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(2) A statement of the amount awarded, including an explanation-with supporting information-for any difference between the amount requested by the applicant and the amount awarded.

(3) A statement of the applicant's right to request review by the Secretary under $21.54.

(4) A statement of the applicant's right under $21.56 to seek judicial review of the final award determination.

(c) The explanation referred to in paragraph (b)(2) of this section may include

(1) Whether the amount requested was reasonable; and

(2) The extent to which the applicant unduly or unreasonably protracted the adversary adjudication. (Authority: 5 U.S.C. 504 (a)(3) and (c))

821.52 Initial decision by an adjudica

tive officer in applications subject

to CRRA jurisdiction. (a) If the application is subject to the jurisdiction of the CRRA, the adjudicative officer shall issue the initial decision within 30 days after completion of the proceedings.

(b) The initial decision must include the information required under $21.51(b). However, instead of the information required under $21.51(b)(3), the initial decision must inform the applicant of

(1) Its right to request review by the CRRA; and

(2) Its right to request review by the Secretary of the CRRA's final decision.

(c) If the applicant or the Department's counsel appeals the adjudicative officer's initial decision, the appeal must be submitted to the CRRA, in writing, within 30 days after the initial decision is issued.

(d) If the applicant or the Department's counsel does not appeal the adjudicative officer's initial decision to the CRRA and the Secretary does not decide to review the initial decision under $21.54(a), the initial decision becomes the Department's final decision 60 days after it is issued by the officer. (Authority: 5 U.S.C. 504(b)(1)(C); 20 U.S.C. 1681; 29 U.S.C. 794; 42 U.S.C. 2000d-1 et seq. and 6101 et seq.)

$21.53 Final decision of the CRRA.

(a) In an application subject to the jurisdiction of the CRRA, the CRRA shall, within 30 days after receipt of the written appeal

(1) Issue a final decision on the appeal of the adjudicative officer's initial decision; or

(2) Remand the application to the adjudicative officer for further proceedings.

(b) The CRRA shall review the initial decision on the basis of the written record of the proceedings on the application. This includes but is not limited to

(1) The written request; and

(2) The adjudicative officer's findings as described in $21.51(b).

(c) The CRRA shall act on the review by either

(1) Issuing a final decision on the application; or

(2) Remanding the application to the adjudicative officer for further proceedings.

(d) If the CRRA issues a final decision, the CRRA's decision must include

(1) Written findings, including supporting explanation, on

(i) The applicant's status as a prevailing party;

(ii) The applicant's eligibility;

(iii) Whether the position of the Department was substantially justified;

(iv) Whether special circumstances make an award unjust;

(v) Whether the applicant engaged in conduct that unduly or unreasonably protracted the adversary adjudication; and

(vi) Other factual issues raised in the adversary adjudication.

(2) A statement of the amount awarded, including an explanation-with supporting information for any difference between the amount requested by the applicant and the amount awarded.

(3) A statement of the applicant's right to request review by the Secretary under $21.54.

(4) A statement of the applicant's right under $21.56 to seek judicial review of the final award determination

(e) The explanation referred to in paragraph (d)(2) of this section may include

(1) Whether the amount requested was reasonable; and

(2) The extent to which the applicant unduly or unreasonably protracted the adversary adjudication.

(Authority: 5 U.S.C. 301, 557 (b) and (c); 20 U.S.C. 1681 and 3401 et seq.; 29 U.S.C. 794; 42 U.S.C. 2000d-1 et seq. and 6101 et seq.)

$21.54 Review by the Secretary.

(a) The Secretary may decide to review

(1) An initial decision made by an adjudicative officer in a proceeding not subject to CRRA review;

(2) An initial decision made by an adjudicative officer in a proceeding subject to CRRA review that was not appealed to the CRRA; or

(3) A final decision made by the CRRA under $21.53.

(b)(1) The Secretary does not review a final decision made by an adjudicative officer of the General Services Administration Board of Contract Appeals.

(2) The Secretary or a party to the proceedings may seek reconsideration of the final decision by an adjudicative officer of the General Services Administration Board of Contract Appeals on the fee application in accordance with 48 CFR 6101.32.

(c) The Secretary decides to review a decision under $21.54(a) either

(1) Upon receipt of a written request for review by an applicant or Department's counsel; or

(2) Upon the Secretary's own motion.

(d) If the applicant or the Department's counsel seeks a review, the request must be submitted to the Secretary, in writing, within 30 days of

(1) An initial decision in a proceeding not subject to CRRA review; or

(2) A final decision of the CRRA.

(e) The Secretary decides whether to accept or reject a request for review of an initial decision made by the adjudicative officer in a proceeding not subject to CRRA review or a final decision of the CRRA within 30 days after receipt of a request for review.

(f) The Secretary may decide on his own motion to review a decision made under $21.54(a) within 60 days of the initial decision by the adjudicative officer or a final decision of the CRRA.

(g) If the Secretary decides to review the adjudicative officer's initial decision or the CRRA's final decision

(1) The Secretary reviews the adjudicative officer's initial decision or the CRRA's final decision on the basis of the written record of the proceedings on the application. This includes, but is not restricted to

(i) The written request for review;

(ii) The adjudicative officer's findings as described in $21.51(b); and

(iii) If applicable, the final decision of the CRRA, if any; and

(2) The Secretary either-
(i) Issues a final decision; or

(ii) Remands the application to the adjudicative officer or the CRRA for further proceedings.

(h) If the Secretary issues a final decision, the Secretary's decision

(1) Is in writing;

(2) States the reasons for the decision; and

(3) If the decision is adverse to the applicant, advises the applicant of its right to petition for judicial review under $21.56. (Authority: 5 U.S.C. 557 (b) and (c)) 821.55 Final decision if the Secretary

does not review. If the Secretary takes no action Under 921.04

(a) The adjudicative officer's initial decision on the application becomes the Department's final decision 60 days after it is issued by the adjudicative officer; or

(b) The CRRA's decision on the application becomes the Department's final decision 60 days after it is issued by the CRRA. (Authority: 5 U.S.C. 301)

821.56 Judicial review.

If the applicant is dissatisfied with the award determination in the final decision under $821.52–21.55, the applicant may seek judicial review of that determination under 5 U.S.C. 504(c)(2) within 30 days after that determination was made. (Authority: 5 U.S.C. 504(c)(2))

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)) $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 $$ 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?

[blocks in formation]

GENERAL OFFSET PROCEDURES 30.20 To what do 8830.20–30.31 apply? 30.21 When may the Secretary offset a debt? 30.22 What notice does the debtor receive

before the commencement of offset? 30.23 How must a debtor request an oppor

tunity to inspect and copy records relating to a debt?

AUTHORITY: 20 U.S.C. 1221e-3(a)(1), and 1226-1, 31 U.S.C. 3711(e), 31 U.S.C. 3716(b) and 3720A, unless otherwise noted.

SOURCE: 51 FR 24099, July 1, 1986, unless otherwise noted.

Subpart A-General

8 30.1 What administrative actions

may the Secretary take to collect a

debt? (a) The Secretary may take one or more of the following actions to collect a debt owed to the United States:

(1) Collect the debt under the procedures authorized in the regulations in this part.

(2) Refer the debt to the General Accounting Office for collection.

(3) Refer the debt to the Department of Justice for compromise, collection, or litigation.

(4) Take any other action authorized by law.

(b) In taking any of the actions listed in paragraph (a) of this section, the Secretary complies with the requirements of the Federal Claims Collection

ms Collection Standards (FCCS) at 4 CFR parts 101– 105 that are not inconsistent with the requirements of this part.

(c) The Secretary may

(1) Collect the debt under the offset procedures in subpart C of this part;

(2) Report a debt to a consumer reporting agency under the procedures in subpart C of this part;

(3) Charge interest on the debt as provided in the FCCS;

(4) Impose upon a debtor a charge based on the costs of collection as determined under subpart E of this part;

(5) Impose upon a debtor a penalty for failure to pay a debt when due under subpart E of this part;

(6) Compromise a debt, or suspend or terminate collection of a debt, under subpart F of this part;

(7) Take any other actions under the procedures of the FCCS in order to protect the United States Government's interests; or

(8) Use any combination of the procedures listed in this paragraph (c) as may be appropriate in a particular case. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3711(e)) (53 FR 33425, Aug. 30, 1988]

830.2 On what authority does the Sec

retary rely to collect a debt under this part? (a)(1) The Secretary takes an action referred to under $30.1(a) in accordance with

(1) 31 U.S.C. chapter 37, subchapters I and II;

(ii) Other applicable statutory authority; or

(iii) The common law.

(2) If collection of a debt in a particular case is not authorized under one of the authorities described in paragraph (a)(1) of this section, the Secretary may collect the debt under any other available authority under which collection is authorized.

(b) The Secretary does not use a procedure listed in 8 30.1(c) to collect a debt, or a certain type of debt, if

(1) The procedure is specifically prohibited under a Federal statute; or

(2) A separate procedure other than the procedure described under $30.1(c) is specifically required under

(i) A contract, grant, or other agreement;

(ii) A statute other than 31 U.S.C. 3716; or

(iii) Other regulations. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3711(e)) (53 FR 33425, Aug. 30, 1988]

Subpart B [Reserved]

Subpart C-What Provisions Apply

to Administrative Offset?

GENERAL OFFSET PROCEDURES 830.20 To what do 88 30.20_30.31 apply?

(a)(1)(i) Sections 30.20–30.31 establish the general procedures used by the Secretary to collect debts by administrative offset.

(ii) The Secretary uses the procedures established under other regulations, including $30.33, What procedures does the Secretary follow for IRS tax refund offsets?, 34 CFR part 31, Salary Offset for Federal Employees Who Are Indebted to the United States Under Programs Administrated by the Secretary of Education, and 34 CFR part 32, Salary Offset to Recover Overpayments of Pay or Allowances from

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.

or (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 ac

(3) The debtor's opportunity to: crual of debts such as 28 U.S.C. 2415.

(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.

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