Debt Collection Improvement Act: Administrative wage garnishment; implementation,

[Federal Register: May 28, 1999 (Volume 64, Number 103)]

[Rules and Regulations]

[Page 28916-28917]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr28my99-11]

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1650

Revision of Debt Collection Regulation

AGENCY: Equal Employment Opportunity Commission.

ACTION: Final rule.

SUMMARY: The Equal Employment Opportunity Commission (EEOC) is revising its regulation on debt collection to provide general debt collection standards and to implement the administrative wage garnishment provisions of the Debt Collection Improvement Act (DCIA) of 1996. This final rule adopts the federal claims collection standards issued jointly by the General Accounting Office (GAO) and the Department of Justice (DOJ) in 4 CFR Parts 101-105 and the regulation on administrative wage garnishment issued by the Department of the Treasury at 31 CFR 285.11.

EFFECTIVE DATE: May 28, 1999.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal Counsel, or Susan Murphy, Senior Attorney, Office of Legal Counsel, at (202) 663-4669 (voice), (202) 663-7026 (TDD). This final rule is also available in the following formats: large print, braille, electronic file on computer disk, and audio-tape. Copies may be obtained from the EEOC's Publication Center by calling 1-800-669-3362 (voice) or 1-800- 669-6820 (TDD).

SUPPLEMENTARY INFORMATION: EEOC is revising its regulation on debt collection found in 29 CFR Part 1650 to indicate that it follows the federal claims collection standards of the Department of Justice and the General Accounting Office at 4 CFR Parts 101-105. A statement of adoption by cross-reference is being added to each of the subparts of 29 CFR Part 1650.

EEOC is also adding a new subpart D to implement administrative wage garnishment provisions under section 31001(o) of the Debt Collection Improvement Act of 1996 (DCIA), Pub. L. 104-134, 110 Stat. 1321-358 (April 26, 1996). Here, EEOC is adopting by cross-reference the administrative wage garnishment regulation issued by the Department of the Treasury at 31 CFR 285.11. Under the DCIA, a federal agency that is collecting delinquent nontax debt may administratively garnish the debtor's wages in accordance with regulations promulgated by the Secretary of the Treasury. EEOC's debt collection program does not necessitate procedures different from those established by the Department of the Treasury, and therefore the Commission is adopting the Treasury regulation. This new subpart will also contain the statement of adoption by cross-reference of the federal claims collection standards issued by the Department of Justice and the General Accounting Office.

We are issuing a final rule rather than a notice of proposed rulemaking because we have determined, for good cause, that publication of a proposed rule and solicitation of comments are not necessary. Good cause also exists for waiving the 30-day delay in effectiveness as to these revisions. These amendments concern matters of agency practice and procedure. Their purpose is to incorporate without change existing regulations of the Departments of Justice and the Treasury and the General Accounting Office, which were the subject of public comment when promulgated by those agencies. Incorporation of the federal claims collection standards reflects existing requirements and longstanding Commission practice.

Regulatory Procedures

Regulatory Flexibility Act

In accordance with the Regulatory Flexibility Act (Pub. L. 96-354, as amended by Pub. L. 104-121), the Commission has reviewed this regulation, and by approving it, certifies

[[Page 28917]]

under 5 U.S.C. 605(b) that this regulation will not have a significant economic impact on a substantial number of small entities. The EEOC's debt collection activities do not affect a substantial number of small entities. Moreover, as found by the Department of the Treasury, wage garnishment requirements do not have a significant economic impact on small entities. Employers of delinquent debtors must certify certain information about the debtor, such as the debtor's employment status and earnings. This information is contained in the employer's payroll records. Therefore, it will not take a significant amount of time or result in a significant cost for an employer to complete the certification form. Even if an employer is served withholding orders on several employees over the course of a year, the cost imposed on the employer to complete the certification would not have a significant economic impact on that entity. Employers are not required to vary their normal pay cycles in order to comply with a withholding order issued pursuant to this rule. For these reasons, a regulatory flexibility analysis is not required.

Executive Order 12866

This rule is not a significant regulatory action as defined in Executive Order 12866 and is therefore not subject to review by the Office of Management and Budget.

Paperwork Reduction Act

This regulation contains no information collection requirements subject to review by the Office of Management and Budget under the Paperwork Reduction Act of 1980 (44 U.S.C. chapter 35).

List of Subjects in 29 CFR Part 1650

Administrative practice and procedure, Claims, Debts, Garnishment of wages, Hearing and appeal procedures, Salaries, Wages.

For the reasons stated in the preamble, 29 CFR Part 1650 is amended as set forth below.

PART 1650--DEBT COLLECTION

1. The authority citation for 29 CFR Part 1650 is revised to read as follows:

   Authority: 5 U.S.C. 5514; 31 U.S.C. 321, 3701, 3711, 3716, 3720A, 3720D; EO 13019, 61 FR 51763, 3 CFR 1996 Comp., p. 216; 5 CFR 550.1101.

   2-3. Section 1650.101 is amended by adding two new sentences at the end of the section to read as follows:

   Sec. 1650.101 Purpose.

   * * * 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 General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101-105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC.

4. Section 1650.201 is amended by adding two new sentences at the end of the section to read as follows:

   Sec. 1650.201 Purpose.

   * * * 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 General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101-105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC.

5. Section 1650.301 is amended by adding two new sentences at the end of the section to read as follows:

   Sec. 1650.301 Purpose.

   * * * 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 General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Part 101-105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC.

6. A new Subpart D is added to 29 CFR Part 1650 to read as follows:

   Subpart D--Procedures for the Collection of Debts by Administrative Wage Garnishment

   Sec. 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 General Accounting Office and the Department of Justice pursuant to the Federal Claims Collection Act of 1966 (4 CFR Parts 101-105) apply to the administrative collection activities of the EEOC. The Director of the Financial Management Division shall act on all claims arising out of the activities of the EEOC.

   Dated: May 20, 1999.

   For the Commission. Ida L. Castro, Chairwoman.

   [FR Doc. 99-13342Filed5-27-99; 8:45 am]

   BILLING CODE 6570-01-M