[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)]
[Rules and Regulations]
[Pages 29383-29387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13421]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
14 CFR Part 1261
[Document Number NASA-2017-0003; Notice: 17-040]
RIN 2700-AD83
Processing of Monetary Claims
AGENCY: National Aeronautics and Space Administration.
ACTION: Direct final rule.
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SUMMARY: This direct final rule makes changes to comply with statutory
modifications increasing NASA's approval authority for certain actions
from $20,000 to $100,000 and makes nonsubstantive changes to clarify
the existing notification and review procedures. Pursuant to statutory
amendments, NASA's authority to approve certain claims has increased
from $20,000 to $100,000. NASA is amending its implementing regulation
accordingly. Prior to this statutory change, amounts over $20,000 had
to be forwarded to officials within the Department of Justice for
approval. The additional changes to procedures were made to comply with
``plain wording'' criteria and to incorporate debt collection
procedural changes implemented under the Debt Collection Improvement
Act of 1996. No substantive changes were made to existing NASA
provisions for notice and review of claims or indebtedness. The
revision to this rule is part of NASA's retrospective plan under
Executive Order (E.O.) 13563 completed in August 2011.
DATES: This direct final rule is effective August 28, 2017. Comments
due on or before July 31, 2017. If adverse comments are received, NASA
will publish a timely withdrawal of the rule in the Federal Register.
ADDRESSES: NASA's full plan can be accessed on the Agency's open
Government Web site at http://www.nasa.gov/open/.
FOR FURTHER INFORMATION CONTACT: Bryan R. Diederich, Office of the
General Counsel, NASA Headquarters, telephone (202) 358-0216.
SUPPLEMENTARY INFORMATION:
Direct Final Rule
NASA has determined this rulemaking meets the criteria for a direct
final rule because it involves non-discretionary statutory
modifications to certain of NASA's claims and indebtedness approval
authorities and makes nonsubstantive and ``plain wording'' changes to
existing notification and review procedures within NASA. However, if
the Agency receives a significant adverse comment, it will withdraw
this direct final rule by publishing a notice in the Federal Register.
A significant adverse comment is one that explains: (1) Why the direct
final rule is inappropriate, including challenges to the rule's
underlying premise or approach; or (2) why the direct final rule will
be ineffective or unacceptable without a change. In determining whether
a comment necessitates withdrawal of this direct final rule, NASA will
consider whether it warrants a substantive response in a notice and
comment process.
Statutory Authority: Title 31, Subchapter II, Section 3711(a)(2)
Collection and compromise.
Regulatory Analysis
Paperwork Reduction Act Statement
This final rule does not contain an information collection
requirement that is subject to the Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
Executive Order 12866 and Executive Order 13563
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This final rule has been designated a ``not significant.''
Regulatory Flexibility Act
It has been certified that this final rule is not subject to the
Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if
promulgated, have a significant economic impact on a substantial number
of small entities.
List of Subjects in 14 CFR Part 1261
Claims.
Accordingly, 14 CFR part 1261 is amended as follows:
PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)
0
1. The authority citation for part 1261 is revised to read as follows:
Authority: Subparts 1261.4, 1261.5, and 1261.6 issued under 51
U.S.C. 20113; 31 U.S.C. 3711 et seq.; 5 U.S.C. 5514; 31 CFR parts
900 through 904; 5 CFR part 550, subpart K, Sec. Sec. 550.1101
through 550.1107.
Subpart 1261.3--Claims Against NASA or Its Employees for Damage to
or Loss of Property or Personal Injury or Death--Accruing On or
After January 18, 1967
0
2. The authority citation for subpart 1261.3 is revised to read as
follows:
Authority: 28 U.S.C. 2671-2680, 51 U.S.C. 20113(m), and 28 CFR
part 14.
0
3. Amend Sec. 1261.301 by revising paragraphs (b) and (c) to read as
follows:
Sec. 1261.301 Authority.
* * * * *
(b) Under 51 U.S.C. 20113(m)(1), NASA is authorized to consider,
ascertain, adjust, determine, settle, and pay, on behalf of the United
States, in full satisfaction thereof, any claim for $25,000 or less
against the United States for bodily injury, death, or damage to or
loss of real or personal property resulting from the conduct of NASA's
functions as specified in 51 U.S.C. 20112. At the discretion of NASA, a
claim may be settled and paid under this authority even though the
United States could not be held legally liable to the claimant.
(c) Under 51 U.S.C. 20113(m)(2), if NASA considers that a claim in
excess of $25,000 is meritorious and would otherwise be covered by 51
U.S.C. 20113(m)(1), NASA may report the facts and circumstances of the
claim to the Congress for its consideration or to the Comptroller
General as provided in the ``Supplemental Appropriations Act, 1978,''
Public Law 95-240 (92 Stat. 107), 31 U.S.C. 724a.
* * * * *
0
4. Revise Sec. 1261.304 to read as follows:
Sec. 1261.304 Place of filing claim.
A claim arising in the United States should be submitted to the
Chief Counsel of the NASA installation whose activities are believed to
have given rise to the claimed injury, loss, or death. If the identity
of such installation is not
[[Page 29384]]
known, or if the claim arose in a foreign country, the claim should be
submitted to the General Counsel, Headquarters, National Aeronautics
and Space Administration, Washington, DC 20546.
0
5. Amend Sec. 1261.307 by revising paragraph (b) to read as follows:
Sec. 1261.307 Time limitations.
* * * * *
(b) A claim may not be acted upon pursuant to 51 U.S.C. 20113(m)(1)
or (2) unless it is presented to NASA within two years after the
occurrence of the accident or incident out of which the claim arose.
* * * * *
0
6. Amend Sec. 1261.308 by revising paragraphs (c) and (d) to read as
follows:
Sec. 1261.308 NASA officials authorized to act upon claims.
* * * * *
(c) Claims of $10,000 or more, pursuant either to the Federal Tort
Claims Act, or 51 U.S.C. 20113(m), shall be acted upon only with the
prior approval of the General Counsel. Such claims shall be forwarded
to the General Counsel for approval, if the Chief Counsel or the
Associate General Counsel for General Law is of the opinion that the
claim may be meritorious and otherwise suitable for settlement under
any authority. A claim so forwarded should be accompanied by a report
of the facts of the claim, based upon such investigation as may be
appropriate, and a recommendation as to the action to be taken.
(d) Claims acted upon by NASA officials pursuant to this section
shall be acted upon pursuant to the Federal Tort Claims Act, or 51
U.S.C. 20113(m)(1) or (2), as the NASA official deems appropriate.
0
7. Amend Sec. 1261.312 by revising paragraph (a) to read as follows:
Sec. 1261.312 Action on approved claims.
(a) Upon settlement of a claim, the official designated in Sec.
1261.308 will prepare and have executed by the claimant a Voucher for
Payment of Tort Claims (NASA Form 616) if the claim has been acted upon
pursuant to 51 U.S.C. 20113(m), or a Voucher for Payment under Federal
Tort Claims Act (Standard Form 1145) if the claim has been acted upon
pursuant to the Federal Tort Claims Act. The form will then be referred
to the cognizant NASA installation fiscal or financial management
office for appropriate action.
* * * * *
0
8. Amend Sec. 1261.315 by revising paragraphs (b) introductory text
and (c) introductory text to read as follows:
Sec. 1261.315 Procedures for the handling of lawsuits against NASA
employees arising within the scope of their office or employment.
* * * * *
(b) Upon receipt of such process and pleadings, the Associate
General Counsel for General Law or the Chief Counsel of the NASA
installation receiving the same shall furnish to the U.S. Attorney for
the district embracing the place where the action or proceeding is
brought and, if appropriate, the Director, Torts Branch, Civil
Division, Department of Justice, the following:
* * * * *
(c) The Associate General Counsel for General Law or a Chief
Counsel acting pursuant to paragraph (b) of this section shall submit
the following documents to the General Counsel, who is hereby
designated to receive such documents on behalf of the Administrator:
* * * * *
0
9. Amend Sec. 1261.317 by revising paragraph (b) to read as follows:
Sec. 1261.317 Attorney-client privilege.
* * * * *
(b) Any adverse information communicated by the client-employee to
an Agency attorney during the course of such attorney-client
relationship shall not be disclosed to anyone, either inside or outside
NASA, other than attorneys responsible for representation of the
employee, unless such disclosure is authorized by the employee. Such
adverse information shall continue to be fully protected whether or not
representation is provided and even though representation may be denied
or discontinued.
Subpart 1261.4--Collection of Civil Claims of the United States
Arising Out of the Activities of the National Aeronautics and Space
Administration (NASA)
0
10. Amend Sec. 1261.402 by revising paragraphs (b), (c), (d) and (e)
to read as follows:
Sec. 1261.402 Delegation of authority.
* * * * *
(b) For Headquarters, with regard to subpart 1261.4 and subpart
1261.5: The Associate Administrator for Mission Support or a designee
who reports directly to the Associate Administrator for Mission
Support. A copy of such designation, if any, shall be sent to the
Director, Financial Management Division, NASA Headquarters.
(c) With respect to the analysis required by Sec. 1261.413: The
NASA Chief Financial Officer or designee.
(d) NASA-wide, with regard to subpart 1261.6: The NASA Chief
Financial Officer or designee.
(e) NASA-wide, for complying with pertinent provisions under these
regulations for agency hearing or review (see Sec. Sec. 1261.408(b),
1261.503, and 1261.603(c)): The NASA General Counsel or designee.
0
11. Amend Sec. 1261.403 by revising paragraph (a) introductory text to
read as follows:
Sec. 1261.403 Consultation with appropriate officials; negotiation.
(a) The authority pursuant to Sec. 1261.402 to determine to forgo
collection of interest, to accept payment of a claim in installments,
or, as to claims which do not exceed $100,000, exclusive of interest
and related charges, to compromise a claim or to refrain from doing so,
or to refrain from, suspend, or terminate collection action, shall be
exercised only after consultation with legal counsel for the particular
installation and the following NASA officials or designees, who may
also be requested to negotiate the appropriate agreements or
arrangements with the debtor:
* * * * *
0
12. Amend Sec. 1261.405 by revising paragraph (a) to read as follows:
Sec. 1261.405 Subdivision of claims not authorized; other
administrative proceedings.
(a) Subdivision of claims. Claims may not be subdivided to avoid
the $100,000 ceiling, exclusive of interest, penalties, and
administrative costs, for purposes of compromise (Sec. 1261.414) or
suspension or termination of collection (Sec. 1261.416). The debtor's
liability arising from a particular transaction or contract shall be
considered a single claim (31 CFR 900.6).
* * * * *
0
13. Amend Sec. 1261.407 by adding paragraph (b)(4) to read as follows:
* * * * *
(b) * * *
(4) The name, address, and phone number of a contact person or
office within the Agency.
* * * * *
0
14. Amend Sec. 1261.408 by revising paragraph (b)(2)(ii) to read as
follows:
Sec. 1261.408 Use of consumer reporting agency.
* * * * *
(b) * * *
(2) * * *
[[Page 29385]]
(ii) If a current address is available, notifying the individual by
certified mail, return receipt requested, that: The designated NASA
official has reviewed the claim and determined that it is valid and
overdue; within not less than 60 days after sending this notice, NASA
intends to disclose to a consumer reporting agency the specific
information to be disclosed under paragraph (b)(1) of this section; the
individual may request a complete explanation of the claim, dispute the
information in the records of NASA about the claim, and file for an
administrative review or repeal of the claim or for reconsideration of
the initial decision on the claim.
* * * * *
0
15. Amend Sec. 1261.409 by revising paragraph (a) introductory text,
adding paragraph (a)(5), revising paragraph (b), and adding paragraph
(c) to read as follows:
Sec. 1261.409 Contracting for collection services.
(a) When NASA determines that there is a need to contract for
collection services, the following conditions shall apply:
* * * * *
(5) The debt must not be subject to mandatory transfer to the
Department of the Treasury for collection. See 31 CFR 901.5(a) and (b).
(b) NASA shall use Government-wide debt collection contracts to
obtain debt collection services provided by private collection
contractors. See 31 CFR 901.5(b).
(c) NASA shall fund private collection contractor contracts in
accordance with 31 U.S.C. 3728(d) or as otherwise permitted by law. See
31 CFR 901.5(c).
0
16. Amend Sec. 1261.411 by revising paragraph (a) to read as follows:
Sec. 1261.411 Collection in installments.
(a) Whenever feasible, and except as otherwise provided by law,
debts owed to the United States, together with interest penalties, and
administrative costs as required by Sec. 1261.412, should be collected
in full in one lump sum. This is true whether the debt is being
collected by administrative offset or by another method, including
voluntary payment. However, if the debtor is financially unable to pay
the indebtedness in one lump sum, payment may be accepted in regular
installments. Debtors who represent that they are unable to pay the
debt in one lump sum must submit justification, including financial
statements. If NASA agrees to accept payment in regular installments,
it will obtain a legally enforceable written agreement from the debtor
which specifies all of the terms of the arrangement and which contains
a provision accelerating the debt in the event the debtor defaults. The
size and frequency of installment payments should bear a reasonable
relation to the size of the debt and the debtor's ability to pay. If
possible, the installment payments should be sufficient in size and
frequency to liquidate the Government's claim in not more than three
years. Installment payments of less than $50 per month should be
accepted only if justifiable on the grounds of financial hardship or
similar reasonable cause. If the claim is unsecured, an executed
confess-judgment note should be obtained from a debtor when the total
amount of the deferred installments will exceed $750. Such notes may be
sought when an unsecured obligation of a lesser amount is involved.
When attempting to obtain confess-judgment notes, the debtor should be
provided with written explanation of the consequences of signing the
note, and documentation should be maintained sufficient to demonstrate
that the debtor has signed the note knowingly and voluntarily. Security
for deferred payments other than a confess-judgment note may be
accepted in appropriate cases. NASA, at its option, may accept
installment payments notwithstanding the refusal of a debtor to execute
a confess-judgment note or to give other security.
* * * * *
0
17. Amend Sec. 1261.412 by revising paragraph (i)(1)(iv) and (i)(2) to
read as follows:
Sec. 1261.412 Interest, penalties, and administrative costs.
* * * * *
(i) * * *
(1) * * *
(iv) To debts arising under the Social Security Act, the Internal
Revenue Code, or the tariff laws of the United States.
(2) NASA may, however, assess interest and related charges on debts
which are not subject to 31 U.S.C. 3717 to the extent authorized under
the common law or applicable statutory authority.
0
18. Amend Sec. 1261.413 by revising the introductory text to read as
follows:
Sec. 1261.413 Analysis of costs; automation; prevention of
overpayments, delinquencies, or defaults.
The Office of the NASA Chief Financial Officer will:
* * * * *
0
19. Amend Sec. 1261.414 by revising paragraphs (a) and (b) to read as
follows:
Sec. 1261.414 Compromise of claims.
(a) Designated NASA officials (see Sec. Sec. 1261.402 and
1261.403) may compromise claims for money or property arising out of
the activities of the Agency where the claim, exclusive of interest,
penalties, and administrative costs, does not exceed $100,000, prior to
the referral of such claims to the Government Accountability Office, or
to the Department of Justice for litigation. The Comptroller General
may exercise such compromise authority with respect to claims referred
to the Government Accountability Office prior to their further referral
for litigation. Only the Comptroller General may effect the compromise
of a claim that arises out of an exception made by the Government
Accountability Office in the account of an accountable officer,
including a claim against the payee, prior to its referral by the
Government Accountability Office for litigation.
(b) When the claim, exclusive of interest, penalties, and
administrative costs, exceeds $100,000, the authority to accept the
compromise rests solely with the Department of Justice. NASA should
evaluate the offer, using the factors set forth in paragraphs (c)
through (f) of this section, and may recommend compromise for reasons
under one, or more than one, of those paragraphs. If NASA then wishes
to accept the compromise, it must refer the matter to the Department of
Justice, using the Claims Collection Litigation Report. See Sec.
1261.417(e) or 31 CFR 904.2(c). Claims for which the gross amount is
over $200,000 shall be referred to the Commercial Litigation Branch,
Civil Division, Department of Justice, Washington, DC 20530. Claims for
which the gross original amount is $200,000 or less shall be referred
to the United States Attorney in whose judicial district the debtor can
be found. The referral should specify the reasons for the Agency's
recommendation. If NASA has a debtor's firm written offer of compromise
which is substantial in amount and the Agency is uncertain as to
whether the offer should be accepted, it may refer the offer, the
supporting data, and particulars concerning the claim to the Government
Accountability Office or to the Department of Justice. The Government
Accountability Office or the Department of Justice may act upon such an
offer or return it to the agency with instructions or advice. If NASA
wishes to reject the compromise, Government Accountability Office or
Department of Justice approval is not required.
* * * * *
[[Page 29386]]
0
20. Amend Sec. 1261.416 by revising paragraphs (a), (b), (c)(3)(iii)
and (e) to read as follows:
Sec. 1261.416 Suspending or terminating collection action.
(a) The standards set forth in this section apply to the suspension
or termination of collection action pursuant to 31 U.S.C. 3711(a)(3) on
claims which do not exceed $100,000, exclusive of interest, penalties,
and administrative costs, after deducting the amount of partial
payments or collections, if any. NASA may suspend or terminate
collection action under this part with respect to claims for money or
property arising out of activities of the Agency, prior to the referral
of such claims to the Government Accountability Office or to the
Department of Justice for litigation. The Comptroller General (or
designee) may exercise such authority with respect to claims referred
to the Government Accountability Office prior to their further referral
for litigation.
(b) If, after deducting the amount of partial payments or
collections, if any, a claim exceeds $100,000, exclusive of interest,
penalties, and administrative costs, the authority to suspend or
terminate rests solely with the Department of Justice. If the
designated official believes suspension or termination may be
appropriate, the matter should be evaluated using the factors set forth
in paragraphs (c) and (d) of this section. If the Agency concludes that
suspension or termination is appropriate, it must refer the matter,
with its reasons for the recommendation, to the Department of Justice,
using the Claims Collection Litigation Report. See Sec. 1261.417(e) or
31 CFR 904.2(c). If NASA decides not to suspend or terminate collection
action on the claim, Department of Justice approval is not required; or
if it determines that its claim is plainly erroneous or clearly without
legal merit, it may terminate collection action regardless of the
amount involved, without the need for Department of Justice
concurrence.
(c) * * *
(3) * * *
(iii) Collection of the debt will cause undue hardship on the
debtor.
* * * * *
(e) Transfer of claim. When NASA has doubt as to whether collection
action should be suspended or terminated on a claim, it may refer the
claim to the Government Accountability Office for advice. When a
significant enforcement policy is involved in reducing a statutory
penalty or forfeiture to judgment, or recovery of a judgment is a
prerequisite to the imposition of administrative sanctions, such as the
suspension or revocation of a license or the privilege of participating
in a Government-sponsored program, NASA may refer such a claim for
litigation even though termination of collection activity might
otherwise be given consideration under paragraphs (d)(1) and (2) of
this section. Claims on which NASA holds a judgment by assignment or
otherwise will be referred to the Department of Justice for further
action if renewal of the judgment lien or enforced collection
proceedings are justified under the criteria discussed in this section.
0
21. Amend Sec. 1261.417 by revising the section heading and paragraphs
(c) and (d) to read as follows:
Sec. 1261.417 Referral to Department of Justice or Government
Accountability Office.
* * * * *
(c) When the merits of the claim, the amount owed on the claim, or
the propriety of acceptance of a proposed compromise, suspension, or
termination are in doubt, the designated official should refer the
matter to the Government Accountability Office for resolution and
instructions prior to proceeding with collection action and/or referral
to the Department of Justice for litigation.
(d) Once a claim has been referred to the Government Accountability
Office or to the Department of Justice pursuant to this section, NASA
shall refrain from having any contact with the debtor about the pending
claim and shall direct the debtor to the Government Accountability
Office or to the Department of Justice, as appropriate, when questions
concerning the claim are raised by the debtor. The Government
Accountability Office or the Department of Justice, as appropriate,
shall be immediately notified by NASA of any payments which are
received from the debtor subsequent to referral of a claim under this
section.
* * * * *
0
22. Add Sec. 1261.418 to read as follows:
Sec. 1261.418 Transfer of debts to Treasury for collection.
Unless subject to an exception identified in 31 CFR 285.12(d), NASA
shall transfer any debt that is more than 180 days delinquent to the
Financial Management Service for debt collection services in accordance
with the procedures described in 31 CFR 285.12.
Subpart 1261.5--Administrative Offset of Claims
0
23. Amend Sec. 1261.500 by revising paragraphs (a), (b), and (c)
introductory text to read as follows:
Sec. 1261.500 Scope of subpart.
(a) This subpart applies to collection of claims by administrative
offset under section 5 of the Federal Claims Collection Act of 1966 as
amended by the Debt Collection Act of 1982 and the Debt Collection
Improvement Act of 1996 (31 U.S.C. 3716), other statutory authority, or
the common law; it does not include ``Salary Offset,'' which is
governed by subpart 1261.6, infra.
(b) NASA shall refer past due, legally enforceable nontax debts
which are over 180 days delinquent to the Secretary of the Treasury for
collection by centralized administrative offset. For purposes of debts
governed by this provision, NASA adopts and will follow the procedures
established by the Department of the Treasury in 31 CFR 901.3.
(c) For claims not subject to mandatory transfer to the Department
of the Treasury pursuant to paragraph (b), NASA may consider ad hoc
non-centralized administrative offset of claims at its sole discretion.
Any ad hoc non-centralized administrative offset of claims will be
conducted consistent with the requirements of 31 CFR 901.3(c).
* * * * *
0
24. Amend Sec. 1261.503 by revising paragraphs (a) introductory text,
(a)(2), (b), and (c) to read as follows:
Sec. 1261.503 Agency records inspection; hearing or review.
(a) NASA shall provide the debtor with a reasonable opportunity for
a live, telephonic, or video-teleconference hearing when:
* * * * *
(2) Unless otherwise required by law, a hearing under this section
is not required to be a formal evidentiary-type hearing, although
significant matters discussed at the hearing should be documented. See
31 CFR 901.3(e)(1). Such hearing may be an informal discussion/
interview with the debtor, face-to-face meeting between debtor and
cognizant NASA personnel, or written formal submission by the debtor
and response by the NASA cognizant personnel with an opportunity for
oral presentation. The hearing will be conducted before or in the
presence of an official as designated by the NASA General Counsel on a
case-by-case basis. The hearing is not an adversarial adjudication and
need not take the form
[[Page 29387]]
of an evidentiary hearing. However, depending on the particular facts
and circumstances, the hearing may be analogous to a fact-finding
proceeding with oral presentations; or an informal meeting with or
interview of the employee; or formal written submissions, with an
opportunity for oral presentation, and decision based on the available
written record. Ordinarily, hearings may consist of informal
conferences before the hearing official in which the employee and
Agency officials will be given full opportunity to present evidence,
witnesses, and argument. The employee may represent himself or herself
or be represented by an individual of his or her choice at no cost to
the United States. The hearing official must maintain or provide for a
summary record of the hearing provided under this subpart. The decision
of the reviewing/hearing official should be communicated in writing (no
particular form is required) to the affected parties and will
constitute the final administrative decision of the Agency.
(b) Paragraph (a) of this section does not require a hearing with
respect to debt collection systems, as determinations of indebtedness
or waiver from these rarely involve issues of credibility or veracity
since NASA has determined that review of the written record is
ordinarily an adequate means to correct prior mistakes. See 31 CFR
901.3(e)(3).
(c) In those cases where a live, telephonic, or video-
teleconference hearing is not required or granted, NASA will
nevertheless accord the debtor an opportunity to submit any position
regarding the matter by documentation and/or written presentation--that
is, the Agency will make its determination on the request for waiver or
reconsideration based upon a review of the available written record.
See 31 CFR 901.3(e)(4). In such case, the responsible official or
designee shall refer the request to the appropriate NASA Office of
General Counsel or Chief Counsel for review and recommendation.
* * * * *
0
25. Amend Sec. 1261.507 by revising paragraph (e)(3) to read as
follows:
Sec. 1261.507 Civil Service Retirement and Disability Fund.
* * * * *
(e) * * *
(3) Provide or not provide a live, telephonic, or video-
teleconference hearing.
Subpart 1261.6--Collection by Offset From Indebted Government
Employees
0
26. Amend Sec. 1261.601 by revising paragraph (b)(2) to read as
follows:
Sec. 1261.601 Scope of subpart.
* * * * *
(b) * * *
(2) Waiver requests and claims to the Government Accountability
Office. This subpart does not preclude an employee from requesting
waiver of a salary overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774, or
32 U.S.C. 716, or in any way questioning the amount or validity of a
debt by submitting a subsequent claim to the Government Accountability
Office in accordance with procedures prescribed by the Government
Accountability Office. Similarly, in the case of other types of debts,
it does not preclude an employee from requesting waiver, if waiver is
available under any statutory provision pertaining to the particular
debt being collected.
0
27. Amend Sec. 1261.603 by revising the introductory text and
paragraphs (a) introductory text and (c)(2) and (5), removing
paragraphs (c)(6) through (8), and revising paragraph (e) to read as
follows:
Sec. 1261.603 Procedures for salary offset.
If NASA determines that a Federal employee is indebted to the
United States or is notified of such by the head of another agency (or
delegee), the amount of indebtedness may be collected in monthly
installments, or regularly established pay intervals, by deduction from
the affected employee's pay account. The deductions may be made from
basic pay, special pay, incentive pay, retired pay, retainer pay, or in
the case of an employee not entitled to basic pay, from other
authorized pay. The requirements in paragraphs (a) through (h) of this
section must be met before a deduction is made from the current pay
account of an employee.
(a) Written notice. The employee must be sent a minimum of 30 days
written notice prior to further offset action, which specifies:
* * * * *
(c) * * *
(2) The petition should be addressed to the Agency counsel
designated in the notice, but the hearing will be conducted by an
official not under the supervision or control of the NASA
Administrator. The Agency Chief Financial Officer is authorized to
appoint an administrative law judge or other Federal executive branch
employee or official on a reimbursable or other basis. Notice of the
name and address of the hearing official will be sent to the employee
within 10 days of receipt of petition.
* * * * *
(5) As for the conduct of any live, telephonic, or video
teleconference hearing, for additional guidance see 14 CFR 1261.503.
* * * * *
(e) Limitation on amount and duration of deductions. Ordinarily,
debts are to be collected in one lump-sum payment. However, if the
employee is financially unable to pay in one lump sum or if the amount
of the debt exceeds 15 percent of disposable pay for an officially
established pay interval, collection must be made in installments. The
size of installment deductions must bear a reasonable relationship to
the size of the debt and the employee's ability to pay (see 14 CFR
1261.411), but the amount deducted for any period must 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). Deduction must commence with the next full pay interval
(ordinarily, the next biweekly pay period). Such installment deductions
must be made over a period not greater than the anticipated period of
active duty or employment, as the case may be, except as provided in
paragraph (f) of this section.
* * * * *
Nanette Smith,
NASA Federal Register Liaison Officer.
[FR Doc. 2017-13421 Filed 6-28-17; 8:45 am]
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