[Federal Register Volume 59, Number 144 (Thursday, July 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18400]
[Federal Register: July 28, 1994]
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LIBRARY OF CONGRESS
36 CFR Part 705
[Docket No. LOC 94-1]
Salary Offset
AGENCY: Library of Congress.
ACTION: Final regulation.
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SUMMARY: The Library of Congress is authorized to collect debts owed by
current and former staff members to the Federal Government by making
deductions from the current pay account of the individual. The Library
of Congress is issuing this final regulation to prescribe the
procedures the Library will follow when collecting a debt owed to the
Federal Government via deductions from an employee's pay. It also
describes the rights of current employees, former employees who owe
debts to other agencies, and former employees who are currently
employed by other agencies in the collection of debts owed to the
Federal Government by them and sets out the procedures for collecting
debts through deductions from their pay following due process.
EFFECTIVE DATE: July 28, 1994.
FOR FURTHER INFORMATION CONTACT: Johnnie M. Barksdale, Regulations
Officer, Office of the General Counsel, Library of Congress,
Washington, DC 20540-1050. Telephone No. (202) 707-1593.
SUPPLEMENTARY INFORMATION: Under section 5514 of title 5 U.S.C. and 5
CFR 550.1101, when an agency head or his/her designee determines that
an employee is indebted to the Federal Government, he/she will
authorize the collection of that indebtedness in monthly installments
or at officially established pay intervals, by deduction from the
current pay account of the individual. The amount deducted for any
period may not exceed 15 percent of disposable pay, except that a
greater percentage may be deducted upon the written consent of the
individual involved. If the individual retires or resigns, or if his/
her employment otherwise ends, before collection of the amount of the
indebtedness is completed, deductions shall be made from subsequent
payments of any nature due the individual from the agency concerned.
This final Regulation sets out the procedures the Library of Congress
will follow when collecting debts through deductions from the
employee's pay following due process.
The proposed regulation was published in the Federal Register on
May 27, 1994, for public comment. No comments were received. No changes
were made to the text.
List of Subjects in 36 CFR Part 705
Salary offset.
Final Regulation
In consideration of the foregoing the Library of Congress
promulgates a new Part 705 of 36 CFR chapter 7, reading as follows:
PART 705--FINANCIAL ADMINISTRATION
Sec.
705.1 Salary Offset.
Authority: 5 U.S.C. 5514 and 5 CFR 550.1101.
705.1 Salary offset
(a) Purpose. This part describes the rights of current and former
staff members in the collection of debts owed to the Federal Government
by them and sets out the procedures for collecting debts through
deductions from their pay following due process.
(b) Definitions.--(1) Debt is an amount owed to the U.S. Government
from insured or guaranteed loans, 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), and all other similar sources.
(2) Disposable pay, for purposes of this part, means that part of
current basic pay, special pay, incentive pay, retirement pay, retainer
pay, or other authorized pay remaining after the deduction of any
amount required by law to be withheld, such as Federal taxes,
retirement, court-ordered payments, and FICA.
(3) Staff member refers to current and former employees who owe
debts to the Library and/or other Federal Government agencies.
(c) Procedures.--(1) Notification of indebtedness. The Director of
Human Resources, or designee, shall notify the staff member, in
writing, of the individual's indebtedness to the Library and the
intention of the Library to collect this debt by deductions from the
individual's pay. This notice shall be given not less than 30 days
before any deduction is made. This notice shall state, at a minimum:
(i) The Library's determination that a debt is owed, including the
origin, nature, and amount of the debt;
(ii) The Library's intention to collect the debt by means of
deduction from the staff member's disposable pay account;
(iii) The amount, frequency, proposed beginning date, and duration
of the intended deductions;
(iv) An explanation of the Library's policy concerning interest,
penalties, and administrative costs, including a statement that such
assessments must be made unless excused;
(v) The staff member's right to inspect and to copy Government
records relating to the debt or, if he or she or his or her
representative cannot personally inspect the records, to request and
receive a copy of such records;
(vi) If not previously provided, the opportunity (under terms
agreeable to the Library) to establish a schedule for the voluntary
repayment of the debt or to enter into a written agreement to establish
a schedule for the repayment of the debt in lieu of offset (the
agreement must be in writing, signed by both the staff member and the
Library, and documented in the Library's files);
(vii) The staff member's right to a hearing conducted by an
official arranged for or engaged by the Library (an administrative law
judge or, alternatively, a hearing official not under the control of
the Librarian of Congress) if a petition is filed as prescribed by the
Library;
(viii) The method and time period for petitioning for a hearing;
(ix) That the timely filing of a petition for hearing will stay the
commencement of collection proceedings;
(x) That a final decision on the hearing, if one is requested, will
be issued at the earliest practicable date, but not later than 60 days
after the filing of the petition requesting the hearing unless the
staff member requests and the hearing official grants a delay in the
proceedings;
(xi) That any knowingly false or frivolous statements,
representations, or evidence may subject the staff member to
(A) Disciplinary procedures appropriate under Library of Congress
Regulation 2020-3, or any other applicable regulations or statutes,
(B) Penalties under the False Claim Act, Section 3729 of Title 31,
U.S. Code, or any other applicable statutory authority, or
(C) Criminal penalties under Sections 286, 287, 1001, and 1002 of
Title 18, U.S. Code, or any other applicable statutory authority;
(xii) Any other rights and remedies available to the staff member
under statutes or regulations governing the program for which the
collection is being made;
(xiii) Unless there are applicable contractual or statutory
provisions to the contrary, that amounts paid on or deducted for the
debt which are later waived or found not owed to the United States will
be promptly refunded to the staff member;
(xiv) That if the staff member elects not to contest the
determination of indebtedness or the amount or the terms of a repayment
schedule, the staff member may still wish to exercise the right to
request a waiver of the collection of the indebtedness pursuant to the
provisions of Library of Congress Regulation 1556, Claims (if the
amount of the indebtedness exceeds $1,500, the staff member should be
advised that a final determination must be made by the Comptroller
General of the United States); and
(xv) That any involuntary payments already made or withheld from
salary of any portion of the indebtedness will not be construed as a
waiver by the staff member of any rights that he or she may have under
this part.
(2) Amount of deduction. If possible, the debt shall be collected
in one lump sum. If multiple deductions are necessary, however, the
amount deducted from a staff member's pay for any single period will
not exceed 15 percent of disposable pay, except that a greater
percentage may be deducted upon the written consent of the individual
involved. The staff member may enter into a written agreement for a
repayment schedule different from that proposed so long as the terms
are approved by the Library. If the individual retires or resigns or if
his or her employment otherwise ends before collection of the amount of
the indebtedness is completed, deduction shall be made from subsequent
payments of any nature due the individual.
(3) Petitions for hearing. (i) To elect a hearing, the staff member
must notify the Director, Human Resources, no later than 15 days after
the receipt of the notification of indebtedness. A timely filing of a
petition for hearing will stay any further commencement of collection
proceedings. A final decision on the hearing will be issued at the
earliest practicable date, but not later than 60 days after the filing
of petition, unless the individual requests and the hearing official
grants a delay in the proceedings.
(ii) The petition or statement must be signed by the staff member
and must fully identify and explain with reasonable specificity all the
facts, evidence, and witnesses, if any, which he or she believes
supports his or her position.
(iii) Petitions for hearings made later than 15 days after the
receipt of the notification of indebtedness will be accepted provided
the staff member can show that the delay was because of circumstances
beyond his or her control or because of failure to receive notice of
the time limit (unless otherwise aware of it).
(4) Form of hearings and final decisions. (i) The staff member
shall be provided an appropriate hearing as decided by the hearing
official, based on the nature of the transactions giving rise to the
debt. The hearing official shall be guided by the procedures set out in
4 CFR 102.3(c) in deciding on the type of hearing to provide.
(ii) A written decision will be provided to the staff member and
must, at a minimum, state the fact(s) purported to support the nature
and origin of the alleged debt; the hearing official's analysis,
findings, and conclusions, in light of the hearing, as to the staff
member's or the Library's grounds; the amount and validity of the
alleged debt; and, where applicable, the repayment schedule.
(d) Creditor agency is not the Library of Congress. When the
Library receives from a creditor agency a debt claim properly certified
in accordance with 5 CFR 550.1108(a), deductions shall be scheduled to
begin at the next officially established pay interval. The Director,
Human Resources, shall provide the employee with written notice stating
that the Library has received a certified debt claim from the creditor
agency (including the amount) and written notice of the date deductions
from salary will commence and of the amount of such deductions. When
the Library receives an incomplete debt claim from a creditor agency,
the Director, Human Resources, shall return the debt claim with a
written notice that procedures under 5 U.S.C. 5514 must be followed and
a properly determined debt claim received before action will be taken
to collect from the employee's pay account.
(e) Exclusions and exceptions. (1) This part does not apply to
debts where collection of the debt is explicitly provided for or
prohibited by another statute, or to debts of $1 or less, which, it is
hereby determined, is not cost effective to attempt to collect (65
Comp. Gen. 843, September 29, 1986).
(2) An exception to the entitlement of notice, hearings, written
responses, and final decisions provided for under paragraph (c) of this
section is made for overpayments arising out of an employee's election
of coverage or a change in coverage under a Federal benefits program
requiring periodic deductions from pay, if the amount to be recovered
was accumulated over four pay periods or less.
Dated: July 18, 1994.
James H. Billington,
The Librarian of Congress.
[FR Doc. 94-18400 Filed 7-27-94; 8:45 am]
BILLING CODE 1410-01-P