[Federal Register Volume 79, Number 119 (Friday, June 20, 2014)]
[Rules and Regulations]
[Pages 35282-35283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14505]
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DEPARTMENT OF STATE
22 CFR Part 34
[Public Notice 8771]
RIN 1400-AD60
Debt Collection
AGENCY: Department of State.
ACTION: Final rule.
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SUMMARY: The Department of State (hereinafter, ``State'' or ``the
Department'') is amending its debt collection regulations to permit
debt notices to be sent by electronic mail to certain debtors and to
reflect a change in federal law, which authorizes the offset of Federal
non-tax payments to collect delinquent federal debt without regard to
the amount of time the debt has been delinquent.
DATES: This rule will become effective on June 20, 2014.
FOR FURTHER INFORMATION CONTACT: Elizabeth Amory, Office of the Legal
Adviser, United States Department of State (843)746-0558,
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
This rule amends State's debt collection regulations found at 22
CFR part 34 to permit debt notices to be sent by electronic mail and to
reflect the 2008 amendment to 31 U.S.C. 3716(e), which authorizes the
offset of Federal non-tax payments to collect delinquent federal debt
without regard to the amount of time the debt has been delinquent.
State's regulations at 22 CFR 34.8(a) and 34.13 currently require
that debt collection notices be hand-delivered or sent by first class
mail. In some situations, sending debt notices by email is a more
effective and efficient means of ensuring actual receipt of the notice
by the debtor in a timely manner. For example, for a debtor who is a
current State employee and, therefore, has been assigned a State email
account, the delivery of a notification via that email account will
allow the debtor to receive the notice more quickly, reliably, and
conveniently than if it were sent by first class mail. This is
especially true for employees serving overseas for whom it takes longer
to receive first class mail.
With modernization of State's information systems, State is able to
verify the delivery of notices sent to its own email addresses, rather
than first class mail. Notice by email may also be a more effective and
efficient means of notifying a debtor who is a State contractor or a
vendor who uses email regularly to communicate with State (e.g., when
submitting invoices). In these situations, it is in the interest of
both parties for State to have the ability to utilize email for
purposes of debt collection notification.
22 CFR 34.10(7) currently refers to the ten-year limitation on the
offset of Federal nontax debts in order to collect delinquent Federal
debts, which was eliminated by Section 14219 of the Food, Conservation
and Energy Act of 2008, Public Law 110-234. This statute amended 31
U.S.C. 3716(e) to provide that no limitation on the period within which
an offset may be initiated or taken, pursuant to that section, shall be
effective. This proscription is mandatory; therefore, State must amend
its regulations to remove the 10-year cutoff.
Regulatory Analysis
Administrative Procedure Act: This rulemaking is exempt from the
notice-and-comment provisions of the Administrative Procedure Act (APA)
under the ``good cause'' exemption of 5 U.S.C. 553(b)(3)(B). The
Department finds that, given the Congressional mandate to eliminate the
limitation on the period within which an offset may be initiated or
taken, notice and public comment on this rulemaking are unnecessary.
Further, the rules affecting the method by which the Department
provides debt collection notice to its employees relate solely to
agency procedure and practice (5 U.S.C. 553(b)(3)(A)). This rule is
effective upon publication, pursuant to 5 U.S.C. 553(d)(3).
Regulatory Flexibility Act: The Department, in accordance with the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), has reviewed this
regulation and, by approving it, certifies that this final rule will
not have a significant economic impact on a substantial number of small
entities.
Unfunded Mandated Reform Act of 1995: This rule will not 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 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.
Small Business Regulatory Enforcement Act of 1996: This rule is not
a major rule as defined by the Small Business Regulatory Enforcement
Act of 1996 in 5 U.S.C. 804.
Executive Orders 12866 and 13563: The Department does not consider
this rule to be a ``significant regulatory action'' under Executive
Order 12866, section 3(f), Regulatory Planning and Review. In addition,
the Department is exempt from Executive Order 12866 except to the
extent that it is promulgating regulations in conjunction with or
interrelated to a domestic agency that are significant regulatory
actions. The Department has nevertheless reviewed the regulation to
[[Page 35283]]
ensure its consistency with the regulatory philosophy and principles
set forth in Executive Order 12866. This rulemaking updating the
provisions of 22 CFR part 34 is part of the Department of State's
retrospective review, mandated by EO 13563. The benefit of the
rulemaking is that in certain instances email notification of debt
provides a more effective and efficient delivery mechanism than first
class mail. This is particularly the case for the Department's global
and mobile workforce. Postage costs are also eliminated by leveraging
the Department's messaging system in lieu of first class mail delivery.
Executive Order 12988: The Department has reviewed this regulation
in light of sections 3(a) and 3(b)(2) of Executive Order 12988, Civil
Justice Reform, to eliminate ambiguity, minimize litigation, establish
clear legal standards, and reduce burden.
Executive Orders 13132 and 12372: This regulation will not have
substantial direct effects on the States, the relationship between the
National Government and the States, or on the distribution of power and
responsibilities among the various levels of government. Therefore, the
Department determines that this rule does not have sufficient
federalism implications to require consultations or warrant the
preparation of a federalism summary impact statement. The regulations
implementing Executive Order 12372 regarding intergovernmental
consultation on federal programs and activities do not apply to this
regulation.
Executive Order 13175: The Department has determined that this
rulemaking will not have tribal implications, will not impose
substantial direct compliance costs on Indian tribal governments, and
will not pre-empt tribal law. Accordingly, the requirements of
Executive Order 13175 do not apply to this rulemaking.
Paperwork Reduction Act: This rule does not impose any new or
revised reporting or recordkeeping requirements subject to the
Paperwork Reduction Act, 44 U.S.C. chapter 35.
List of Subjects in 22 CFR Part 34
Administrative practice and procedure, Claims, Debts, Garnishment
of wages, Government employee, Hearing and appeal procedures, Pay
administration, Salaries, Wages.
Accordingly, for the reasons stated in the preamble, 22 CFR part 34
is amended as follows:
PART 34--DEBT COLLECTION
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1. The authority citation for part 34 is revised to read as follows:
Authority: 31 U.S.C. 3701-3719; 5 U.S.C. 5514; 31 CFR part 285;
31 CFR parts 900-904; 5 CFR part 550, subpart K.
0
2. Revise paragraph (a) of Sec. 34.8 to read as follows:
Sec. 34.8 Notice and demand for payment.
(a) STATE shall promptly hand deliver, send by first class mail to
the debtor's most current address in the records of STATE, or, in
appropriate circumstances, send by electronic mail to the debtor's most
current address in the records of STATE, at least one written notice.
Written demand under this subpart may be preceded by other appropriate
actions under this part and or the FCCS, including but not limited to
actions taken under the procedures applicable to administrative offset,
including salary offset.
* * * * *
Sec. 34.7 [Amended]
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3. Remove paragraph (a)(7) from Sec. 34.7.
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4. Revise the introductory text of Sec. 34.13 to read as follows:
Sec. 34.13 Notice requirements before offset.
Except as provided in Sec. 34.16, salary offset deductions will
not be made unless STATE first provides the employee with a written
notice that he/she owes a debt to the Federal Government at least 30
calendar days before salary offset is to be initiated. When STATE is
the creditor agency, this notice of intent to offset an employee's
salary shall be hand-delivered or sent by electronic mail to the
employee's STATE issued electronic mail address and will state:
* * * * *
Dated: May 30, 2014.
Patrick F. Kennedy,
Under Secretary of State for Management.
[FR Doc. 2014-14505 Filed 6-19-14; 8:45 am]
BILLING CODE 4710-37-P