Collection of Debts

RAILROAD RETIREMENT BOARD

20 CFR Parts 366 and 367

RIN 3220-AB09

Collection of Debts

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

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SUMMARY: The Railroad Retirement Board (Board) proposes to amend its

regulations pertaining to the collection of debts by offset against

other Federal payments and against tax refunds to authorize use of

these collection methods for collection of debts from businesses.

DATES: Comments must be submitted on or before September 18, 1995.

ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush

Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT:

Michael C. Litt, General Attorney, Bureau of Law, Railroad Retirement

Board, 844 Rush Street, Chicago, Illinois 60611, (312) 751-4929, TDD

(312) 751-4701.

SUPPLEMENTARY INFORMATION: Part 366 of the Board's regulations deals

with collection of debts by means of offset from Federal tax refunds

through referrals to the Internal Revenue Service. This procedure is

authorized by 31 U.S.C. 3720A. Part 367 deals with the collection of

debts by administrative offset under the authority of the Debt

Collection Act of 1982, 31 U.S.C. 3716. As currently in effect, the

Board's regulations as to tax refund offset and administrative offset

apply to individual debtors only. The Board believes that amendment of

these regulations to authorize these collection procedures against

business debtors will facilitate collection of debts which may be owed

to the Board.

The Board, with the concurrence of the Office of Management and

Budget, has determined that this is not a significant regulatory action

under Executive Order 12866. Therefore, no regulatory impact analysis

is required. Information collections associated with this rule have

been approved by the Office of Management and Budget.

List of Subjects in 20 CFR Parts 366 and 367

Railroad employees, Railroad retirement, Railroad unemployment

insurance.

For the reasons set out in the preamble, title 20, chapter II,

parts 366 and 367 of the Code of Federal Regulations are proposed to be

amended as follows:

PART 366--COLLECTION OF DEBTS BY FEDERAL TAX REFUND OFFSET

1. The authority citation for part 366 continues to read as

follows:

Authority: 45 U.S.C. 231f(b)(5); 31 U.S.C. 3720A.

Sec. 366.1 [Amended]

2. Section 366.1 is amended by removing the word ``individuals''

and adding in its pace the word ``debtors''.

3. Section 366.2 is amended by revising the introductory text, and

paragraphs (a), (b), (e), and (f) to read as follows:

Sec. 362.2 Past-due legally enforceable debt.

A past-due legally enforceable debt which may be referred to the

Internal Revenue Service is a debt:

(a) Which arose under any statute administered by the Board or

under any contract;

(b) Which is an obligation of a debtor who is a natural person or a

business;

* * * * *

(e) With respect to which the rights regarding reconsideration,

waiver, and appeal, described in part 260 or 320 of this chapter or in

other law, if applicable, have been exhausted;

(f) With respect to which either:

(1) The Board's records do not contain evidence that the debtor has

filed for bankruptcy under Title 11 of the United States Code; or

(2) the Board can clearly establish at the time of the referral

that the automatic stay under section 362 of the Bankruptcy Code has

been lifted or is no longer in effect with respect to the debtor and

the debt was not discharged in the bankruptcy proceeding;

* * * * *

Sec. 366.2 [Amended]

3. Section 366.2(j) is amended by removing the word ``individual''

and adding in its place the word ``debtor''.

4. Section 366.2(k) is amended by removing the word ``individual''

and adding in its place the word ``debtor''.

Sec. 366.6 [Amended]

5. Section 366.6(c) is amended by removing the words ``individual

owing the debt'' and adding in their place the word ``debtor''.

PART 367--RECOVERY OF DEBTS OWED TO THE UNITED STATES GOVERNMENT BY

ADMINISTRATIVE OFFSET

6. The authority citation for part 367 continues to read as

follows:

Authority: 45 U.S.C. 231f(b)(5); 31 U.S.C. 3716.

2. Section 367.2 is amended by revising the introductory text and

paragraph (a), (b), (e), and (f) to read as follows:

Sec. 367.2 Past-due legally enforceable debt.

A past-due legally enforceable debt which may be referred to

another governmental agency for administrative offset is a debt:

(a) Which arose under any statute administered by the Board or

under any contract;

(b) Which is an obligation of a debtor who is a natural person or a

business;

* * * * *

(e) With respect to which the rights described in part 260 or 320

of this chapter or the applicable law regarding reconsideration,

waiver, and appeal, if applicable, have been exhausted;

(f) With respect to which either:

(1) The Board's records do not contain evidence that the debtor has

filed for bankruptcy under Title 11 of the United States Code; or

(2) The Board can clearly establish at the time of the referral

that the automatic stay under section 362 of the Bankruptcy Code has

been lifted or is no longer in effect with respect to the debtor and

the debt was not discharged in the bankruptcy proceeding;

* * * * *

Sec. 367.2 [Amended]

8. Section 367.2(i) is amended by removing the word ``individual''

and adding in its place the word ``debtor'', and by removing the words

``that person'' and adding in their place the words ``the debtor'';

9. Section 367.2(j) is amended by removing the words ``such

individual'' and adding in their place the words ``the debtor'';

Sec. 367.7 [Amended]

10. Section 367.7(c) is amended by removing the words ``individual

owing the debt'' and adding in their place the word ``debtor''.

Dated: August 11, 1995.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 95-20444 Filed 8-16-95; 8:45 am]

BILLING CODE 7905-01-M