Source: https://www.federalregister.gov/documents/2014/02/18/2014-03368/rules-of-practice-in-proceedings-under-section-5-of-the-debt-collection-act
Timestamp: 2017-10-21 21:53:24
Document Index: 302434440

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Federal Register :: Rules of Practice in Proceedings Under Section 5 of the Debt Collection Act
Rules of Practice in Proceedings Under Section 5 of the Debt Collection Act
A Proposed Rule by the Postal Service on 02/18/2014
Comments must be received on or before March 20, 2014.
9120-9123 (4 pages)
B. Discussion of Changes
C. Effective Date and Applicability
List of Subjects in 39 CFR Part 961
https://www.federalregister.gov/d/2014-03368 https://www.federalregister.gov/d/2014-03368
To clarify existing practice, this proposed rule contains a complete revision to the rules of practice before the Judicial Officer in proceedings under section 5 of the Debt Collection Act.
Mail or deliver written comments to the Office of the Judicial Officer, United States Postal Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. Copies of all written comments will be available for inspection and photocopying between 9 a.m. and 4 p.m., Monday through Friday, at the above address.
Start Printed Page 9121
Part 961 of title 39, Code of Federal Regulations, contains the rules of practice in proceedings under section 5 of the Debt Collection Act of 1982, as amended, 5 U.S.C. 5514, in which the Judicial Officer or an assigned Hearing Official provides the final agency adjudication for debt collection assessments by administrative salary offset issued by the Postal Service seeking to collect a debt owed it by an employee. This authority is delegated by the Postmaster General. Although these rules provide a complete replacement for the former rules, the changes are not considered to affect the rights of the parties in a substantive way. Rather, the rules are revised to conform to current practices and to clarify the procedures.
The provisions of 39 CFR part 961 have been amended as follows:
§ 961.1—This section remains unchanged.
§ 961.2—This section has been modified in minor respects to clarify the language.
§ 961.3—This section has been modified in minor respects to clarify the language.
§ 961.4—This section has been amended to explain that the petition filing deadline is subject to waiver in the discretion of the Hearing Official upon a demonstration of good cause, conforming the rule to the judicial practice. Another change reflects current practice allowing the Hearing Official to resolve the petition where the Postal Service has offset money from an employee's salary without having issued the required Notice. A requirement that the employee's petition state whether a hearing is requested, and provide related information has been deleted. Such a determination is made by the Hearing Official at a later time in the proceeding. Language explaining what information should be included in the petition has been modified for accuracy. Language regarding supplementation of the petition has been replaced with a statement that the employee shall supply additional information as directed by the Hearing Official, to reflect current practice. The section also includes minor changes in wording for purposes of clarification.
§ 961.5—This section has been modified in minor respects to clarify the language.
§ 961.6—This section has been modified to require a party filing any document with the Hearing Official to transmit a copy to the other party. Another change establishes standards and timing for time extension requests, and for representatives of parties to file notices of appearance. A further amendment reflects current practice permitting non-attorney representation of employees, to be consistent with the practice of representation for the Postal Service. The section also includes minor wording changes for purposes of clarification.
§ 961.7—This section has been changed to require specific information in the answer and to delete formerly required information in the answer to conform to current practice.
§ 961.8—This section has been modified to reflect more accurately the Hearing Official's authority and responsibilities and to conform them to current practice. Included changes clarify that the Hearing Official determines whether a hearing is conducted and that the Hearing Official may examine witnesses during a hearing. Other minor changes have been made to clarify the language.
§ 961.9—This is a new section which establishes that the Hearing Official determines whether a hearing is to be conducted and the type of hearing that is to be conducted.
§ 961.10—This section (formerly § 961.9) has been modified in minor respects to clarify the language.
§ 961.11—This section (formerly § 961.10) has been changed to conform to existing practice. This includes clarifying that a party that does not comply with the rules in a material way risks a default judgment being entered against it after an order to show cause has been issued. Other changes provide specific authority for the Hearing Official to dismiss a petition where it has been withdrawn, and to grant a petition where the Postal Service files a withdrawal of the debt determination.
§ 961.12—This section (formerly § 961.11) has been modified to be consistent with the definition of an ex parte communication included in the Administrative Procedures Act.
These revised rules will govern proceedings under part 961 docketed on or after 30 days from their publication in final form.
For the reasons stated in the preamble, the Postal Service hereby proposes to revise 39 CFR part 961 as set forth below:
Authority for rules.
Effect of filing a petition.
Filing, docketing, and serving documents; computation of time; representation of parties.
Hearing Official authority and responsibilities.
Opportunity for oral hearing.
Effect of Hearing Official's decision; motion for reconsideration.
Consequences for failure to comply with rules.
§ 961.1
§ 961.2
§ 961.3
(c) Hearing Official refers to an Administrative Law Judge qualified to hear cases under the Administrative Start Printed Page 9122Procedure Act, an Administrative Judge appointed under the Contract Disputes Act of 1978, or other qualified person not under the control or supervision of the Postmaster General, who is designated by the Judicial Officer to conduct the hearing under section 5 of the Debt Collection Act of 1982, as amended, 5 U.S.C. 5514.
(f) Postmaster/Installation Head refers to the Postal Service official who is authorized under the Postal Service Employee and Labor Relations Manual to make the initial determination of employee indebtedness and to issue the “Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act.”
(a) If an employee desires a hearing, prescribed by section 5 of the Debt Collection Act, to challenge the Postal Service's determination of the existence or amount of a debt, or to challenge the involuntary repayment terms proposed by the Postal Service, the employee must file a written, signed petition with the Recorder, on or before the fifteenth (15th) calendar day following the employee's receipt of the Postal Service's “Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act.” The Hearing Official, in his or her discretion may waive this deadline upon a demonstration of good cause. In the event that the Postal Service initiated involuntary administrative salary offsets without having issued a Notice as required by the Debt Collection Act, the Hearing Official, in his or her discretion, may retain authority to resolve the debt assessment as if a Notice had been issued, and may order the Postal Service to return any improperly offset money.
(b) The hearing petition shall include the following:
(2) The name of the employee, the employee's work address, home address, work telephone number, home telephone number, and email address, if any, or other address and telephone number at which the employee may be contacted during business hours;
(4) A statement indicating whether the employee challenges: (i) The existence of the debt identified in the Notice of Involuntary Administrative Salary Offsets; (ii) the amount of the debt identified in the Notice; and/or (iii) the involuntary repayment terms identified by the Postal Service in the Notice. For each challenge, the employee's petition shall indicate the basis of the employee's disagreement. The employee should identify and explain the facts, evidence, and legal arguments which support his or her position;
(6) If an employee contends that the Postal Service's proposed offset schedule would result in a severe financial hardship on the employee, his or her spouse, and dependents, the employee shall identify an alternative offset schedule. As directed by the Hearing Official, the employee shall provide a statement and supporting documents indicating the employee's financial status. This statement should address total income from all sources; assets; liabilities; number of dependents; and expenses for food, housing, clothing, transportation, medical care, and exceptional expenses, if any.
§ 961.5
(a) Filing. All documents relating to the Debt Collection Act hearing proceedings must be filed by the employee or the General Counsel's designee with the Recorder. (Normal Recorder office business hours are between 8:45 a.m. and 4:45 p.m., Eastern Time.) Unless otherwise directed by the Hearing Official, the party filing a document shall send a copy thereof to the opposing party.
§ 961.7
§ 961.8
The Hearing Official's authority includes, but is not limited to, the following:
(d) Determining whether an oral hearing shall be conducted, the type of oral hearing to be held, and setting the place, date, and time for such hearing.
(g) Establishing the record in the case. The weight to be attached to any evidence of record will rest within the discretion of the Hearing Official. Except as the Hearing Official may otherwise order, no proof shall be received in evidence after completion of an oral hearing or, in cases submitted on the written record, after notification by the Hearing Official that the record is closed. The Hearing Official may require either party, with appropriate notice to the other party, to submit additional evidence on any relevant matter;
(i) Issuing the final decision. The decision must include the determination of the amount and validity of the alleged debt and, where applicable, the repayment schedule.
§ 961.9
§ 961.10
§ 961.11
§ 961.12
[FR Doc. 2014-03368 Filed 2-14-14; 8:45 am]