[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR34.18]

[Page 142-143]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 34--COLLECTION OF DEBTS--Table of Contents
 
                        Subpart C--Salary Offset
 
Sec. 34.18  Notice requirements before offset.

    Except as provided in Sec. 34.16, salary offset deductions will not 
be made unless STATE first provides the employee with a written notice 
that he/she owes a debt to the Federal Government at least 30 calendar 
days before salary offset is to be initiated. When STATE is the creditor 
agency, this notice of intent to offset an employee's salary shall be 
hand-delivered or sent by certified mail to the most current address 
that is available to the Department and will state:
    (a) That STATE has reviewed the records relating to the debt and has 
determined that the debt is owed, its origin and nature, and the amount 
due;
    (b) The intention of STATE to collect the debt by means of deduction 
from the employee's current disposable pay until the debt and all 
accumulated interest are paid in full;
    (c) The amount, frequency, approximate beginning date, and duration 
of the intended deductions;
    (d) The requirement to assess and collect interest, penalties, and 
administrative costs, or waiver are in accordance with Sec. 34.4, unless 
excused in accordance with Sec. 34.4(a)(6);
    (e) The employee's right to inspect and copy any STATE records 
relating to the debt, or, if the employee or their representative cannot 
personally inspect the records, to request and receive a copy of such 
records;
    (f) The opportunity (under terms agreeable to STATE) to enter into a 
written agreement establishing a repayment schedule of the debt in lieu 
of offset;
    (g) The right to a hearing conducted by an official (administrative 
law judge or a hearing official not under the control of STATE) with 
respect to the existence of the debt, the amount of the debt, or the 
repayment schedule (i.e. the percentage of disposable pay to be deducted 
each pay period), so long as a request for a hearing is filed by the 
employee as prescribed in Sec. 34.19;
    (h) That the timely filing of a request for hearing within 30 
calendar days after receipt of the notice of intent to offset will stay 
the commencement of collection proceedings;

[[Page 143]]

    (i) That the Department will initiate procedures to implement a 
salary offset, as appropriate, (which may not exceed 15 percent of the 
employee's disposable pay) not less than thirty (30) days from the date 
of receipt of the notice of debt, unless the employee files a timely 
petition for a hearing;
    (j) That a final decision on the hearing (if one is requested) will 
be issued at the earliest practical date, but not later than 60 days 
after the filing of the request for a hearing unless the employee 
requests and the hearing official grants a delay in the proceedings;
    (k) That any knowingly false or frivolous statements, 
representation, or evidence may subject the employee to disciplinary 
procedures (5 U.S.C. Chapter 75, 5 CFR part 752 or other applicable 
statutes or regulations); penalties (31 U.S.C. 3729-3731 or other 
applicable statutes or regulations); or criminal penalties (18 U.S.C. 
286, 287, 1001, and 1002 or other applicable statutes or regulations);
    (l) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made;
    (m) That the amounts paid on or deducted from the debt which are 
later waived or found not owed to the United States will be promptly 
refunded to the employee, unless there are applicable contractual or 
statutory provisions to the contrary;
    (n) The method and time period for requesting a hearing; and
    (o) The name and address of the STATE official to whom 
communications should be directed.

[54 FR 13365, Apr. 3, 1989; 54 FR 28416, July 16, 1989]