Title 31 — Money and Finance — § 3717. Interest and penalty on claims
Summary
These pages (316 and 317) of Title 31 of the printed U.S. Code carry 31 U.S.C. § 3717, which requires federal agencies to charge a minimum annual rate of interest on outstanding debts owed to the government, equal to the average investment rate for the Treasury tax and loan accounts for the 12-month period ending on September 30, rounded to the nearest whole percentage point; the Secretary of the Treasury publishes the rate before November 1. No interest is charged if the debt is paid within 30 days, and agencies must also assess a handling charge and a penalty charge of not more than 6 percent a year on debt more than 90 days past due. Agencies may waive these charges under joint regulations. The pages also carry the end of an executive order of William J. Clinton on delinquent child support and the start of § 3718.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
§ 3717 TITLE 31—MONEY AND FINANCE Page 316
(f) The Secretary shall, to the extent permitted by at law by a party against the United States, its agen-
law, share with the Secretary of Health and Human cies, its officers, or any person.
Services any information contained in payment certifi- WILLIAM J. CLINTON.
cation records of persons who are delinquent in child
support obligations that would assist in the collection § 3717. Interest and penalty on claims
of such debts, whether or not an administrative offset
is conducted. (a)(1) The head of an executive, judicial, or
SEC. 2. Denial of Federal Assistance. (a) The Secretary legislative agency shall charge a minimum an-
shall, to the extent permitted by law, ensure that infor- nual rate of interest on an outstanding debt on
mation concerning individuals whose payments are a United States Government claim owed by a
subject to administrative offset because of delinquent person that is equal to the average investment
child support obligations is made available to the head
of each executive department and agency that provides
rate for the Treasury tax and loan accounts for
Federal financial assistance to individuals. the 12-month period ending on September 30 of
(b) In conformance with section 2(e) of this order, the each year, rounded to the nearest whole percent-
head of each executive department and agency shall, age point. The Secretary of the Treasury shall
with respect to any individuals whose payments are publish the rate before November 1 of that year.
subject to administrative offset because of a delinquent The rate is effective on the first day of the next
child support obligation, promptly implement proce- calendar quarter.
dures to deny Federal financial assistance to such indi-
viduals.
(2) The Secretary may change the rate of in-
(c) The Attorney General, in consultation with the terest for a calendar quarter if the average in-
Secretary of Health and Human Services and other af- vestment rate for the 12-month period ending at
fected agencies, shall promptly issue guidelines for de- the close of the prior calendar quarter, rounded
partments and agencies concerning minimum due-proc- to the nearest whole percentage point, is more
ess standards to be included in the procedures required or less than the existing published rate by 2 per-
by subsection (b) of this section. centage points.
(d) For purposes of this section, Federal financial as-
sistance means any Federal loan (other than a disaster (b) Interest under subsection (a) of this section
loan), loan guarantee, or loan insurance. accrues from the date—
(e)(1) A class of Federal financial assistance shall not (1) on which notice is mailed after October
be subject to denial if the head of the concerned depart- 25, 1982, if notice was first mailed before Octo-
ment or agency determines: ber 25, 1982; or
(A) in consultation with the Attorney General and (2) notice of the amount due is first mailed
the Secretary of Health and Human Services, that such
action:
to the debtor at the most current address of
(i) is not permitted by law; or the debtor available to the head of the execu-
(ii) would likely result in valid legal claims for dam- tive or 1 legislative agency, if notice is first
ages against the United States; mailed after October 24, 1982.
(B) that such action would be inconsistent with the
best interests of the child or children with respect to (c) The rate of interest charged under sub-
whom a child support obligation is owed; or section (a) of this section—
(C) that such action should be waived. (1) is the rate in effect on the date from
(2) The head of each executive department and agen- which interest begins to accrue under sub-
cy shall provide written notification to the Secretary
upon determining that the denial of a class of Federal
section (b) of this section; and
financial assistance is not permitted by law or should (2) remains fixed at that rate for the dura-
be waived. tion of the indebtedness.
(f) The head of each executive department and agency
(d) Interest under subsection (a) of this section
shall:
(1) review all laws under the jurisdiction of the de- may not be charged if the amount due on the
partment or agency that do not permit the denial of claim is paid within 30 days after the date from
Federal financial assistance to individuals and whose which interest accrues under subsection (b) of
payments are subject to administrative offset because this section. The head of an executive, judicial,
of a delinquent child support obligation and, where ap- or legislative agency may extend the 30-day pe-
propriate, transmit to the Director of the Office of riod.
Management and Budget recommendations for statu-
(e) The head of an executive, judicial, or legis-
tory changes; and
(2) to the extent practicable, review all rules, regula- lative agency shall assess on a claim owed by a
tions, and procedures implementing laws under the ju- person—
risdiction of the department or agency governing the (1) a charge to cover the cost of processing
provision of any Federal financial assistance to individ- and handling a delinquent claim; and
uals and, where appropriate, conform such rules, regu- (2) a penalty charge of not more than 6 per-
lations, and procedures to the provisions of this order cent a year for failure to pay a part of a debt
and the rules, regulations, and procedures issued by the more than 90 days past due.
Secretary pursuant to section 1 of this order.
SEC. 3. Reports. (a) The head of each executive depart- (f) Interest under subsection (a) of this section
ment and agency shall provide to the Secretary such does not accrue on a charge assessed under sub-
information as the Secretary may request concerning section (e) of this section.
the implementation of this order, the provisions of the
Debt Collection Improvement Act of 1996 applicable to
(g) This section does not apply—
delinquent child support obligations, and the rules, reg- (1) if a statute, regulation required by stat-
ulations, and procedures issued by the Secretary pursu- ute, loan agreement, or contract prohibits
ant to section 1 of this order. charging interest or assessing charges or ex-
(b) The Secretary shall report annually to the Presi- plicitly fixes the interest or charges; and
dent concerning the implementation by departments (2) to a claim under a contract executed be-
and agencies of this order and the provisions of the fore October 25, 1982, that is in effect on Octo-
Debt Collection Improvement Act of 1996 applicable to
ber 25, 1982.
delinquent child support obligations.
SEC. 4. Judicial Review. This order does not create any
right or benefit, substantive or procedural, enforceable 1 So in original. Probably should be ‘‘, judicial, or’’.
Page 317 TITLE 31—MONEY AND FINANCE § 3718
(h) In conformity with standards prescribed Editorial Notes
jointly by the Attorney General, the Secretary AMENDMENTS
of the Treasury, and the Comptroller General,
1996—Subsec. (a)(1). Pub. L. 104–134, § 31001(c)(1), which
the head of an executive, judicial, or legislative
directed that this section be amended by substituting
agency may prescribe regulations identifying ‘‘the head of an executive, judicial, or legislative agen-
circumstances appropriate to waiving collection cy’’ for ‘‘the head of an executive or legislative agency’’
of interest and charges under subsections (a) and wherever appearing, was executed by substituting ‘‘The
(e) of this section. A waiver under the regula- head of an executive, judicial, or legislative agency’’
tions is deemed to be compliance with this sec- for ‘‘The head of an executive or legislative agency’’, to
tion. reflect the probable intent of Congress.
Subsecs. (d), (e). Pub. L. 104–134, § 31001(c)(1), which di-
(i)(1) The head of an executive, judicial, or leg- rected that this section be amended by substituting
islative agency may increase an administrative ‘‘the head of an executive, judicial, or legislative agen-
claim by the cost of living adjustment in lieu of cy’’ for ‘‘the head of an executive or legislative agency’’
charging interest and penalties under this sec- wherever appearing, was executed by substituting ‘‘The
tion. Adjustments under this subsection will be head of an executive, judicial, or legislative agency’’
computed annually. for ‘‘The head of an executive or legislative agency’’, to
(2) For the purpose of this subsection— reflect the probable intent of Congress.
Subsec. (h). Pub. L. 104–134, § 31001(c)(1), (g)(1)(C), in-
(A) the term ‘‘cost of living adjustment’’ serted ‘‘, the Secretary of the Treasury,’’ after ‘‘Attor-
means the percentage by which the Consumer ney General’’ and substituted ‘‘the head of an execu-
Price Index for the month of June of the cal- tive, judicial, or legislative agency’’ for ‘‘the head of an
endar year preceding the adjustment exceeds executive or legislative agency’’.
the Consumer Price Index for the month of Subsec. (i). Pub. L. 104–134, § 31001(q), added subsec.
June of the calendar year in which the claim (i).
was determined or last adjusted; and § 3718. Contracts for collection services
(B) the term ‘‘administrative claim’’ in-
cludes all debt that is not based on an exten- (a) Under conditions the head of an executive,
sion of Government credit through direct judicial, or legislative agency considers appro-
loans, loan guarantees, or insurance, including priate, the head of the agency may enter into a
fines, penalties, and overpayments. contract with a person for collection service to
recover indebtedness owed, or to locate or re-
(Added Pub L. 97–452, § 1(16)(A), Jan. 12, 1983, 96 cover assets of, the United States Government.
Stat. 2472; amended Pub. L. 104–134, title III, The head of an agency may not enter into a con-
§ 31001(c)(1), (g)(1)(C), (q), Apr. 26, 1996, 110 Stat. tract under the preceding sentence to locate or
1321–359, 1321–363, 1321–372.) recover assets of the United States held by a
HISTORICAL AND REVISION NOTES State government or financial institution unless
that agency has established procedures approved
Revised Source (U.S. Code) Source (Statutes at Large) by the Secretary of the Treasury to identify and
Section
recover such assets. The contract shall provide
3717(a) ..... 31 App.:952(e)(1) July 19, 1966, Pub. L. 89–508, 80 that—
(1st–3d sentences). Stat. 308, § 3(e)(1) (1st–3d
sentences), (2)–(7); added (1) the head of the agency retains the au-
Oct. 25, 1982, Pub. L. 97–365, thority to resolve a dispute, compromise a
§ 11, 96 Stat. 1755.
3717(b), 31 App.:952(e)(5). claim, end collection action, and refer a mat-
(c). ter to the Attorney General to bring a civil ac-
3717(d) ..... 31 App.:952(e)(6).
3717(e) ..... 31 App.:952(e)(2). tion; and
3717(f) ..... 31 App.:952(e)(7). (2) the person is subject to—
3717(g)(1) 31 App.:952(e)(3) (1st (A) section 552a of title 5, to the extent
sentence).
3717(g)(2) 31 App.:952(e)(4). provided in section 552a(m); and
3717(h) .... 31 App.:952(e)(3) (2d, (B) laws and regulations of the United
last sentences).
States Government and State governments
In subsection (a), the words ‘‘percentage point’’ and related to debt collection practices.
‘‘percentage points’’ are substituted for ‘‘per centum’’ (b)(1)(A) The Attorney General may make con-
for clarity.
tracts retaining private counsel to furnish legal
In subsections (a)(1) and (e), the words ‘‘Except as
services, including representation in negotia-
provided in paragraph (3)’’ are omitted as surplus.
In subsection (a)(2), the words ‘‘for a calendar quar-
tion, compromise, settlement, and litigation, in
ter’’ are substituted for ‘‘quarterly’’, and the words the case of any claim of indebtedness owed the
‘‘prior calendar quarter’’ are substituted for ‘‘that cal- United States. Each such contract shall include
endar quarter’’, for clarity. such terms and conditions as the Attorney Gen-
In subsection (b), before clause (1), the words ‘‘Sub- eral considers necessary and appropriate, includ-
ject to paragraph (6)’’ and ‘‘except as provided in sub- ing a provision specifying the amount of the fee
paragraph (B)’’ are omitted as surplus. In clause (2), the to be paid to the private counsel under such con-
words ‘‘on the claim’’ are omitted as surplus. The tract or the method for calculating that fee. The
words ‘‘if notice is first mailed after October 24, 1982’’ amount of the fee payable for legal services fur-
are added for clarity.
nished under any such contract may not exceed
In subsection (c), the words ‘‘on a claim’’ are omitted
as surplus.
the fee that counsel engaged in the private prac-
In subsection (g)(1), the words ‘‘applicable’’ and ‘‘ei-
tice of law in the area or areas where the legal
ther’’ are omitted as surplus. The word ‘‘assessing’’ is services are furnished typically charge clients
added for clarity. The words ‘‘that apply to claims in- for furnishing legal services in the collection of
volved’’ are omitted as surplus. claims of indebtedness, as determined by the At-
In subsection (h), the words ‘‘under this section’’ are torney General, considering the amount, age,
added for clarity. and nature of the indebtedness and whether the
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