-CITE- 31 USC CHAPTER 37 - CLAIMS 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS -HEAD- CHAPTER 37 - CLAIMS -MISC1- SUBCHAPTER I - GENERAL Sec. 3701. Definitions and application. 3702. Authority to settle claims. SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT 3711. Collection and compromise. 3712. Time limitations for presenting certain claims of the Government. 3713. Priority of Government claims. 3714. Keeping money due States in default. 3715. Buying real property of a debtor. 3716. Administrative offset. 3717. Interest and penalty on claims. 3718. Contracts for collection services. 3719. Reports on debt collection activities. 3720. Collection of payments. 3720A. Reduction of tax refund by amount of debt. 3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees. 3720C. Debt Collection Improvement Account. 3720D. Garnishment. 3720E. Dissemination of information regarding identity of delinquent debtors. SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT 3721. Claims of personnel of agencies and the District of Columbia government for personal property damage or loss. 3722. Claims of officers and employees at Government penal and correctional institutions. 3723. Small claims for privately owned property damage or loss. 3724. Claims for damages caused by investigative or law enforcement officers of the Department of Justice. 3725. Claims of non-nationals for personal injury or death in a foreign country. 3726. Payment for transportation. 3727. Assignments of claims. 3728. Setoff against judgment. 3729. False claims. 3730. Civil actions for false claims. 3731. False claims procedure. 3732. False claims jurisdiction. 3733. Civil investigative demands. AMENDMENTS 1996 - Pub. L. 104-316, title II, Sec. 202(n)(2), Oct. 19, 1996, 110 Stat. 3844, substituted "Authority to settle claims" for "Authority of the Comptroller General to settle claims" in item 3702. Pub. L. 104-134, title III, Sec. 31001(j)(2), (o)(2), (r)(2), (t)(2), Apr. 26, 1996, 110 Stat. 1321-365, 1321-371, 1321-373, 1321-375, added items 3720B to 3720E. 1989 - Pub. L. 101-203, Sec. 1(b)(2), Dec. 7, 1989, 103 Stat. 1805, substituted "investigative or law enforcement officers of the Department of Justice" for "the Federal Bureau of Investigation" in item 3724. 1986 - Pub. L. 99-562, Sec. 6(b), Oct. 27, 1986, 100 Stat. 3168, added items 3732 and 3733. 1984 - Pub. L. 98-369, div. B, title VI, Secs. 2652(a)(2), 2653(a)(2), July 18, 1984, 98 Stat. 1152, 1154, added items 3720 and 3720A. 1983 - Pub. L. 97-452, Sec. 1(13)(B), (16)(B), Jan. 12, 1983, 96 Stat. 2470, 2474, inserted "and application" in item 3701 and added items 3716-3719. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 3516 of this title; title 20 sections 1234a, 7223h; title 42 sections 1395ccc, 5155, 12651d. -End- -CITE- 31 USC SUBCHAPTER I - GENERAL 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER I - GENERAL -HEAD- SUBCHAPTER I - GENERAL -End- -CITE- 31 USC Sec. 3701 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER I - GENERAL -HEAD- Sec. 3701. Definitions and application -STATUTE- (a) In this chapter - (1) "administrative offset" means withholding funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a claim. (2) "calendar quarter" means a 3-month period beginning on January 1, April 1, July 1, or October 1. (3) "consumer reporting agency" means - (A) a consumer reporting agency as that term is defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)); or (B) a person that, for money or on a cooperative basis, regularly - (i) gets information on consumers to give the information to a consumer reporting agency; or (ii) serves as a marketing agent under an arrangement allowing a third party to get the information from a consumer reporting agency. (4) "executive, judicial, or legislative agency" means a department, agency, court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of Government, including government corporations. (5) "military department" means the Departments of the Army, Navy, and Air Force. (6) "system of records" has the same meaning given that term in section 552a(a)(5) of title 5. (7) "uniformed services" means the Army, Navy, Air Force, Marine Corps, Coast Guard, Commissioned Corps of the National Oceanic and Atmospheric Administration, and Commissioned Corps of the Public Health Service. (8) "nontax" means, with respect to any debt or claim, any debt or claim other than a debt or claim under the Internal Revenue Code of 1986. (b)(1) In subchapter II of this chapter and subsection (a)(8) of this section, the term "claim" or "debt" means any amount of funds or property that has been determined by an appropriate official of the Federal Government to be owed to the United States by a person, organization, or entity other than another Federal agency. A claim includes, without limitation - (A) funds owed on account of loans made, insured, or guaranteed by the Government, including any deficiency or any difference between the price obtained by the Government in the sale of a property and the amount owed to the Government on a mortgage on the property, (B) expenditures of nonappropriated funds, including actual and administrative costs related to shoplifting, theft detection, and theft prevention, (C) over-payments, including payments disallowed by audits performed by the Inspector General of the agency administering the program, (D) any amount the United States is authorized by statute to collect for the benefit of any person, (E) the unpaid share of any non-Federal partner in a program involving a Federal payment and a matching, or cost-sharing, payment by the non-Federal partner, (F) any fines or penalties assessed by an agency; (!1) and (G) other amounts of money or property owed to the Government. (2) For purposes of section 3716 of this title, each of the terms "claim" and "debt" includes an amount of funds or property owed by a person to a State (including any past-due support being enforced by the State), the District of Columbia, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, or the Commonwealth of Puerto Rico. (c) In sections 3716 and 3717 of this title, the term "person" does not include an agency of the United States Government. (d) Sections 3711(e) and 3716-3719 of this title do not apply to a claim or debt under, or to an amount payable under - (1) the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), (2) the Social Security Act (42 U.S.C. 301 et seq.), except to the extent provided under sections 204(f) and 1631(b)(4) of such Act and section 3716(c) of this title, or (3) the tariff laws of the United States. (e) In section 3716 of this title - (1) "creditor agency" means any agency owed a claim that seeks to collect that claim through administrative offset; and (2) "payment certifying agency" means any agency that has transmitted a voucher to a disbursing official for disbursement. (f) In section 3711 of this title, "private collection contractor" means private debt collectors under contract with an agency to collect a nontax debt or claim owed the United States. The term includes private debt collectors, collection agencies, and commercial attorneys. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 970; Pub. L. 97-452, Sec. 1(13)(A), Jan. 12, 1983, 96 Stat. 2469; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103-387, Sec. 5(b), Oct. 22, 1994, 108 Stat. 4077; Pub. L. 104-134, title III, Sec. 31001(c)(2), (d)(1), (3), (z)(1), Apr. 26, 1996, 110 Stat. 1321-359, 1321-361, 1321-378; Pub. L. 104-316, title I, Sec. 115(g)(2)(A), Oct. 19, 1996, 110 Stat. 3835; Pub. L. 106-169, title II, Sec. 203(b), Dec. 14, 1999, 113 Stat. 1832; Pub. L. 107-107, div. A, title III, Sec. 335, Dec. 28, 2001, 115 Stat. 1060.) -MISC1- HISTORICAL AND REVISION NOTES 1982 ACT -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3701(1) 31:951. July 19, 1966, Pub. L. 89-508, Sec. 2, 80 Stat. 308. 3701(2) 31:240(1), (4). Aug. 31, 1964, Pub. L. 88-558, Sec. 2(1), (2), (4), 78 Stat. 767; restated Sept. 15, 1965, Pub. L. 89-185, Sec. 3(a), 79 Stat. 789. 3701(3) 31:240(2). -------------------------------------------------------------------- Clause (1) is substituted for 31:951(a) for consistency. The text of 31:951(b) is omitted as unnecessary because of laws vesting authority in the commission, board, or other group of individuals and for consistency in the revised title and with other titles of the United States Code. In clause (2), the text of 31:240(1) is omitted as unnecessary because of the restatement. 1983 ACT -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3701(a)( 31 App.:954(e)(1). July 19, 1966, Pub. L. 89-508, 1) 80 Stat. 308, Sec. 5(e); added Oct. 25, 1982, Pub. L. 97-365, Sec. 10(2), 96 Stat. 1755. 3701(a)( 31 App.:952(e)(1) July 19, 1966, Pub. L. 89-508, 2) (last sentence). 80 Stat. 308, Sec. 3(e)(1)(last sentence), (8); added Oct. 25, 1982, Pub. L. 97-365, Sec. 11, 96 Stat. 1755, 1756. 3701(a)( 31 App.:952(d)(4) July 19, 1966, Pub. L. 89-508, 3) (A). 80 Stat. 308, Sec. 3(d)(4); added Oct. 25, 1982, Pub. L. 97-365, Sec. 3, 96 Stat. 1750. 3701(a)( 31:3701(1), (2). 4), (5) 3701(a)( 31 App.:952(d)(4) 6) (B), (C). 3701(a)( 31:3701(3). 7) 3701(b) 31 App.:952(g). July 19, 1966, Pub. L. 89-508, 80 Stat. 308, Sec. 3(g); added Oct. 25, 1982, Pub. L. 97-365, Sec. 13(b), 96 Stat. 1758. 3701(c) 31 App.:952(e)(8). 31 App.:954(e)(2). 3701(d) 31 App.:954(note) Oct. 25, 1982, Pub. L. 97-365, (related to 31 Sec. 8(e)(related to Secs. 3, App.:952(d)-(f), 10(2)-12, 13(b)), 96 Stat. 954, 955). 1754. -------------------------------------------------------------------- In subsections (a)(1), (b), and (c), the word "Government" is added for consistency in the revised title and with other titles of the United States Code. In subsection (a)(3)(B), before clause (i), the word "money" is substituted for "monetary fees, dues" to eliminate unnecessary words. The words "engages in whole or in part in the practice of" are omitted as surplus. In clause (i), the words "credit or other" and "(as defined in clause (i) of this subparagraph)" are omitted as surplus. In subsection (a)(6), 31 App.:952(d)(4)(C) is omitted as unnecessary. In subsection (b), the words "all . . . from fees, duties, leases, rents, royalties, services, sales of real or personal property, overpayments, fines, penalties, damages, interest, taxes, forfeitures, and other sources" are omitted as surplus. In subsection (c), the words "unit of general" are added for consistency in the revised title. In subsection (d), the word "arising" is omitted as surplus. -REFTEXT- REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in subsecs. (a)(8) and (d)(1), is classified to Title 26, Internal Revenue Code. The Social Security Act, referred to in subsec. (d)(2), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified generally to chapter 7 (Sec. 301 et seq.) of Title 42, The Public Health and Welfare. Sections 204(f) and 1631(b)(4) of the Act are classified to sections 404(f) and 1383(b)(4), respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. The tariff laws of the United States, referred to in subsec. (d)(3), are classified generally to Title 19, Customs Duties. -MISC2- AMENDMENTS 2001 - Subsec. (b)(1)(B). Pub. L. 107-107 inserted ", including actual and administrative costs related to shoplifting, theft detection, and theft prevention" before comma at end. 1999 - Subsec. (d)(2). Pub. L. 106-169 substituted "sections 204(f) and 1631(b)(4)" for "section 204(f)". 1996 - Subsec. (a)(1). Pub. L. 104-134, Sec. 31001(z)(1)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: " 'administrative offset' means withholding money payable by the United States Government to, or held by the Government for, a person to satisfy a debt the person owes the Government." Subsec. (a)(4). Pub. L. 104-134, Sec. 31001(c)(2), amended par. (4) generally. Prior to amendment, par. (4) read as follows: " 'executive or legislative agency' means a department, agency, or instrumentality in the executive or legislative branch of the Government." Subsec. (a)(8). Pub. L. 104-134, Sec. 31001(d)(3), added par. (8). Subsec. (b). Pub. L. 104-134, Sec. 31001(z)(1)(B), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "In subchapter II of this chapter, 'claim' includes amounts owing on account of loans insured or guaranteed by the Government and other amounts due the Government." Subsec. (c). Pub. L. 104-134, Sec. 31001(d)(1), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "In sections 3716 and 3717 of this title, 'person' does not include an agency of the United States Government, of a State government, or of a unit of general local government." Subsec. (d). Pub. L. 104-316 substituted "Sections 3711(e)" for "Sections 3711(f)" in introductory provisions. Pub. L. 104-134, Sec. 31001(z)(1)(D), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: "Sections 3711(f) and 3716-3719 of this title do not apply to a claim or debt under, or to an amount payable under, the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), the Social Security Act (42 U.S.C. 301 et seq.), except to the extent provided under section 204(f) of such Act (42 U.S.C. 404(f)),, or the tariff laws of the United States." Subsecs. (e), (f). Pub. L. 104-134, Sec. 31001(z)(1)(C), added subsecs. (e) and (f). 1994 - Subsec. (d). Pub. L. 103-387 inserted ", except to the extent provided under section 204(f) of such Act (42 U.S.C. 404(f))," after "the Social Security Act (42 U.S.C. 301 et seq.)". 1986 - Subsec. (d). Pub. L. 99-514 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954". 1983 - Pub. L. 97-452 designated existing provisions as subsec. (a), added pars. (1), (2), and (3), redesignated former par. (1) as (4) and substituted "Government" for "United States Government", redesignated former par. (2) as (5), added par. (6), redesignated former par. (3) as (7) and struck out "the" before "Commissioned Corps" in two places, and added subsecs. (b) to (d). EFFECTIVE DATE OF 1999 AMENDMENT Pub. L. 106-169, title II, Sec. 203(d), Dec. 14, 1999, 113 Stat. 1832, provided that: "The amendments made by this section [amending this section and sections 404 and 1383 of Title 42, The Public Health and Welfare] shall apply to debt outstanding on or after the date of the enactment of this Act [Dec. 14, 1999]." EFFECTIVE DATE OF 1994 AMENDMENT Section 5(c) of Pub. L. 103-387, as amended by Pub. L. 104-134, title III, Sec. 31001(z)(2)(B), Apr. 26, 1996, 110 Stat. 1321-379, provided that: "The amendments made by this section [amending this section and section 404 of Title 42, The Public Health and Welfare] shall apply to collection activities begun on or after the date of the enactment of this Act [Oct. 22, 1994]." SHORT TITLE OF 1996 AMENDMENT Section 31001(a)(1) of Pub. L. 104-134 provided that: "This section [enacting sections 3720B to 3720E of this title, amending this section, sections 3322, 3325, 3331, 3332, 3343, 3711, 3712, 3716 to 3719, 3720A, and 7701 of this title, section 5514 of Title 5, Government Organization and Employees, sections 6050P, 6103, and 6402 of Title 26, Internal Revenue Code, and sections 404 and 664 of Title 42, The Public Health and Welfare, enacting provisions set out as notes under this section, sections 3322, 3711, 3716, and 3719 of this title, and section 2461 of Title 28, Judiciary and Judicial Procedure, amending provisions set out as notes under this section and section 2461 of Title 28, and repealing provisions set out as notes under section 3718 of this title] may be cited as the 'Debt Collection Improvement Act of 1996'." SHORT TITLE OF 1986 AMENDMENT Pub. L. 99-562, Sec. 1, Oct. 27, 1986, 100 Stat. 3153, provided that: "This Act [enacting sections 3732 and 3733 of this title and amending sections 3729 to 3731 of this title and section 287 of Title 18, Crimes and Criminal Procedure] may be cited as the 'False Claims Amendments Act of 1986'." -TRANS- TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -MISC3- PURPOSES OF 1996 AMENDMENT Section 31001(b) of Pub. L. 104-134 provided that: "The purposes of this section [see Short Title of 1996 Amendment note above] are the following: "(1) To maximize collections of delinquent debts owed to the Government by ensuring quick action to enforce recovery of debts and the use of all appropriate collection tools. "(2) To minimize the costs of debt collection by consolidating related functions and activities and utilizing interagency teams. "(3) To reduce losses arising from debt management activities by requiring proper screening of potential borrowers, aggressive monitoring of all accounts, and sharing of information within and among Federal agencies. "(4) To ensure that the public is fully informed of the Federal Government's debt collection policies and that debtors are cognizant of their financial obligations to repay amounts owed to the Federal Government. "(5) To ensure that debtors have all appropriate due process rights, including the ability to verify, challenge, and compromise claims, and access to administrative appeals procedures which are both reasonable and protect the interests of the United States. "(6) To encourage agencies, when appropriate, to sell delinquent debt, particularly debts with underlying collateral. "(7) To rely on the experience and expertise of private sector professionals to provide debt collection services to Federal agencies." UNITED STATES SENATE AS LEGISLATIVE AGENCY; REGULATIONS PROMULGATED BY SECRETARY OF SENATE Pub. L. 101-163, title I, Sec. 11, Nov. 21, 1989, 103 Stat. 1046, provided that: "(a) For purposes of subchapters I and II of chapter 37 of title 31, United States Code (relating to claims of or against the United States Government), the United States Senate shall be considered to be a legislative agency (as defined in section 3701(a)(4) of such title), and the Secretary of the Senate shall be deemed to be the head of such legislative agency. "(b) Regulations prescribed by the Secretary of the Senate pursuant to section 3716 of title 31, United States Code, shall not become effective until they are approved by the Senate Committee on Rules and Administration." -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 section 6050P. -FOOTNOTE- (!1) So in original. The semicolon probably should be a comma. -End- -CITE- 31 USC Sec. 3702 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER I - GENERAL -HEAD- Sec. 3702. Authority to settle claims -STATUTE- (a) Except as provided in this chapter or another law, all claims of or against the United States Government shall be settled as follows: (1) The Secretary of Defense shall settle - (A) claims involving uniformed service members' pay, allowances, travel, transportation, payments for unused accrued leave, retired pay, and survivor benefits; and (B) claims by transportation carriers involving amounts collected from them for loss or damage incurred to property incident to shipment at Government expense. (2) The Director of the Office of Personnel Management shall settle claims involving Federal civilian employees' compensation and leave. (3) The Administrator of General Services shall settle claims involving expenses incurred by Federal civilian employees for official travel and transportation, and for relocation expenses incident to transfers of official duty station. (4) The Director of the Office of Management and Budget shall settle claims not otherwise provided for by this subsection or another provision of law. (b)(1) A claim against the Government presented under this section must contain the signature and address of the claimant or an authorized representative. The claim must be received by the official responsible under subsection (a) for settling the claim or by the agency that conducts the activity from which the claim arises within 6 years after the claim accrues except - (A) as provided in this chapter or another law; or (B) a claim of a State, the District of Columbia, or a territory or possession of the United States. (2) When the claim of a member of the armed forces accrues during war or within 5 years before war begins, the claim must be received within 5 years after peace is established or within the period provided in paragraph (1) of this subsection, whichever is later. (3) A claim that is not received in the time required under this subsection shall be returned with a copy of this subsection, and no further communication is required. (c) One-Year Limit for Check Claims. - (1) Any claim on account of a Treasury check shall be barred unless it is presented to the agency that authorized the issuance of such check within 1 year after the date of issuance of the check or the effective date of this subsection, whichever is later. (2) Nothing in this subsection affects the underlying obligation of the United States, or any agency thereof, for which a Treasury check was issued. (d) The official responsible under subsection (a) for settling the claim shall report to Congress on a claim against the Government that is timely presented under this section that may not be adjusted by using an existing appropriation, and that the official believes Congress should consider for legal or equitable reasons. The report shall include recommendations of the official. (e)(1) The Secretary of Defense may waive the time limitations set forth in subsection (b) or (c) in the case of a claim referred to in subsection (a)(1)(A). In the case of a claim by or with respect to a member of the uniformed services who is not under the jurisdiction of the Secretary of a military department, such a waiver may be made only upon the request of the Secretary concerned (as defined in section 101 of title 37). (2) Payment of a claim settled under subsection (a)(1)(A) shall be made from an appropriation that is available, for the fiscal year in which the payment is made, for the same purpose as the appropriation to which the obligation claimed would have been charged if the obligation had been timely paid, except that in the case of a claim for retired pay or survivor benefits, if the obligation claimed would have been paid from a trust fund if timely paid, the payment of the claim shall be made from that trust fund. (3) This subsection does not apply to a claim in excess of $25,000. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 970; Pub. L. 97-452, Sec. 1(14), Jan. 12, 1983, 96 Stat. 2470; Pub. L. 100-86, title X, Sec. 1004(b), Aug. 10, 1987, 101 Stat. 659; Pub. L. 104-201, div. A, title VI, Sec. 608, Sept. 23, 1996, 110 Stat. 2542; Pub. L. 104-316, title II, Sec. 202(n)(1), Oct. 19, 1996, 110 Stat. 3843; Pub. L. 105-85, div. A, title X, Sec. 1012, Nov. 18, 1997, 111 Stat. 1874; Pub. L. 106-398, Sec. 1 [[div. A], title VI, Sec. 664], Oct. 30, 2000, 114 Stat. 1654, 1654A-168; Pub. L. 107-314, div. A, title VI, Sec. 635(a), (b), Dec. 2, 2002, 116 Stat. 2574.) -MISC1- HISTORICAL AND REVISION NOTES 1982 ACT -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3702(a) 31:44(1st sentence). June 10, 1921, ch. 18, Sec. 304(1st par. 1st sentence), 42 Stat. 24. 31:71(related to R.S. Sec. 236(related to claims). claims); June 10, 1921, ch. 18, Sec. 305, 42 Stat. 24. 31:86. July 31, 1894, ch. 174, Sec. 14, 28 Stat. 210. 3702(b)( 31:71a(1)(less Oct. 9, 1940, ch. 788, 54 1) proviso). Stat. 1061; Jan. 2, 1975, Pub. L. 93-604, Sec. 801, 88 Stat. 1965. 31:237(1)(less proviso). 3702(b)( 31:71a(1)(proviso). 2) 31:237(1)(proviso). 3702(b)( 31:71a(2). 3) 31:237(2). 3702(c) 31:122. June 22, 1926, ch. 650, Sec. 2, 44 Stat. 761; Aug. 28, 1957, Pub. L. 85-183, Sec. 3(a), 71 Stat. 465. 3702(d) 31:236. Apr. 10, 1928, ch. 334, 45 Stat. 413. -------------------------------------------------------------------- In the section, the words "Comptroller General" are substituted for "General Accounting Office" for consistency. In subsection (a), the words "Except as provided in this chapter or another law" are added for clarity. The words "and demands whatever" and "and adjusted" are omitted as surplus. The words "officers or employees of the General Accounting Office" are substituted for "of his subordinates" for clarity and consistency in the revised title and with other titles of the United States Code. In subsection (b)(1), before clause (A), the words "or demand" are omitted as surplus. The word "Government" is substituted for "United States" for consistency in the revised title and with other titles of the Code. The word "representative" is substituted for "agent or attorney" to eliminate unnecessary words. The words "received by the Comptroller General" are substituted for "received in said office" for clarity and consistency. The words "the date" are omitted as surplus. Clause (A) is added for clarity. In clause (B), the words "cognizable by the General Accounting Office under sections 71 and 236 of this title" are omitted as unnecessary because of the restatement. In subsection (b)(2), the words "member of the armed forces" are substituted for "person serving in the military or naval forces of the United States" for consistency with title 10. The words "to the Comptroller General" are added for clarity. In subsection (b)(3), the words "to the claimant" are omitted as surplus. The words "not received in the time required" are substituted for "barred by" because of the restatement. The words "no further communication is required" are substituted for "such action shall be a complete response without further communication" to eliminate unnecessary words. In subsection (c), the text of 31:122(1st sentence words before 2d comma and last sentence) is omitted as executed. The words "Secretary of the Treasury" are substituted for "Treasury Department" for consistency. The word "Secretary" is substituted for "Treasurer of the United States" because of Department of the Treasury Order 229 of January 14, 1974 (39 F.R. 2280). In subsection (d), the words "report . . . on" are substituted for "submit the same . . . by a special report . . . the material facts" to eliminate unnecessary words. The words "or demand" are omitted as surplus. The word "Government" is substituted for "United States", and the words "presented under this section" are substituted for "filed in the General Accounting Office" for consistency. The words "lawfully", "the use of", and "thereon" are omitted as surplus. 1983 ACT This amends 31:3702(b)(2) by inserting a word inadvertently omitted in the codification of title 31. -REFTEXT- REFERENCES IN TEXT The effective date of this subsection, referred to in subsec. (c)(1), probably means the effective date of subsec. (c) of this section as amended by section 1004(b) of Pub. L. 100-86, which is effective 6 months after Aug. 10, 1987, or on such later date as the Secretary of the Treasury may prescribe in regulations. See Effective Date of 1987 Amendment note below. -MISC2- AMENDMENTS 2002 - Subsec. (e)(1). Pub. L. 107-314, Sec. 635(b)(1), substituted "The Secretary of Defense" for "Upon the request of the Secretary concerned (as defined in section 101 of title 37, United States Code), the Secretary of Defense", struck out "and, subject to paragraph (2), settle the claim" before period at end of first sentence, and inserted at end "In the case of a claim by or with respect to a member of the uniformed services who is not under the jurisdiction of the Secretary of a military department, such a waiver may be made only upon the request of the Secretary concerned (as defined in section 101 of title 37)." Pub. L. 107-314, Sec. 635(a), substituted "a claim referred to in subsection (a)(1)(A)" for "a claim for pay, allowances, or payment for unused accrued leave under title 37 or a claim for retired pay under title 10". Subsec. (e)(2). Pub. L. 107-314, Sec. 635(b)(2), substituted "under subsection (a)(1)(A)" for "under paragraph (1)" and inserted before period at end ", except that in the case of a claim for retired pay or survivor benefits, if the obligation claimed would have been paid from a trust fund if timely paid, the payment of the claim shall be made from that trust fund". 2000 - Subsec. (a)(1)(A). Pub. L. 106-398, Sec. 1 [[div. A], title VI, Sec. 664(a)], inserted "payments for unused accrued leave," after "transportation,". Subsec. (e)(1). Pub. L. 106-398, Sec. 1 [[div. A], title VI, Sec. 664(b)], substituted "claim for pay, allowances, or payment for unused accrued leave under title 37 or a claim for retired pay under title 10" for "claim for pay or allowances provided under title 37". 1997 - Subsec. (e)(1). Pub. L. 105-85, Sec. 1012(1), substituted "Secretary of Defense" for "Comptroller General". Subsec. (e)(2). Pub. L. 105-85, Sec. 1012(2), added par. (2) and struck out former par. (2) which read as follows: "Payment of a claim settled under paragraph (1) shall be subject to the availability of appropriations for payment of that particular claim." 1996 - Pub. L. 104-316, Sec. 202(n)(1)(A), struck out "of the Comptroller General" after "Authority" in section catchline. Subsec. (a). Pub. L. 104-316, Sec. 202(n)(1)(B), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Except as provided in this chapter or another law, the Comptroller General shall settle all claims of or against the United States Government. A claim that was not administratively examined before submission to the Comptroller General shall be examined by 2 officers or employees of the General Accounting Office independently of each other." Subsec. (b)(1). Pub. L. 104-316, Sec. 202(n)(1)(C), in introductory provisions substituted "The claim must be received by the official responsible under subsection (a) for settling the claim or by the agency that conducts the activity from which the claim arises within 6 years after the claim accrues except - " for "The claim must be received by the Comptroller General within 6 years after the claim accrues except - ". Subsec. (b)(2). Pub. L. 104-316, Sec. 202(n)(1)(D), substituted "received" for "presented to the Comptroller General" and "in paragraph" for "in clause". Subsec. (b)(3). Pub. L. 104-316, Sec. 202(n)(1)(E), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "The Comptroller General shall return a claim not received in the time required under this subsection with a copy of this subsection and no further communication is required." Subsec. (d). Pub. L. 104-316, Sec. 202(n)(1)(F), substituted "official responsible under subsection (a) for settling the claim" for "Comptroller General" before "shall report to Congress" and "official" for "Comptroller General" before "believes" and before period at end. Subsec. (e). Pub. L. 104-201 added subsec. (e). 1987 - Subsec. (c). Pub. L. 100-86 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "A claim on a check or warrant that the records of the Comptroller General or the Secretary of the Treasury show as being paid must be presented to the Comptroller General or the Secretary within 6 years after the check or warrant was issued." 1983 - Subsec. (b)(2). Pub. L. 97-452 inserted "this" before "subsection". EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107-314, div. A, title VI, Sec. 635(c), Dec. 2, 2002, 116 Stat. 2574, provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to claims against the United States presented to the Secretary of Defense under section 3702 of title 31, United States Code, on or after the date of the enactment of this Act [Dec. 2, 2002]." EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100-86 effective 6 months after Aug. 10, 1987, or on such later date as the Secretary of the Treasury may prescribe in regulations, see section 1006 of Pub. L. 100-86, set out as a note under section 3328 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment effective Sept. 13, 1982, see section 2(i) of Pub. L. 97-452, set out as a note under section 3331 of this title. REGULATIONS For provision permitting Secretary of the Treasury to prescribe rules, regulations, and procedures as necessary to implement amendment by section 1004(b) of Pub. L. 100-86, including recertification of Treasury checks which have been canceled or for which a claim has been asserted or barred, see section 1005 of Pub. L. 100-86, set out as a note under section 3328 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 3328, 3712 of this title; title 16 section 831h. -End- -CITE- 31 USC SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -SECREF- SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 3701, 3712 of this title; title 8 section 1183a; title 21 sections 379h, 379j. -End- -CITE- 31 USC Sec. 3711 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3711. Collection and compromise -STATUTE- (a) The head of an executive, judicial, or legislative agency - (1) shall try to collect a claim of the United States Government for money or property arising out of the activities of, or referred to, the agency; (2) may compromise a claim of the Government of not more than $100,000 (excluding interest) or such higher amount as the Attorney General may from time to time prescribe that has not been referred to another executive or legislative agency for further collection action, except that only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official; and (3) may suspend or end collection action on a claim referred to in clause (2) of this subsection when it appears that no person liable on the claim has the present or prospective ability to pay a significant amount of the claim or the cost of collecting the claim is likely to be more than the amount recovered. (b)(1) The head of an executive, judicial, or legislative agency may not act under subsection (a)(2) or (3) of this section on a claim that appears to be fraudulent, false, or misrepresented by a party with an interest in the claim, or that is based on conduct in violation of the antitrust laws. (2) The Secretary of Transportation may not compromise for less than $500 a penalty under section 21302 of title 49 for a violation of chapter 203, 205, or 207 of title 49 or a regulation or requirement prescribed or order issued under any of those chapters. (c) A compromise under this section is final and conclusive unless gotten by fraud, misrepresentation, presenting a false claim, or mutual mistake of fact. An accountable official is not liable for an amount paid or for the value of property lost or damaged if the amount or value is not recovered because of a compromise under this section. (d) The head of an executive, judicial, or legislative agency acts under - (1) regulations prescribed by the head of the agency; and (2) standards that the Attorney General, the Secretary of the Treasury, may prescribe.(!1) (e)(1) When trying to collect a claim of the Government under a law except the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), the head of an executive, judicial, or legislative agency shall disclose to a consumer reporting agency information from a system of records that a person is responsible for a claim if - (A) notice required by section 552a(e)(4) of title 5 indicates that information in the system may be disclosed to a consumer reporting agency; (B) the head of the agency has reviewed the claim and decided that the claim is valid and overdue; (C) the head of the agency has notified the person in writing - (i) that payment of the claim is overdue; (ii) that, within not less than 60 days after sending the notice, the head of the agency intends to disclose to a consumer reporting agency that the person is responsible for the claim; (iii) of the specific information to be disclosed to the consumer reporting agency; and (iv) of the rights the person has to a complete explanation of the claim, to dispute information in the records of the agency about the claim, and to administrative repeal or review of the claim; (D) the person has not - (i) repaid or agreed to repay the claim under a written repayment plan that the person has signed and the head of the agency has agreed to; or (ii) filed for review of the claim under paragraph (2) of this subsection; (E) the head of the agency has established procedures to - (i) disclose promptly, to each consumer reporting agency to which the original disclosure was made, a substantial change in the condition or amount of the claim; (ii) verify or correct promptly information about the claim on request of a consumer reporting agency for verification of information disclosed; and (iii) get satisfactory assurances from each consumer reporting agency that the agency is complying with all laws of the United States related to providing consumer credit information; and (F) the information disclosed to the consumer reporting agency is limited to - (i) information necessary to establish the identity of the person, including name, address, and taxpayer identification number; (ii) the amount, status, and history of the claim; and (iii) the agency or program under which the claim arose. (2) Before disclosing information to a consumer reporting agency under paragraph (1) of this subsection and at other times allowed by law, the head of an executive, judicial, or legislative agency shall provide, on request of a person alleged by the agency to be responsible for the claim, for a review of the obligation of the person, including an opportunity for reconsideration of the initial decision on the claim. (3) Before disclosing information to a consumer reporting agency under paragraph (1) of this subsection, the head of an executive, judicial, or legislative agency shall take reasonable action to locate a person for whom the head of the agency does not have a current address to send the notice under paragraph (1)(C). (4) The head of each executive agency shall require, as a condition for insuring or guaranteeing any loan, financing, or other extension of credit under any law to a person, that the lender provide information relating to the extension of credit to consumer reporting agencies or commercial reporting agencies, as appropriate. (5) The head of each executive agency may provide to a consumer reporting agency or commercial reporting agency information from a system of records that a person is responsible for a claim which is current, if notice required by section 552a(e)(4) of title 5 indicates that information in the system may be disclosed to a consumer reporting agency or commercial reporting agency, respectively. (f)(1) The Secretary of Defense may suspend or terminate an action by the Secretary or by the Secretary of a military department under subsection (a) to collect a claim against the estate of a person who died while serving on active duty as a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard during a period when the Coast Guard is operating as a service in the Navy if the Secretary determines that, under the circumstances applicable with respect to the deceased person, it is appropriate to do so. (2) The Secretary of Transportation may suspend or terminate an action by the Secretary under subsection (a) to collect a claim against the estate of a person who died while serving on active duty as a member of the Coast Guard if the Secretary determines that, under the circumstances applicable with respect to the deceased person, it is appropriate to do so. (3) In this subsection, the term "active duty" has the meaning given that term in section 101 of title 10. (g)(1) If a nontax debt or claim owed to the United States has been delinquent for a period of 180 days - (A) the head of the executive, judicial, or legislative agency that administers the program that gave rise to the debt or claim shall transfer the debt or claim to the Secretary of the Treasury; and (B) upon such transfer the Secretary of the Treasury shall take appropriate action to collect or terminate collection actions on the debt or claim. (2) Paragraph (1) shall not apply - (A) to any debt or claim that - (i) is in litigation or foreclosure; (ii) will be disposed of under an asset sales program within 1 year after becoming eligible for sale, or later than 1 year if consistent with an asset sales program and a schedule established by the agency and approved by the Director of the Office of Management and Budget; (iii) has been referred to a private collection contractor for collection for a period of time determined by the Secretary of the Treasury; (iv) has been referred by, or with the consent of, the Secretary of the Treasury to a debt collection center for a period of time determined by the Secretary of the Treasury; or (v) will be collected under internal offset, if such offset is sufficient to collect the claim within 3 years after the date the debt or claim is first delinquent; and (B) to any other specific class of debt or claim, as determined by the Secretary of the Treasury at the request of the head of an executive, judicial, or legislative agency or otherwise. (3) For purposes of this section, the Secretary of the Treasury may designate, and withdraw such designation of debt collection centers operated by other Federal agencies. The Secretary of the Treasury shall designate such centers on the basis of their performance in collecting delinquent claims owed to the Government. (4) At the discretion of the Secretary of the Treasury, referral of a nontax claim may be made to - (A) any executive department or agency operating a debt collection center for servicing, collection, compromise, or suspension or termination of collection action; (B) a private collection contractor operating under a contract for servicing or collection action; or (C) the Department of Justice for litigation. (5) Nontax claims referred or transferred under this section shall be serviced, collected, or compromised, or collection action thereon suspended or terminated, in accordance with otherwise applicable statutory requirements and authorities. Executive departments and agencies operating debt collection centers may enter into agreements with the Secretary of the Treasury to carry out the purposes of this subsection. The Secretary of the Treasury shall - (A) maintain competition in carrying out this subsection; (B) maximize collections of delinquent debts by placing delinquent debts quickly; (C) maintain a schedule of private collection contractors and debt collection centers eligible for referral of claims; and (D) refer delinquent debts to the person most appropriate to collect the type or amount of claim involved. (6) Any agency operating a debt collection center to which nontax claims are referred or transferred under this subsection may charge a fee sufficient to cover the full cost of implementing this subsection. The agency transferring or referring the nontax claim shall be charged the fee, and the agency charging the fee shall collect such fee by retaining the amount of the fee from amounts collected pursuant to this subsection. Agencies may agree to pay through a different method, or to fund an activity from another account or from revenue received from the procedure described under section 3720C of this title. Amounts charged under this subsection concerning delinquent claims may be considered as costs pursuant to section 3717(e) of this title. (7) Notwithstanding any other law concerning the depositing and collection of Federal payments, including section 3302(b) of this title, agencies collecting fees may retain the fees from amounts collected. Any fee charged pursuant to this subsection shall be deposited into an account to be determined by the executive department or agency operating the debt collection center charging the fee (in this subsection referred to in this section (!2) as the "Account"). Amounts deposited in the Account shall be available until expended to cover costs associated with the implementation and operation of Governmentwide debt collection activities. Costs properly chargeable to the Account include - (A) the costs of computer hardware and software, word processing and telecommunications equipment, and other equipment, supplies, and furniture; (B) personnel training and travel costs; (C) other personnel and administrative costs; (D) the costs of any contract for identification, billing, or collection services; and (E) reasonable costs incurred by the Secretary of the Treasury, including services and utilities provided by the Secretary, and administration of the Account. (8) Not later than January 1 of each year, there shall be deposited into the Treasury as miscellaneous receipts an amount equal to the amount of unobligated balances remaining in the Account at the close of business on September 30 of the preceding year, minus any part of such balance that the executive department or agency operating the debt collection center determines is necessary to cover or defray the costs under this subsection for the fiscal year in which the deposit is made. (9) Before discharging any delinquent debt owed to any executive, judicial, or legislative agency, the head of such agency shall take all appropriate steps to collect such debt, including (as applicable) - (A) administrative offset, (B) tax refund offset, (C) Federal salary offset, (D) referral to private collection contractors, (E) referral to agencies operating a debt collection center, (F) reporting delinquencies to credit reporting bureaus, (G) garnishing the wages of delinquent debtors, and (H) litigation or foreclosure. (10) To carry out the purposes of this subsection, the Secretary of the Treasury may prescribe such rules, regulations, and procedures as the Secretary considers necessary and transfer such funds from funds appropriated to the Department of the Treasury as may be necessary to meet existing liabilities and obligations incurred prior to the receipt of revenues that result from debt collections. (h)(1) The head of an executive, judicial, or legislative agency acting under subsection (a)(1), (2), or (3) of this section to collect a claim, compromise a claim, or terminate collection action on a claim may obtain a consumer report (as that term is defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)) or comparable credit information on any person who is liable for the claim. (2) The obtaining of a consumer report under this subsection is deemed to be a circumstance or purpose authorized or listed under section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b). (i)(1) The head of an executive, judicial, or legislative agency may sell, subject to section 504(b) of the Federal Credit Reform Act of 1990 and using competitive procedures, any nontax debt owed to the United States that is delinquent for more than 90 days. Appropriate fees charged by a contractor to assist in the conduct of a sale under this subsection may be payable from the proceeds of the sale. (2) After terminating collection action, the head of an executive, judicial, or legislative agency shall sell, using competitive procedures, any nontax debt or class of nontax debts owed to the United States, if the Secretary of the Treasury determines the sale is in the best interests of the United States. (3) Sales of nontax debt under this subsection - (A) shall be for - (i) cash, or (ii) cash and a residuary equity or profit participation, if the head of the agency reasonably determines that the proceeds will be greater than sale solely for cash, (B) shall be without recourse, but may include the use of guarantees if otherwise authorized, and (C) shall transfer to the purchaser all rights of the Government to demand payment of the nontax debt, other than with respect to a residuary equity or profit participation under subparagraph (A)(ii). (4)(A) Within one year after the date of enactment of the Debt Collection Improvement Act of 1996, each executive agency with current and delinquent collateralized nontax debts shall report to the Congress on the valuation of its existing portfolio of loans, notes and guarantees, and other collateralized debts based on standards developed by the Director of the Office of Management and Budget, in consultation with the Secretary of the Treasury. (B) The Director of the Office of Management and Budget shall determine what information is required to be reported to comply with subparagraph (A). At a minimum, for each financing account and for each liquidating account (as those terms are defined in sections 502(7) and 502(8), respectively, of the Federal Credit Reform Act of 1990) the following information shall be reported: (i) The cumulative balance of current debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. (ii) The cumulative balance of delinquent debts, debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. (iii) The cumulative balance of guaranteed loans outstanding, the estimated net present value of such guarantees, the annual administrative expenses of such guarantees (including the portion of salaries and expenses that are directly related to such guaranteed loans), and the estimated net proceeds that would be received by the Government if such loan guarantees were sold. (iv) The cumulative balance of defaulted loans that were previously guaranteed and have resulted in loans receivables, the estimated net present value of such loan assets, the annual administrative expenses of such loan assets (including the portion of salaries and expenses that are directly related to such loan assets), and the estimated net proceeds that would be received by the Government if such loan assets were sold. (v) The marketability of all debts. (5) This subsection is not intended to limit existing statutory authority of agencies to sell loans, debts, or other assets. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 971; Pub. L. 97-452, Sec. 1(15), Jan. 12, 1983, 96 Stat. 2470; Pub. L. 98-216, Sec. 1(5), Feb. 14, 1984, 98 Stat. 4; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101-552, Sec. 8(b), Nov. 15, 1990, 104 Stat. 2746; Pub. L. 102-365, Sec. 4(a)(4), Sept. 3, 1992, 106 Stat. 973; Pub. L. 103-272, Sec. 5(i)(1), July 5, 1994, 108 Stat. 1375; Pub. L. 104-106, div. A, title X, Sec. 1089, Feb. 10, 1996, 110 Stat. 459; Pub. L. 104-134, title III, Sec. 31001(c)(1), (g)(1)(C), (k), (m)(1), (p), Apr. 26, 1996, 110 Stat. 1321-359, 1321-363, 1321-365, 1321-366, 1321-371; Pub. L. 104-201, div. A, title X, Sec. 1010, Sept. 23, 1996, 110 Stat. 2635; Pub. L. 104-316, title I, Sec. 115(g)(1), Oct. 19, 1996, 110 Stat. 3834.) -MISC1- HISTORICAL AND REVISION NOTES 1982 ACT -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3711(a) 31:952(a)(less July 19, 1966, Pub. L. 89-508, words between 1st Sec. 3, 80 Stat. 309. and 2d commas), (b)(1st sentence less words between 6th and 7th commas). 3711(b) 31:952(b)(2d sentence, last sentence words after semicolon). 3711(c)( 31:952(b)(last 1) sentence words before semicolon). 3711(c)( 31:952(note). July 8, 1976, Pub. L. 94-348, 2) Sec. 3(e), 90 Stat. 818. 3711(d) 31:952(c). 3711(e) 31:952(a)(words between 1st and 2d commas), (b)(1st sentence words between 6th and 7th commas). -------------------------------------------------------------------- In the section, the words "executive or legislative agency" are substituted for "agency" because of the restatement. The words "or his designee" are omitted as unnecessary. In subsection (a), the word "Government" is added for consistency. In clause (2), the words "including the General Accounting Office" are omitted as surplus. In clause (3), the word "financial" is omitted as surplus. In subsections (b) and (d), the word "official" is substituted for "officer" for consistency. In subsection (b), the words "Comptroller General" are substituted for "General Accounting Office" for consistency. The words "has the same authority that the head of the agency has" are substituted for "have the foregoing authority" for clarity. The words "by another agency" are omitted as surplus. The words "only . . . may compromise" are substituted for "nor shall the head of an agency, other than . . . have authority to compromise" to eliminate unnecessary words. In subsection (c)(1), the words "that appears to be fraudulent, false, or misrepresented by" are substituted for "as to which there is an indication of fraud, the presentation of a false claim, or misrepresentation on the part of" to eliminate unnecessary words. The words "the debtor or . . . other" and "in whole or in part" are omitted as surplus. In subsection (c)(2), the words "Notwithstanding any provision of the Federal Claims Collection Act of 1966" are omitted as unnecessary. The words "arising" and "an amount" are omitted as surplus. In subsection (d), the words "effected . . . authority conferred by", "on the debtor and on all officials, agencies, and courts of the United States", "destroyed", and "with a person primarily responsible" are omitted as surplus. In subsection (e), the words "in conformity with" are omitted as surplus. 1983 ACT -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3711(f)( 31 App.:952(d)(1). July 19, 1966, Pub. L. 89-508, 1) 80 Stat. 308, Sec. 3(d)(1)-(3); added Oct. 25, 1982, Pub. L. 97-365, Sec. 3, 96 Stat. 1749. 3711(f)( 31 App.:952(d)(2). 2) 3711(f)( 31 App.:952(d)(3). 3) -------------------------------------------------------------------- In subsection (f)(1), before clause (A), the word "Government" is substituted for "United States" for consistency in the revised title and with other titles of the United States Code. The words "subsection (a) of this section, or under any other" are omitted as surplus. The word "law" is substituted for "statutory authority" to eliminate unnecessary words. In clause (A), the words "for the system of records" are omitted as surplus. In clause (C)(iii), the word "intended" is omitted as surplus. In clause (E)(ii), the words "as appropriate" and "any or all" are omitted as surplus. In clause (E)(iii), the words "all laws of the United States" are coextensive with and substituted for "the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) and any other Federal law". 1984 ACT This is necessary to reflect the transfer of the non-positive law provisions of title 49 to title 49 appendix. -REFTEXT- REFERENCES IN TEXT Sections 502(7), 502(8), and 504(b) of the Federal Credit Reform Act of 1990, referred to in subsec. (i)(1), (4)(B), are classified to sections 661a(7), 661a(8), and 661c(b), respectively, of Title 2, The Congress. The date of enactment of the Debt Collection Improvement Act of 1996, referred to in subsec. (i)(4)(A), is the date of enactment of section 31001 of Pub. L. 104-134, which was approved Apr. 26, 1996. -MISC2- AMENDMENTS 1996 - Subsec. (a). Pub. L. 104-134, Sec. 31001(c)(1), which directed that this section be amended by substituting "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" wherever appearing, was executed in introductory provisions by substituting "The head of an executive, judicial, or legislative agency" for "The head of an executive or legislative agency", to reflect the probable intent of Congress. Subsec. (a)(2). Pub. L. 104-316, Sec. 115(g)(1)(A), inserted ", except that only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official" before "; and" at end. Subsec. (b). Pub. L. 104-316, Sec. 115(g)(1)(B), (C), redesignated subsec. (c) as (b) and struck out former subsec. (b) which read as follows: "The Comptroller General has the same authority that the head of the agency has under subsection (a) of this section when the claim is referred to the Comptroller General for further collection action. Only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official." Subsec. (c). Pub. L. 104-316, Sec. 115(g)(1)(C), redesignated subsec. (d) as (c). Former subsec. (c) redesignated (b). Subsec. (c)(1). Pub. L. 104-134, Sec. 31001(c)(1), which directed that this section be amended by substituting "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" wherever appearing, was executed by substituting "The head of an executive, judicial, or legislative agency" for "The head of an executive or legislative agency", to reflect the probable intent of Congress. Subsec. (d). Pub. L. 104-316, Sec. 115(g)(1)(C), (D), redesignated subsec. (e) as (d) and in par. (2) struck out "and the Comptroller General" before "may prescribe" and "jointly" after "prescribe". Former subsec. (d) redesignated (c). Subsec. (e). Pub. L. 104-316, Sec. 115(g)(1)(C), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). Pub. L. 104-134, Sec. 31001(c)(1), which directed that this section be amended by substituting "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" wherever appearing, was executed in introductory provisions by substituting "The head of an executive, judicial, or legislative agency" for "The head of an executive or legislative agency", to reflect the probable intent of Congress. Subsec. (e)(2). Pub. L. 104-134, Sec. 31001(g)(1)(C), inserted ", the Secretary of the Treasury," after "Attorney General". Subsec. (f). Pub. L. 104-316, Sec. 115(g)(1)(C), redesignated the subsec. (g), relating to authority to suspend or terminate collection actions against deceased members, as (f). Former subsec. (f) redesignated (e). Subsec. (f)(1). Pub. L. 104-134, Sec. 31001(c)(1), (k)(1), (2), in introductory provisions substituted "the head of an executive, judicial, or legislative agency shall" for "the head of an executive or legislative agency may" and "a person" for "an individual". Subsec. (f)(1)(C), (D), (F). Pub. L. 104-134, Sec. 31001(k)(3), substituted "the person" for "the individual" wherever appearing. Subsec. (f)(2). Pub. L. 104-134, Sec. 31001(c)(1), (k)(2), (3), substituted "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency", "a person" for "an individual", and "the person" for "the individual". Subsec. (f)(3). Pub. L. 104-134, Sec. 31001(c)(1), (k)(2), substituted "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" and "a person" for "an individual". Subsec. (f)(4), (5). Pub. L. 104-134, Sec. 31001(k)(4), added pars. (4) and (5). Subsec. (g). Pub. L. 104-316, Sec. 115(g)(1)(C), redesignated the subsec. (g), relating to authority to suspend or terminate collection actions against deceased members, as (f). Pub. L. 104-134, Sec. 31001(m)(1), added subsec. (g) relating to transfer of debt or claim to Secretary of the Treasury in case of delinquency. Pub. L. 104-106 added subsec. (g) relating to authority to suspend or terminate collection actions against deceased members. Subsec. (g)(1). Pub. L. 104-201, Sec. 1010(1), substituted "Marine Corps, or Coast Guard during a period when the Coast Guard is operating as a service in the Navy" for "or Marine Corps". Subsec. (g)(2), (3). Pub. L. 104-201, Sec. 1010(2), (3), added par. (2) and redesignated former par. (2) as (3). Subsec. (h). Pub. L. 104-134, Sec. 31001(m)(1), added subsec. (h). Subsec. (i). Pub. L. 104-134, Sec. 31001(p), added subsec. (i). 1994 - Subsec. (c)(2). Pub. L. 103-272 substituted "section 21302 of title 49 for a violation of chapter 203, 205, or 207 of title 49 or a regulation or requirement prescribed or order issued under any of those chapters" for "section 6 of the Act of March 2, 1893 (45 U.S.C. 6), section 4 of the Act of April 14, 1910 (45 U.S.C. 13), section 9 of the Act of February 17, 1911 (45 U.S.C. 34), and section 25(h) of the Interstate Commerce Act (49 App. U.S.C. 26(h))". 1992 - Subsec. (c)(2). Pub. L. 102-365 substituted "$500" for "$250". 1990 - Subsec. (a)(2). Pub. L. 101-552 substituted "$100,000 (excluding interest) or such higher amount as the Attorney General may from time to time prescribe" for "$20,000 (excluding interest)". 1986 - Subsec. (f)(1). Pub. L. 99-514 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954". 1984 - Subsec. (c)(2). Pub. L. 98-216 substituted "(49 App. U.S.C. 26(h))" for "(49 U.S.C. 26(h))". 1983 - Subsec. (f). Pub. L. 97-452 added subsec. (f). SAVINGS PROVISION Section 31001(n) of Pub. L. 104-134 provided that: "Effective October 1, 1995, section 11 of the Administrative Dispute Resolution Act (Public Law 101-552, [former] 5 U.S.C. 571 note) shall not apply to the amendment made by section 8(b) of such Act [amending this section]." -TRANS- TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -MISC3- GUIDELINES Section 31001(aa)(1) of Pub. L. 104-134 provided that: "The Secretary of the Treasury, in consultation with concerned Federal agencies, may establish guidelines, including information on outstanding debt, to assist agencies in the performance and monitoring of debt collection activities." REPORT Section 31001(aa)(2) of Pub. L. 104-134 provided that: "Not later than 3 years after the date of enactment of this Act [Apr. 26, 1996], the Secretary of the Treasury shall report to the Congress on collection services provided by Federal agencies or entities collecting debt on behalf of other Federal agencies under the authorities contained in section 3711(g) of title 31, United States Code, as added by subsection (m) of this section." STANDARDS AND POLICIES FOR COMPROMISING, WRITING-DOWN, FORGIVING, OR DISCHARGING INDEBTEDNESS Section 31001(bb) of Pub. L. 104-134 provided that: "The Director of the Office of Management and Budget shall - "(1) review the standards and policies of each Federal agency for compromising, writing-down, forgiving, or discharging indebtedness arising from programs of the agency; "(2) determine whether those standards and policies are consistent and protect the interests of the United States; "(3) in the case of any Federal agency standard or policy that the Director determines is not consistent or does not protect the interests of the United States, direct the head of the agency to make appropriate modifications to the standard or policy; and "(4) report annually to the Congress on - "(A) deficiencies in the standards and policies of Federal agencies for compromising, writing-down, forgiving, or discharging indebtedness; and "(B) progress made in improving those standards and policies." EXISTING AGENCY AUTHORITY TO LITIGATE, SETTLE, COMPROMISE, OR CLOSE CLAIMS Pub. L. 89-508, Sec. 4, July 19, 1966, 80 Stat. 309, provided that: "Nothing in this Act [now this section] shall increase or diminish the existing authority of the head of an agency to litigate claims, or diminish his existing authority to settle, compromise, or close claims." -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 3701, 3712, 3716, 3720C of this title; title 5 sections 552a, 5514, 5569; title 10 sections 2739, 2780; title 22 section 2671; title 26 section 6103; title 37 section 559; title 38 section 5301; title 42 sections 404, 1008, 1383; title 49 sections 21302, 21303. -FOOTNOTE- (!1) So in original. Probably should be "Attorney General and the Secretary of the Treasury may prescribe jointly." (!2) So in original. -End- -CITE- 31 USC Sec. 3712 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3712. Time limitations for presenting certain claims of the Government -STATUTE- (a) Claims Over Forged or Unauthorized Endorsements. - (1) Period for claims. - If the Secretary of the Treasury determines that a Treasury check has been paid over a forged or unauthorized endorsement, the Secretary may reclaim the amount of such check from the presenting bank or any other endorser that has breached its guarantee of endorsements prior to - (A) the end of the 1-year period beginning on the date of payment; or (B) the expiration of the 180-day period beginning on the close of the period described in subparagraph (A) if a timely claim is received under section 3702. (2) Civil actions. - (A) Except as provided in subparagraph (B), the United States may bring a civil action to enforce the liability of an endorser, transferor, depository, or fiscal agent on a forged or unauthorized signature or endorsement on, or a change in, a check or warrant issued by the Secretary of the Treasury, the United States Postal Service, or any disbursing official or agent not later than 1 year after a check or warrant is presented to the drawee for payment. (B) If the United States has given an endorser written notice of a claim against the endorser within the time allowed by subparagraph (A), the 1-year period for bringing a civil action on that claim under subparagraph (A) shall be extended by 3 years. (3) Effect on agency authority. - Nothing in this subsection shall be construed to limit the authority of any agency under subchapter II of chapter 37 of this title. (b) Notwithstanding subsection (a) of this section, a civil action may be brought within 2 years after the claim is discovered when an endorser, transferor, depositary, or fiscal agent fraudulently conceals the claim from an officer or employee of the Government entitled to bring the civil action. (c) The Comptroller General shall credit the appropriate account of the Treasury for the amount of a check or warrant for which a civil action cannot be brought because notice was not given within the time required under subsection (a) of this section if the failure to give notice was not the result of negligence of the Secretary. (d) The Government waives all claims against a person arising from dual pay from the Government if the dual pay is not reported to the Comptroller General for collection within 6 years from the last date of a period of dual pay. (e) Treasury Check Offset. - (1) In general. - To facilitate collection of amounts owed by presenting banks pursuant to subsection (a) or (b), upon the direction of the Secretary, a Federal reserve bank shall withhold credit from banks presenting Treasury checks for ultimate charge to the account of the United States Treasury. By presenting Treasury checks for payment a presenting bank is deemed to authorize this offset. (2) Attempt to collect required. - Prior to directing offset under subsection (a)(1), the Secretary shall first attempt to collect amounts owed in the manner provided by sections 3711 and 3716. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 971; Pub. L. 100-86, title X, Sec. 1004(a), Aug. 10, 1987, 101 Stat. 659; Pub. L. 104-134, title III, Sec. 31001(d)(4), Apr. 26, 1996, 110 Stat. 1321-362.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3712(a) 31:129. Mar. 6, 1946, ch. 48, Sec. 1, 60 Stat. 31; Aug. 28, 1957, Pub. L. 85-183, Sec. 3(b), 71 Stat. 465; Aug. 12, 1970, Pub. L. 91-375, Sec. 6(l)(2), 84 Stat. 782. 3712(b) 31:131. Mar. 6, 1946, ch. 48, Secs. 2, 3, 60 Stat. 31. 3712(c) 31:130. 3712(d) 31:237a. Aug. 28, 1954, ch. 1035, 68 Stat. 890. -------------------------------------------------------------------- In the section, the words "Comptroller General" are substituted for "General Accounting Office" for consistency. In subsection (a), the words "civil action" are substituted for "proceeding in any court", "court proceeding", and "proceeding", and the word "fiscal" is substituted for "financial", for consistency in the revised title and with other titles of the United States Code. The words "Except as provided in this subsection" are added for clarity. The words "or by an agency or official of the United States" are omitted as surplus. The words "the Postmaster General" are omitted because of section 4(a) of the Postal Reorganization Act (Pub. L. 91-375, 84 Stat. 773). The words "the Treasurer and Assistant Treasurers of the United States" are omitted because of the source provisions restated in section 321 of the revised title and Department of the Treasury Order 229 of January 14, 1974 (39 F.R. 2280). The word "official" is substituted for "officers" for consistency in the revised title and with other titles of the Code. The words "of the United States", "to the Treasurer of the United States or other drawee", and "of such check, checks, warrant, or warrants" are omitted as surplus. The text of 31:129(last sentence less proviso) is omitted as unnecessary. The last sentence is substituted for 31:129(last sentence proviso) to eliminate unnecessary words. In subsection (b), the words "at any time" in 31:131 are omitted as surplus. The words "the claim is discovered" are substituted for "the United States or any agency or official of the United States who is entitled to bring the same shall discover that the United States or any agency or official of the United States had such cause of action" to eliminate unnecessary words. The words "who is liable to any of the actions mentioned in sections 129 to 131 of this title" are omitted as surplus. The words "officer or employee of the Government" are substituted for "United States or any agency or official of the United States" before "entitled" for consistency in the revised title and with other titles of the Code. The words "although such action would be otherwise barred by the provisions of sections 129 to 131 of this title" are omitted as surplus. In subsection (c), the words "of the United States" and "allow . . . in" are omitted as surplus. The word "appropriate" is added for clarity. The word "Treasury" is substituted for "Treasurer of the United States" before "for the amount" because of the source provisions restated in section 321 of the revised title and Department of the Treasury Order 229 of January 14, 1974 (39 F.R. 2280). The words "cannot be brought because notice was not given within the time required under this subsection" are substituted for "shall have been barred pursuant to the provisions of sections 129 to 131 of this title upon a showing that the barring of such proceedings . . . required by the provision of section 129 of this title" for clarity. The word "Secretary" is substituted for "Treasurer of the United States" before "in failing" because of the source provisions restated in section 321 of the revised title and Department of the Treasury Order 229 of January 14, 1974. In subsection (d), the words "arising from dual pay" are substituted for "arising out of the receipt by such person of compensation . . . in violation of any provision of law prohibiting or restricting the receipt of dual compensation" to eliminate unnecessary words and for consistency in the revised title and with other titles of the Code. The words "including Government owned or controlled corporations" are omitted as unnecessary. The words "or from the government of the District of Columbia" are omitted because of sections 102(a), 448, 449, and 761 of the District of Columbia Self-Government and Governmental Reorganization Act (Pub. L. 93-198, 87 Stat. 777, 801, 836). AMENDMENTS 1996 - Subsec. (e). Pub. L. 104-134 added subsec. (e). 1987 - Subsec. (a). Pub. L. 100-86 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Except as provided in this subsection, the United States Government must bring a civil action to enforce the liability of an endorser, transferor, depositary, or fiscal agent on a forged or unauthorized signature or endorsement on, or a change in, a check or warrant issued by the Secretary of the Treasury, the United States Postal Service, or a disbursing official or agent within 6 years after the check or warrant is presented to the drawee of the check or warrant for payment unless, within that period, written notice of the claim is given to the endorser, transferor, depositary, or fiscal agent. The period for bringing a civil action or giving notice is extended for 180 days if a claim is received under section 3702(c) of this title." EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100-86 effective 6 months after Aug. 10, 1987, or on such later date as the Secretary of the Treasury may prescribe in regulations, see section 1006 of Pub. L. 100-86, set out as a note under section 3328 of this title. REGULATIONS For provision permitting Secretary of the Treasury to prescribe rules, regulations, and procedures as necessary to implement amendment by section 1004(a) of Pub. L. 100-86, including recertification of Treasury checks which have been canceled or for which a claim has been asserted or barred, see section 1005 of Pub. L. 100-86, set out as a note under section 3328 of this title. -End- -CITE- 31 USC Sec. 3713 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3713. Priority of Government claims -STATUTE- (a)(1) A claim of the United States Government shall be paid first when - (A) a person indebted to the Government is insolvent and - (i) the debtor without enough property to pay all debts makes a voluntary assignment of property; (ii) property of the debtor, if absent, is attached; or (iii) an act of bankruptcy is committed; or (B) the estate of a deceased debtor, in the custody of the executor or administrator, is not enough to pay all debts of the debtor. (2) This subsection does not apply to a case under title 11. (b) A representative of a person or an estate (except a trustee acting under title 11) paying any part of a debt of the person or estate before paying a claim of the Government is liable to the extent of the payment for unpaid claims of the Government. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 972.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3713(a) 31:191. R.S. Sec. 3466; Nov. 6, 1978, Pub. L. 95-598, Sec. 322(a), 92 Stat. 2678. 3713(b) 31:192. R.S. Sec. 3467; restated May 10, 1934, ch. 277, Sec. 518(a), 48 Stat. 760; Nov. 6, 1978, Pub. L. 95-598, Sec. 322(b), 92 Stat. 2679. -------------------------------------------------------------------- In the section, the word "claim" is substituted for "debts" for consistency. The word "due" is omitted as unnecessary. In subsection (a)(1), before clause (A), the word "paid" is substituted for "satisfied" for consistency. In clause (A)(i), the words "and the priority established shall extend as well to cases in which" are omitted because of the restatement. In clause (A)(ii), the word "property" is substituted for "estate and effects" to eliminate unnecessary words. The words "absconding, concealed, or" and "by process of law" are omitted as surplus. In subsection (a)(2), the words "The priority established under . . . however" are omitted as surplus. In subsection (b), the words "A representative of a person or an estate" are substituted for "executor, administrator, or assignee, or other" for clarity and to eliminate unnecessary words. The words "for whom or for which he acts", "satisfies and", and "from such person or estate" are omitted as surplus. The word "liable" is substituted for "answerable in his own person and estate" for consistency. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 20 section 1087-2; title 22 section 1631g; title 26 sections 6327, 6901, 7421, 7437; title 28 section 3003; title 29 section 1368; title 30 section 934; title 41 section 108; title 48 section 1423a; title 50 App. section 34. -End- -CITE- 31 USC Sec. 3714 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3714. Keeping money due States in default -STATUTE- The Secretary of the Treasury shall keep the necessary amount of money the United States Government owes a State when the State defaults in paying principal or interest on investments in stocks or bonds the State issues or guarantees and that the Government holds in trust. The money shall be used to pay the principal or interest or reimburse, with interest, money the Government advanced for interest due on the stocks or bonds. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 972.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3714 31:207. R.S. Sec. 3481. -------------------------------------------------------------------- The word "amount" is substituted for "whole, or so much thereof" for clarity. The word "owes" is substituted for "due on any account from the . . . to" to eliminate unnecessary words. The words "or either" and "thereon" are omitted as surplus. -End- -CITE- 31 USC Sec. 3715 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3715. Buying real property of a debtor -STATUTE- The head of an agency for whom a civil action is brought against a debtor of the United States Government may buy real property of the debtor at a sale on execution of the real property of the debtor resulting from the action. The head of the agency may not bid more for the property than the amount of the judgment for which the property is being sold, and costs. The marshal of the district in which the sale is held shall transfer the property to the Government. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 972.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3715 31:195. R.S. Sec. 3470; June 2, 1965, Pub. L. 89-30, Sec. 5, 79 Stat. 119. -------------------------------------------------------------------- The words "by such agent as . . . shall appoint" are omitted as unnecessary. The word "agency" is substituted for "department or independent agency" because of the restatement. The words "for whom a civil action is brought" are substituted for "at whose instance suit was instituted" for consistency. The words "real property" are substituted for "lands or tenements" for clarity and consistency. The words "in behalf of the United States" are omitted as surplus. The words "for the property" are added for clarity. The word "property" is substituted for "such estate" for consistency in the section. The words "Whenever such purchase is made" are omitted as surplus. The words "transfer the property" are substituted for "make all needful conveyances, assignments, or transfers" to eliminate unnecessary words and for clarity. -End- -CITE- 31 USC Sec. 3716 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3716. Administrative offset -STATUTE- (a) After trying to collect a claim from a person under section 3711(a) of this title, the head of an executive, judicial, or legislative agency may collect the claim by administrative offset. The head of the agency may collect by administrative offset only after giving the debtor - (1) written notice of the type and amount of the claim, the intention of the head of the agency to collect the claim by administrative offset, and an explanation of the rights of the debtor under this section; (2) an opportunity to inspect and copy the records of the agency related to the claim; (3) an opportunity for a review within the agency of the decision of the agency related to the claim; and (4) an opportunity to make a written agreement with the head of the agency to repay the amount of the claim. (b) Before collecting a claim by administrative offset, the head of an executive, judicial, or legislative agency must either - (1) adopt, without change, regulations on collecting by administrative offset promulgated by the Department of Justice, the General Accounting Office, or the Department of the Treasury; or (2) prescribe regulations on collecting by administrative offset consistent with the regulations referred to in paragraph (1). (c)(1)(A) Except as otherwise provided in this subsection, a disbursing official of the Department of the Treasury, the Department of Defense, the United States Postal Service, or any other government corporation, or any disbursing official of the United States designated by the Secretary of the Treasury, shall offset at least annually the amount of a payment which a payment certifying agency has certified to the disbursing official for disbursement, by an amount equal to the amount of a claim which a creditor agency has certified to the Secretary of the Treasury pursuant to this subsection. (B) An agency that designates disbursing officials pursuant to section 3321(c) of this title is not required to certify claims arising out of its operations to the Secretary of the Treasury before such agency's disbursing officials offset such claims. (C) Payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 shall not be subject to administrative offset under this subsection. (2) Neither the disbursing official nor the payment certifying agency shall be liable - (A) for the amount of the administrative offset on the basis that the underlying obligation, represented by the payment before the administrative offset was taken, was not satisfied; or (B) for failure to provide timely notice under paragraph (8). (3)(A)(i) Notwithstanding any other provision of law (including sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of Public Law 91-173 (30 U.S.C. 923(b)), and section 14 of the Act of August 29, 1935 (45 U.S.C. 231m)), except as provided in clause (ii), all payments due to an individual under - (I) the Social Security Act, (II) part B of the Black Lung Benefits Act, or (III) any law administered by the Railroad Retirement Board (other than payments that such Board determines to be tier 2 benefits), shall be subject to offset under this section. (ii) An amount of $9,000 which a debtor may receive under Federal benefit programs cited under clause (i) within a 12-month period shall be exempt from offset under this subsection. In applying the $9,000 exemption, the disbursing official shall - (I) reduce the $9,000 exemption amount for the 12-month period by the amount of all Federal benefit payments made during such 12-month period which are not subject to offset under this subsection; and (II) apply a prorated amount of the exemption to each periodic benefit payment to be made to the debtor during the applicable 12-month period. For purposes of the preceding sentence, the amount of a periodic benefit payment shall be the amount after any reduction or deduction required under the laws authorizing the program under which such payment is authorized to be made (including any reduction or deduction to recover any overpayment under such program). (B) The Secretary of the Treasury shall exempt from administrative offset under this subsection payments under means-tested programs when requested by the head of the respective agency. The Secretary may exempt other payments from administrative offset under this subsection upon the written request of the head of a payment certifying agency. A written request for exemption of other payments must provide justification for the exemption under standards prescribed by the Secretary. Such standards shall give due consideration to whether administrative offset would tend to interfere substantially with or defeat the purposes of the payment certifying agency's program. The Secretary shall report to the Congress annually on exemptions granted under this section. (C) The provisions of sections 205(b)(1), 809(a)(1), and 1631(c)(1) of the Social Security Act shall not apply to any administrative offset executed pursuant to this section against benefits authorized by title II, VIII, or title XVI of the Social Security Act, respectively. (4) The Secretary of the Treasury may charge a fee sufficient to cover the full cost of implementing this subsection. The fee may be collected either by the retention of a portion of amounts collected pursuant to this subsection, or by billing the agency referring or transferring a claim for those amounts. Fees charged to the agencies shall be based on actual administrative offsets completed. Amounts received by the United States as fees under this subsection shall be deposited into the account of the Department of the Treasury under section 3711(g)(7) of this title, and shall be collected and accounted for in accordance with the provisions of that section. (5) The Secretary of the Treasury in consultation with the Commissioner of Social Security and the Director of the Office of Management and Budget, may prescribe such rules, regulations, and procedures as the Secretary of the Treasury considers necessary to carry out this subsection. The Secretary shall consult with the heads of affected agencies in the development of such rules, regulations, and procedures. (6) Any Federal agency that is owed by a person a past due, legally enforceable nontax debt that is over 180 days delinquent, including nontax debt administered by a third party acting as an agent for the Federal Government, shall notify the Secretary of the Treasury of all such nontax debts for purposes of administrative offset under this subsection. (7)(A) The disbursing official conducting an administrative offset with respect to a payment to a payee shall notify the payee in writing of - (i) the occurrence of the administrative offset to satisfy a past due legally enforceable debt, including a description of the type and amount of the payment otherwise payable to the payee against which the offset was executed; (ii) the identity of the creditor agency requesting the offset; and (iii) a contact point within the creditor agency that will handle concerns regarding the offset. (B) If the payment to be offset is a periodic benefit payment, the disbursing official shall take reasonable steps, as determined by the Secretary of the Treasury, to provide the notice to the payee not later than the date on which the payee is otherwise scheduled to receive the payment, or as soon as practical thereafter, but no later than the date of the administrative offset. Notwithstanding the preceding sentence, the failure of the debtor to receive such notice shall not impair the legality of such administrative offset. (8) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over requests for administrative offset pursuant to other laws. (d) Nothing in this section is intended to prohibit the use of any other administrative offset authority existing under statute or common law. (e) This section does not apply - (1) to a claim under this subchapter that has been outstanding for more than 10 years; or (2) when a statute explicitly prohibits using administrative offset or setoff to collect the claim or type of claim involved. (f) The Secretary may waive the requirements of sections 552a(o) and (p) of title 5 for administrative offset or claims collection upon written certification by the head of a State or an executive, judicial, or legislative agency seeking to collect the claim that the requirements of subsection (a) of this section have been met. (g) The Data Integrity Board of the Department of the Treasury established under 552a(u) of title 5 shall review and include in reports under paragraph (3)(D) of that section a description of any matching activities conducted under this section. If the Secretary has granted a waiver under subsection (f) of this section, no other Data Integrity Board is required to take any action under section 552a(u) of title 5. (h)(1) The Secretary may, in the discretion of the Secretary, apply subsection (a) with respect to any past-due, legally-enforceable debt owed to a State if - (A) the appropriate State disbursing official requests that an offset be performed; and (B) a reciprocal agreement with the State is in effect which contains, at a minimum - (i) requirements substantially equivalent to subsection (b) of this section; and (ii) any other requirements which the Secretary considers appropriate to facilitate the offset and prevent duplicative efforts. (2) This subsection does not apply to - (A) the collection of a debt or claim on which the administrative costs associated with the collection of the debt or claim exceed the amount of the debt or claim; (B) any collection of any other type, class, or amount of claim, as the Secretary considers necessary to protect the interest of the United States; or (C) the disbursement of any class or type of payment exempted by the Secretary of the Treasury at the request of a Federal agency. (3) In applying this section with respect to any debt owed to a State, subsection (c)(3)(A) shall not apply. -SOURCE- (Added Pub. L. 97-452, Sec. 1(16)(A), Jan. 12, 1983, 96 Stat. 2471; amended Pub. L. 104-134, title III, Sec. 31001(c)(1), (d)(2), (e), (f), Apr. 26, 1996, 110 Stat. 1321-359, 1321-362; Pub. L. 106-169, title II, Sec. 251(b)(10), Dec. 14, 1999, 113 Stat. 1856.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 3716(a) 31 App.:954(a) July 19, 1966, Pub. L. 89-508, (words before last 80 Stat. 308, Sec. 5(a)-(d); comma), (c). added Oct. 25, 1982, Pub. L. 97-365, Sec. 10(2), 96 Stat. 1754. 3716(b) 31 App.:954(b). 3716(c)( 31 App.:954(a) 1) (words after last comma). 3716(c)( 31 App.:954(d). 2) -------------------------------------------------------------------- In the subchapter, the words "or his designee" are omitted as unnecessary. In subsection (a)(1), the words "head of the" are added for consistency in the revised title and with other titles of the United States Code. In subsection (b)(1), the word "Government" is added for consistency in the revised title and with other titles of the Code. In subsection (b)(3), the word "civil" is added for consistency in the revised title and with other titles of the Code. In subsection (c)(2), the word "either" is omitted as surplus. -REFTEXT- REFERENCES IN TEXT The Higher Education Act of 1965, referred to in subsec. (c)(1)(C), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title IV of the Act is classified generally to subchapter IV (Sec. 1070 et seq.) of chapter 28 of Title 20, Education, and part C (Sec. 2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables. The Social Security Act, referred to in subsec. (c)(3)(A)(i)(I), (C), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified generally to chapter 7 (Sec. 301 et seq.) of Title 42, The Public Health and Welfare. Titles II, VIII, and XVI of the Act are classified generally to subchapters II (Sec. 401 et seq.), VIII (Sec. 1001 et seq.), and XVI (Sec. 1381 et seq.), respectively, of chapter 7 of Title 42. Sections 205(b)(1), 809(a)(1), and 1631(c)(1) of the Act are classified to sections 405(b)(1), 1009(a)(1), and 1383(c)(1), respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. The Black Lung Benefits Act, referred to in subsec. (c)(3)(A)(i)(II), is title IV of Pub. L. 91-173, Dec. 30, 1969, 83 Stat. 792, as amended. Part B of the Act is classified generally to part B (Sec. 921 et seq.) of subchapter IV of chapter 22 of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see section 901(b) of Title 30 and Tables. The Internal Revenue Code of 1986, referred to in subsec. (c)(8), is classified to Title 26, Internal Revenue Code. -MISC2- AMENDMENTS 1999 - Subsec. (c)(3)(C). Pub. L. 106-169 substituted "sections 205(b)(1), 809(a)(1)," for "sections 205(b)(1)" and "title II, VIII," for "either title II". 1996 - Subsec. (a). Pub. L. 104-134, Sec. 31001(c)(1), substituted "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" in introductory provisions. Subsec. (b). Pub. L. 104-134, Sec. 31001(d)(2)(A), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "Before collecting a claim by administrative offset under subsection (a) of this section, the head of an executive or legislative agency must prescribe regulations on collecting by administrative offset based on - "(1) the best interests of the United States Government; "(2) the likelihood of collecting a claim by administrative offset; and "(3) for collecting a claim by administrative offset after the 6-year period for bringing a civil action on a claim under section 2415 of title 28 has expired, the cost effectiveness of leaving a claim unresolved for more than 6 years." Pub. L. 104-134, Sec. 31001(c)(1), substituted "the head of an executive, judicial, or legislative agency" for "the head of an executive or legislative agency" in introductory provisions. Subsec. (c). Pub. L. 104-134, Sec. 31001(d)(2)(D), added subsec. (c). Former subsec. (c) redesignated (e). Subsec. (c)(2). Pub. L. 104-134, Sec. 31001(d)(2)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "when a statute explicitly provides for or prohibits using administrative offset to collect the claim or type of claim involved." Subsec. (d). Pub. L. 104-134, Sec. 31001(d)(2)(D), added subsec. (d). Subsec. (e). Pub. L. 104-134, Sec. 31001(d)(2)(C), redesignated subsec. (c) as (e). Subsecs. (f) to (h). Pub. L. 104-134, Sec. 31001(e), (f), added subsecs. (f) to (h). OFFSETS FROM SOCIAL SECURITY PAYMENTS Section 31001(a)(2)(B) of Pub. L. 104-134 provided that: "Subparagraph (A) of section 3716(c)(3) of title 31, United States Code (as added by subsection (d)(2) of this section), shall apply only to payments made after the date which is 4 months after the date of the enactment of this Act [Apr. 26, 1996]." -EXEC- EX. ORD. NO. 13019. SUPPORTING FAMILIES: COLLECTING DELINQUENT CHILD SUPPORT OBLIGATIONS Ex. Ord. No. 13019, Sept. 28, 1996, 61 F.R. 51763, provided that: The Debt Collection Improvement Act of 1996, Public Law 104-134 [Sec. 31001] (110 Stat. 1321-358 et seq.) [see Short Title of 1996 Amendment note set out under section 3701 of this title], was enacted into law on April 26, 1996, as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996. While the primary purpose of the Debt Collection Improvement Act is to increase the collection of nontax debts owed to the Federal Government, the Act also contains important provisions that can be used to assist families in collecting past-due child support obligations. The failure of some parents to meet their child support obligations threatens the health, education, and well-being of their children. Compounding this problem, States have experienced difficulties enforcing child support obligations once a parent has moved to another State. With this Executive order, my Administration takes additional steps to support our children and strengthen American families by facilitating the collection of delinquent child support obligations from persons who may be entitled or eligible to receive certain Federal payments or Federal assistance. Accordingly, by the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Administrative Offsets. (a)(1) The Secretary of the Treasury ("the Secretary"), in accordance with the provisions of the Debt Collection Improvement Act of 1996 and to the extent permitted by law, and in consultation with the Secretary of Health and Human Services and other affected agencies, shall promptly develop and implement procedures necessary for the Secretary to collect past-due child support debts by administrative offset, and shall issue such rules, regulations, and procedures as the Secretary, in consultation with the heads of affected agencies, deems appropriate to govern administrative offsets by the Department of the Treasury and other executive departments and agencies that disburse Federal payments. (2) The Secretary may enter into reciprocal agreements with States concerning the collection by the Secretary of delinquent child support debts through administrative offsets. (b) The Secretary of Health and Human Services shall, within 120 days of the date of this order, implement procedures necessary to report to the Secretary of the Treasury information on past-due child support claims referred by States (including claims enforced by States pursuant to cooperative agreements with or by Indian tribal governments) to the Department of Health and Human Services. (c) The head of each executive department and agency that certifies payments to the Secretary or to another disbursing official shall review each class of payments that the department or agency certifies to determine if any such class should be exempt from offset and, if any class is so identified, submit to the Secretary a request for such an exemption together with the reasons therefor. With respect to classes of payments under means-tested programs existing on the date of this order, such submission shall be made within 30 days of the date of this order. With respect to classes of payments other than payments under means-tested programs existing on the date of this order, such submissions shall be made within 30 days of the date the Secretary establishes standards pursuant to section 3716(c)(3) of title 31, United States Code. With respect to a class of payments established after the date of this order, such submissions shall be made not later than 30 days after such class is established. (d) The head of each executive department and agency that certifies payments to the Secretary shall promptly implement any rule, regulation, or procedure issued by the Secretary pursuant to this section. (e) The head of each executive department and agency that is authorized by law to disburse payments shall promptly implement any rule, regulation, or procedure issued by the Secretary pursuant to this section and shall: (1) match, consistent with computer privacy matching laws, the payment certification records of such department or agency with records of persons delinquent in child support payments as directed by the Secretary; and (2) conduct administrative offsets to collect delinquent child support payments. (f) The Secretary shall, to the extent permitted by law, share with the Secretary of Health and Human Services any information contained in payment certification records of persons who are delinquent in child support obligations that would assist in the collection of such debts, whether or not an administrative offset is conducted. Sec. 2. Denial of Federal Assistance. (a) The Secretary shall, to the extent permitted by law, ensure that information concerning individuals whose payments are subject to administrative offset because of delinquent child support obligations is made available to the head of each executive department and agency that provides Federal financial assistance to individuals. (b) In conformance with section 2(e) of this order, the head of each executive department and agency shall, with respect to any individuals whose payments are subject to administrative offset because of a delinquent child support obligation, promptly implement procedures to deny Federal financial assistance to such individuals. (c) The Attorney General, in consultation with the Secretary of Health and Human Services and other affected agencies, shall promptly issue guidelines for departments and agencies concerning minimum due-process standards to be included in the procedures required by subsection (b) of this section. (d) For purposes of this section, Federal financial assistance means any Federal loan (other than a disaster loan), loan guarantee, or loan insurance. (e)(1) A class of Federal financial assistance shall not be subject to denial if the head of the concerned department or agency determines: (A) in consultation with the Attorney General and the Secretary of Health and Human Services, that such action: (i) is not permitted by law; or (ii) would likely result in valid legal claims for damages against the United States; (B) that such action would be inconsistent with the best interests of the child or children with respect to whom a child support obligation is owed; or (C) that such action should be waived. (2) The head of each executive department and agency shall provide written notification to the Secretary upon determining that the denial of a class of Federal financial assistance is not permitted by law or should be waived. (f) The head of each executive department and agency shall: (1) review all laws under the jurisdiction of the department or agency that do not permit the denial of Federal financial assistance to individuals and whose payments are subject to administrative offset because of a delinquent child support obligation and, where appropriate, transmit to the Director of the Office of Management and Budget recommendations for statutory changes; and (2) to the extent practicable, review all rules, regulations, and procedures implementing laws under the jurisdiction of the department or agency governing the provision of any Federal financial assistance to individuals and, where appropriate, conform such rules, regulations, and procedures to the provisions of this order and the rules, regulations, and procedures issued by the Secretary pursuant to section 1 of this order. Sec. 3. Reports. (a) The head of each executive department and agency shall provide to the Secretary such information as the Secretary may request concerning the implementation of this order, the provisions of the Debt Collection Improvement Act of 1996 applicable to delinquent child support obligations, and the rules, regulations, and procedures issued by the Secretary pursuant to section 1 of this order. (b) The Secretary shall report annually to the President concerning the implementation by departments and agencies of this order and the provisions of the Debt Collection Improvement Act of 1996 applicable to delinquent child support obligations. Sec. 4. Judicial Review. This order does not create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or any person. William J. Clinton. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 3322, 3325, 3701, 3712, 3807 of this title; title 5 section 5514; title 10 sections 2636, 2739, 2784a; title 28 section 2415; title 30 section 1724; title 38 section 5301; title 42 sections 404, 1008, 1383. -End- -CITE- 31 USC Sec. 3717 01/06/03 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE III - FINANCIAL MANAGEMENT CHAPTER 37 - CLAIMS SUBCHAPTER II - CLAIMS OF THE UNITED STATES GOVERNMENT -HEAD- Sec. 3717. Interest and penalty on claims -STATUTE- (a)(1) The head of an executive, judicial, or legislative agency shall charge a minimum annual rate of interest on an outstanding debt on a United States Government claim owed by a person that is equal to the average investment rate for the Treasury tax and loan accounts for the 12-month period ending on September 30 of each year, rounded to the nearest whole percentage point. The Secretary of the Treasury shall publish the rate before November 1 of that year. The rate is effective on the first day of the next calendar quarter.