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Subpart G-How Are Awards

Paid? $21.60 Payment of awards.

To receive payment, an applicant granted an award under the Act must submit to the Financial Management Service of the Department

(a) A request for payment signed by the applicant or its duly authorized agent;

(b) A copy of the final decision granting the award; and

(c) A statement that,

(1) The applicant will not seek review of the decision in the United States courts; or

(2) The process for seeking review of the award has been completed. (Authority: 5 U.S.C. 504(c)(1) and (d)) 8 21.61 Release.

If an applicant, its agent, or its attorney accepts payment of any award or settlement in conjunction with an application under this part, that acceptance

(a) Is final and conclusive with respect to that application; and

(b) Constitutes a complete release of any further claim against the United States with respect to that application. (Authority: 5 U.S.C. 504(c)(1))

30.24 What opportunity does the debtor re

ceive to obtain a review of the existence

or amount of a debt? 30.25 How may a debtor obtain an oral hear

ing? 30.26 What special rules apply to an oral

hearing? 30.27 When does the Secretary enter into a

repayment agreement rather than offset? 30.28 When may the Secretary offset before

completing the procedures under $8 30.22

30.27? 30.29 What procedures apply when the Sec

retary offsets to collect a debt owed an

other agency? 30.30 What procedures apply when the Sec

retary requests another agency to offset a debt owed under a program or activity

of the Department? 30.31 How does the Secretary apply funds

recovered by offset if multiple debts are involved?

IRS TAX REFUND OFFSET PROCEDURES 30.33 What procedures does the Secretary

follow for IRS tax refund offsets?

PROCEDURES FOR REPORTING DEBTS TO

CONSUMER REPORTING AGENCIES 30.35 What procedures does the Secretary

follow to report debts to consumer reporting agencies?

Subpart D [Reserved] Subpart E-What Costs and Penalties Does

the Secretary Impose on Delinquent Debtors?

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Subpart A-General

$30.2 On what authority does the Sec

retary rely to collect a debt under $30.1 What administrative actions

this part? may the Secretary take to collect a (a)(1) The Secretary takes an action debt?

referred to under $30.1(a) in accordance (a) The Secretary may take one or withmore of the following actions to collect

(i) 31 U.S.C. chapter 37, subchapters I a debt owed to the United States:

and II; (1) Collect the debt under the proce

(ii) Other applicable statutory audures authorized in the regulations in

thority; or

(iii) The common law. this part.

(2) If collection of a debt in a par(2) Refer the debt to the General Ac

ticular case is not authorized under counting Office for collection.

one of the authorities described in (3) Refer the debt to the Department

paragraph (a)(1) of this section, the of Justice for compromise, collection,

Secretary may collect the debt under or litigation.

any other available authority under (4) Take any other action authorized which collection is authorized. by law.

(b) The Secretary does not use a pro(b) In taking any of the actions listed cedure listed in $30.1(c) to collect a in paragraph (a) of this section, the debt, or a certain type of debt, ifSecretary complies with the require

(1) The procedure is specifically proments of the Federal Claims Collection hibited under a Federal statute; or Standards (FCCS) at 4 CFR parts 101

(2) A separate procedure other than 105 that are not inconsistent with the

the procedure described under $30.1(c) requirements of this part.

is specifically required under(c) The Secretary may

(i) A contract, grant, or other agree

ment; (1) Collect the debt under the offset

(ii) A statute other than 31 U.S.C. procedures in subpart C of this part;

3716; or (2) Report a debt to a consumer re

(iii) Other regulations. porting agency under the procedures in subpart C of this part;

(Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a

1, 31 U.S.C. 3711(e)) (3) Charge interest on the debt as provided in the FCCS;

[53 FR 33425, Aug. 30, 1988] (4) Impose upon a debtor a charge based on the costs of collection as de

Subpart B [Reserved] termined under subpart E of this part; (5) Impose upon a debtor a penalty

Subpart C-What Provisions Apply for failure to pay a debt when due

to Administrative Offset? under subpart E of this part;

GENERAL OFFSET PROCEDURES (6) Compromise a debt, or suspend or terminate collection of a debt, under $30.20 To what do $830.20-30.31 apply? subpart F of this part;

(a)(1)(i) Sections 30.20–30.31 establish (7) Take any other actions under the

the general procedures used by the Secprocedures of the FCCS in order to pro

retary to collect debts by administratect the United States Government's

tive offset. interests; or

(ii) The Secretary uses the proce(8) Use any combination of the proce dures established under other reguladures listed in this paragraph (c) as tions, including $30.33, What procemay be appropriate in a particular dures does the Secretary follow for IRS case.

tax refund offsets?, 34 CFR part 31, Sal(Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a

ary Offset for Federal Employees Who

Are Indebted to the United States 1, 31 U.S.C. 3711(e))

Under Programs Administrated by the [53 FR 33425, Aug. 30, 1988]

Secretary of Education, and 34 CFR part 32, Salary Offset to Recover Overpayments of Pay or Allowances from

or

Department of Education Employees, if (b)(1) Whether offset is feasible is dethe conditions requiring application of termined by the Secretary in the exerthose special procedures exists.

cise of sound discretion on a case-by(2) The word "offset" is used in this case basis, either: subpart to refer to the collection of a (i) For each individual debt or offset; debt by administrative offset.

(b) The Secretary does not rely on 31 (ii) For each class of similar debts or U.S.C. 3716 as authority for offset if: offsets.

(1) The debt is owed by a State or (2) The Secretary considers the follocal government;

lowing factors in making this deter(2) The debt, or the payment against mination: which offset would be taken, arises (i) Whether offset can be practically under the Social Security Act;

and legally accomplished. (3) The debt is owed under:

(ii) Whether offset will further and (i) The Internal Revenue Code of 1954; protect the interests of the United or

States. (ii) The tariff laws of the United (c) The Secretary may switch adStates; or

vance funded grantees to a reimburse(4) The right to collect the debt first ment payment system before initiating accrued more than ten years before ini an offset. tiation of the offset.

(Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, (c)(1) The Secretary may rely on 31

31 U.S.C. 3716(b)) U.S.C. 3716 as authority for offset of a debt to which paragraph (b)(4) of this 830.22 What notice does the debtor resection would otherwise apply if facts ceive before the commencement of material to the Government's right to offset? collect the debt were not known and

(a)(1) Except as provided in $8 30.28 could not reasonably have been known

and 30.29, the Secretary provides a by the official or officials of the Gov

debtor with written notice of the Secernment who are charged with the re

retary's intent to offset before initisponsibility to discover and collect the

ating the offset. debt.

(2) The Secretary mails the notice to (2) If paragraph (c)(1) of this section

the debtor at the current address of the applies, the Secretary may rely on 31

debtor, as determined by the Secretary U.S.C. 3716 as authority for offset up to from information regarding the debt 10 years after the date that the official

maintained by the Department. or officials described in that paragraph

(b) The written notice informs the first knew or reasonably should have

debtor regarding: known of the right of the United States

(1) The nature and amount of the to collect the debt.

debt; (d) The Secretary determines when

(2) The Secretary's intent to collect the right to collect a debt first accrued

the debt by offset; under the existing law regarding accrual of debts such as 28 U.S.C. 2415.

(3) The debtor's opportunity to:

(i) Inspect and copy Department (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, records pertaining to the debt; 31 U.S.C. 3716(b))

(ii) Obtain a review within the De(51 FR 24099, July 1, 1986, as amended at 51

partment of the existence or amount of FR 35646, Oct. 7, 1986; 53 FR 33425, Aug. 30, the debt; and 1988; 54 FR 43583, Oct. 26, 1989)

(iii) Enter into a written agreement

with the Secretary to repay the debt; $30.21 When may the Secretary offset

(4) The date by which the debtor a debt?

must request an opportunity set forth (a) The Secretary may offset a debt under paragraph (b)(3) of this section; if:

and (1) The debt is liquidated or certain (5) The Secretary's decision, in apin amount; and

propriate cases, to switch the debtor (2) Offset is feasible and not other from advance funding to a reimbursewise prohibited.

ment payment system.

(c)(1) In determining whether a debt have available for inspection and copyor has requested an opportunity set ing. forth under paragraph (b)(3) of this sec (c) The Secretary may decline to protion in a timely manner, the Secretary vide an opportunity to inspect and relies on:

copy records if the debtor fails to re(i) A legibly dated U.S. Postal Serv quest inspection and copying in accordice postmark for the debtor's request; ance with this section. or

(Approved by the Office of Management and (ii) A legibly stamped U.S. Postal

Budget under control number 1880-0515) service mail receipt for debtor's request.

(Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a(2) The Secretary does not rely on ei

1, 31 U.S.C. 3716(b)) ther of the following as proof of mail- [51 FR 24099, July 1, 1986, as amended at 51 ing;

FR 35646, Oct. 7, 1986) (i) A private metered postmark. (ii) A mail receipt that is not dated

$30.24 What opportunity does the

debtor receive to obtain a review of by the U.S. Postal Service.

the existence or amount of a debt? NOTE: The U.S. Postal Service does not uniformly provide a dated postmark. Before

(a) If a debtor wants a review within relying on this method for proof of mailing, the Department of the issues identified a debtor should check with its local post of in the notice under $30.22(b)(3)(ii) or fice.

$30.33(b)(3)(ii), the debtor must: (d) If a debtor previously has been no (1) File a request for review within 20 tified of the Secretary's intent to offset days after the date of the notice proor offered an opportunity to take any vided under $30.22; and of the actions set forth in paragraph (2) File a request at the address spec(b)(3) of this section in connection with ified in that notice. the same debt, the Secretary may off (b) A request filed under paragraph set without providing the debtor with (a) of this section must contain: an additional notice of intent or oppor (1) All information provided to the tunity to take any of those actions

debtor in the notice under $30.22 or under these offset procedures.

$30.33(b) that identifies the debtor and (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, the particular debt, including the debt31 U.S.C. 3716(b))

or's Social Security number and the

program under which the debt arose, 830.23 How must a debtor request an together with any corrections of that

opportunity to inspect and copy identifying information; and records relating to a debt?

(2) An explanation of the reasons the (a) If a debtor wants to inspect and debtor believes that the notice the copy Department documents relating debtor received under $30.22 or $30.33(b) to the debt, the debtor must:

inaccurately states any facts or con(1) File a written request to inspect clusions relating to the debt. and copy the documents within 20 days (c) The Secretary may decline to proafter the date of the notice provided vide an opportunity for review of a under $30.22; and

debt if the debtor fails to request the (2) File the request at the address review in accordance with this section. specified in that notice.

(d)(1) The debtor shall: (b) A request filed under paragraph (i) File copies of any documents re(a) of this section must contain:

lating to the issues identified in the (1) All information provided to the notice under 830.22(b)(3)(ii) or debtor in the notice under $30.22 or 830.33(b)(3)(ii) that the debtor wishes $30.33(b) that identifies the debtor and the Secretary to consider in the rethe debt, including the debtor's Social view; Security number and the program (ii) File the documents at the address under which the debt arose, together specified in that notice, and with any corrections of that identi (iii) File the documents no later fying information; and

than: (2) A reasonably specific identifica (A) 20 days after the date of the notion of the records the debtor wishes to tice provided under $30.22; or

(B) If the debtor has requested an opportunity to inspect and copy records under $30.23 within the time period specified in that section, 15 days after the date on which the Secretary makes available to the debtor the relevant, requested records.

(2) The Secretary may decline to consider any reasons or documents that the debtor fails to provide in accordance with paragraphs (b) and (d) of this section.

(e) If the Secretary bases the review on only the documentary evidence, the Secretary:

(1) Reviews the documents submitted by the debtor and other relevant evidence; and

(2) Notifies the debtor in writing of the Secretary's decision regarding the issues identified in the notice under $ 30.22(b)(3)(ii) or $30.33(b)(3)(ii) and, if appropriate, the question of waiver of the debt. (Approved by the Office of Management and Budget under control number 1880-0515) (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b)) (51 FR 24099, July 1, 1986, as amended at 51 FR 35647, Oct. 7, 1986)

(c) The Secretary grants a debtor's request for an oral hearing regarding the issues identified in the notice under $30.22(b)(3)(ii) or $30.33(b)(3)(ii) only if:

(1)(i) A statute authorizes or requires the Secretary to consider waiver of the indebtedness involved;

(ii) The debtor files a request for waiver of the indebtedness with the request for review filed under paragraph (a)(1) of this section; and

(iii) The question of waiver of the indebtedness turns on an issue of credibility or veracity; or

(2) The Secretary determines that the issues identified in the notice under $30.22(b)(3)(ii) or $30.33(b)(3)(ii) cannot be resolved by review of only the documentary evidence.

(d) Notwithstanding paragraph (b) of this section, the Secretary may deny oral hearings for a class of similar debts if:

(1) The issues identified in the notice under $30.22(b)(3)(ii) or 30.33(b)(3)(ii) for which an oral hearing was requested, or the issue of waiver, rarely involve issues of credibility or veracity; and

(2) The Secretary determines that review of the documentary evidence is ordinarily an adequate means to correct mistakes.

(e) The Secretary may decline to consider any reasons that the debtor fails to provide in accordance with paragraph (b)(1) of this section. (Approved by the Office of Management and Budget under control number 1880-0515) (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b)) (51 FR 24099, July 1, 1986, as amended at 51 FR 35647, Oct. 7, 1986) $30.26 What special rules apply to an

oral hearing? (a) The oral hearing under $30.25 is not a formal evidentiary hearing subject to 5 U.S.C. 554, unless required by law.

(b) If the Secretary grants an oral hearing the Secretary notifies the debtor in writing of:

(1) The time and place for the hearing;

(2) The debtor's right to representation; and

(3) The debtor's right to present and cross examine witnesses.

$ 30.25 How may a debtor obtain an

oral hearing? (a) If a debtor wants the Secretary to conduct the review requested under $30.24 as an oral hearing, the debtor must file a written request for an oral hearing together with the request for review filed under $30.24(a).

(b) A request filed under paragraph (a) of this section must contain the following in addition to the information filed under $30.24(b):

(1) An explanation of reason(s) why the debtor believes the Secretary cannot resolve the issues identified in the notice under $ 30.22(b)(3)(ii)

or 8 30.33(b)(3)(ii) through a review of the documentary evidence.

(2) An identification of:

(i) The individuals that the debtor wishes to have testify at the oral hearing;

(ii) The specific issues identified in the notice regarding which each individual is prepared to testify; and

(iii) The reasons why each individual's testimony is necessary to resolve the issue.

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