PART 1650—DEBT COLLECTION 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. Source: 73 FR 49093, Aug. 20, 2008, unless otherwise noted. 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. et seq., (ii) In any case where collection of a debt is explicitly provided for or prohibited by another statute ( e.g. (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 (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 (c) Debt (d) Disposable pay (e) Employee (f) Salary Offset § 1650.105 Notice of Debt. (a) Timing and contents of notice. (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; (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. (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., (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. (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. § 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. e.g. (b) Failure to timely submit. (c) Procedure Hearing official. (2) Notice. (3) Oral hearing. e.g. (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. (d) Record. (e) Date of decision. (f) Content of decision. (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. § 1650.110 Implementation of salary offset. (a) Method of collection. (b) Source of deductions. (c) Duration of deductions. (d) Limitation on amount of deductions. (e) When deductions may begin. (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. e.g. § 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 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. (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. § 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. 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.