[Code of Federal Regulations]
[Title 36, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 36CFR705.1]

[Page 87-89]
 
              TITLE 36--PARKS, FORESTS, AND PUBLIC PROPERTY
 
                    CHAPTER VII--LIBRARY OF CONGRESS
 
PART 705--FINANCIAL ADMINISTRATION--Table of Contents
 
Sec. 705.1  Salary offset

    (a) Purpose. This part describes the rights of current and former 
staff members in the collection of debts owed to the Federal Government 
by them and sets out the procedures for collecting debts through 
deductions from their pay following due process.
    (b) Definitions.--(1) Debt is an amount owed to the U.S. Government 
from insured or guaranteed loans, fees, leases, rents, royalties, 
services, sales of real or personal property, overpayments, penalties, 
damages, interest, fines and forfeitures (except those arising under the 
Uniform Code of Military Justice), and all other similar sources.
    (2) Disposable pay, for purposes of this part, means that part of 
current basic pay, special pay, incentive pay, retirement pay, retainer 
pay, or other authorized pay remaining after the deduction of any amount 
required by law to be withheld, such as Federal taxes, retirement, 
court-ordered payments, and FICA.
    (3) Staff member refers to current and former employees who owe 
debts to the Library and/or other Federal Government agencies.
    (c) Procedures--(1) Notification of indebtedness. The Director of 
Human Resources, or designee, shall notify the staff member, in writing, 
of the individual's indebtedness to the Library

[[Page 88]]

and the intention of the Library to collect this debt by deductions from 
the individual's pay. This notice shall be given not less than 30 days 
before any deduction is made. This notice shall state, at a minimum:
    (i) The Library's determination that a debt is owed, including the 
origin, nature, and amount of the debt;
    (ii) The Library's intention to collect the debt by means of 
deduction from the staff member's disposable pay account;
    (iii) The amount, frequency, proposed beginning date, and duration 
of the intended deductions;
    (iv) An explanation of the Library's policy concerning interest, 
penalties, and administrative costs, including a statement that such 
assessments must be made unless excused;
    (v) The staff member's right to inspect and to copy Government 
records relating to the debt or, if he or she or his or her 
representative cannot personally inspect the records, to request and 
receive a copy of such records;
    (vi) If not previously provided, the opportunity (under terms 
agreeable to the Library) to establish a schedule for the voluntary 
repayment of the debt or to enter into a written agreement to establish 
a schedule for the repayment of the debt in lieu of offset (the 
agreement must be in writing, signed by both the staff member and the 
Library, and documented in the Library's files);
    (vii) The staff member's right to a hearing conducted by an official 
arranged for or engaged by the Library (an administrative law judge or, 
alternatively, a hearing official not under the control of the Librarian 
of Congress) if a petition is filed as prescribed by the Library;
    (viii) The method and time period for petitioning for a hearing;
    (ix) That the timely filing of a petition for hearing will stay the 
commencement of collection proceedings;
    (x) That a final decision on the hearing, if one is requested, will 
be issued at the earliest practicable date, but not later than 60 days 
after the filing of the petition requesting the hearing unless the staff 
member requests and the hearing official grants a delay in the 
proceedings;
    (xi) That any knowingly false or frivolous statements, 
representations, or evidence may subject the staff member to
    (A) Disciplinary procedures appropriate under Library of Congress 
Regulation 2020-3, or any other applicable regulations or statutes,
    (B) Penalties under the False Claim Act, Section 3729 of Title 31, 
U.S. Code, or any other applicable statutory authority, or
    (C) Criminal penalties under Sections 286, 287, 1001, and 1002 of 
Title 18, U.S. Code, or any other applicable statutory authority;
    (xii) Any other rights and remedies available to the staff member 
under statutes or regulations governing the program for which the 
collection is being made;
    (xiii) Unless there are applicable contractual or statutory 
provisions to the contrary, that amounts paid on or deducted for the 
debt which are later waived or found not owed to the United States will 
be promptly refunded to the staff member;
    (xiv) That if the staff member elects not to contest the 
determination of indebtedness or the amount or the terms of a repayment 
schedule, the staff member may still wish to exercise the right to 
request a waiver of the collection of the indebtedness pursuant to the 
provisions of Library of Congress Regulation 1556, Claims (if the amount 
of the indebtedness exceeds $1,500, the staff member should be advised 
that a final determination must be made by the Comptroller General of 
the United States); and
    (xv) That any involuntary payments already made or withheld from 
salary of any portion of the indebtedness will not be construed as a 
waiver by the staff member of any rights that he or she may have under 
this part.
    (2) Amount of deduction. If possible, the debt shall be collected in 
one lump sum. If multiple deductions are necessary, however, the amount 
deducted from a staff member's pay for any single period will not exceed 
15 percent of disposable pay, except that a greater percentage may be 
deducted upon the written consent of the individual involved. The staff 
member may enter

[[Page 89]]

into a written agreement for a repayment schedule different from that 
proposed so long as the terms are approved by the Library. If the 
individual retires or resigns or if his or her employment otherwise ends 
before collection of the amount of the indebtedness is completed, 
deduction shall be made from subsequent payments of any nature due the 
individual.
    (3) Petitions for hearing. (i) To elect a hearing, the staff member 
must notify the Director, Human Resources, no later than 15 days after 
the receipt of the notification of indebtedness. A timely filing of a 
petition for hearing will stay any further commencement of collection 
proceedings. A final decision on the hearing will be issued at the 
earliest practicable date, but not later than 60 days after the filing 
of petition, unless the individual requests and the hearing official 
grants a delay in the proceedings.
    (ii) The petition or statement must be signed by the staff member 
and must fully identify and explain with reasonable specificity all the 
facts, evidence, and witnesses, if any, which he or she believes 
supports his or her position.
    (iii) Petitions for hearings made later than 15 days after the 
receipt of the notification of indebtedness will be accepted provided 
the staff member can show that the delay was because of circumstances 
beyond his or her control or because of failure to receive notice of the 
time limit (unless otherwise aware of it).
    (4) Form of hearings and final decisions. (i) The staff member shall 
be provided an appropriate hearing as decided by the hearing official, 
based on the nature of the transactions giving rise to the debt. The 
hearing official shall be guided by the procedures set out in 4 CFR 
102.3(c) in deciding on the type of hearing to provide.
    (ii) A written decision will be provided to the staff member and 
must, at a minimum, state the fact(s) purported to support the nature 
and origin of the alleged debt; the hearing official's analysis, 
findings, and conclusions, in light of the hearing, as to the staff 
member's or the Library's grounds; the amount and validity of the 
alleged debt; and, where applicable, the repayment schedule.
    (d) Creditor agency is not the Library of Congress. When the Library 
receives from a creditor agency a debt claim properly certified in 
accordance with 5 CFR 550.1108(a), deductions shall be scheduled to 
begin at the next officially established pay interval. The Director, 
Human Resources, shall provide the employee with written notice stating 
that the Library has received a certified debt claim from the creditor 
agency (including the amount) and written notice of the date deductions 
from salary will commence and of the amount of such deductions. When the 
Library receives an incomplete debt claim from a creditor agency, the 
Director, Human Resources, shall return the debt claim with a written 
notice that procedures under 5 U.S.C. 5514 must be followed and a 
properly determined debt claim received before action will be taken to 
collect from the employee's pay account.
    (e) Exclusions and exceptions. (1) This part does not apply to debts 
where collection of the debt is explicitly provided for or prohibited by 
another statute, or to debts of $1 or less, which, it is hereby 
determined, is not cost effective to attempt to collect (65 Comp. Gen. 
843, September 29, 1986).
    (2) An exception to the entitlement of notice, hearings, written 
responses, and final decisions provided for under paragraph (c) of this 
section is made for overpayments arising out of an employee's election 
of coverage or a change in coverage under a Federal benefits program 
requiring periodic deductions from pay, if the amount to be recovered 
was accumulated over four pay periods or less.

[59 FR 38367, July 28, 1994]

                       PARTS 706--799  [RESERVED]

[[Page 91]]