1–800–669–3362 (voice) or 1–

800–669–6820 (TTY). 

SUPPLEMENTARY INFORMATION: EEOC is 

revising its regulation on debt collection 

found at 29 CFR part 1650. The purpose 

of the revisions is to reflect 

organizational changes at EEOC, to 

update statutory and regulatory 

citations, to ensure that the subparts are 

consistent with each other, to eliminate 

any ambiguities, and to follow more 

closely the regulations of the Office of 

Personnel Management (OPM), the 

Department of Treasury, and the 

Department of Justice. 

Subpart A is revised to reflect changes 

in the processing of requests for waiver 

of repayment of salary overpayments. 

Previously, such requests were 

submitted to the General Accounting 

Office (GAO). However, in 1996 the 

authority to waive collection of these 

debts was transferred to the Office of 

Management and Budget (OMB). That 

same year, OMB delegated this function 

to agency heads. Therefore, reference to 

submission of waiver requests to the 

GAO is deleted. 

Subpart A is also revised so that an 

employee’s various options for resolving 

the matter are separately addressed. An 

employee can propose a voluntary 

repayment agreement, request waiver, 

and ask for a hearing. The language on 

voluntary repayment agreements mostly 

formalizes procedures that have been 

commonly followed in resolving debts. 

However, the new regulation also 

clarifies that if an employee proposes a 

repayment agreement, he or she does 

not lose the right to request a hearing 

afterwards if the request is denied. In 

addition, the revised language regarding 

hearings clarifies that employees have a 

right to a paper hearing to contest their 

debts, but if they would like an oral 

hearing, they must show that the matter 

cannot be resolved by reviewing the 

documentary evidence alone. 

Subpart B is revised to reflect changes 

in the procedures for collecting debts by 

tax refund offset. Specifically, beginning 

on January 1, 1998, administration of 

tax refund offset was transferred from 

the Internal Revenue Service to the 

Financial Management Service (FMS). 

Therefore, the regulation now provides 

for transmitting these debts to FMS. 

In addition, in 1996, Congress enacted 

the Debt Collection Improvement Act, 

which required implementation of a 

centralized offset program. Previously, 

agencies were required to attempt to 

collect debts using administrative and 

salary offset before referring debts for 

tax refund offset. Under the new 

centralized offset program, however, 

debts that are referred to Treasury are 

subject to administrative offset, salary 

offset, and tax refund offset. Therefore, 

all collection activities can be attempted 

simultaneously. Moreover, agencies do 

not have to report debts to credit 

bureaus before they can refer debts to 

Treasury. Finally, the prior requirement 

that agencies mail pre-offset notices to 

the address on file with IRS for debtor 

was changed. Now, agencies have 

greater flexibility to locate the best 

address available. 

Subpart C, Administrative Offset, is 

removed. In its place, the regulation 

already issued by the Department of 

Treasury is adopted by reference, as 

authorized by 37 U.S.C. § 3716(b)(1). 

Subpart D, Administrative Wage 

Garnishment, is merely revised to reflect 

organizational changes at EEOC, and to 

use language consistent with other 

subparts. 

Regulatory Procedures 

Paperwork Reduction Act 

This Paperwork Reduction Act (44 

U.S.C. Chapter 35) does not apply to 

this rule because it does not contain an 

information collection requirement that 

requires the approval of the Office of 

Management and Budget. 

Regulatory Flexibility Act 

As Chair of the Equal Employment 

Opportunity Commission, I certify 

under the Regulatory Flexibility Act (5 

U.S.C. Chapter 6) that this rule will not 

have a significant economic impact on 

a substantial number of small entities 

because it primarily affects Federal 

employees and former Federal 

employees. 

Congressional Review Act 

This action pertains to agency 

management, personnel and 

organization and does not substantially 

affect the rights or obligations of nonagency parties and accordingly, is not a 

rule as that term is used by the 

Congressional Review Act. Therefore, 

the reporting requirement of 5 U.S.C. 

801 does not apply. 

Unfunded Mandates Reform Act of 1995 

This rule will not result in the 

expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year, and it will not 

significantly or uniquely affect small 

governments. Therefore, no actions were 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

Administrative Procedure Act 

These amendments concern matters of 

agency management or personnel within 

the meaning of 5 U.S.C. 553(a)(2). 

Therefore, the notice and comment 

requirements of the Administrative 

Procedure Act are not applicable. 

Executive Order 12866 

This action does not create any of the 

regulatory impacts specified by 

Executive Order 12866, is not a 

significant regulatory action within the 

meaning of section 3(f) of that Executive 

Order, and therefore does not require 

review under Executive Order 12866. 

List of Subjects in 29 CFR Part 1650 

Administrative offset, Administrative 

wage garnishment, Debt collection, 

Salary offset, Tax refund offset. 

For the Commission. 

Naomi C. Earp, 

Chair. 

■ For the reasons set forth in the 

preamble, the Equal Employment 

Opportunity Commission revises 29 

CFR part 1650 to read as follows: 

PART 1650—DEBT COLLECTION 

Subpart A—Procedures for the Collection of 

Debts by Salary Offset 

Sec. 

1650.101 Purpose. 

1650.102 Delegation of authority. 

1650.103 Scope. 

1650.104 Definitions. 

1650.105 Notice of Debt. 

1650.106 Right to inspect and copy records 

related to the debt. 

1650.107 Voluntary repayment agreements. 

1650.108 Waiver. 


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1650.109 Hearing. 

1650.110 Procedures for salary offset. 

1650.111 Recovery from other payments 

due a separated employee. 

1650.112 Interest, penalties, and 

administrative costs. 

1650.113 Non-waiver of rights by payments. 

1650.114 Refunds. 

Subpart B—Procedures for the Collection of 

Debts by Federal Tax Refund Offset 

1650.201 Purpose. 

1650.202 Past-due legally enforceable debt. 

1650.203 Notification of intent to collect. 

1650.204 Reasonable attempt to notify. 

1650.205 Consideration of evidence 

submitted as a result of notification of 

intent. 

1650.206 Notification to Treasury. 

1650.207 Administrative charges. 

Subpart C—Procedures for Collection of 

Debts by Administrative Offset 

1650.301 Purpose and regulatory 

procedures for the collection of debts by 

administrative offset. 

Subpart D—Procedures for the Collection of 

Debts by Administrative Wage Garnishment 

1650.401 Purpose and regulatory 

procedures for the collection of debts by 

administrative wage garnishment. 

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

Subpart A also issued under 5 U.S.C. 5514; 

5 CFR 550.1101. 

Subpart B also issued under 31 U.S.C. 

3720A; 31 CFR 285.5(d)(4). 

Subpart C also issued under 31 U.S.C. 

3716. 

Subpart D also issued under 31 U.S.C. 

3720D. 

Subpart A—Procedures for the 

Collection of Debts by Salary Offset 

§ 1650.101 Purpose. 

This subpart sets forth the procedures 

to be followed in the collection by 

salary offset of debts owed to the United 

States under 5 U.S.C. 5514. The general 

standards and procedures governing the 

collection, compromise, termination, 

and referral to the Department of Justice 

of claims for money and property that 

are prescribed in the regulations issued 

jointly by the Secretary of the Treasury 

and the Attorney General of the United 

States, the Federal Claims Collection 

Standards (31 CFR Parts 900–904), 

apply to the administrative collection 

activities of the EEOC. Debts owed by 

current federal employees to 

Government travel charge card 

contractors will be collected in 

accordance with the regulations issued 

by the General Services Administration 

at 41 CFR Part 301–54. 

§ 1650.102 Delegation of authority. 

The Chair delegated to the Chief 

Human Capital Officer the authority to 

collect debts owed by current EEOC 

employees, and to the Chief Financial 

Officer the authority to collect debts 

owed by former EEOC employees and 

non-EEOC employees. 

§ 1650.103 Scope. 

(a) This subpart applies to the 

collection of certain debts by salary 

offset against an employee’s disposable 

pay. 

(1) This subpart applies to collections 

by the EEOC from: 

(i) Federal employees who are 

indebted to the EEOC; and 

(ii) EEOC employees who are 

indebted to other agencies. 

(2) This subpart does not apply: 

(i) To debts or claims arising under 

the Internal Revenue Code of 1986 (26 

U.S.C. 1 et seq.), the Social Security Act 

42 U.S.C. 301 et seq., or the tariff laws 

of the United States; 

(ii) In any case where collection of a 

debt is explicitly provided for or 

prohibited by another statute (e.g., travel 

advances in 5 U.S.C. 5705 and employee 

training expenses in 5 U.S.C. 4108). 

(b) Nothing in this subpart precludes 

the compromise, suspension, or 

termination of collection actions where 

appropriate under the standards 

implementing the Federal Claims 

Collection Act, 31 U.S.C. 3711, namely, 

31 CFR Parts 900–904; or the waiver of 

a debt where appropriate under 5 U.S.C. 

5584 or 5 U.S.C. 5524a. 

§ 1650.104 Definitions. 

For the purpose of this subpart, terms 

are defined as follows: 

(a) Agency means: 

(1) An Executive agency as defined in 

section 105 of title 5, United States 

Code, including the U.S. Postal Service 

and the U.S. Postal Rate Commission; 

(2) A military department as defined 

in section 102 of title 5, United States 

Code; 

(3) An agency or court in the judicial 

branch, including a court as defined in 

section 610 of title 28, United States 

Code, the District Court for the Northern 

Mariana Islands, and the Judicial Panel 

on Multidistrict Litigation; 

(4) An agency of the legislative 

branch, including the U.S. Senate and 

the U.S. House of Representatives; and 

(5) Other independent establishments 

that are entities of the Federal 

Government. 

(b) Commission means those officers, 

employees, and agents of the Equal 

Employment Opportunity Commission 

who are responsible for debt collection 

activities. 

(c) Debt means money owed by an 

employee of the Federal Government to 

an agency of the Federal Government, 

including direct loans, loans insured or 

guaranteed by the United States and all 

other amounts due the Government 

from fees, leases, rents, royalties, 

services, sales of real or personal 

property, overpayments, penalties, 

damages, interest, fines and forfeitures 

(except those arising under the Uniform 

Code of Military Justice), erroneous 

salary payments, and all other similar 

amounts owing to the Federal 

Government. 

(d) Disposable pay means that part of 

current basic pay, special pay, incentive 

pay, retired pay, retainer pay, or, in the 

case of an employee not entitled to basic 

pay, other authorized pay remaining 

after the deduction of any amount 

required by law to be withheld. 

Deductions described in 5 CFR 

581.105(b) through (f) will be used to 

determine disposable pay subject to 

salary offset. 

(e) Employee means a current 

employee of an agency, including a 

current member of the Armed Forces or 

a Reserve of the Armed Forces 

(Reserves). 

(f) Salary Offset means the collection 

of a debt under 5 U.S.C. 5514 by 

deduction(s) at one or more officially 

established pay intervals from the 

current pay account of an employee 

without his or her consent. 

§ 1650.105 Notice of Debt. 

(a) Timing and contents of notice. 

Notice of the Commission’s intent to 

collect a debt by salary offset shall be 

given at least 30 days before salary offset 

deductions are to begin. The written 

notice shall include the following: 

(1) The Commission’s determination 

that a debt is owed, including the origin, 

nature, and amount of the debt; 

(2) The Commission’s intention to 

collect the debt by means of deduction 

from the employee’s current disposable 

pay account until the debt and all 

accumulated interest, penalties, and 

administrative costs are paid in full; 

(3) The estimated amount, frequency, 

beginning date, and duration of the 

intended deductions; 

(4) An explanation of the 

Commission’s policy concerning 

interest, penalties, and administrative 

costs; 

(5) The employee’s right to inspect 

and copy the Commission’s records 

pertaining to the debt or to receive 

copies of such records if the employee 

is unable personally to inspect the 

records, due to geographical or other 

constraints; 

(6) The opportunity to propose a 

voluntary repayment schedule and 

agreement that is acceptable to the 

Commission in lieu of the proposed 

offset; 


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(7) The employee’s right to a hearing 

conducted by an impartial hearing 

official (an Administrative Law Judge or 

an individual not under the supervision 

or control of the Chair) with respect to 

the existence and amount of the debt 

claimed or the repayment schedule (i.e., 

the percentage of disposable pay to be 

deducted each pay period); the method 

and time period for requesting a 

hearing; that the timely request for a 

hearing will stay the commencement of 

collection proceedings; and that a final 

decision will be issued at the earliest 

practical date, but not later than 60 days 

after receipt of the hearing request; 

(8) The employee’s right to request a 

waiver under 5 U.S.C. 5584 or 5 U.S.C. 

5524a, or compromise under 31 U.S.C. 

3711; 

(9) The making of any knowingly false 

or frivolous statements, representations, 

or evidence may subject the employee 

to: 

(i) Disciplinary procedures 

appropriate under 5 U.S.C. chapter 75, 

5 CFR Part 752, or any other applicable 

statutes or regulations; 

(ii) Penalties under the False Claims 

Act, 31 U.S.C. 3729 et seq., or under any 

other applicable statutory authority; or 

(iii) Criminal penalties under 18 

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

under any other applicable statutory 

authority; and 

(10) Unless there are applicable 

contractual or statutory provisions to 

the contrary, amounts paid on or 

deducted from debts that are later 

waived or found not to be owed to the 

United States will be promptly refunded 

to the employee. 

(b) Exception to the advance notice 

requirement. Advance notice under 

paragraph (a) of this section is not 

required: 

(1) Where an adjustment to pay arises 

out of an employee’s election of 

coverage, or change in coverage, under 

a Federal benefits program requiring 

periodic deductions from the 

employee’s pay and the amount to be 

recovered was accumulated over four 

pay periods or less; 

(2) Where a routine intra-agency 

adjustment of pay 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 a point of 

contact for contesting such adjustment; 

(3) Where any adjustment of pay to 

collect a debt amounting to $50 or less 

is made, 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; 

or 

(4) Where an employee consents to 

withholdings from his or her current 

pay account. 

(c) Receipt of notice of debt. The 

Notice of Debt will be sent by certified 

mail, return-receipt requested. The date 

on which the return-receipt is signed is 

the date on which the employee is 

deemed to have received the Notice of 

Debt. 

§ 1650.106 Right to inspect and copy 

records related to the debt. 

An employee who desires to inspect 

or copy Commission records related to 

the debt must send a request to the 

official designated in the Notice of Debt. 

In response, the Commission will notify 

the employee of the location and time 

when the employee may inspect and 

copy the records or send copies of such 

records to the employee. 

§ 1650.107 Voluntary repayment 

agreements. 

(a) In response to a Notice of Debt, an 

employee may propose a written 

repayment schedule in lieu of the 

proposed salary offset. Any proposal 

under this subsection must be received 

by the office of the official designated in 

the notice within 15 calendar days after 

receipt of the Notice of Debt. 

(b) It is within the Commission’s 

discretion to accept or reject a voluntary 

repayment proposal. The Commission 

shall send the employee a written 

decision. 

(c) If the Commission decides that the 

proposed repayment schedule is 

unacceptable, and that the written 

proposed repayment schedule was 

timely received, the employee shall 

have a further 15 days from the date he 

or she received the decision on the 

proposed repayment schedule in which 

to file a request for a hearing. 

(d) If the Commission decides that the 

proposed repayment schedule is 

acceptable, the agreement shall be put 

in writing and signed by both the 

employee and the Commission. 

§ 1650.108 Waiver. 

The Commission may waive debts, to 

the extent authorized by 5 U.S.C. 5584, 

arising out of erroneous payments of 

pay, when collection would be against 

equity and good conscience and not in 

the best interests of the United States, 

and so long as there is no indication of 

fraud, fault, or lack of good faith on the 

part of the employee. Interest, penalties, 

and administrative costs may also be 

waived under 31 U.S.C. 3717(h) and 31 

CFR 901.9(g), on a case-by-case basis, if 

collection would be against equity and 

good conscience and not in the best 

interests of the United States. 

§ 1650.109 Hearing. 

(a) Request for a hearing. An 

employee who wants a hearing on the 

existence of the debt, its amount, or on 

the proposed offset schedule must send 

a written request to the official 

designated in the Notice of Debt. The 

request for a hearing must be received 

by the designated office on or before the 

15th calendar day following receipt by 

the employee of the Notice of Debt. The 

request must be signed by the employee 

and must contain a brief summary of the 

facts, evidence, and witnesses, if any, 

that the employee believes support his 

or her position. If the employee wants 

an oral hearing, the request must also 

explain why the matter cannot be 

resolved by review of documentary 

evidence alone (e.g., how an issue of 

credibility or veracity is involved). 

Because proof of the existence or 

amount of a debt rarely requires an 

evaluation of the credibility of 

witnesses, oral hearings will only rarely 

be granted. The timely filing of a request 

for hearing shall automatically stay the 

commencement of collection 

proceedings. 

(b) Failure to timely submit. If the 

request for hearing is late, the 

Commission may still grant the request 

if the employee can show that the delay 

was the result of circumstances beyond 

his or her control or that he or she failed 

to receive actual notice of the filing 

deadline. 

(c) Procedure. 

(1) Hearing official. The hearing 

official will be an Administrative Law 

Judge or an individual who is not under 

the supervision or control of the Chair. 

(2) Notice. The hearing official shall 

notify the employee whether the hearing 

will be oral or documentary. If the 

hearing will be oral, the notice shall set 

forth the date, time, and location of the 

hearing, which must occur no more than 

30 days after the request is received. If 

the hearing will be conducted by 

examination of documents, the 

employee shall be notified that he or she 

should submit evidence and arguments 

in writing to the hearing official by a 

specified date after which the record 

shall be closed. This date shall give the 

employee reasonable time to submit 

documentation. 

(3) Oral hearing. The hearing official 

may grant a request for an oral hearing 

if he or she determines that the issues 


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raised by the employee cannot be 

resolved by review of documentary 

evidence alone (e.g., when credibility or 

veracity are at issue). An oral hearing is 

not required to be an adversarial 

adjudication, and the hearing official is 

not required to apply rules of evidence. 

Oral hearings may take the form of, but 

are not limited to: 

(i) Informal conferences with the 

hearing official in which the employee 

and agency representative are given a 

full opportunity to present evidence, 

witnesses, and argument; 

(ii) Informal meetings in which the 

hearing examiner interviews the 

employee and, as necessary, others with 

relevant evidence; or 

(iii) Formal written submissions 

followed by an opportunity for oral 

presentation. Witnesses who testify in 

oral hearings shall do so under oath or 

affirmation. 

(4) Documentary hearing. If an oral 

hearing is not necessary, the hearing 

official shall make the determination 

based upon a review of the written 

record. 

(d) Record. The hearing official shall 

maintain a summary record of any 

hearing conducted under this section. 

(e) Date of decision. The hearing 

official shall issue a written decision 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 Commission, unless the 

hearing was delayed at the request of 

the employee, in which case the 60 day 

decision period shall be extended by the 

number of days by which the hearing 

was postponed. 

(f) Content of decision. The written 

decision shall include: 

(1) A summary of the facts concerning 

the origin, nature, and amount of the 

debt; 

(2) The hearing official’s findings, 

analysis, and conclusions; and 

(3) The revised terms of any 

repayment schedule, if applicable. 

(g) Failure to appear. In the absence 

of good cause, if the employee or the 

representative of the agency fails to 

appear, the hearing official shall 

proceed with the hearing as scheduled, 

and make his or her determination 

based upon the oral testimony presented 

and the documentation submitted by 

both parties. 

§ 1650.110 Implementation of salary offset. 

(a) Method of collection. A debt will 

be collected in a lump sum or by 

installment deductions at officially 

established pay intervals from an 

employee’s current pay account, unless 

the employee and the Commission agree 

in writing to alternate arrangements for 

repayment. 

(b) Source of deductions. Deductions 

will be made only from basic pay, 

special pay, incentive pay, retired pay, 

retainer pay or in the case of an 

employee not entitled to basic pay, 

other authorized pay. 

(c) Duration of deductions. Debts will 

be collected in one lump sum when 

possible to minimize interest costs and 

administrative processing fees for the 

employee. If the employee is financially 

unable to pay in one lump sum and the 

amount of debt exceeds 15 percent of 

the employee’s disposable pay for an 

officially established pay interval, 

collection by offset will be made in 

installments. Such installment 

deductions will be made over a period 

not greater than the anticipated period 

of active duty or employment of the 

employee and, except in rare 

circumstances, not to exceed 3 years. 

(d) Limitation on amount of 

deductions. The size and frequency of 

installment deductions will bear a 

reasonable relationship to the size of the 

debt and the employee’s ability to pay. 

The amount deducted for any period, 

however, 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. Installment 

payments of less than $25 will be 

accepted only in the most unusual 

circumstances. 

(e) When deductions may begin. 

(1) If the employee files a timely 

request for hearing, or a proposed 

voluntary repayment agreement, 

deductions will begin in the next biweekly salary payment after a final 

decision is issued on the request or 

repayment proposal. 

(2) If the employee fails to submit a 

timely request for hearing or proposal 

for a voluntary repayment agreement, 

deductions will commence in the next 

bi-weekly salary payment after the 

expiration of 30 days following the 

employee’s receipt of the Notice of Debt 

under 1650.105(c). 

(f) Lump-sum deduction from final 

check. When the employee retires, 

resigns, or ends his or her period of 

active duty before the debt is collected 

in full, the employee’s debt will be 

automatically deducted from the final 

payments (e.g., final salary payment, 

lump-sum leave, etc.) due the employee 

to the extent necessary to liquidate the 

debt. If the employee’s final pay is not 

sufficient to permit all deductions to be 

made, the order of precedence for the 

deductions will be: Retirement and 

FICA; Medicare; Federal income taxes; 

health benefits; group life insurance; 

indebtedness due to the United States; 

State income taxes; and voluntary 

deductions and allotments. 

§ 1650.111 Recovery from other payments 

due a separated employee. 

When a debt owed to EEOC has not 

been completely liquidated through 

salary offset and the employee has 

separated from EEOC, the Commission 

shall, pursuant to 31 U.S.C. 3716 and 

the Federal Claims Collection 

Standards, 31 CFR parts 900–904, seek 

to offset the balance of the debt against 

any financial payment due the 

employee from the U.S. Government. 

§ 1650.112 Interest, penalties, and 

administrative costs. 

Unless a debt is paid in full within 30 

days of receipt of the Notice of Debt, the 

Commission will charge interest at the 

rate established in accordance with 31 

U.S.C. 3717 effective on the date of 

delinquency, and a processing charge 

pursuant to 31 U.S.C. 3717. The 

Commission will charge a penalty, 

pursuant to 31 U.S.C. 3717(e)(2) not to 

exceed 6 percent a year, on the amount 

due on a debt that is delinquent more 

than 90 days. This charge shall accrue 

from the date of delinquency. If an 

employee files a timely proposal for a 

repayment agreement, request for 

waiver, or a request for a hearing, 

interest, penalties, and administrative 

costs will be suspended during the time 

the Commission is considering such 

request(s). 

§ 1650.113 Non-waiver of rights by 

payments. 

An employee’s payment of all or any 

portion of a debt collected by salary 

offset will not be construed as a waiver 

of any right the employee may have 

under 5 U.S.C. 5514 or any other 

provision of contract or law, unless 

there are statutory or contractual 

provisions to the contrary. 

§ 1650.114 Refunds. 

Amounts paid, or deducted by salary 

offset, by an employee for a debt that is 

waived or otherwise not found owing to 

the United States will be refunded 

promptly to the employee. Refunds do 

not bear interest unless required by law 

or contract. 

Subpart B—Procedures for the 

Collection of Debts by Federal Tax 

Refund Offset 

§ 1650.201 Purpose. 

This subpart establishes procedures 

for EEOC to refer past-due legally 

enforceable debts to the Department of 

the Treasury (Treasury) for offset against 

the income tax refunds of persons owing 


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debts to EEOC pursuant to 31 U.S.C. 

3720A and 31 CFR 285.2. The general 

standards and procedures governing the 

collection, compromise, termination, 

and referral to the Department of Justice 

of claims for money and property that 

are prescribed in the regulations issued 

jointly by the Secretary of the Treasury 

and the Attorney General of the United 

States, the Federal Claims Collection 

Standards (31 CFR parts 900–904), 

apply to the administrative collection 

activities of the EEOC. 

§ 1650.202 Past-due legally enforceable 

debt. 

A past due, legally enforceable debt is 

a debt: 

(a) That accrued within ten years of 

referral to Treasury; 

(b) That is at least $25.00; and 

(c) That the agency has made 

reasonable efforts to collect by: 

(1) Submitting the debt to Treasury, 

Financial Management Service, for 

collection by Administrative Offset and 

complying with 31 U.S.C. 3716(a) and 

related regulations, to the extent that 

collection by administrative offset is not 

prohibited by statute; 

(2) Notifying, or making a reasonable 

attempt to notify, the debtor that the 

debt is past-due, and unless repaid 

within 60 days after the date of the 

notice, will be referred to Treasury for 

tax refund offset; 

(3) Giving the debtor at least 60 days 

from the date of notification to present 

evidence that all or part of the debt is 

not past-due or legally enforceable, 

considering any evidence presented by 

such debtor, and determining that an 

amount of such debt is past-due and 

legally enforceable; and 

(4) Providing the debtor with an 

opportunity to make a written 

agreement to repay the amount of the 

debt. 

§ 1650.203 Notification of intent to collect. 

EEOC’s notification of intent to collect 

by tax refund offset shall provide: 

(a) The amount of the debt; 

(b) That unless the debt is repaid 

within 60 days from the date of EEOC’s 

notification of intent, EEOC intends to 

collect the debt by requesting Treasury 

to offset an amount equal to the amount 

of the debt and all accumulating interest 

and other charges against any 

overpayment of tax after liabilities 

subject to 26 U.S.C. 6402(a) and (c) have 

been satisfied; 

(c) A mailing address for forwarding 

any written correspondence and a 

contact and a telephone number for any 

questions; 

(d) That the debtor may make a 

written agreement with EEOC to repay 

the amount of the debt; and 

(e) That the debtor may present 

evidence within 60 days to EEOC that 

all or part of the debt is not past due or 

legally enforceable by: 

(1) Sending a written request for a 

review of the evidence to the address 

provided in the notification; 

(2) Stating in the request for review 

the amount disputed and the reasons 

why the debtor believes that the debt is 

not past-due or is not legally 

enforceable; and 

(3) Including in the request for review 

any documents that the debtor wishes to 

be considered, or stating that the 

additional information will be 

submitted within the remainder of the 

60 day period. 

§ 1650.204 Reasonable attempt to notify. 

In order to constitute a reasonable 

attempt to notify the debtor, EEOC may 

use the last known address on record 

with the EEOC. In addition, the EEOC 

may attempt to obtain a more current 

address from notices returned by the 

United States Postal Service, or by using 

the Treasury’s Internal Revenue Service 

(IRS) address inquiry. If the debtor 

cannot be notified by EEOC through 

these procedures, the debt will be sent 

to Treasury for collection. 

§ 1650.205 Consideration of evidence 

submitted as a result of notification of 

intent. 

(a) Consideration of evidence. If, as a 

result of the notification of intent, EEOC 

receives notice that the debtor will 

submit additional evidence or receives 

additional evidence from the debtor 

within the prescribed time period, 

collection will be stayed until EEOC: 

(1) Considers the evidence presented 

by the debtor; 

(2) Determines whether all or a 

portion of the debt is still past-due and 

legally enforceable; and 

(3) Notifies the debtor of its 

determination. 

Failure to submit the evidence within 

60 days from the date of notification of 

intent will result in a referral of the debt 

to Treasury. 

(b) Notification to the debtor. 

Following its review of the evidence, 

EEOC will issue a written decision 

notifying the debtor whether EEOC has 

sustained, amended, or canceled its 

determination that the debt is past-due 

and legally enforceable. The notice will 

advise the debtor of any further action 

to be taken, such as any modification of 

the debt amount and/or referral of the 

debt to Treasury, and explain the 

supporting rationale for the decision. 

§ 1650.206 Notification to Treasury. 

(a) When referring a debt to Treasury, 

EEOC will certify that the debt meets all 

of the requirements in § 1650.202 and 

will provide the name, taxpayer 

identifying number (as defined in 26 

U.S.C. 6109) of the debtor, the amount 

of the debt, the date on which the debt 

became past-due, and the designation of 

EEOC as the agency referring the debt. 

(b) After EEOC’s initial notification 

and referral of a debt to Treasury for 

offset against a debtor’s Federal income 

tax refund, EEOC will promptly notify 

Treasury of any changes in the 

notification, if EEOC: 

(1) Determines that an error has been 

made with respect to the information 

contained in the notification; 

(2) Receives a payment or credits a 

payment to the account of the debtor 

named in the notification that reduces 

the amount of the debt referred to 

Treasury for offset; or 

(3) Refunds all or part of the offset 

amount to the debtor. 

(c) When EEOC requests Treasury to 

increase the amount of a debt owed by 

a debtor named in EEOC’s original 

notification to Treasury, EEOC will 

certify that the additional amount meets 

all of the requirements in § 1650.202. 

(d) If the amount of a debt is reduced 

after referral by EEOC and offset by the 

Treasury, EEOC will refund to the 

debtor any excess amount and will 

promptly notify the Treasury of any 

refund made by EEOC. 

§ 1650.207 Administrative charges. 

All administrative charges incurred in 

connection with the referral of a debt to 

the Treasury and all costs of collection 

of the debt will be assessed on the debt 

and thus increase the amount of the 

offset. 

Subpart C—Procedures for Collection 

of Debts by Administrative Offset 

§ 1650.301 Purpose and regulatory 

procedures for the collection of debts by 

administrative offset. 

The Commission hereby adopts by 

cross-reference the administrative offset 

regulation issued by the Department of 

the Treasury at 31 CFR 285.5. The 

general standards and procedures 

governing the collection, compromise, 

termination, and referral to the 

Department of Justice of claims for 

money and property that are prescribed 

in the regulations issued jointly by the 

Secretary of the Treasury and the 

Attorney General of the United States, 

the Federal Claims Collection Standards 

(31 CFR Parts 900–904), apply to the 

administrative collection activities of 

the EEOC. The authority to collect debts 

by administrative offset is delegated to 

the CFO. 


sroberts on PROD1PC70 with RULES
49098 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Rules and Regulations 

Subpart D—Procedures for the 

Collection of Debts by Administrative 

Wage Garnishment 

§ 1650.401 Purpose and regulatory 

procedures for the collection of debts by 

administrative wage garnishment. 

The Commission hereby adopts by 

cross-reference the administrative wage 

garnishment regulation issued by the 

Department of the Treasury at 31 CFR 

285.11. The general standards and 

procedures governing the collection, 

compromise, termination, and referral to 

the Department of Justice of claims for 

money and property that are prescribed 

in the regulations issued jointly by the 

Secretary of the Treasury and the 

Attorney General of the United States, 

the Federal Claims Collection Standards 

(31 CFR Parts 900–904), apply to the 

administrative collection activities of 

the EEOC. The authority to collect debts 

by administrative wage garnishment is 

delegated to the CFO. 

[FR Doc. E8–19203 Filed 8–19–08; 8:45 am] 

BILLING CODE 6570–01–P 

DEPARTMENT OF DEFENSE 

Department of the Navy 

32 CFR Part 706 

Certifications and Exemptions Under 

the International Regulations for 

Preventing Collisions at Sea, 1972 

AGENCY: Department of the Navy, DoD. 

ACTION: Final rule. 

SUMMARY: The Department of the Navy 

is amending its certifications and 

exemptions under the International 

Regulations for Preventing Collisions at 

Sea, 1972 (72 COLREGS), to reflect that 

the Deputy Assistant Judge Advocate 

General of the Navy (Admiralty and 

Maritime Law) has determined that USS 

MAKIN ISLAND (LHD 8) is a vessel of 

the Navy which, due to its special 

construction and purpose, cannot fully 

comply with certain provisions of the 72 

COLREGS without interfering with its 

special functions as a naval ship. The 

intended effect of this rule is to warn 

mariners in waters where 72 COLREGS 

apply. 

DATES: This rule is effective August 20, 

2008 and is applicable beginning 7 

August 2008. 

FOR FURTHER INFORMATION CONTACT: 

Commander Robb M. Hyde, JAGC, U.S. 

Navy, Deputy Assistant Judge Advocate 

General (Admiralty and Maritime Law), 

Office of the Judge Advocate General, 

Department of the Navy, 1322 Patterson 

Ave., SE., Suite 3000, Washington Navy 

Yard, DC 20374–5066, telephone (202) 

685–5040. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the authority granted in 33 U.S.C. 

1605, the Department of the Navy 

amends 32 CFR part 706. 

This amendment provides notice that 

the Deputy Assistant Judge Advocate 

General of the Navy (Admiralty and 

Maritime Law), under authority 

delegated by the Secretary of the Navy, 

has certified that USS MAKIN ISLAND 

(LHD 8) is a vessel of the Navy which, 

due to its special construction and 

purpose, cannot fully comply with the 

following specific provisions of 72 

COLREGS: Rule 21(a), pertaining to the 

location of the masthead lights over the 

fore and aft centerline of the ship; 

Annex I, section 3(a), pertaining to the 

location of the forward masthead light 

in the forward quarter of the ship; and 

the horizontal distance between the 

forward and after masthead lights; 

Annex I, paragraph 2(f)(i), pertaining to 

the placement of the masthead light or 

lights above and clear of all other lights 

and obstructions; Annex I, section 2(g), 

pertaining to the distance of the 

sidelights above the hull; and Annex I, 

section 3(b), pertaining to the 

positioning of the sidelights in 

relationship to the forward masthead 

light. The Deputy Assistant Judge 

Advocate General of the Navy 

(Admiralty and Maritime Law) has also 

certified that the lights involved are 

located in closest possible compliance 

with the applicable 72 COLREGS 

requirements. 

Moreover, it has been determined, in 

accordance with 32 CFR Parts 296 and 

701, that publication of this amendment 

for public comment prior to adoption is 

impracticable, unnecessary, and 

contrary to public interest since it is 

based on technical findings that the 

placement of lights on this vessel in a 

manner differently from that prescribed 

herein will adversely affect the vessel’s 

ability to perform its military functions. 

List of Subjects in 32 CFR Part 706 

Marine safety, Navigation (water), and 

Vessels. 

■ For the reasons set forth in the 

preamble, amend part 706 of title 32 of 

the Code of Federal Regulations as 

follows: 

PART 706—CERTIFICATIONS AND 

EXEMPTIONS UNDER THE 

INTERNATIONAL REGULATIONS FOR 

PREVENTING COLLISIONS AT SEA, 

1972 

■ 1. The authority citation for 32 CFR 

Part 706 continues to read as follows: 

Authority: 33 U.S.C. 1605. 

■ 2. Section 706.2 is amended as 

follows: 

■ A. In Table Two by adding, in 

numerical order, the following entry for 

USS MAKIN ISLAND (LHD 8); 

■ B. In Table Four by adding paragraph 

Six, in numerical order, the following 

entry for USS MAKIN ISLAND (LHD 8); 

and 

■ C. In Table Five by adding, in 

numerical order, the following entry for 

USS MAKIN ISLAND (LHD 8): 

§ 706.2 Certifications of the Secretary of 

the Navy under Executive Order 11964 and 

33 U.S.C. 1605. 

* * * * * 

TABLE TWO

Vessel No. 

Masthead 

lights, distance to stbd 

of keel in 

meters; Rule 

21(a) 

Forward anchor light, 

distance 

below flight 

dk in meters; 

§ 2(K), 

Annex I 6

Forward anchor light, 

number of; 

Rule 30(a)(i) 

AFT anchor 

light, distance 

below flight 

dk in meters; 

Rule 21(e), 

Rule 

30(a)(ii) 6

AFT anchor 

light, number 

of; Rule 

30(a)(ii) 

Side lights, 

distance 

below flight 

dk in meters; 

§ 2(g), 

Annex I 

Side lights, 

distance forward of forward masthead light in 

meters; 

§ 3(b), 

Annex I 

Side lights, 

distance 

inboard of 

ship’s sides 

in meters; 

§ 3(b), 

Annex I 

* * * * * * * 

USS MAKIN ISLAND ................ LHD 8 8.97 ...................... ...................... ...................... ...................... 3.08 89.52 ......................

* * * * * * * 

6On the following ships the arc of visibility of the after masthead light required by Rule 23(a)(ii) and Annex I, section 2(f) may be obstructed from the right ahead on 

certain naval ships as follows: USS MAKIN ISLAND (LHD 8)—5°17′. 


sroberts on PROD1PC70 with RULES