US (United States) Code. Title 31. Subtitle III: Financial management. Chapter 37: Claims

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Money and finance

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-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

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

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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

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

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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

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

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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.

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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.

(2) The Secretary may change the rate of interest for a calendar

quarter if the average investment rate for the 12-month period

ending at the close of the prior calendar quarter, rounded to the

nearest whole percentage point, is more or less than the existing

published rate by 2 percentage points.

(b) Interest under subsection (a) of this section accrues from

the date -

(1) on which notice is mailed after October 25, 1982, if notice

was first mailed before October 25, 1982; or

(2) notice of the amount due is first mailed to the debtor at

the most current address of the debtor available to the head of

the executive or (!1) legislative agency, if notice is first

mailed after October 24, 1982.

(c) The rate of interest charged under subsection (a) of this

section -

(1) is the rate in effect on the date from which interest

begins to accrue under subsection (b) of this section; and

(2) remains fixed at that rate for the duration of the

indebtedness.

(d) Interest under subsection (a) of this section may not be

charged if the amount due on the claim is paid within 30 days after

the date from which interest accrues under subsection (b) of this

section. The head of an executive, judicial, or legislative agency

may extend the 30-day period.

(e) The head of an executive, judicial, or legislative agency

shall assess on a claim owed by a person -

(1) a charge to cover the cost of processing and handling a

delinquent claim; and

(2) a penalty charge of not more than 6 percent a year for

failure to pay a part of a debt more than 90 days past due.

(f) Interest under subsection (a) of this section does not accrue

on a charge assessed under subsection (e) of this section.

(g) This section does not apply -

(1) if a statute, regulation required by statute, loan

agreement, or contract prohibits charging interest or assessing

charges or explicitly fixes the interest or charges; and

(2) to a claim under a contract executed before October 25,

1982, that is in effect on October 25, 1982.

(h) In conformity with standards prescribed jointly by the

Attorney General, the Secretary of the Treasury, and the

Comptroller General, the head of an executive, judicial, or

legislative agency may prescribe regulations identifying

circumstances appropriate to waiving collection of interest and

charges under subsections (a) and (e) of this section. A waiver

under the regulations is deemed to be compliance with this section.

(i)(1) The head of an executive, judicial, or legislative agency

may increase an administrative claim by the cost of living

adjustment in lieu of charging interest and penalties under this

section. Adjustments under this subsection will be computed

annually.

(2) For the purpose of this subsection -

(A) the term "cost of living adjustment" means the percentage

by which the Consumer Price Index for the month of June of the

calendar year preceding the adjustment exceeds the Consumer Price

Index for the month of June of the calendar year in which the

claim was determined or last adjusted; and

(B) the term "administrative claim" includes all debt that is

not based on an extension of Government credit through direct

loans, loan guarantees, or insurance, including fines, penalties,

and overpayments.

-SOURCE-

(Added Pub L. 97-452, Sec. 1(16)(A), Jan. 12, 1983, 96 Stat. 2472;

amended Pub. L. 104-134, title III, Sec. 31001(c)(1), (g)(1)(C),

(q), Apr. 26, 1996, 110 Stat. 1321-359, 1321-363, 1321-372.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3717(a) 31 App.:952(e)(1) July 19, 1966, Pub. L. 89-508,

(1st-3d sentences). 80 Stat. 308, Sec. 3(e)(1)

(1st-3d sentences), (2)-(7);

added Oct. 25, 1982, Pub. L.

97-365, Sec. 11, 96 Stat. 1755.

3717(b), 31 App.:952(e)(5).

(c)

3717(d) 31 App.:952(e)(6).

3717(e) 31 App.:952(e)(2).

3717(f) 31 App.:952(e)(7).

3717(g)( 31 App.:952(e)(3)

1) (1st sentence).

3717(g)( 31 App.:952(e)(4).

2)

3717(h) 31 App.:952(e)(3)

(2d, last

sentences).

--------------------------------------------------------------------

In subsection (a), the words "percentage point" and "percentage

points" are substituted for "per centum" for clarity.

In subsections (a)(1) and (e), the words "Except as provided in

paragraph (3)" are omitted as surplus.

In subsection (a)(2), the words "for a calendar quarter" are

substituted for "quarterly", and the words "prior calendar quarter"

are substituted for "that calendar quarter", for clarity.

In subsection (b), before clause (1), the words "Subject to

paragraph (6)" and "except as provided in subparagraph (B)" are

omitted as surplus. In clause (2), the words "on the claim" are

omitted as surplus. The words "if notice is first mailed after

October 24, 1982" are added for clarity.

In subsection (c), the words "on a claim" are omitted as surplus.

In subsection (g)(1), the words "applicable" and "either" are

omitted as surplus. The word "assessing" is added for clarity. The

words "that apply to claims involved" are omitted as surplus.

In subsection (h), the words "under this section" are added for

clarity.

AMENDMENTS

1996 - Subsec. (a)(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.

Subsecs. (d), (e). 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. (h). Pub. L. 104-134, Sec. 31001(c)(1), (g)(1)(C),

inserted ", the Secretary of the Treasury," after "Attorney

General" and substituted "the head of an executive, judicial, or

legislative agency" for "the head of an executive or legislative

agency".

Subsec. (i). Pub. L. 104-134, Sec. 31001(q), added subsec. (i).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3701, 3711 of this title;

title 5 section 5514; title 7 sections 2371, 7753, 7759, 8311;

title 10 section 2739; title 15 section 80a-24; title 21 section

136a; title 22 section 2671; title 26 section 6103; title 42

sections 404, 1383.

-FOOTNOTE-

(!1) So in original. Probably should be ", judicial, or".

-End-

-CITE-

31 USC Sec. 3718 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. 3718. Contracts for collection services

-STATUTE-

(a) Under conditions the head of an executive, judicial, or

legislative agency considers appropriate, the head of the agency

may enter into a contract with a person for collection service to

recover indebtedness owed, or to locate or recover assets of, the

United States Government. The head of an agency may not enter into

a contract under the preceding sentence to locate or recover assets

of the United States held by a State government or financial

institution unless that agency has established procedures approved

by the Secretary of the Treasury to identify and recover such

assets. The contract shall provide that -

(1) the head of the agency retains the authority to resolve a

dispute, compromise a claim, end collection action, and refer a

matter to the Attorney General to bring a civil action; and

(2) the person is subject to -

(A) section 552a of title 5, to the extent provided in

section 552a(m); and

(B) laws and regulations of the United States Government and

State governments related to debt collection practices.

(b)(1)(A) The Attorney General may make contracts retaining

private counsel to furnish legal services, including representation

in negotiation, compromise, settlement, and litigation, in the case

of any claim of indebtedness owed the United States. Each such

contract shall include such terms and conditions as the Attorney

General considers necessary and appropriate, including a provision

specifying the amount of the fee to be paid to the private counsel

under such contract or the method for calculating that fee. The

amount of the fee payable for legal services furnished under any

such contract may not exceed the fee that counsel engaged in the

private practice of law in the area or areas where the legal

services are furnished typically charge clients for furnishing

legal services in the collection of claims of indebtedness, as

determined by the Attorney General, considering the amount, age,

and nature of the indebtedness and whether the debtor is an

individual or a business entity. Nothing in this subparagraph shall

relieve the Attorney General of the competition requirements set

forth in title III of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 251 and following).

(B) The Attorney General shall use his best efforts to enter into

contracts under this paragraph with law firms owned and controlled

by socially and economically disadvantaged individuals and law

firms that are qualified HUBZone small business concerns (as

defined in section 3(p) of the Small Business Act), so as to enable

each agency to comply with paragraph (3).

(2) The head of an executive, judicial, or legislative agency

may, subject to the approval of the Attorney General, refer to a

private counsel retained under paragraph (1) of this subsection

claims of indebtedness owed the United States arising out of

activities of that agency.

(3) Each agency shall use its best efforts to assure that not

less than 10 percent of the amounts of all claims referred to

private counsel by that agency under paragraph (2) are referred to

law firms owned and controlled by socially and economically

disadvantaged individuals and law firms that are qualified HUBZone

small business concerns. For purposes of this paragraph -

(A) the term "law firm owned and controlled by socially and

economically disadvantaged individuals" means a law firm that

meets the requirements set forth in clauses (i) and (ii) of

section 8(d)(3)(C) of the Small Business Act (15 U.S.C.

637(d)(3)(C)(i) and (ii)) and regulations issued under those

clauses;

(B) "socially and economically disadvantaged individuals" shall

be presumed to include these groups and individuals described in

the last paragraph of section 8(d)(3)(C) of the Small Business

Act; and

(C) the term "qualified HUBZone small business concern" has the

meaning given that term in section 3(p) of the Small Business

Act.

(4) Notwithstanding sections 516, 518(b), 519, and 547(2) of

title 28, a private counsel retained under paragraph (1) of this

subsection may represent the United States in litigation in

connection with legal services furnished pursuant to the contract

entered into with that counsel under paragraph (1) of this

subsection.

(5) A contract made with a private counsel under paragraph (1) of

this subsection shall include -

(A) a provision permitting the Attorney General to terminate

either the contract or the private counsel's representation of

the United States in particular cases if the Attorney General

finds that such action is for the convenience of the Government;

(B) a provision stating that the head of the executive or (!1)

legislative agency which refers a claim under the contract

retains the authority to resolve a dispute regarding the claim,

to compromise the claim, or to terminate a collection action on

the claim; and

(C) a provision requiring the private counsel to transmit

monthly to the Attorney General and the head of the executive or

(!1) legislative agency referring a claim under the contract a

report on the services relating to the claim rendered under the

contract during the month and the progress made during the month

in collecting the claim under the contract.

(6) Notwithstanding the fourth sentence of section 803(6) of the

Fair Debt Collection Practices Act (15 U.S.C. 1692a(6)), a private

counsel performing legal services pursuant to a contract made under

paragraph (1) of this subsection shall be considered to be a debt

collector for the purposes of such Act.

(7) Any counterclaim filed in any action to recover indebtedness

owed the United States which is brought on behalf of the United

States by private counsel retained under this subsection may not be

asserted unless the counterclaim is served directly on the Attorney

General or the United States Attorney for the judicial district in

which, or embracing the place in which, the action is brought. Such

service shall be made in accordance with the rules of procedure of

the court in which the action is brought.

(c) The Attorney General shall transmit to the Congress an annual

report on the activities of the Department of Justice to recover

indebtedness owed the United States which was referred to the

Department of Justice for collection. Each such report shall

include a list, by agency, of -

(1) the total number and amounts of claims which were referred

for legal services to the Department of Justice and to private

counsel under subsection (b) during the 1-year period covered by

the report;

(2) the total number and amount of those claims referred for

legal services to the Department of Justice which were collected

or were not collected or otherwise resolved during the 1-year

period covered by the report; and

(3) the total number and amount of those claims referred for

legal services to private counsel under subsection (b) -

(A) which were collected or were not collected or otherwise

resolved during the 1-year period covered by the report;

(B) which were not collected or otherwise resolved under a

contract terminated by the Attorney General during the 1-year

period covered by the report; and

(C) on which the Attorney General terminated the private

counsel's representation during the 1-year period covered by

the report without terminating the contract with the private

counsel under which the claims were referred.

(d) Notwithstanding section 3302(b) of this title, a contract

under subsection (a) or (b) of this section may provide that a fee

a person charges to recover indebtedness owed, or to locate or

recover assets of, the United States Government is payable from the

amount recovered.

(e) A contract under subsection (a) or (b) of this section is

effective only to the extent and in the amount provided in an

appropriation law. This limitation does not apply in the case of a

contract that authorizes a person to collect a fee as provided in

subsection (d) of this section.

(f) This section does not apply to the collection of debts under

the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).

(g) In order to assist Congress in determining whether use of

private counsel is a cost-effective method of collecting Government

debts, the Attorney General shall, following consultation with the

General Accounting Office, maintain and make available to the

Inspector General of the Department of Justice, statistical data

relating to the comparative costs of debt collection by

participating United States Attorneys' Offices and by private

counsel.

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(16)(A), Jan. 12, 1983, 96 Stat. 2473;

amended Pub. L. 98-167, Nov. 29, 1983, 97 Stat. 1104; Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99-578, Sec.

1, Oct. 28, 1986, 100 Stat. 3305; Pub. L. 102-589, Sec. 6, Nov. 10,

1992, 106 Stat. 5135; Pub. L. 103-272, Sec. 4(f)(1)(M), July 5,

1994, 108 Stat. 1362; Pub. L. 104-134, title III, Sec. 31001(c)(1),

(l), (cc)(1), Apr. 26, 1996, 110 Stat. 1321-359, 1321-366,

1321-380; Pub. L. 105-135, title VI, Sec. 604(e)(1), Dec. 2, 1997,

111 Stat. 2633.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3718(a) 31 App.:952(f)(1) July 19, 1966, Pub. L. 89-508,

(1st sentence words 80 Stat. 308, Sec. 3(f); added

after 2d comma, Oct. 25, 1982, Pub. L. 97-365,

last sentence). Sec. 13(b), 96 Stat. 1757.

3718(b) 31 App.:952(f)(2).

3718(c) 31 App.:952(f)(3).

3718(d) 31 App.:952(f)(1)

(1st sentence words

before 2d comma).

--------------------------------------------------------------------

In subsections (a) and (b), the word "Government" is added for

consistency in the revised title and with other titles of the

United States Code.

In subsection (a), before clause (1), the words "terms and" are

omitted as surplus. The words "or organization" are omitted because

of 1:1. In clause (1), the words "bring a civil action" are

substituted for "initiate legal action" for consistency in the

revised title and with other titles of the Code. In clause (2)(B),

the words "including the Fair Debt Collection Practices Act (15

U.S.C. 1692 et seq.)" are omitted as being included in "laws and

regulations of the United States Government".

In subsection (b), the words "the head of an agency" are omitted

as surplus.

In subsection (c), the word "advanced" is omitted as surplus.

In subsection (d), the words "Notwithstanding the provisions of

any other law governing the collection of claims owed the United

States" and "unpaid or underpaid" are omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949,

referred to in subsec. (b)(1)(A), is act June 30, 1949, ch. 288, 63

Stat. 377, as amended. Title III of the Act is classified generally

to subchapter IV (Sec. 251 et seq.) of chapter 4 of Title 41,

Public Contracts. For complete classification of this Act to the

Code, see Tables.

Section 3(p) of the Small Business Act, referred to in subsec.

(b)(1)(B), (3)(C), is classified to section 632(p) of Title 15,

Commerce and Trade.

The Fair Debt Collection Practices Act, referred to in subsec.

(b)(6), is title VIII of Pub. L. 90-321, as added by Pub. L. 95-109

Sept. 20, 1977, 91 Stat. 874, as amended, which is classified

generally to subchapter V (Sec. 1692 et seq.) of chapter 41 of

Title 15, Commerce and Trade. For complete classification of this

Act to the Code, see Short Title note set out under section 1601 of

Title 15 and Tables.

-MISC2-

AMENDMENTS

1997 - Subsec. (b)(1)(B). Pub. L. 105-135, Sec. 604(e)(1)(A),

inserted "and law firms that are qualified HUBZone small business

concerns (as defined in section 3(p) of the Small Business Act)"

after "disadvantaged individuals".

Subsec. (b)(3). Pub. L. 105-135, Sec. 604(e)(1)(B)(i), inserted

"and law firms that are qualified HUBZone small business concerns"

after "economically disadvantaged individuals" in introductory

provisions.

Subsec. (b)(3)(C). Pub. L. 105-135, Sec. 604(e)(1)(B)(ii)-(iv),

added subpar. (C).

1996 - Subsec. (a). Pub. L. 104-134, Sec. 31001(l)(1), in

introductory provisions substituted "Under conditions the head of

an executive, judicial, or legislative agency considers

appropriate, the head of the agency may enter into a contract with

a person for collection service to recover indebtedness owed, or to

locate or recover assets of, the United States Government. The head

of an agency may not enter into a contract under the preceding

sentence to locate or recover assets of the United States held by a

State government or financial institution unless that agency has

established procedures approved by the Secretary of the Treasury to

identify and recover such assets." for "Under conditions the head

of an executive or legislative agency considers appropriate, the

head of the agency may make a contract with a person for collection

services to recover indebtedness owed the United States

Government."

Subsec. (b)(1)(A). Pub. L. 104-134, Sec. 31001(cc)(1), struck out

"If the Attorney General makes a contract for legal services to be

furnished in any judicial district of the United States under the

first sentence of this paragraph, the Attorney General shall use

his best efforts to obtain, from among attorneys regularly engaged

in the private practice of law in such district, at least four such

contracts for legal services with private individuals or firms in

such district." before "Nothing in this subparagraph shall".

Subsec. (b)(2). Pub. L. 104-134, Sec. 31001(c)(1), which directed

the amendment of this section 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. 104-134, Sec. 31001(l)(2), inserted ", or to

locate or recover assets of," after "owed".

1994 - Subsec. (b)(3)(A). Pub. L. 103-272 substituted "15 U.S.C.

637(d)(3)(C)(i)" for "15 U.S.C. 6376(d)(3)(C)(i)".

1992 - Subsec. (g). Pub. L. 102-589 added subsec. (g).

1986 - Subsecs. (b), (c). Pub. L. 99-578, Sec. 1(1), (4), added

subsecs. (b) and (c) and redesignated former subsecs. (b) and (c)

as (d) and (e), respectively.

Subsec. (d). Pub. L. 99-578, Sec. 1(1), (2), redesignated former

subsec. (b) as (d) and inserted "or (b)" after "subsection (a)".

Former subsec. (d) redesignated (f).

Pub. L. 99-514 substituted "Internal Revenue Code of 1986" for

"Internal Revenue Code of 1954".

Subsec. (e). Pub. L. 99-578, Sec. 1(1), (3), redesignated former

subsec. (c) as (e), inserted "or (b)" after "(a)", and substituted

"subsection (d)" for "subsection (b)".

Subsec. (f). Pub. L. 99-578, Sec. 1(1), redesignated former

subsec. (d) as (f).

1983 - Subsec. (c). Pub. L. 98-167 inserted "This limitation does

not apply in the case of a contract that authorizes a person to

collect a fee as provided in subsection (b) of this section."

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section

3 of Pub. L. 105-135, set out as a note under section 631 of Title

15, Commerce and Trade.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 7 of Pub. L. 102-589 provided that: "The provisions of

this Act [amending this section and section 3720A of this title,

enacting provisions set out as notes under this section and section

6501 of this title, and amending provisions set out as notes under

this section and sections 3335 and 6503 of this title] and

amendments made by this Act shall take effect on the date of

enactment of this Act [Nov. 10, 1992], except if such date of

enactment is on or after October 1, 1992, such provisions and

amendments shall be effective as if enacted on September 30, 1992."

EFFECTIVE AND TERMINATION DATES OF 1986 AMENDMENT

Section 5 of Pub. L. 99-578, as amended by Pub. L. 102-589, Sec.

4(c), Nov. 10, 1992, 106 Stat. 5134, which provided that Pub. L.

99-578 and the amendments made by section 1 of Pub. L. 99-578

(amending this section and enacting provisions set out as notes

under this section) were to be in effect until Sept. 30, 1996, was

repealed by Pub. L. 104-134, title III, Sec. 31001(cc)(2), Apr. 26,

1996, 110 Stat. 1321-380.

REGULATIONS

Section 4 of Pub. L. 99-578 provided that: "The Attorney General

shall issue regulations to carry out this Act and the amendments

made by section 1 of this Act [amending this section and enacting

provisions set out as notes under this section]. The Attorney

General shall submit the regulations to the Congress at least 60

days before they become effective."

EXTENSION OF CONTRACTS WITH PRIVATE COUNSEL

Section 4(d) of Pub. L. 102-589 provided that: "The Attorney

General may extend or modify any or all of the contracts entered

into with private counsel prior to October 1, 1992, for such time

as is necessary to conduct a full and open competition in

accordance with section 3718(b) of title 31, United States Code."

AUDIT BY INSPECTOR GENERAL

Section 5 of Pub. L. 102-589 provided that:

"(a) Contents of Audit. - The Inspector General of the Department

of Justice shall conduct an audit, for the period beginning on

October 1, 1991, and ending on September 30, 1994, of the actions

of the Attorney General under subsection (b) of section 3718 of

title 31, United States Code, under the pilot program referred to

in section 3 of the Act entitled 'An Act to amend section 3718 of

title 31, United States Code, to authorize contracts retaining

private counsel to furnish legal services in the case of

indebtedness owed the United States.', approved October 29, 1986

(37 U.S.C. 3718 note; Public Law 99-578 [set out below]). The

Inspector General shall determine the extent of the competition

among private counsel to obtain contracts awarded under such

subsection, the reasonableness of the fees provided in such

contracts, the diligence and efforts of the Attorney General to

retain private counsel in accordance with the provisions of such

subsection, the results of the debt collection efforts of private

counsel retained under such contracts, and the cost-effectiveness

of the pilot project compared with the use of United States

Attorneys' Offices for debt collection.

"(b) Report to Congress. - After completing the audit under

subsection (a), the Inspector General shall transmit to the

Congress, not later than June 30, 1995, a report on the findings,

conclusions, and recommendations resulting from the audit."

PILOT PROGRAM; EXTENSION

Section 3 of Pub. L. 99-578, as amended by Pub. L. 102-589, Sec.

4(b), Nov. 10, 1992, 106 Stat. 5134, which directed Attorney

General to carry out subsections (b) and (c) of this section

through a pilot program in each of at least 5 and not more than 15

judicial districts selected by the Attorney General, was repealed

by Pub. L. 104-134, title III, Sec. 31001(cc)(2), Apr. 26, 1996,

110 Stat. 1321-380.

Pub. L. 104-134, title I, Sec. 101[(a)] [title I, Sec. 120], Apr.

26, 1996, 110 Stat. 1321, 1321-22; renumbered title I, Pub. L.

104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided that the

pilot debt collection project authorized by Public Law 99-578

(formerly set out above) was extended through September 30, 1997.

Prior extensions of the pilot program for legal services were

contained in the following acts:

Pub. L. 102-589, Sec. 4(a), Nov. 10, 1992, 106 Stat. 5134.

Pub. L. 102-395, title I, Oct. 6, 1992, 106 Stat. 1832.

Pub. L. 101-302, title II, May 25, 1990, 104 Stat. 216.

REPORT BY ATTORNEY GENERAL

Section 2 of Pub. L. 99-578 directed Attorney General, not later

than 180 days after Oct. 28, 1986, to transmit to Congress a report

on actions taken under subsec. (b) of this section, as added by

Pub. L. 99-578.

AUDIT BY COMPTROLLER GENERAL

Section 6 of Pub. L. 99-578 provided that:

"(a) Contents of Audit. - The Comptroller General of the United

States shall, at the end of the 3-year period referred to in

section 5 [set out above], conduct an audit of the actions of the

Attorney General under subsection (b) of section 3718 of title 31,

United States Code (as added by section 1 of this Act), under the

pilot program referred to in section 3 [set out above]. The

Comptroller General shall determine the extent of the competition

among private counsel to obtain contracts awarded under such

subsection, the reasonableness of the fees provided in such

contracts, the diligence and efforts of the Attorney General to

retain private counsel in accordance with the provisions of such

subsection, and the results of the debt collection efforts of

private counsel retained under such contracts.

"(b) Report to Congress. - After completing the audit under

subsection (a), the Comptroller General shall transmit to the

Congress a report on the findings and conclusions resulting from

the audit."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3302, 3701 of this title;

title 5 section 5514; title 10 section 2780; title 22 sections

2671, 2716; title 25 section 1616a; title 26 sections 6103, 6311;

title 28 section 3002; title 38 section 1729; title 42 sections

254o, 404, 1008, 1383.

-FOOTNOTE-

(!1) So in original. Probably should be ", judicial, or".

-End-

-CITE-

31 USC Sec. 3719 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. 3719. Reports on debt collection activities

-STATUTE-

(a) In consultation with the Comptroller General of the United

States, the Secretary of the Treasury shall prescribe regulations

requiring the head of each agency with outstanding nontax claims to

prepare and submit to the Secretary at least once each year a

report summarizing the status of loans and accounts receivable that

are managed by the head of the agency. The report shall contain -

(1) information on -

(A) the total amount of loans and accounts receivable owed

the agency and when amounts owed the agency are due to be

repaid;

(B) the total amount of receivables and number of claims at

least 30 days past due;

(C) the total amount written off as actually uncollectible

and the total amount allowed for uncollectible loans and

accounts receivable;

(D) the rate of interest charged for overdue debts and the

amount of interest charged and collected on debts;

(E) the total number of claims and the total amount

collected; and

(F) the number and total amount of claims referred to the

Attorney General for settlement and the number and total amount

of claims the Attorney General settles;

(2) the information described in clause (1) of this subsection

for each program or activity the head of the agency carries out;

and

(3) other information the Secretary considers necessary to

decide whether the head of the agency is acting aggressively to

collect the claims of the agency.

(b) The Secretary shall analyze the reports submitted under

subsection (a) of this section and shall report annually to

Congress on the management of debt collection activities by the

head of each agency, including the information provided the

Secretary under subsection (a).

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(16)(A), Jan. 12, 1983, 96 Stat. 2473;

amended Pub. L. 104-134, title III, Sec. 31001(aa)(3), Apr. 26,

1996, 110 Stat. 1321-380.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3719(a) 31 App.:955(a). Oct. 25, 1982, Pub. L. 97-365,

Sec. 12, 96 Stat. 1756.

3719(b) 31 App.:955(b).

--------------------------------------------------------------------

In subsection (a), before clause (1), the words "of the United

States" are omitted as surplus. The words "the head of" are added

for consistency in the revised title and with other titles of the

United States Code. In clause (1)(C), the words "uncollectible

loans and accounts receivable" are added for clarity. In clause

(1)(F), the words "Attorney General" are substituted for

"Department of Justice" for consistency in the revised title and

with other titles of the Code, including 28:503, 509.

In subsection (b), the word "submitted" is substituted for

"received by each agency" for clarity.

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-134, Sec. 31001(aa)(3)(A)(i),

amended first sentence generally. Prior to amendment, first

sentence read as follows: "In consultation with the Secretary of

the Treasury and the Comptroller General, the Director of the

Office of Management and Budget shall prescribe regulations

requiring the head of each agency with outstanding debts to prepare

and submit to the Director and the Secretary at least once each

year a report summarizing the status of loans and accounts

receivable managed by the head of the agency."

Subsec. (a)(3). Pub. L. 104-134, Sec. 31001(aa)(3)(A)(ii),

substituted "Secretary" for "Director".

Subsec. (b). Pub. L. 104-134, Sec. 31001(aa)(3)(B), which

directed that subsec. (b) be amended by substituting "Secretary"

for "Director", was executed by making the substitution to both

places where "Director" appeared.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which the reporting requirement under subsec. (b) of this section

is listed on page 42), see section 3003 of Pub. L. 104-66, as

amended, and section 1(a)(4) [div. A, Sec. 1402(1)] of Pub. L.

106-554, set out as notes under section 1113 of this title.

CONSOLIDATION OF REPORTS

Section 31001(aa)(4) of Pub. L. 104-134 provided that:

"Notwithstanding any other provision of law, the Secretary of the

Treasury may consolidate reports concerning debt collection

otherwise required to be submitted by the Secretary into one annual

report."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3701 of this title.

-End-

-CITE-

31 USC Sec. 3720 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. 3720. Collection of payments

-STATUTE-

(a) Each head of an executive agency (other than an agency

subject to section 9 of the Act of May 18, 1933 (48 Stat. 63,

chapter 32; 16 U.S.C. 831h)) shall, under such regulations as the

Secretary of the Treasury shall prescribe, provide for the timely

deposit of money by officials and agents of such agency in

accordance with section 3302, and for the collection and timely

deposit of sums owed to such agency by the use of such procedures

as withdrawals and deposits by electronic transfer of funds,

automatic withdrawals from accounts at financial institutions, and

a system under which financial institutions receive and deposit, on

behalf of the executive agency, payments transmitted to post office

lockboxes. The Secretary is authorized to collect from any agency

not complying with the requirements imposed pursuant to the

preceding sentence a charge in an amount the Secretary determines

to be the cost to the general fund caused by such noncompliance.

(b) The head of an executive agency shall pay to the Secretary of

the Treasury charges imposed pursuant to subsection (a). Payments

shall be made out of amounts appropriated or otherwise made

available to carry out the program to which the collections relate.

The amounts of the charges paid under this subsection shall be

deposited in the Cash Management Improvements Fund established by

subsection (c).

(c) There is established in the Treasury of the United States a

revolving fund to be known as the "Cash Management Improvements

Fund". Sums in the fund shall be available without fiscal year

limitation for the payment of expenses incurred in developing the

methods of collection and deposit described in subsection (a) of

this section and the expenses incurred in carrying out collections

and deposits using such methods, including the costs of personal

services and the costs of the lease or purchase of equipment and

operating facilities.

-SOURCE-

(Added Pub. L. 98-369, div. B, title VI, Sec. 2652(a)(1), July 18,

1984, 98 Stat. 1152.)

-MISC1-

REGULATIONS

Section 2652(a)(3) of Pub. L. 98-369 provided that: "The

Secretary of the Treasury shall prescribe regulations, including

regulations under section 3720 of title 31, United States Code,

designed to achieve by October 1, 1986, full implementation of the

purposes of this subsection."

-End-

-CITE-

31 USC Sec. 3720A 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. 3720A. Reduction of tax refund by amount of debt

-STATUTE-

(a) Any Federal agency that is owed by a person a past-due,

legally enforceable debt (including debt administered by a third

party acting as an agent for the Federal Government) shall, and any

agency subject to section 9 of the Act of May 18, 1933 (16 U.S.C.

831h), owed such a debt may, in accordance with regulations issued

pursuant to subsections (b) and (d), notify the Secretary of the

Treasury at least once each year of the amount of such debt.

(b) No Federal agency may take action pursuant to subsection (a)

with respect to any debt until such agency -

(1) notifies the person incurring such debt that such agency

proposes to take action pursuant to such paragraph with respect

to such debt;

(2) gives such person at least 60 days to present evidence that

all or part of such debt is not past-due or not legally

enforceable;

(3) considers any evidence presented by such person and

determines that an amount of such debt is past due and legally

enforceable;

(4) satisfies such other conditions as the Secretary may

prescribe to ensure that the determination made under paragraph

(3) with respect to such debt is valid and that the agency has

made reasonable efforts (determined on a government-wide basis)

to obtain payment of such debt; and

(5) certifies that reasonable efforts have been made by the

agency (pursuant to regulations) to obtain payment of such debt.

(c) Upon receiving notice from any Federal agency that a named

person owes to such agency a past-due legally enforceable debt, the

Secretary of the Treasury shall determine whether any amounts, as

refunds of Federal taxes paid, are payable to such person. If the

Secretary of the Treasury finds that any such amount is payable, he

shall reduce such refunds by an amount equal to the amount of such

debt, pay the amount of such reduction to such agency, and notify

such agency of the individual's home address.

(d) The Secretary of the Treasury shall issue regulations

prescribing the time or times at which agencies must submit notices

of past-due legally enforceable debts, the manner in which such

notices must be submitted, and the necessary information that must

be contained in or accompany the notices. The regulations shall

specify the minimum amount of debt to which the reduction procedure

established by subsection (c) may be applied and the fee that an

agency must pay to reimburse the Secretary of the Treasury for the

full cost of applying such procedure. Any fee paid to the Secretary

pursuant to the preceding sentence may be used to reimburse

appropriations which bore all or part of the cost of applying such

procedure.

(e) Any Federal agency receiving notice from the Secretary of the

Treasury that an erroneous payment has been made to such agency

under subsection (c) shall pay promptly to the Secretary, in

accordance with such regulations as the Secretary may prescribe, an

amount equal to the amount of such erroneous payment (without

regard to whether any other amounts payable to such agency under

such subsection have been paid to such agency).

(f)(1) Subsection (a) shall apply with respect to an OASDI

overpayment made to any individual only if such individual is not

currently entitled to monthly insurance benefits under title II of

the Social Security Act.

(2)(A) The requirements of subsection (b) shall not be treated as

met in the case of the recovery of an OASDI overpayment from any

individual under this section unless the notification under

subsection (b)(1) describes the conditions under which the

Commissioner of Social Security is required to waive recovery of an

overpayment, as provided under section 204(b) of the Social

Security Act.

(B) In any case in which an individual files for a waiver under

section 204(b) of the Social Security Act within the 60-day period

referred to in subsection (b)(2), the Commissioner of Social

Security shall not certify to the Secretary of the Treasury that

the debt is valid under subsection (b)(4) before rendering a

decision on the waiver request under such section 204(b). In lieu

of payment, pursuant to subsection (c), to the Commissioner of

Social Security of the amount of any reduction under this

subsection based on an OASDI overpayment, the Secretary of the

Treasury shall deposit such amount in the Federal Old-Age and

Survivors Insurance Trust Fund or the Federal Disability Insurance

Trust Fund, whichever is certified to the Secretary of the Treasury

as appropriate by the Commissioner of Social Security.

(g) In the case of refunds of business associations, this section

shall apply only to refunds payable on or after January 1, 1995. In

the case of refunds of individuals who owe debts to Federal

agencies that have not participated in the Federal tax refund

offset program prior to the date of enactment of this subsection,

this section shall apply only to refunds payable on or after

January 1, 1994.

(h)(1) (!1) The disbursing official of the Department of the

Treasury -

(1) (!1) shall notify a taxpayer in writing of -

(A) the occurrence of an offset to satisfy a past-due legally

enforceable nontax debt;

(B) the identity of the creditor agency requesting the

offset; and

(C) a contact point within the creditor agency that will

handle concerns regarding the offset;

(2) (!1) shall notify the Internal Revenue Service on a weekly

basis of -

(A) the occurrence of an offset to satisfy a past-due legally

enforceable non-tax (!2) debt;

(B) the amount of such offset; and

(C) any other information required by regulations; and

(3) shall match payment records with requests for offset by

using a name control, taxpayer identifying number (as that term

is used in section 6109 of the Internal Revenue Code of 1986),

and any other necessary identifiers.

(h)(2) (!1) The term "disbursing official" of the Department of

the Treasury means the Secretary or his designee.

(i) An agency subject to section 9 of the Act of May 18, 1933 (16

U.S.C. 831h), may implement this section at its discretion.

-SOURCE-

(Added Pub. L. 98-369, div. B, title VI, Sec. 2653(a)(1), July 18,

1984, 98 Stat. 1153; amended Pub. L. 101-508, title V, Sec.

5129(b), Nov. 5, 1990, 104 Stat. 1388-287; Pub. L. 102-589, Sec. 3,

Nov. 10, 1992, 106 Stat. 5133; Pub. L. 103-296, title I, Sec.

108(j)(2), Aug. 15, 1994, 108 Stat. 1488; Pub. L. 104-134, title

III, Sec. 31001(u)(1), (v)(1), (w), Apr. 26, 1996, 110 Stat.

1321-375.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in subsec. (f)(1), is act

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the

Act is classified generally to subchapter II (Sec. 401 et seq.) of

chapter 7 of Title 42, The Public Health and Welfare. Section 204

of the Act is classified to section 404 of Title 42. For complete

classification of this Act to the Code, see section 1305 of Title

42 and Tables.

The date of enactment of this subsection, referred to in subsec.

(g), is the date of enactment of Pub. L. 102-589, which was

approved Nov. 10, 1992.

Section 6109 of the Internal Revenue Code of 1986, referred to in

subsec. (h)(3), is classified to section 6109 of Title 26, Internal

Revenue Code.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-134, Sec. 31001(v)(1), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: "Any Federal agency that is owed a past-due legally

enforceable debt (other than any past-due support), including debt

administered by a third party acting as an agent for the Federal

Government, by a named person shall, in accordance with regulations

issued pursuant to subsections (b) and (d), notify the Secretary of

the Treasury at least once a year of the amount of all such debt."

Subsec. (h). Pub. L. 104-134, Sec. 31001(w), amended subsec. (h)

generally. Prior to amendment, subsec. (h) read as follows: "For

purposes of this section -

"(1) the term 'Federal agency' means a department, agency, or

instrumentality of the United States (other than an agency

subject to section 9 of the Act of May 18, 1933 (48 Stat. 63,

chapter 32; 16 U.S.C. 831h)), and includes a Government

corporation (as such term is defined in section 103 of title 5,

United States Code);

"(2) the term 'past-due support' means any delinquency subject

to section 464 of the Social Security Act;

"(3) the term 'OASDI overpayment' means any overpayment of

benefits made to an individual under title II of the Social

Security Act; and

"(4) the term 'person' means an individual; or a sole

proprietorship, partnership, corporation, nonprofit organization,

or any other form of business association."

Subsec. (i). Pub. L. 104-134, Sec. 31001(u)(1), added subsec.

(i).

1994 - Subsec. (f)(2). Pub. L. 103-296 substituted "Commissioner

of Social Security" for "Secretary of Health and Human Services"

wherever appearing.

1992 - Subsec. (a). Pub. L. 102-589, Sec. 3(1), amended subsec.

(a) generally. Prior to amendment, subsec. (a) read as follows:

"Any Federal agency that is owed a past-due legally enforceable

debt (other than any past-due support) by a named person shall, in

accordance with regulations issued pursuant to subsection (d),

notify the Secretary of the Treasury of the amount of such debt."

Subsec. (b)(3) to (5). Pub. L. 102-589, Sec. 3(2), struck out

"and" at end of par. (3), substituted "(determined on a

government-wide basis) to obtain payment of such debt; and" for "to

obtain payment of such debt." in par. (4), and added par. (5).

Subsec. (g). Pub. L. 102-589, Sec. 3(5), added subsec. (g).

Former subsec. (g) redesignated (h).

Subsec. (h). Pub. L. 102-589, Sec. 3(3), (4), redesignated

subsec. (g) as (h) and added par. (4).

1990 - Subsec. (a). Pub. L. 101-508, Sec. 5129(b)(1), struck out

"OASDI overpayment and" after "other than any".

Subsecs. (f), (g). Pub. L. 101-508, Sec. 5129(b)(2), (3), added

subsec. (f) and redesignated former subsec. (f) as (g).

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section

110(a) of Pub. L. 103-296, set out as a note under section 401 of

Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-589 effective as if enacted on Sept. 30,

1992, see section 7 of Pub. L. 102-589, set out as a note under

section 3718 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 effective Jan. 1, 1991, and

inapplicable to refunds to which amendments by section 2653 of the

Deficit Reduction Act of 1984, Pub. L. 98-369, do not apply, see

section 5129(d) of Pub. L. 101-508, set out as a note under section

6402 of Title 26, Internal Revenue Code.

EFFECTIVE DATE

Section applicable with respect to refunds payable under section

6402 of Title 26, Internal Revenue Code, after Dec. 31, 1985, see

section 2653(c) of Pub. L. 98-369, as amended, set out as an

Effective Date of 1984 Amendment note under section 6402 of Title

26.

CLARIFICATION OF CONGRESSIONAL INTENT AS TO SCOPE OF AMENDMENTS BY

SECTION 2653 OF PUB. L. 98-369

For provisions that nothing in amendments by section 2653 of Pub.

L. 98-369, enacting this section, be construed as exempting debts

of corporations or any other category of persons from application

of such amendments, with such amendments to extend to all Federal

agencies (as defined in such amendments), see section 9402(b) of

Pub. L. 100-203, set out as a note under section 6402 of Title 26,

Internal Revenue Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3322, 3325 of this title;

title 7 sections 2020, 2022; title 26 section 6402; title 42

sections 404, 1008, 1320a-8, 1395ccc.

-FOOTNOTE-

(!1) So in original. Subsec. (h) contains two pars. designated (1)

and (2).

(!2) So in original. Probably should not be hyphenated.

-End-

-CITE-

31 USC Sec. 3720B 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. 3720B. Barring delinquent Federal debtors from obtaining

Federal loans or loan insurance guarantees

-STATUTE-

(a) Unless this subsection is waived by the head of a Federal

agency, a person may not obtain any Federal financial assistance in

the form of a loan (other than a disaster loan or a marketing

assistance loan or loan deficiency payment under subtitle C of the

Agricultural Market Transition Act (7 U.S.C. 7231 et seq.)) or loan

insurance or guarantee administered by the agency if the person has

an outstanding debt (other than a debt under the Internal Revenue

Code of 1986) with any Federal agency which is in a delinquent

status, as determined under standards prescribed by the Secretary

of the Treasury. Such a person may obtain additional loans or loan

guarantees only after such delinquency is resolved in accordance

with those standards. The Secretary of the Treasury may exempt, at

the request of an agency, any class of claims.

(b) The head of a Federal agency may delegate the waiver

authority under subsection (a) to the Chief Financial Officer of

the agency. The waiver authority may be redelegated only to the

Deputy Chief Financial Officer of the agency.

-SOURCE-

(Added Pub. L. 104-134, title III, Sec. 31001(j)(1), Apr. 26, 1996,

110 Stat. 1321-365; amended Pub. L. 106-387, Sec. 1(a) [title VIII,

Sec. 845(a)], Oct. 28, 2000, 114 Stat. 1549, 1549A-65.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Market Transition Act, referred to in subsec.

(a), is title I of Pub. L. 104-127, Apr. 4, 1996, 110 Stat. 896, as

amended. Subtitle C of the Act is classified generally to

subchapter III (Sec. 7231 et seq.) of chapter 100 of Title 7,

Agriculture. For complete classification of this Act to the Code,

see References in Text note set out under section 7201 of Title 7

and Tables.

The Internal Revenue Code of 1986, referred to in subsec. (a), is

classified to Title 26, Internal Revenue Code.

-MISC1-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-387 inserted "or a marketing

assistance loan or loan deficiency payment under subtitle C of the

Agricultural Market Transition Act (7 U.S.C. 7231 et seq.)" after

"disaster loan".

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 845(c)], Oct. 28,

2000, 114 Stat. 1549, 1549A-65, provided that:

"(1) In general. - The amendment made by subsection (a) [amending

this section] takes effect on the date of enactment of this Act

[Oct. 28, 2000].

"(2) Transition loan deficiency payments. - If the producers on a

farm lost beneficial interest in a crop during the period beginning

March 21, 2000, and ending on the day before the date of enactment

of this Act and were ineligible for a marketing assistance loan

under subtitle C of the Agricultural Market Transition Act (7

U.S.C. 7231 et seq.) because of section 3720B(a) of title 31,

United States Code, as in effect before the amendment made by

subsection (a), the producers shall be eligible for any loan

deficiency payment under subtitle C of that Act that was available

on the date on which the producers lost beneficial interest in the

crop."

PAYMENTS

Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 845(b)], Oct. 28,

2000, 114 Stat. 1549, 1549A-65, provided that: "Any payment made by

the Commodity Credit Corporation to a producer as a result of the

amendment made by section (a) [amending this section] shall be

credited toward any delinquent debt owed by the producer to the

Farm Service Agency."

-End-

-CITE-

31 USC Sec. 3720C 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. 3720C. Debt Collection Improvement Account

-STATUTE-

(a)(1) There is hereby established in the Treasury a special fund

to be known as the "Debt Collection Improvement Account"

(hereinafter in this section referred to as the "Account").

(2) The Account shall be maintained and managed by the Secretary

of the Treasury, who shall ensure that agency programs are credited

with amounts transferred under subsection (b)(1).

(b)(1) Not later than 30 days after the end of a fiscal year, an

agency may transfer to the Account the amount described in

paragraph (3), as adjusted under paragraph (4).

(2) Agency transfers to the Account may include collections from

-

(A) salary, administrative, and tax refund offsets;

(B) the Department of Justice;

(C) private collection agencies;

(D) sales of delinquent loans; and

(E) contracts to locate or recover assets.

(3) The amount referred to in paragraph (1) shall be 5 percent of

the amount of delinquent debt collected by an agency in a fiscal

year, minus the greater of -

(A) 5 percent of the amount of delinquent nontax debt collected

by the agency in the previous fiscal year, or

(B) 5 percent of the average annual amount of delinquent nontax

debt collected by the agency in the previous 4 fiscal years.

(4) In consultation with the Secretary of the Treasury, the

Office of Management and Budget may adjust the amount described in

paragraph (3) for an agency to reflect the level of effort in

credit management programs by the agency. As an indicator of the

level of effort in credit management, the Office of Management and

Budget shall consider the following:

(A) The number of days between the date a claim or debt became

delinquent and the date which an agency referred the debt or

claim to the Secretary of the Treasury or obtained an exemption

from this referral under section 3711(g)(2) of this title.

(B) The ratio of delinquent debts or claims to total

receivables for a given program, and the change in this ratio

over a period of time.

(c)(1) The Secretary of the Treasury may make payments from the

Account solely to reimburse agencies for qualified expenses. For

agencies with franchise funds, such payments may be credited to

subaccounts designated for debt collection.

(2) For purposes of this section, the term "qualified expenses"

means expenditures for the improvement of credit management, debt

collection, and debt recovery activities, including -

(A) account servicing (including cross-servicing under section

3711(g) of this title),

(B) automatic data processing equipment acquisitions,

(C) delinquent debt collection,

(D) measures to minimize delinquent debt,

(E) sales of delinquent debt,

(F) asset disposition, and

(G) training of personnel involved in credit and debt

management.

(3)(A) Amounts transferred to the Account shall be available to

the Secretary of the Treasury for purposes of this section to the

extent and in amounts provided in advance in appropriations Acts.

(B) As soon as practicable after the end of the third fiscal year

after which amounts transferred are first available pursuant to

this section, and every 3 years thereafter, any uncommitted balance

in the Account shall be transferred to the general fund of the

Treasury as miscellaneous receipts.

(d) For direct loans and loan guarantee programs subject to title

V of the Congressional Budget Act of 1974, amounts credited in

accordance with subsection (c) shall be considered administrative

costs.

(e) The Secretary of the Treasury shall prescribe such rules,

regulations, and procedures as the Secretary considers necessary or

appropriate to carry out the purposes of this section.

-SOURCE-

(Added Pub. L. 104-134, title III, Sec. 31001(t)(1), Apr. 26, 1996,

110 Stat. 1321-373.)

-REFTEXT-

REFERENCES IN TEXT

The Congressional Budget Act of 1974, referred to in subsec. (d),

is titles I through IX of Pub. L. 93-344, July 12, 1974, 88 Stat.

297, as amended. Title V of the Act, known as the Federal Credit

Reform Act of 1990, is classified generally to subchapter III (Sec.

661 et seq.) of chapter 17A of Title 2, The Congress. For complete

classification of this Act to the Code, see Short Title note set

out under section 621 of Title 2 and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3711 of this title.

-End-

-CITE-

31 USC Sec. 3720D 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. 3720D. Garnishment

-STATUTE-

(a) Notwithstanding any provision of State law, the head of an

executive, judicial, or legislative agency that administers a

program that gives rise to a delinquent nontax debt owed to the

United States by an individual may in accordance with this section

garnish the disposable pay of the individual to collect the amount

owed, if the individual is not currently making required repayment

in accordance with any agreement between the agency head and the

individual.

(b) In carrying out any garnishment of disposable pay of an

individual under subsection (a), the head of an executive,

judicial, or legislative agency shall comply with the following

requirements:

(1) The amount deducted under this section for any pay period

may not exceed 15 percent of disposable pay, except that a

greater percentage may be deducted with the written consent of

the individual.

(2) The individual shall be provided written notice, sent by

mail to the individual's last known address, a minimum of 30 days

prior to the initiation of proceedings, from the head of the

executive, judicial, or legislative agency, informing the

individual of -

(A) the nature and amount of the debt to be collected;

(B) the intention of the agency to initiate proceedings to

collect the debt through deductions from pay; and

(C) an explanation of the rights of the individual under this

section.

(3) The individual shall be provided an opportunity to inspect

and copy records relating to the debt.

(4) The individual shall be provided an opportunity to enter

into a written agreement with the executive, judicial, or

legislative agency, under terms agreeable to the head of the

agency, to establish a schedule for repayment of the debt.

(5) The individual shall be provided an opportunity for a

hearing in accordance with subsection (c) on the determination of

the head of the executive, judicial, or legislative agency

concerning -

(A) the existence or the amount of the debt, and

(B) in the case of an individual whose repayment schedule is

established other than by a written agreement pursuant to

paragraph (4), the terms of the repayment schedule.

(6) If the individual has been reemployed within 12 months

after having been involuntarily separated from employment, no

amount may be deducted from the disposable pay of the individual

until the individual has been reemployed continuously for at

least 12 months.

(c)(1) A hearing under subsection (b)(5) shall be provided prior

to issuance of a garnishment order if the individual, on or before

the 15th day following the mailing of the notice described in

subsection (b)(2), and in accordance with such procedures as the

head of the executive, judicial, or legislative agency may

prescribe, files a petition requesting such a hearing.

(2) If the individual does not file a petition requesting a

hearing prior to such date, the head of the agency shall provide

the individual a hearing under subsection (a)(5) (!1) upon request,

but such hearing need not be provided prior to issuance of a

garnishment order.

(3) The hearing official shall issue a final decision at the

earliest practicable date, but not later than 60 days after the

filing of the petition requesting the hearing.

(d) The notice to the employer of the withholding order shall

contain only such information as may be necessary for the employer

to comply with the withholding order.

(e)(1) An employer may not discharge from employment, refuse to

employ, or take disciplinary action against an individual subject

to wage withholding in accordance with this section by reason of

the fact that the individual's wages have been subject to

garnishment under this section, and such individual may sue in a

State or Federal court of competent jurisdiction any employer who

takes such action.

(2) The court shall award attorneys' fees to a prevailing

employee and, in its discretion, may order reinstatement of the

individual, award punitive damages and back pay to the employee, or

order such other remedy as may be reasonably necessary.

(f)(1) The employer of an individual -

(A) shall pay to the head of an executive, judicial, or

legislative agency as directed in a withholding order issued in

an action under this section with respect to the individual, and

(B) shall be liable for any amount that the employer fails to

withhold from wages due an employee following receipt by such

employer of notice of the withholding order, plus attorneys'

fees, costs, and, in the court's discretion, punitive damages.

(2)(A) The head of an executive, judicial, or legislative agency

may sue an employer in a State or Federal court of competent

jurisdiction to recover amounts for which the employer is liable

under paragraph (1)(B).

(B) A suit under this paragraph may not be filed before the

termination of the collection action, unless earlier filing is

necessary to avoid expiration of any applicable statute of

limitations period.

(3) Notwithstanding paragraphs (1) and (2), an employer shall not

be required to vary its normal pay and disbursement cycles in order

to comply with this subsection.

(g) For the purpose of this section, the term "disposable pay"

means that part of the compensation of any individual from an

employer remaining after the deduction of any amounts required by

any other law to be withheld.

(h) The Secretary of the Treasury shall issue regulations to

implement this section.

-SOURCE-

(Added Pub. L. 104-134, title III, Sec. 31001(o)(1), Apr. 26, 1996,

110 Stat. 1321-369.)

-FOOTNOTE-

(!1) So in original. Probably should be subsection "(b)(5)".

-End-

-CITE-

31 USC Sec. 3720E 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. 3720E. Dissemination of information regarding identity of

delinquent debtors

-STATUTE-

(a) The head of any agency may, with the review of the Secretary

of the Treasury, for the purpose of collecting any delinquent

nontax debt owed by any person, publish or otherwise publicly

disseminate information regarding the identity of the person and

the existence of the nontax debt.

(b)(1) The Secretary of the Treasury, in consultation with the

Director of the Office of Management and Budget and the heads of

other appropriate Federal agencies, shall issue regulations

establishing procedures and requirements the Secretary considers

appropriate to carry out this section.

(2) Regulations under this subsection shall include -

(A) standards for disseminating information that maximize

collections of delinquent nontax debts, by directing actions

under this section toward delinquent debtors that have assets or

income sufficient to pay their delinquent nontax debt;

(B) procedures and requirements that prevent dissemination of

information under this section regarding persons who have not had

an opportunity to verify, contest, and compromise their nontax

debt in accordance with this subchapter; and

(C) procedures to ensure that persons are not incorrectly

identified pursuant to this section.

-SOURCE-

(Added Pub. L. 104-134, title III, Sec. 31001(r)(1), Apr. 26, 1996,

110 Stat. 1321-372.)

-End-

-CITE-

31 USC SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES

GOVERNMENT 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-End-

-CITE-

31 USC Sec. 3721 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3721. Claims of personnel of agencies and the District of

Columbia government for personal property damage or loss

-STATUTE-

(a) In this section -

(1) "agency" does not include a nonappropriated fund activity

or a contractor with the United States Government.

(2) "head of an agency" means -

(A) for a military department, the Secretary of the military

department;

(B) for the Department of Defense (except the military

departments), the Secretary of Defense; and

(C) for another agency, the head of the agency.

(3) "settle" means consider, determine, adjust, and dispose of

a claim by disallowance or by complete or partial allowance.

(b)(1) The head of an agency may settle and pay not more than

$40,000 for a claim against the Government made by a member of the

uniformed services under the jurisdiction of the agency or by an

officer or employee of the agency for damage to, or loss of,

personal property incident to service. If, however, the claim arose

from an emergency evacuation or from extraordinary circumstances,

the amount settled and paid under the authority of the preceding

sentence may exceed $40,000, but may not exceed $100,000. A claim

allowed under this subsection may be paid in money or the personal

property replaced in kind.

(2) The Secretary of State may waive the settlement and payment

limitation referred to in paragraph (1) for claims for damage or

loss by United States Government personnel under the jurisdiction

of a chief of mission in a foreign country if such claims arise in

circumstances where there is in effect a departure from the country

authorized or ordered under circumstances described in section

5522(a) of title 5, if the Secretary determines that there exists

exceptional circumstances that warrant such a waiver.

(c) On paying a claim under this section, the Government is

subrogated for the amount of the payment to a right or claim that

the claimant may have against a foreign country for the damage or

loss for which the Government made the payment.

(d) The Mayor of the District of Columbia may settle and pay a

claim against the District of Columbia government made by an

officer or employee of the District of Columbia government to the

same extent the head of an agency may settle and pay a claim under

this section.

(e) A claim may not be allowed under this section if the personal

property damage or loss occurred at quarters occupied by the

claimant in a State or the District of Columbia that were not

assigned or provided in kind by the United States Government or the

District of Columbia government.

(f) A claim may be allowed under this section only if -

(1) the claim is substantiated;

(2) the head of the agency decides that possession of the

property was reasonable or useful under the circumstances; and

(3) no part of the loss was caused by any negligent or wrongful

act of the claimant or an agent or employee of the claimant.

(g) A claim may be allowed under this section only if it is

presented in writing within 2 years after the claim accrues.

However, if a claim under subsection (b) of this section accrues

during war or an armed conflict in which an armed force of the

United States is involved, or has accrued within 2 years before war

or an armed conflict begins, and for cause shown, the claim must be

presented within 2 years after the cause no longer exists or after

the war or armed conflict ends, whichever is earlier. An armed

conflict begins and ends as stated in a concurrent resolution of

Congress or a decision of the President.

(h) The head of the agency -

(1) may settle and pay a claim made by the surviving spouse,

child, parent, or brother or sister of a dead member, officer, or

employee if the claim is otherwise payable under this section;

and

(2) may settle and pay the claims by the survivors only in the

following order:

(A) the spouse's claim.

(B) a child's claim.

(C) a parent's claim.

(D) a brother's or sister's claim.

(i) Notwithstanding a contract, the representative of a claimant

may not receive more than 10 percent of a payment of a claim made

under this section for services related to the claim. A person

violating this subsection shall be fined not more than $1,000.

(j) The President may prescribe policies to carry out this

section (except subsection (b) to the extent that subsection (b)

applies to the military departments, the Department of Defense, and

the Coast Guard). Subject to those policies, the head of each

agency shall prescribe regulations to carry out this section.

(k) Settlement of a claim under this section is final and

conclusive.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 973; Pub. L. 97-452, Sec.

1(17), Jan. 12, 1983, 96 Stat. 2474; Pub. L. 100-565, Sec. 1, Oct.

31, 1988, 102 Stat. 2833; Pub. L. 103-236, title I, Sec. 172(a),

Apr. 30, 1994, 108 Stat. 412; Pub. L. 104-106, div. A, title X,

Sec. 1088(a), Feb. 10, 1996, 110 Stat. 458.)

-MISC1-

HISTORICAL AND REVISION NOTES

1982 ACT

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3721(a), 31:240(3). Aug. 31, 1964, Pub. L. 88-558,

(b) Secs. 2(3), 4, 78 Stat. 767,

768.

31:241(a)(1)(1st Aug. 31, 1964, Pub. L. 88-558,

sentence words Sec. 3(a)(1), 78 Stat. 767;

after 3d comma, 2d restated Sept. 15, 1965, Pub.

sentence words L. 89-185, Sec. 3(b), 79 Stat.

after last comma, 789; Oct. 18, 1974, Pub. L.

last sentence). 93-455, Sec. 1(a), 88 Stat.

1381.

31:241(a)(2)(words Aug. 31, 1964, Pub. L. 88-558,

after 1st comma). Sec. 3(a)(2), (3), (b)(2)-(d),

78 Stat. 767; restated Sept.

15, 1965, Pub. L. 89-185, Sec.

3(b)-(d), 79 Stat. 789, 790.

31:241(b)(1)(1st Aug. 31, 1964, Pub. L. 88-558,

sentence words Sec. 3(b)(1), 78 Stat. 767;

after 5th comma, 2d Sept. 15, 1965, Pub. L.

sentence words 89-185, Sec. 3(b), 79 Stat.

after last comma, 790; July 13, 1972, Pub. L.

last sentence). 92-352, Sec. 106(a), 86 Stat.

491; restated Oct. 18, 1974,

Pub. L. 93-455, Sec. 1(b), 88

Stat. 1381.

31:243a(d)(2d Aug. 31, 1964, Pub. L. 88-558,

sentence related to 78 Stat. 767, Sec. 9; added

payment). Dec. 12, 1980, Pub. L. 96-519,

Sec. 1, 94 Stat. 3031.

3721(c)( 31:243a(a)(words

1) after 1st comma).

3721(c)( 31:243a(e).

2)

3721(c)( 31:243a(note). Dec. 12, 1980, Pub. L. 96-519,

3) Sec. 2, 94 Stat. 3032.

3721(d) 31:241(f). Aug. 31, 1964, Pub. L. 88-558,

78 Stat. 767, Sec. 3(f); added

Oct. 12, 1968, Pub. L. 90-561,

82 Stat. 998.

3721(e) 31:241(c)(2).

3721(f) 31:241(a)(1)(2d

sentence words

before last comma),

(b)(1)(2d sentence

words before last

comma), (c)(3).

31:243a(d)(2d

sentence less

payment, last

sentence).

3721(g) 31:241(c)(1), (d).

31:243a(c).

3721(h) 31:241(a)(3),

(b)(2).

31:243a(b).

3721(i) 31:243. Aug. 31, 1964, Pub. L. 88-558,

78 Stat. 767, Sec. 8; added

Sept. 15, 1965, Pub. L.

89-185, Sec. 5, 79 Stat. 791.

3721(j) 31:241(a)(1)(1st

sentence words

before 3d comma),

(2)(words before

1st comma),

(b)(1)(1st sentence

words before 5th

comma).

31:243a(a)(words

before 1st comma),

(d)(1st sentence).

3721(k) 31:242.

--------------------------------------------------------------------

In the section, the words "or his designee" are omitted as

unnecessary.

In subsections (b) and (c), the word "civilian" is omitted as

surplus.

In subsection (b), the words "arising after August 31, 1964" and

"arising after October 18, 1974" and 31:241(a)(1)(last sentence)

and (b)(1)(last sentence) are omitted as executed.

In subsection (c)(1)(B), the words "mob violence, terrorist

attacks, or other" are omitted as surplus. The word "members" is

added for consistency.

In subsection (c)(2), the words "in which that damage or loss

occurred" are omitted as surplus.

In subsection (c)(3), the text of section 2(last sentence) of the

Act of December 12, 1980 (Pub. L. 96-519, 94 Stat. 3032) is omitted

as obsolete.

Subsection (d) is substituted for 31:241(f) because of the

restatement.

In subsection (e), the words "assigned to him or otherwise" in

31:241(c)(2) are omitted as surplus. The words "or the District of

Columbia government" are added because of the restatement.

In subsection (f), the words "the head of the agency decides" are

substituted for "determined to be" in 31:241(b)(1) for clarity.

In subsection (g), the text of 31:243a(c)(words after 1st comma)

are omitted as executed. The words "in writing" and "of the United

States" in 31:241(c)(1) are omitted as unnecessary.

In subsection (h)(1), the words "the surviving . . . of a dead

member, officer, or employee" are substituted for "If a person

named in this subsection is dead" and "the decedent's surviving" in

31:241(a)(3) and (b)(2) and "if such person is deceased" and "the

decedent's surviving" in 31:243a(b) to omit surplus words. The

words "that arose before, concurrently with, or after the

decedent's death" in 31:241(a)(3) and (b)(2) and 31:243a(b) are

omitted as surplus. The words "child, parent, or brother or sister"

are substituted for "(2) children, (3) father or mother, or both,

or (4) brothers or sisters, or both" to eliminate surplus words and

because of 1:1. The words "otherwise payable" are substituted for

"otherwise covered" for clarity.

Subsection (h)(2) is substituted for "Claims of survivors shall

be settled and paid in the order named" in 31:241(a)(3) and (b)(2)

and "Claims of survivors shall be settled and paid in the order set

forth in the preceding sentence" in 31:243a(b) for clarity.

In subsection (i), the words "to the contrary" are omitted as

surplus. The words "representative of a claimant" are substituted

for "agent or attorney" for clarity and consistency. The words "be

paid or delivered to or" are omitted as surplus. The word "payment"

is substituted for "amount paid in settlement" to eliminate

unnecessary words. The words "individual . . . submitted and

settled . . . the authority of" are omitted as surplus. The words

"and the same shall be unlawful" are omitted because of the

restatement. The words "shall be deemed guilty of a misdemeanor and

upon conviction thereof . . . in any sum" are omitted as surplus.

In subsection (j), the words "the purposes of" in

31:241(b)(1)(1st sentence words before 5th comma) are omitted as

surplus. The words "(except subsection (b) to the extent that

subsection (b) applies to the military departments, the Department

of Defense, and the Coast Guard)" are substituted for the source

provisions because of the restatement. The words "to carry out this

section" after "regulations" are added for clarity.

In subsection (k), the words "Notwithstanding any other provision

of law" are omitted as unnecessary.

1983 ACT

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3721(b) 31 App.:241(a)(1), July 28, 1982, Pub. L. 97-226,

(b)(1). Sec. 1(a), 96 Stat. 245.

--------------------------------------------------------------------

AMENDMENTS

1996 - Subsec. (b)(1). Pub. L. 104-106 inserted after first

sentence "If, however, the claim arose from an emergency evacuation

or from extraordinary circumstances, the amount settled and paid

under the authority of the preceding sentence may exceed $40,000,

but may not exceed $100,000."

1994 - Subsec. (b). Pub. L. 103-236 designated existing

provisions as par. (1) and added par. (2).

1988 - Subsec. (b). Pub. L. 100-565, Sec. 1(1), substituted

"$40,000" for "$25,000".

Subsec. (c). Pub. L. 100-565, Sec. 1(2), in amending subsec. (c)

generally, redesignated former subsec. (c)(2) as (c) and

substituted "section" for "subsection", struck out par. (1) which

authorized agency head to pay claim against Government for not more

than $40,000 to member of uniformed services, or officer or

employee of agency, for damage to, or loss of, personal property in

foreign country, incurred after December 30, 1978, incident to

service, after evacuation from foreign country, and struck out par.

(3) which limited amounts to be obligated or expended for claims to

extent provided in advance in appropriation laws.

1983 - Subsec. (b). Pub. L. 97-452 substituted "$25,000" for

"$15,000".

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1088(b) of Pub. L. 104-106 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to

claims arising before, on, or after the date of the enactment of

this Act [Feb. 10, 1996]."

EFFECTIVE DATE OF 1994 AMENDMENT

Section 172(b) of Pub. L. 103-236 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to claims arising on or after October 31, 1988."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 2 of Pub. L. 100-565 provided that: "The amendments made

by this Act [amending this section] shall apply only to claims

arising on or after the date of the enactment of this Act [Oct. 31,

1988]."

EFFECTIVE DATE OF 1983 AMENDMENT

Section 2(g) of Pub. L. 97-452 provided that: "The amendment made

by section 1(17) of this Act [amending this section] applies only

to claims arising after July 27, 1982."

-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.

-MISC2-

REPRESENTMENTS OF PREVIOUSLY PRESENTED CLAIMS

Section 1088(c) of Pub. L. 104-106 provided that:

"(1) A claim under subsection (b) of section 3721 of title 31,

United States Code, that was settled under such section before the

date of the enactment of this Act [Feb. 10, 1996] may be

represented under such section, as amended by subsection (a), to

the head of the agency concerned to recover the amount equal to the

difference between the actual amount of the damage or loss and the

amount settled and paid under the authority of such section before

the date of the enactment of this Act, except that -

"(A) the claim shall be represented in writing within two years

after the date of the enactment of this Act;

"(B) a determination of the actual amount of the damage or loss

shall have been made by the head of the agency concerned pursuant

to settlement of the claim under the authority of such section

before the date of the enactment of this Act;

"(C) the claimant shall have proof of the determination

referred to in subparagraph (B); and

"(D) the total of all amounts paid in settlement of the claim

under the authority of such section may not exceed $100,000.

"(2) Subsection (k) of such section shall not apply to bar

representment of a claim described in paragraph (1), but shall

apply to such a claim that is represented and settled under that

section after the date of the enactment of this Act."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 10 section 2739; title 14

section 823a; title 16 sections 18i, 558c; title 26 section 6402;

title 43 section 1737.

-End-

-CITE-

31 USC Sec. 3722 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3722. Claims of officers and employees at Government penal and

correctional institutions

-STATUTE-

(a) The Attorney General may settle and pay not more than $1,000

in any one case for a claim made by an officer or employee at a

United States Government penal or correctional institution for

damage to, or loss of, personal property incident to employment.

(b) A claim may not be allowed under this section if the loss

occurred at quarters occupied by the claimant that were not

assigned or provided in kind by the Government.

(c) A claim may be allowed only if -

(1) no part of the loss was caused by any negligent or wrongful

act of the claimant or an agent or employee of the claimant;

(2) the Attorney General decides that possession of the

property was reasonable or useful under the circumstances; and

(3) it is presented in writing within one year after it

accrues.

(d) A claim may be paid under this section only if the claimant

accepts the amount of the settlement in complete satisfaction of

the claim.

(e) Necessary amounts are authorized to be appropriated to carry

out this section.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 974.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3722(a) 31:238(1st June 10, 1949, ch. 187, 63

sentence). Stat. 167.

3722(b) 31:238(2d sentence

last 25 words

before last

semicolon).

3722(c) 31:238(2d sentence

less last 25 words

before last

semicolon).

3722(d) 31:238(last

sentence).

3722(e) 31:238(note).

--------------------------------------------------------------------

In subsection (a), the words "and such other officer or officers

as he may designate for such purpose" are omitted as unnecessary

because of 28:509. The word "settle" is substituted for "consider,

determine, adjust" for consistency. The words "the sum of" are

omitted as surplus. The words "officer or employee" are substituted

for "persons employed" for consistency in the revised title and

with other titles of the United States Code. The words "or

destruction" are omitted as surplus.

In subsection (b), the words "assigned to him . . . otherwise"

are omitted as surplus.

In subsection (c)(1), the words "no part" are substituted for

"not . . . in whole or in part" because of the restatement.

In subsection (c)(2), the words "the Attorney General decides

that possession of" are substituted for "is determined" for

clarity. The words "claimed to be damaged, lost, or destroyed" and

"necessary, or proper . . . attendant" are omitted as surplus.

In subsection (c)(3), the word "accrues" is substituted for "the

occurrence of the accident or incident out of which such claim

arises" to eliminate unnecessary words.

In subsection (d), the words "A claim may be paid under this

section" are added for clarity. The words "the amount of the

settlement" are substituted for "an award hereunder" for

consistency. The words "in complete satisfaction of the claim" are

substituted for "shall release the United States, its agents or

employees, from any further claim by such claimant arising out of

the same incident" to eliminate unnecessary words.

-End-

-CITE-

31 USC Sec. 3723 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3723. Small claims for privately owned property damage or loss

-STATUTE-

(a) The head of an agency (except a military department of the

Department of Defense or the Coast Guard) may settle a claim for

not more than $1,000 for damage to, or loss of, privately owned

property that -

(1) is caused by the negligence of an officer or employee of

the United States Government acting within the scope of

employment; and

(2) may not be settled under chapter 171 of title 28.

(b) A claim under this section may be allowed only if it is

presented to the head of the agency within one year after it

accrues.

(c) A claim under this section may be paid as provided in section

1304 of this title only if the claimant accepts the amount of the

settlement in complete satisfaction of the claim against the

Government.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 975.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3723(a) 31:215(1st Dec. 28, 1922, ch. 17, Secs.

sentence), 216. 1-3, 42 Stat. 1066.

31:216(note). July 3, 1943, ch. 189, Sec. 4,

57 Stat. 373.

31:216(note). Dec. 28, 1945, ch. 597, Sec.

4(words before 3d comma), 59

Stat. 662.

31:216(note). Dec. 28, 1945, ch. 597, 59

Stat. 662, Sec. 5(last

sentence); added Mar. 20,

1946, ch. 104, 60 Stat. 56.

Aug. 2, 1946, ch. 753, Sec.

424(a)(last par. on p. 846),

60 Stat. 846.

3723(b) 31:215(last

sentence proviso).

3723(c) 31:215(last

sentence less

proviso), 217.

--------------------------------------------------------------------

In subsection (a), before clause (1), the text of 31:216(words

before semicolon) is omitted as unnecessary because of section 102

of the revised title. The words "acting on behalf of the Government

of the United States" in 31:215 are omitted as unnecessary. The

word "settle" is substituted for "consider, ascertain, adjust, and

determine" for consistency. The words "after April 6, 1917" are

omitted as executed.

In subsection (c), the words "A claim under this section may be

paid" are added for clarity. The words "as provided in section 1304

of this title" are substituted for 31:215(last sentence less

proviso) because 31:215(last sentence less proviso) is superseded

by section 201 of the Supplemental Appropriations Act, 1978 (Pub.

L. 95-240, 92 Stat. 116). The words "of the settlement" are

substituted for "determined under the provisions of sections 215

and 216 of this title" in 31:217 for consistency and to eliminate

unnecessary words. The word "complete" is substituted for "full"

for consistency. The word "satisfaction" is substituted for

"settlement" for clarity.

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1304 of this title.

-End-

-CITE-

31 USC Sec. 3724 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3724. Claims for damages caused by investigative or law

enforcement officers of the Department of Justice

-STATUTE-

(a) The Attorney General may settle, for not more than $50,000 in

any one case, a claim for personal injury, death, or damage to, or

loss of, privately owned property, caused by an investigative or

law enforcement officer as defined in section 2680(h) of title 28

who is employed by the Department of Justice acting within the

scope of employment that may not be settled under chapter 171 of

title 28. An officer or employee of the United States Government

may not present a claim arising during the scope of employment. A

claim may be allowed only if it is presented to the Attorney

General within one year after it accrues.

(b) A claim may be paid under this section only if the claimant

accepts the amount of the settlement in complete satisfaction of

the claim against the Government.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 975; Pub. L. 101-203,

Sec. 1(a), (b)(1), Dec. 7, 1989, 103 Stat. 1805; Pub. L. 105-362,

title X, Sec. 1001(c), Nov. 10, 1998, 112 Stat. 3291.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3724(a) 31:224b(words Mar. 20, 1936, ch. 159, 49

before 9th comma Stat. 1184.

and between 10th

and 11th commas,

1st, 2d provisos).

31:224b(note). Aug. 2, 1946, ch. 753, Sec.

424(a)(2d par. on p. 847),

(b)(related to 2d par. of (a)

on p. 847), 60 Stat. 847.

3724(b) 31:224b(words

between 9th and

10th commas and

between 11th comma

and 1st proviso).

3724(c) 31:224b(last

proviso).

--------------------------------------------------------------------

In subsection (a), the words "of the United States" are omitted

as unnecessary. The word "settle" is substituted for "consider,

adjust, and determine" for consistency. The words "after January 1,

1934" are omitted as executed. The words "personal injury, death"

are substituted for "damages to any person" for clarity. The words

"of the Department of Justice" are omitted as unnecessary. The

words "that may not be settled under chapter 171 of title 28" are

substituted for section 424(a)(2d par. on p. 847) and (b)(related

to 2d par. of (a) on p. 847) of the Legislative Reorganization Act

of 1946 (31:224b(note)) because of the restatement. The words "An

officer or employee of the United States Government may not present

a claim arising during the scope of employment" are substituted for

31:224b(1st proviso) to eliminate unnecessary words. The text of

31:224b(2d proviso words after semicolon) is omitted as executed.

In subsection (b), the word "settlement" is substituted for

"amount as may be found due to any claimant . . . as a legal claim"

for clarity and consistency. The words "by Congress" are omitted as

surplus.

In subsection (c), the words "A claim may be paid under this

section" are added for clarity. The words "of the settlement" are

substituted for "determined to be due him under the provisions of

this section" for consistency and to eliminate unnecessary words.

The word "complete" is substituted for "full and final" to

eliminate unnecessary words. The word "satisfaction" is substituted

for "settlement" for clarity.

AMENDMENTS

1998 - Subsecs. (b), (c). Pub. L. 105-362 redesignated subsec.

(c) as (b) and struck out former subsec. (b) which read as follows:

"The Attorney General shall report annually to the Congress on all

settlements made under this section. With respect to each such

settlement, the Attorney General shall include a brief statement on

the type of the claim, the amount claimed, and the amount of the

settlement."

1989 - Pub. L. 101-203, Sec. 1(b)(1), amended section catchline

generally, substituting "investigative or law enforcement officers

of the Department of Justice" for "the Federal Bureau of

Investigation".

Subsec. (a). Pub. L. 101-203, Sec. 1(a)(1), substituted "$50,000"

for "$500" and "an investigative or law enforcement officer as

defined in section 2680(h) of title 28 who is employed by the

Department of Justice" for "the Director or an Assistant Director,

inspector, or special agent of the Federal Bureau of

Investigation".

Subsec. (b). Pub. L. 101-203, Sec. 1(a)(2), substituted "report

annually to the Congress on all settlements made under this

section. With respect to each such settlement, the" for "certify to

Congress a settlement under this section for payment out of an

appropriation that may be made to pay the settlement. The".

EFFECTIVE DATE OF 1989 AMENDMENT

Section 2 of Pub. L. 101-203 provided that: "The amendments made

by section 1 [amending this section] shall apply to -

"(1) any claim arising on or after the date of the enactment of

this Act [Dec. 7, 1989],

"(2) any claim pending on such date, and

"(3) any claim arising before such date which has not been

settled if the time for presenting the claim to the Attorney

General under the last sentence of section 3724(a) of title 31,

United States Code, has not expired."

SETTLEMENT OF CLAIMS FOR DAMAGE TO OR LOSS OF PRIVATELY OWNED

PROPERTY

Pub. L. 106-185, Sec. 3(b), Apr. 25, 2000, 114 Stat. 211,

provided that:

"(1) In general. - With respect to a claim that cannot be settled

under chapter 171 of title 28, United States Code, the Attorney

General may settle, for not more than $50,000 in any case, a claim

for damage to, or loss of, privately owned property caused by an

investigative or law enforcement officer (as defined in section

2680(h) of title 28, United States Code) who is employed by the

Department of Justice acting within the scope of his or her

employment.

"(2) Limitations. - The Attorney General may not pay a claim

under paragraph (1) that -

"(A) is presented to the Attorney General more than 1 year

after it accrues; or

"(B) is presented by an officer or employee of the Federal

Government and arose within the scope of employment."

-End-

-CITE-

31 USC Sec. 3725 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3725. Claims of non-nationals for personal injury or death in

a foreign country

-STATUTE-

(a) The Secretary of State may settle, for not more than $1,500

in any one case, a claim for personal injury or death of an

individual not a national of the United States in a foreign country

in which the United States exercises privileges of

extraterritoriality when the injury or death is caused by an

officer, employee, or agent of the United States Government (except

of a military department of the Department of Defense or the Coast

Guard). An officer or employee of the Government may not present a

claim. A claim under this section may be allowed only if it is

presented to the Secretary within one year after it accrues.

(b) The Secretary shall certify to Congress a settlement under

this section for payment out of an appropriation that may be made

to pay the settlement. The Secretary shall include a brief

statement on the type of the claim, the amount claimed, and the

amount of the settlement.

(c) A claim may be paid under this section only if the claimant

accepts the amount of the settlement in complete satisfaction of

the claim against the Government.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 975.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3725(a) 31:224a(words Feb. 13, 1936, ch. 67, 49

before 21st comma, Stat. 1138.

1st, 2d provisos).

31:224a(note). July 3, 1943, ch. 189, Sec. 7,

57 Stat. 374.

Dec. 28, 1945, ch. 597, Sec.

1, 59 Stat. 662.

Dec. 28, 1945, ch. 597, 59

Stat. 662, Sec. 5(1st

sentence); added Mar. 20,

1946, ch. 104, 60 Stat. 56.

3725(b) 31:224a(words

between 21st comma

and 1st proviso).

3725(c) 31:224a(last

proviso).

--------------------------------------------------------------------

In subsection (a), the word "settle" is substituted for

"consider, adjust, and determine" for consistency. The words

"United States currency" are omitted as surplus. The words "after

February 13, 1936" are omitted as executed. The words "act of

omission of any" are omitted as surplus. The words "(except of a

military department of the Department of Defense or the Coast

Guard)" are substituted for "including all officers, enlisted men,

and employees of the Army, Air Force, Navy, and Marine Corps"

because of 10:2734, section 7 of the Act of July 3, 1943 (ch. 189,

57 Stat. 374), and sections 1 and 5(1st sentence) of the Act of

December 28, 1945 (ch. 597, 59 Stat. 662). The words "An officer or

employee of the Government may not present a claim" are substituted

for 31:224a(1st proviso) for consistency and to eliminate

unnecessary words. The words "by the Secretary of State" are

omitted as surplus.

In subsection (b), the word "settlement" is substituted for

"amount as may be found to be due to any claimant . . . as a legal

claim" for clarity and consistency. The words "by Congress" are

omitted as surplus.

In subsection (c), the words "A claim may be paid under this

section" are added for clarity. The words "of the settlement" are

substituted for "determined under the provisions of this section"

for consistency and to eliminate unnecessary words. The word

"complete" is substituted for "full" for consistency. The word

"satisfaction" is substituted for "settlement" for clarity.

-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.

-End-

-CITE-

31 USC Sec. 3726 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3726. Payment for transportation

-STATUTE-

(a)(1) Each agency that receives a bill from a carrier or freight

forwarder for transporting an individual or property for the United

States Government shall verify its correctness (to include

transportation rates, freight classifications, or proper

combinations thereof), using prepayment audit, prior to payment in

accordance with the requirements of this section and regulations

prescribed by the Administrator of General Services.

(2) The Administrator of General Services may exempt bills, a

particular mode or modes of transportation, or an agency or

subagency from a prepayment audit and verification and in lieu

thereof require a postpayment audit, based on cost effectiveness,

public interest, or other factors the Administrator considers

appropriate.

(3) Expenses for prepayment audits shall be funded by the

agency's appropriations used for the transportation services.

(4) The audit authority provided to agencies by this section is

subject to oversight by the Administrator.

(b) The Administrator may conduct pre- or post-payment audits of

transportation bills of any Federal agency. The number and types of

bills audited shall be based on the Administrator's judgment.

(c)(1) The Administrator shall adjudicate transportation claims

which cannot be resolved by the agency procuring the transportation

services, or the carrier or freight-forwarder presenting the bill.

(2) A claim under this section shall be allowed only if it is

received by the Administrator not later than 3 years (excluding

time of war) after the later of the following dates:

(A) The date of accrual of the claim.

(B) The date payment for the transportation is made.

(C) The date a refund for an overpayment for the transportation

is made.

(D) The date a deduction under subsection (d) of this section

is made.

(d) Not later than 3 years (excluding time of war) after the time

a bill is paid, the Government may deduct from an amount

subsequently due a carrier or freight forwarder an amount paid on

the bill that was greater than the rate allowed under -

(1) a lawful tariff under title 49 or on file with the

Secretary of Transportation with respect to foreign air

transportation (as defined in section 40102(a) of title 49), the

Federal Maritime Commission, or a State transportation authority;

(2) a lawfully quoted rate subject to the jurisdiction of the

Surface Transportation Board; or

(3) sections 10721, 13712, and 15504 of title 49 or an

equivalent arrangement or an exemption.

(e) Expenses of transportation audit postpayment contracts and

contract administration, and the expenses of all other

transportation audit and audit-related functions conferred upon the

Administrator of General Services, shall be financed from

overpayments collected from carriers on transportation bills paid

by the Government and other similar type refunds, not to exceed

collections. Payment to any contractor for audit services shall not

exceed 50 percent of the overpayment identified by contract audit.

(f) At least annually, and as determined by the Administrator,

after making adequate provision for expense of refunds to carriers,

transportation audit postpayment contracts, contract

administration, and other expenses authorized in subsection (e),

overpayments collected by the General Services Administration shall

be transferred to miscellaneous receipts of the Treasury. A report

of receipts, disbursements, and transfers (to miscellaneous

receipts) pursuant to this section shall be made annually in

connection with the budget estimates to the Director of the Office

of Management and Budget and to the Congress. This reporting

requirement expires December 31, 1998.

(g) The Administrator may delegate any authority conferred by

this section to another agency or agencies if the Administrator

determines that such a delegation would be cost-effective or

otherwise in the public interest.

(h) Under regulations the head of an agency prescribes that

conform with standards the Secretary of the Treasury prescribes, a

bill under this section may be paid before the transportation is

completed notwithstanding section 3324 of this title when a carrier

or freight forwarder issues the usual document for the

transportation. Payment for transportation ordered but not provided

may be recovered by deduction or other means.

(i)(1) A carrier or freight forwarder may request the

Administrator of General Services to review the action of the

Administrator if the request is received not later than 6 months

(excluding time of war) after the Administrator acts or within the

time stated in subsection (c) of this section, whichever is later.

(2) This section does not prevent the Comptroller General from

conducting an audit under chapter 35 of this title.

(j) The Administrator of General Services may provide

transportation audit and related technical assistance services, on

a reimbursable basis, to any other agency. Such reimbursements may

be credited to the appropriate revolving fund or appropriation from

which the expenses were incurred.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 976; Pub. L. 98-443, Sec.

9(f), Oct. 4, 1984, 98 Stat. 1707; Pub. L. 99-627, Sec. 1, Nov. 7,

1986, 100 Stat. 3508; Pub. L. 103-123, title VI, Sec. 620A, Oct.

28, 1993, 107 Stat. 1265; Pub. L. 103-272, Secs. 4(f)(1)(N),

5(i)(2), July 5, 1994, 108 Stat. 1362, 1375; Pub. L. 103-429, Sec.

7(a)(3)(B), Oct. 31, 1994, 108 Stat. 4388; Pub. L. 104-88, title

III, Sec. 306, Dec. 29, 1995, 109 Stat. 945; Pub. L. 104-316, title

II, Sec. 202(o), Oct. 19, 1996, 110 Stat. 3844; Pub. L. 105-264,

Sec. 3(a)(3), Oct. 19, 1998, 112 Stat. 2353.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3726(a) 31:244(a)(1st Sept. 18, 1940, ch. 722, Sec.

sentence, last 322(a), 54 Stat. 955; Aug. 26,

sentence last 1958, Pub. L. 85-762, Sec. 2,

proviso). 72 Stat. 860; Oct. 25, 1972,

Pub. L. 92-550, Sec. 1(a), 86

Stat. 1163; Jan. 2, 1975, Pub.

L. 93-604, Sec. 201(1), (2),

88 Stat. 1960.

3726(b) 31:244(a)(2d

sentence, last

sentence less last

proviso).

3726(c) 31:244(c), (d). Sept. 18, 1940, ch. 722, 54

Stat. 898, Sec. 322(c), (d);

added Oct. 25, 1972, Pub. L.

92-550, Sec. 1(b), 86 Stat.

1164; Jan. 2, 1975, Pub. L.

93-604, Sec. 201(3), 88 Stat.

1960.

3726(d)( 31:244(b). Sept. 18, 1940, ch. 722, 54

1) Stat. 898, Sec. 322(b); added

Jan. 2, 1975, Pub. L. 93-604,

Sec. 201(3), 88 Stat. 1960.

3726(d)( 31:244(a)(3d

2) sentence).

--------------------------------------------------------------------

In the section, the words "Administrator of General Services" are

substituted for "General Services Administration, or his designee"

for consistency. The word "freight" is added for clarity and

consistency with 49:10101 et seq.

In subsection (a), before clause (1), the word "individual" is

substituted for "persons" for consistency. The words "or on behalf

of" are omitted as unnecessary. The words "for charges for

transportation . . . the purview of" are omitted as surplus. In

clause (1), the word "claim" is substituted for "cause of action

thereon" for consistency. In clauses (2) and (3), the words "is

made" are substituted for "of charges . . . involved" and

"subsequent . . . of such charges" to eliminate unnecessary words.

In subsection (b), before clause (1), the words "Provided,

however, That such deductions shall be made" are omitted because of

the restatement. The words "found to be" are omitted as surplus.

The words "of any overcharge by any carrier or forwarder" and "The

term 'overcharges' shall be deemed to mean . . . those applicable

thereto" are omitted because of the restatement. The word "rate" is

substituted for "charges for transportation services" and "rates,

fares, and charges" for consistency with title 49. In clause (1),

the word "authority" is substituted for "regulatory agency" for

consistency. In clause (2), the words "established" and "contract .

. . from regulation" are omitted as surplus.

In subsection (c), the text of 31:244(d) and the words

"Government", "or his designee", and "of the United States" are

omitted as unnecessary. The words "under this section" are

substituted for "for passenger or freight transportation services

to be furnished the United States by any carrier or forwarder" to

eliminate unnecessary words. The word "transportation" is

substituted for "services" for consistency. The words "ticket,

receipt, bill of lading, or equivalent . . . involved" and "as

ordered by the United States" are omitted as surplus.

In subsection (d)(1), the words "may request" are substituted for

"Nothing in subsection (a) of this section hereof shall be deemed

to prevent . . . from requesting" to eliminate unnecessary words.

The words "of limitation" are omitted as surplus.

In subsection (d)(2), the words "Comptroller General" are

substituted for "General Accounting Office" for consistency.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-264, Sec. 3(a)(3)(A), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: "A carrier or freight forwarder presenting a bill for

transporting an individual or property for the United States

Government may be paid before the Administrator of General Services

conducts an audit, in accordance with regulations that the

Administrator shall prescribe. A claim under this section shall be

allowed only if it is received by the Administrator not later than

3 years (excluding time of war) after the later of the following

dates:

"(1) accrual of the claim;

"(2) payment for the transportation is made;

"(3) refund for an overpayment for the transportation is made;

or

"(4) a deduction under subsection (b) of this section is made."

Subsecs. (b) to (e). Pub. L. 105-264, Sec. 3(a)(3)(B), (C), added

subsecs. (b) and (c) and redesignated former subsecs. (b) and (c)

as (d) and (e), respectively. Former subsecs. (d) and (e)

redesignated (f) and (g), respectively.

Subsec. (f). Pub. L. 105-264, Sec. 3(a)(3)(B), (D), redesignated

subsec. (d) as (f), substituted "subsection (e)" for "subsection

(c)", and inserted at end "This reporting requirement expires

December 31, 1998." Former subsec. (f) redesignated (h).

Subsecs. (g), (h). Pub. L. 105-264, Sec. 3(a)(3)(B), redesignated

subsecs. (e) and (f) as (g) and (h), respectively. Former subsec.

(g) redesignated (i).

Subsec. (i). Pub. L. 105-264, Sec. 3(a)(3)(B), redesignated

subsec. (g) as (i).

Subsec. (i)(1). Pub. L. 105-264, Sec. 3(a)(3)(E), substituted

"subsection (c)" for "subsection (a)".

Subsec. (j). Pub. L. 105-264, Sec. 3(a)(3)(F), added subsec. (j).

1996 - Subsec. (f). Pub. L. 104-316, Sec. 202(o)(1), substituted

"Treasury prescribes" for "Treasury and the Comptroller General

prescribe jointly".

Subsec. (g)(1). Pub. L. 104-316, Sec. 202(o)(2), substituted

"Administrator of General Services" for "Comptroller General".

1995 - Subsec. (b)(1). Pub. L. 104-88, Sec. 306(1), (2),

substituted "under title 49 or on file with" for "on file with the

Interstate Commerce Commission," and struck out "or" after the

semicolon at end.

Subsec. (b)(2). Pub. L. 104-88, Sec. 306(4), added par. (2).

Former par. (2) redesignated (3).

Subsec. (b)(3). Pub. L. 104-88, Sec. 306(3), (5), redesignated

par. (2) as (3) and substituted "sections 10721, 13712, and 15504"

for "sections 10721-10724".

1994 - Subsec. (b)(1). Pub. L. 103-272, Sec. 5(i)(2), substituted

"section 40102(a) of title 49" for "the Federal Aviation Act of

1958".

Subsec. (d). Pub. L. 103-272, Sec. 4(f)(1)(N), which directed the

substitution of "miscellaneous receipts" for "miscellaneous

receipt", was repealed by Pub. L. 103-429.

1993 - Subsecs. (c) and (d). Pub. L. 103-123 amended subsecs. (c)

and (d) generally. Prior to amendment, subsecs. (c) and (d) read as

follows:

"(c) Expenses of transportation audit contracts and contract

administration shall be financed from overpayments collected from

carriers on transportation bills paid by the Government and other

similar type refunds at not to exceed 40 percent of such

collections annually. Payment to any contractor shall not exceed 50

percent of the overpayments identified by any contract audit.

"(d) At least annually, and as determined by the Administrator,

after making adequate provision for expenses of refunds to

carriers, transportation audit contracts, and contract

administration authorized in subsection (c), the balance of the

overpayments collected by the General Services Administration shall

be transferred to miscellaneous receipt of the Treasury. A report

of receipts, disbursements, and transfers (to miscellaneous

receipts) pursuant to this section shall be made annually in

connection with the budget estimates to the Director of the Office

of Management and Budget and to the Congress."

1986 - Subsec. (a). Pub. L. 99-627, Sec. 1(1), amended first

sentence generally, substituting "may be paid before the

Administrator of General Services conducts an audit, in accordance

with regulations that the Administrator shall prescribe" for "shall

be paid before the Administrator of General Services conducts an

audit".

Subsecs. (c) to (g). Pub. L. 99-627, Sec. 1(2), (3), added

subsecs. (c) to (e) and redesignated former subsecs. (c) and (d) as

(f) and (g), respectively.

1984 - Subsec. (b)(1). Pub. L. 98-443 substituted "Secretary of

Transportation with respect to foreign air transportation (as

defined in the Federal Aviation Act of 1958)" for "Civil

Aeronautics Board".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-264 effective 18 months after Oct. 19,

1998, see section 3(b) of Pub. L. 105-264, set out as a note under

section 3322 of this title.

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 7(a) of Pub. L. 103-429 provided that the amendment made

by that section is effective July 5, 1994.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section

9(v) of Pub. L. 98-443, set out as a note under section 5314 of

Title 5, Government Organization and Employees.

TASK FORCE

Section 2 of Pub. L. 99-627 provided that:

"(a) Within 60 days after the date of enactment of this Act [Nov.

7, 1986], the Administrator of General Services shall establish a

task force to study and investigate the feasibility, desirability,

and economy of an integrated, automated system that Federal

agencies may use in managing the transportation of property for the

United States.

"(b) The task force established under subsection (a) shall -

"(1) be chaired by a representative of the Administrator;

"(2) include representatives of the Department of Defense and

other Federal agencies significantly involved in the

transportation of property for the United States; and

"(3) solicit the views of private businesses with expertise in

the matters being considered by the task force.

"(c) In studying and investigating the integrated, automated

system, the task force shall consider including in that system such

elements as automated routing, rating, documentation, payment, and

auditing.

"(d) Each department, agency, and instrumentality of the Federal

Government shall furnish to the task force, upon its request, such

data, reports, and other information (not otherwise prohibited by

law) as the task force deems necessary to carry out its functions

under this section.

"(e) The head of each such department, agency, and

instrumentality may provide to the task force such services and

personnel as the task force requests on such basis (reimbursable or

otherwise) as may be agreed upon between such department, agency,

or instrumentality and the task force.

"(f) The task force shall submit a final report on the results of

its study and investigation to the Congress not later than July 1,

1988."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3322, 3528 of this title;

title 2 sections 142b, 142e, 142f, 142l; title 44 section 308;

title 49 sections 11705, 14705, 15905.

-End-

-CITE-

31 USC Sec. 3727 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3727. Assignments of claims

-STATUTE-

(a) In this section, "assignment" means -

(1) a transfer or assignment of any part of a claim against the

United States Government or of an interest in the claim; or

(2) the authorization to receive payment for any part of the

claim.

(b) An assignment may be made only after a claim is allowed, the

amount of the claim is decided, and a warrant for payment of the

claim has been issued. The assignment shall specify the warrant,

must be made freely, and must be attested to by 2 witnesses. The

person making the assignment shall acknowledge it before an

official who may acknowledge a deed, and the official shall certify

the assignment. The certificate shall state that the official

completely explained the assignment when it was acknowledged. An

assignment under this subsection is valid for any purpose.

(c) Subsection (b) of this section does not apply to an

assignment to a financing institution of money due or to become due

under a contract providing for payments totaling at least $1,000

when -

(1) the contract does not forbid an assignment;

(2) unless the contract expressly provides otherwise, the

assignment -

(A) is for the entire amount not already paid;

(B) is made to only one party, except that it may be made to

a party as agent or trustee for more than one party

participating in the financing; and

(C) may not be reassigned; and

(3) the assignee files a written notice of the assignment and a

copy of the assignment with the contracting official or the head

of the agency, the surety on a bond on the contract, and any

disbursing official for the contract.

(d) During a war or national emergency proclaimed by the

President or declared by law and ended by proclamation or law, a

contract with the Department of Defense, the General Services

Administration, the Department of Energy (when carrying out duties

and powers formerly carried out by the Atomic Energy Commission),

or other agency the President designates may provide, or may be

changed without consideration to provide, that a future payment

under the contract to an assignee is not subject to reduction or

setoff. A payment subsequently due under the contract (even after

the war or emergency is ended) shall be paid to the assignee

without a reduction or setoff for liability of the assignor -

(1) to the Government independent of the contract; or

(2) because of renegotiation, fine, penalty (except an amount

that may be collected or withheld under, or because the assignor

does not comply with, the contract), taxes, social security

contributions, or withholding or failing to withhold taxes or

social security contributions, arising from, or independent of,

the contract.

(e)(1) An assignee under this section does not have to make

restitution of, refund, or repay the amount received because of the

liability of the assignor to the Government that arises from or is

independent of the contract.

(2) The Government may not collect or reclaim money paid to a

person receiving an amount under an assignment or allotment of pay

or allowances authorized by law when liability may exist because of

the death of the person making the assignment or allotment.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 976.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3727(a) 31:203(1st par. R.S. Sec. 3477; May 27, 1908,

words before 9th ch. 206(last par. on p. 411),

comma). 35 Stat. 411; Oct. 9, 1940,

ch. 779, Sec. 1(related to

Sec. 3477), 54 Stat. 1029; May

15, 1951, ch. 75, Sec.

1(related to Sec. 1 related to

Sec. 3477), 65 Stat. 41.

3727(b) 31:203(1st par.

words after 9th

comma, 3d, last

pars.).

3727(c) 31:203(2d par.).

3727(d) 31:203(5th par.).

3727(e)( 31:203(4th par.).

1)

3727(e)( 31:239. Aug. 10, 1956, ch. 1041, Sec.

2) 45, 70A Stat. 638.

--------------------------------------------------------------------

In subsection (a)(1), the words "or share thereof" and "whether

absolute or conditional, and whatever may be the consideration

therefor" are omitted as surplus. In clause (2), the word

"authorization" is substituted for "powers of attorney, orders, or

other authorities" to eliminate unnecessary words.

In subsections (b) and (c), the word "official" is substituted

for "officer" for consistency in the revised title and with other

titles of the United States Code.

In subsection (b), the words "Except as hereinafter provided" are

omitted as unnecessary. The words "read and" are omitted as

surplus. The words "to the person acknowledging the same" are

omitted as unnecessary. The text of 31:203(1st par. last sentence)

is omitted as superseded by 39:410. The words "Notwithstanding any

law to the contrary governing the validity of assignments" and the

text of 31:203(last par.) are omitted as unnecessary.

In subsection (c), before clause (1), the words "bank, trust

company, or other . . . including any Federal lending agency" are

omitted as surplus. The words "of money due or to become due under

a contract providing for payments totaling at least $1,000" are

substituted for "in any case in which the moneys due or to become

due from the United States or from any agency or department

thereof, under a contract providing for payments aggregating $1,000

or more" to eliminate unnecessary words. The text of 31:203(2d par.

proviso cl. 1) is omitted as executed. In clause (1), the words "in

the case of any contract entered into after October 9, 1940" are

omitted as executed. In clause (2)(A), the words "payable under

such contract" are omitted as surplus. In clause (3), the words

"true" and "instrument of" are omitted as surplus. The words

"department or" are omitted because of the restatement. The words

"if any" and "to make payment" are omitted as surplus.

In subsection (d), before clause (1), the words "During a war or

national emergency proclaimed by the President or declared by law

and ended by proclamation or law" are substituted for "in time of

war or national emergency proclaimed by the President (including

the national emergency proclaimed December 16, 1950) or by Act or

joint resolution of the Congress and until such war or national

emergency has been terminated in such manner" to eliminate

unnecessary words. The words "Department of Energy (when carrying

out duties and powers formerly carried out by the Atomic Energy

Commission)" are substituted for "Atomic Energy Commission" (which

was reconstituted as the Energy Research and Development

Administration by 42:5813 and 5814) because of 42:7151(a) and 7293.

The words "other department or . . . of the United States . . .

except any such contract under which full payment has been made"

and "of any moneys due or to become due under such contract" before

"shall not be subject" are omitted as surplus. The words "A payment

subsequently due under the contract (even after the war or

emergency is ended) shall be paid to the assignee without" are

substituted for "and if such provision or one to the same general

effect has been at any time heretofore or is hereafter included or

inserted in any such contract, payments to be made thereafter to an

assignee of any moneys due or to become due under such contract,

whether during or after such war or emergency . . . hereafter" to

eliminate unnecessary words. The words "of any nature" are omitted

as surplus. In clause (1), the words "or any department or agency

thereof" are omitted as unnecessary. In clause (2), the words

"under any renegotiation statute or under any statutory

renegotiation article in the contract" are omitted as surplus.

Subsection (e)(1) is substituted for 31:203(4th par.) to

eliminate unnecessary words.

In subsection (e)(2), the words "person receiving an amount under

an assignment or allotment" are substituted for "assignees,

transferees, or allottees" for clarity and consistency. The words

"or to others for them" and "with respect to such assignments,

transfers, or allotments or the use of such moneys" are omitted as

surplus. The words "person making the assignment or allotment" are

substituted for "assignors, transferors, or allotters" for clarity

and consistency.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 sections 2392, 4060;

title 25 section 1725; title 26 section 6422; title 43 section

1628; title 50 section 1651.

-End-

-CITE-

31 USC Sec. 3728 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3728. Setoff against judgment

-STATUTE-

(a) The Secretary of the Treasury shall withhold paying that part

of a judgment against the United States Government presented to the

Secretary that is equal to a debt the plaintiff owes the

Government.

(b) The Secretary shall -

(1) discharge the debt if the plaintiff agrees to the setoff

and discharges a part of the judgment equal to the debt; or

(2)(A) withhold payment of an additional amount the Secretary

decides will cover legal costs of bringing a civil action for the

debt if the plaintiff denies the debt or does not agree to the

setoff; and

(B) have a civil action brought if one has not already been

brought.

(c) If the Government loses a civil action to recover a debt or

recovers less than the amount the Secretary withholds under this

section, the Secretary shall pay the plaintiff the balance and

interest of 6 percent for the time the money is withheld.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 977; Pub. L. 104-316,

title II, Sec. 202(p), Oct. 19, 1996, 110 Stat. 3844.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3728(a) 31:227(1st sentence Mar. 3, 1875, ch. 149, 18

words before Stat. 481; restated Mar. 3,

semicolon). 1933, ch. 212, Sec. 13, 47

Stat. 1516.

3728(b) 31:227(1st sentence

words after

semicolon, 2d, 3d

sentences).

3728(c) 31:227(last

sentence).

--------------------------------------------------------------------

In the section, the words "of the United States" are omitted as

unnecessary.

In subsection (a), the words "final . . . recovered . . . duly

allowed by legal authority", "for payment", and "in any manner,

whether as principal or surety" are omitted as surplus.

In subsection (b)(1), the words "due from the plaintiff to the

United States" are omitted as surplus.

In subsection (b)(2)(A), the words "of such judgment", "be

sufficient to", and "charges and" are omitted as surplus. The words

"of bringing a civil action" are substituted for "in prosecuting

the debt" for consistency in the revised title and with other

titles of the United States Code. The words "of the United States

to final judgment" and "to the United States" are omitted as

surplus.

Subsection (b)(2)(B) is substituted for 31:227(3d sentence) for

consistency and to eliminate unnecessary words.

In subsection (c), the words "for debt and costs", "thereon", and

"from the plaintiff" are omitted as surplus.

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-316, Sec. 202(p)(1), (2),

substituted "Secretary of the Treasury" for "Comptroller General"

before "shall withhold" and "Secretary" for "Comptroller General"

after "presented to the".

Subsecs. (b), (c). Pub. L. 104-316, Sec. 202(p)(2), substituted

"Secretary" for "Comptroller General" wherever appearing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 6422.

-End-

-CITE-

31 USC Sec. 3729 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3729. False claims

-STATUTE-

(a) Liability for Certain Acts. - Any person who -

(1) knowingly presents, or causes to be presented, to an

officer or employee of the United States Government or a member

of the Armed Forces of the United States a false or fraudulent

claim for payment or approval;

(2) knowingly makes, uses, or causes to be made or used, a

false record or statement to get a false or fraudulent claim paid

or approved by the Government;

(3) conspires to defraud the Government by getting a false or

fraudulent claim allowed or paid;

(4) has possession, custody, or control of property or money

used, or to be used, by the Government and, intending to defraud

the Government or willfully to conceal the property, delivers, or

causes to be delivered, less property than the amount for which

the person receives a certificate or receipt;

(5) authorized to make or deliver a document certifying receipt

of property used, or to be used, by the Government and, intending

to defraud the Government, makes or delivers the receipt without

completely knowing that the information on the receipt is true;

(6) knowingly buys, or receives as a pledge of an obligation or

debt, public property from an officer or employee of the

Government, or a member of the Armed Forces, who lawfully may not

sell or pledge the property; or

(7) knowingly makes, uses, or causes to be made or used, a

false record or statement to conceal, avoid, or decrease an

obligation to pay or transmit money or property to the

Government,

is liable to the United States Government for a civil penalty of

not less than $5,000 and not more than $10,000, plus 3 times the

amount of damages which the Government sustains because of the act

of that person, except that if the court finds that -

(A) the person committing the violation of this subsection

furnished officials of the United States responsible for

investigating false claims violations with all information known

to such person about the violation within 30 days after the date

on which the defendant first obtained the information;

(B) such person fully cooperated with any Government

investigation of such violation; and

(C) at the time such person furnished the United States with

the information about the violation, no criminal prosecution,

civil action, or administrative action had commenced under this

title with respect to such violation, and the person did not have

actual knowledge of the existence of an investigation into such

violation;

the court may assess not less than 2 times the amount of damages

which the Government sustains because of the act of the person. A

person violating this subsection shall also be liable to the United

States Government for the costs of a civil action brought to

recover any such penalty or damages.

(b) Knowing and Knowingly Defined. - For purposes of this

section, the terms "knowing" and "knowingly" mean that a person,

with respect to information -

(1) has actual knowledge of the information;

(2) acts in deliberate ignorance of the truth or falsity of the

information; or

(3) acts in reckless disregard of the truth or falsity of the

information,

and no proof of specific intent to defraud is required.

(c) Claim Defined. - For purposes of this section, "claim"

includes any request or demand, whether under a contract or

otherwise, for money or property which is made to a contractor,

grantee, or other recipient if the United States Government

provides any portion of the money or property which is requested or

demanded, or if the Government will reimburse such contractor,

grantee, or other recipient for any portion of the money or

property which is requested or demanded.

(d) Exemption From Disclosure. - Any information furnished

pursuant to subparagraphs (A) through (C) of subsection (a) shall

be exempt from disclosure under section 552 of title 5.

(e) Exclusion. - This section does not apply to claims, records,

or statements made under the Internal Revenue Code of 1986.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99-562, Sec.

2, Oct. 27, 1986, 100 Stat. 3153; Pub. L. 103-272, Sec. 4(f)(1)(O),

July 5, 1994, 108 Stat. 1362.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3729 31:231. R.S. Sec. 3490.

--------------------------------------------------------------------

In the section, before clause (1), the words "a member of an

armed force of the United States" are substituted for "in the

military or naval forces of the United States, or in the militia

called into or actually employed in the service of the United

States" and "military or naval service" for consistency with title

10. The words "is liable" are substituted for "shall forfeit and

pay" for consistency. The words "civil action" are substituted for

"suit" for consistency in the revised title and with other titles

of the United States Code. The words "and such forfeiture and

damages shall be sued for in the same suit" are omitted as

unnecessary because of rules 8 and 10 of the Federal Rules of Civil

Procedure (28 App. U.S.C.). In clauses (1)-(3), the words "false or

fraudulent" are substituted for "false, fictitious, or fraudulent"

and "Fraudulent or fictitious" to eliminate unnecessary words and

for consistency. In clause (1), the words "presents, or causes to

be presented" are substituted for "shall make or cause to be made,

or present or cause to be presented" for clarity and consistency

and to eliminate unnecessary words. The words "officer or employee

of the Government or a member of an armed force" are substituted

for "officer in the civil, military, or naval service of the United

States" for consistency in the revised title and with other titles

of the Code. The words "upon or against the Government of the

United States, or any department of the United States, or any

department or officer thereof" are omitted as surplus. In clause

(2), the word "knowingly" is substituted for "knowing the same to

contain any fraudulent or fictitious statement or entry" to

eliminate unnecessary words. The words "record or statement" are

substituted for "bill, receipt, voucher, roll, account, claim,

certificate, affidavit, or deposition" for consistency in the

revised title and with other titles of the Code. In clause (3), the

words "conspires to" are substituted for "enters into any

agreement, combination, or conspiracy" to eliminate unnecessary

words. The words "of the United States, or any department or

officer thereof" are omitted as surplus. In clause (4), the words

"charge", "or other", and "to any other person having authority to

receive the same" are omitted as surplus. In clause (5), the words

"document certifying receipt" are substituted for "certificate,

voucher, receipt, or other paper certifying the receipt" to

eliminate unnecessary words. The words "arms, ammunition,

provisions, clothing, or other", "to any other person", and "the

truth of" are omitted as surplus. In clause (6), the words "arms,

equipments, ammunition, clothes, military stores, or other" are

omitted as surplus. The words "member of an armed force" are

substituted for "soldier, officer, sailor, or other person called

into or employed in the military or naval service" for consistency

with title 10. The words "such soldier, sailor, officer, or other

person" are omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

The Internal Revenue Code of 1986, referred to in subsec. (e), is

classified generally to Title 26, Internal Revenue Code.

-MISC2-

AMENDMENTS

1994 - Subsec. (e). Pub. L. 103-272 substituted "1986" for

"1954".

1986 - Subsec. (a). Pub. L. 99-562, Sec. 2(1), designated

existing provisions as subsec. (a), inserted subsec. heading, and

substituted "Any person who" for "A person not a member of an armed

force of the United States is liable to the United States

Government for a civil penalty of $2,000, an amount equal to 2

times the amount of damages the Government sustains because of the

act of that person, and costs of the civil action, if the person"

in introductory provisions.

Subsec. (a)(1). Pub. L. 99-562, Sec. 2(2), substituted "United

States Government or a member of the Armed Forces of the United

States" for "Government or a member of an armed force".

Subsec. (a)(2). Pub. L. 99-562, Sec. 2(3), inserted "by the

Government" after "approved".

Subsec. (a)(4). Pub. L. 99-562, Sec. 2(4), substituted "control

of property" for "control of public property" and "by the

Government" for "in an armed force".

Subsec. (a)(5). Pub. L. 99-562, Sec. 2(5), substituted "by the

Government" for "in an armed force" and "true;" for "true; or".

Subsec. (a)(6). Pub. L. 99-562, Sec. 2(6), substituted "an

officer or employee of the Government, or a member of the Armed

Forces," for "a member of an armed force" and "property; or" for

"property."

Subsec. (a)(7). Pub. L. 99-562, Sec. 2(7), added par. (7).

Subsecs. (b) to (e). Pub. L. 99-562, Sec. 2(7), added subsecs.

(b) to (e).

INCREASED PENALTIES FOR FALSE CLAIMS IN DEFENSE PROCUREMENT

Pub. L. 99-145, title IX, Sec. 931(b), Nov. 8, 1985, 99 Stat.

699, provided that: "Notwithstanding section 3729 of title 31,

United States Code, the amount of the liability under that section

in the case of a person who makes a false claim related to a

contract with the Department of Defense shall be a civil penalty of

$2,000, an amount equal to three times the amount of the damages

the Government sustains because of the act of the person, and costs

of the civil action."

[Section 931(c) of Pub. L. 99-145 provided that section 931(b) is

applicable to claims made or presented on or after Nov. 8, 1985.]

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3730, 3731, 3732, 3733 of

this title; title 10 section 2324; title 15 sections 637, 657a;

title 20 section 1078-9; title 41 section 256; title 42 section

1395i.

-End-

-CITE-

31 USC Sec. 3730 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3730. Civil actions for false claims

-STATUTE-

(a) Responsibilities of the Attorney General. - The Attorney

General diligently shall investigate a violation under section

3729. If the Attorney General finds that a person has violated or

is violating section 3729, the Attorney General may bring a civil

action under this section against the person.

(b) Actions by Private Persons. - (1) A person may bring a civil

action for a violation of section 3729 for the person and for the

United States Government. The action shall be brought in the name

of the Government. The action may be dismissed only if the court

and the Attorney General give written consent to the dismissal and

their reasons for consenting.

(2) A copy of the complaint and written disclosure of

substantially all material evidence and information the person

possesses shall be served on the Government pursuant to Rule

4(d)(4) of the Federal Rules of Civil Procedure. The complaint

shall be filed in camera, shall remain under seal for at least 60

days, and shall not be served on the defendant until the court so

orders. The Government may elect to intervene and proceed with the

action within 60 days after it receives both the complaint and the

material evidence and information.

(3) The Government may, for good cause shown, move the court for

extensions of the time during which the complaint remains under

seal under paragraph (2). Any such motions may be supported by

affidavits or other submissions in camera. The defendant shall not

be required to respond to any complaint filed under this section

until 20 days after the complaint is unsealed and served upon the

defendant pursuant to Rule 4 of the Federal Rules of Civil

Procedure.

(4) Before the expiration of the 60-day period or any extensions

obtained under paragraph (3), the Government shall -

(A) proceed with the action, in which case the action shall be

conducted by the Government; or

(B) notify the court that it declines to take over the action,

in which case the person bringing the action shall have the right

to conduct the action.

(5) When a person brings an action under this subsection, no

person other than the Government may intervene or bring a related

action based on the facts underlying the pending action.

(c) Rights of the Parties to Qui Tam Actions. - (1) If the

Government proceeds with the action, it shall have the primary

responsibility for prosecuting the action, and shall not be bound

by an act of the person bringing the action. Such person shall have

the right to continue as a party to the action, subject to the

limitations set forth in paragraph (2).

(2)(A) The Government may dismiss the action notwithstanding the

objections of the person initiating the action if the person has

been notified by the Government of the filing of the motion and the

court has provided the person with an opportunity for a hearing on

the motion.

(B) The Government may settle the action with the defendant

notwithstanding the objections of the person initiating the action

if the court determines, after a hearing, that the proposed

settlement is fair, adequate, and reasonable under all the

circumstances. Upon a showing of good cause, such hearing may be

held in camera.

(C) Upon a showing by the Government that unrestricted

participation during the course of the litigation by the person

initiating the action would interfere with or unduly delay the

Government's prosecution of the case, or would be repetitious,

irrelevant, or for purposes of harassment, the court may, in its

discretion, impose limitations on the person's participation, such

as -

(i) limiting the number of witnesses the person may call;

(ii) limiting the length of the testimony of such witnesses;

(iii) limiting the person's cross-examination of witnesses; or

(iv) otherwise limiting the participation by the person in the

litigation.

(D) Upon a showing by the defendant that unrestricted

participation during the course of the litigation by the person

initiating the action would be for purposes of harassment or would

cause the defendant undue burden or unnecessary expense, the court

may limit the participation by the person in the litigation.

(3) If the Government elects not to proceed with the action, the

person who initiated the action shall have the right to conduct the

action. If the Government so requests, it shall be served with

copies of all pleadings filed in the action and shall be supplied

with copies of all deposition transcripts (at the Government's

expense). When a person proceeds with the action, the court,

without limiting the status and rights of the person initiating the

action, may nevertheless permit the Government to intervene at a

later date upon a showing of good cause.

(4) Whether or not the Government proceeds with the action, upon

a showing by the Government that certain actions of discovery by

the person initiating the action would interfere with the

Government's investigation or prosecution of a criminal or civil

matter arising out of the same facts, the court may stay such

discovery for a period of not more than 60 days. Such a showing

shall be conducted in camera. The court may extend the 60-day

period upon a further showing in camera that the Government has

pursued the criminal or civil investigation or proceedings with

reasonable diligence and any proposed discovery in the civil action

will interfere with the ongoing criminal or civil investigation or

proceedings.

(5) Notwithstanding subsection (b), the Government may elect to

pursue its claim through any alternate remedy available to the

Government, including any administrative proceeding to determine a

civil money penalty. If any such alternate remedy is pursued in

another proceeding, the person initiating the action shall have the

same rights in such proceeding as such person would have had if the

action had continued under this section. Any finding of fact or

conclusion of law made in such other proceeding that has become

final shall be conclusive on all parties to an action under this

section. For purposes of the preceding sentence, a finding or

conclusion is final if it has been finally determined on appeal to

the appropriate court of the United States, if all time for filing

such an appeal with respect to the finding or conclusion has

expired, or if the finding or conclusion is not subject to judicial

review.

(d) Award to Qui Tam Plaintiff. - (1) If the Government proceeds

with an action brought by a person under subsection (b), such

person shall, subject to the second sentence of this paragraph,

receive at least 15 percent but not more than 25 percent of the

proceeds of the action or settlement of the claim, depending upon

the extent to which the person substantially contributed to the

prosecution of the action. Where the action is one which the court

finds to be based primarily on disclosures of specific information

(other than information provided by the person bringing the action)

relating to allegations or transactions in a criminal, civil, or

administrative hearing, in a congressional, administrative, or

Government (!1) Accounting Office report, hearing, audit, or

investigation, or from the news media, the court may award such

sums as it considers appropriate, but in no case more than 10

percent of the proceeds, taking into account the significance of

the information and the role of the person bringing the action in

advancing the case to litigation. Any payment to a person under the

first or second sentence of this paragraph shall be made from the

proceeds. Any such person shall also receive an amount for

reasonable expenses which the court finds to have been necessarily

incurred, plus reasonable attorneys' fees and costs. All such

expenses, fees, and costs shall be awarded against the defendant.

(2) If the Government does not proceed with an action under this

section, the person bringing the action or settling the claim shall

receive an amount which the court decides is reasonable for

collecting the civil penalty and damages. The amount shall be not

less than 25 percent and not more than 30 percent of the proceeds

of the action or settlement and shall be paid out of such proceeds.

Such person shall also receive an amount for reasonable expenses

which the court finds to have been necessarily incurred, plus

reasonable attorneys' fees and costs. All such expenses, fees, and

costs shall be awarded against the defendant.

(3) Whether or not the Government proceeds with the action, if

the court finds that the action was brought by a person who planned

and initiated the violation of section 3729 upon which the action

was brought, then the court may, to the extent the court considers

appropriate, reduce the share of the proceeds of the action which

the person would otherwise receive under paragraph (1) or (2) of

this subsection, taking into account the role of that person in

advancing the case to litigation and any relevant circumstances

pertaining to the violation. If the person bringing the action is

convicted of criminal conduct arising from his or her role in the

violation of section 3729, that person shall be dismissed from the

civil action and shall not receive any share of the proceeds of the

action. Such dismissal shall not prejudice the right of the United

States to continue the action, represented by the Department of

Justice.

(4) If the Government does not proceed with the action and the

person bringing the action conducts the action, the court may award

to the defendant its reasonable attorneys' fees and expenses if the

defendant prevails in the action and the court finds that the claim

of the person bringing the action was clearly frivolous, clearly

vexatious, or brought primarily for purposes of harassment.

(e) Certain Actions Barred. - (1) No court shall have

jurisdiction over an action brought by a former or present member

of the armed forces under subsection (b) of this section against a

member of the armed forces arising out of such person's service in

the armed forces.

(2)(A) No court shall have jurisdiction over an action brought

under subsection (b) against a Member of Congress, a member of the

judiciary, or a senior executive branch official if the action is

based on evidence or information known to the Government when the

action was brought.

(B) For purposes of this paragraph, "senior executive branch

official" means any officer or employee listed in paragraphs (1)

through (8) of section 101(f) of the Ethics in Government Act of

1978 (5 U.S.C. App.).

(3) In no event may a person bring an action under subsection (b)

which is based upon allegations or transactions which are the

subject of a civil suit or an administrative civil money penalty

proceeding in which the Government is already a party.

(4)(A) No court shall have jurisdiction over an action under this

section based upon the public disclosure of allegations or

transactions in a criminal, civil, or administrative hearing, in a

congressional, administrative, or Government (!2) Accounting Office

report, hearing, audit, or investigation, or from the news media,

unless the action is brought by the Attorney General or the person

bringing the action is an original source of the information.

(B) For purposes of this paragraph, "original source" means an

individual who has direct and independent knowledge of the

information on which the allegations are based and has voluntarily

provided the information to the Government before filing an action

under this section which is based on the information.

(f) Government Not Liable for Certain Expenses. - The Government

is not liable for expenses which a person incurs in bringing an

action under this section.

(g) Fees and Expenses to Prevailing Defendant. - In civil actions

brought under this section by the United States, the provisions of

section 2412(d) of title 28 shall apply.

(h) Any employee who is discharged, demoted, suspended,

threatened, harassed, or in any other manner discriminated against

in the terms and conditions of employment by his or her employer

because of lawful acts done by the employee on behalf of the

employee or others in furtherance of an action under this section,

including investigation for, initiation of, testimony for, or

assistance in an action filed or to be filed under this section,

shall be entitled to all relief necessary to make the employee

whole. Such relief shall include reinstatement with the same

seniority status such employee would have had but for the

discrimination, 2 times the amount of back pay, interest on the

back pay, and compensation for any special damages sustained as a

result of the discrimination, including litigation costs and

reasonable attorneys' fees. An employee may bring an action in the

appropriate district court of the United States for the relief

provided in this subsection.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99-562,

Secs. 3, 4, Oct. 27, 1986, 100 Stat. 3154, 3157; Pub. L. 100-700,

Sec. 9, Nov. 19, 1988, 102 Stat. 4638; Pub. L. 101-280, Sec. 10(a),

May 4, 1990, 104 Stat. 162; Pub. L. 103-272, Sec. 4(f)(1)(P), July

5, 1994, 108 Stat. 1362.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3730(a) 31:233. R.S. Sec. 3492.

3730(b)( 31:232(A), (B)(less R.S. Sec. 3491(A)-(E);

1) words between 3d restated Dec. 23, 1943, ch.

and 4th commas). 377, Sec. 1, 57 Stat. 608;

June 11, 1960, Pub. L. 86-507,

Sec. 1(28), (29), 74 Stat. 202.

3730(b)( 31:232(C)(1st-3d

2) sentences, 5th

sentence proviso).

3730(b)( 31:232(C)(4th

3) sentence, 5th

sentence less

proviso).

3730(b)( 31:232(C)(last

4) sentence), (D).

3730(c)( 31:232(E)(1).

1)

3730(c)( 31:232(E)(2)(less

2) proviso).

3730(d) 31:232(B)(words

between 3d and 4th

commas),

(E)(2)(proviso).

--------------------------------------------------------------------

In the section, the words "civil action" are substituted for

"suit" for consistency in the revised title and with other titles

of the United States Code.

In subsection (a), the words "Attorney General" are substituted

for "several district attorneys of the United States [subsequently

changed to 'United States attorneys' because of section 1 of the

Act of June 25, 1948 (ch. 646, 62 Stat. 909)] for the respective

districts, for the District of Columbia, and for the several

Territories" because of 28:509. The words "by persons liable to

such suit" are omitted as surplus. The words "and found within

their respective districts or Territories" are omitted because of

the restatement. The words "If the Attorney General finds that a

person has violated or is violating section 3729, the Attorney

General may bring a civil action under this section against the

person" are substituted for "and to cause them to be proceeded

against in due form of law for the recovery of such forfeiture and

damages" for clarity and consistency. The words "as the district

judge may order" are omitted as surplus. The words "of the Attorney

General" are substituted for "the person bringing the suit" for

consistency in the section.

In subsection (b)(1), the words "Except as hereinafter provided"

are omitted as unnecessary. The words "for a violation of section

3729 of this title" are added because of the restatement. The words

"and carried on", "several" and "full power and" are omitted as

surplus. The words "of the action" are substituted for "to hear,

try, and determine such suit" to eliminate unnecessary words. The

words "Trial is in the judicial district within whose

jurisdictional limits the person charged with a violation is found

or the violation occurs" are substituted for "within whose

jurisdictional limits the person doing or committing such act shall

be found, shall wheresoever such act may have been done or

committed" for consistency in the revised title and with other

titles of the Code. The words "withdrawn or" and "judge of the" are

omitted as surplus. The words "Attorney General" are substituted

for "district attorney [subsequently changed to 'United States

attorneys' because of section 1 of the Act of June 25, 1948 (ch.

646, 62 Stat. 909)], first filed in the case" because of 28:509.

In subsection (b)(2), before clause (A), the words "bill of",

"Whenever any such suit shall be brought by any person under clause

(B) of this section" and "to the effective prosecution of such suit

or" are omitted as surplus. The words "served on the Government

under rule 4 of the Federal Rules of Civil Procedure (28 App.

U.S.C.)" are substituted for "notice . . . shall be given to the

United States by serving upon the United States Attorney for the

district in which such suit shall have been brought . . . and by

sending, by registered mail, or by certified mail, to the Attorney

General of the United States at Washington, District of Columbia"

because of 28:509 and to eliminate unnecessary words. The words

"proceed with the action" are added for clarity. Clause (A) is

substituted for "shall fail, or decline in writing to the court,

during said period of sixty days to enter any such suit" for

clarity and consistency. In clause (B), the words "a period of" and

"therein" are omitted as surplus.

In subsection (b)(3), the words "within said period" are omitted

as surplus. The words "proceeds with the action" are substituted

for "shall enter appearance in such suit" for consistency. The

words "In carrying on such suit" and "and may proceed in all

respects as if it were instituting the suit" are omitted as

surplus.

In subsection (b)(4), the words "Unless the Government proceeds

with the action" are added because of the restatement. The words

"shall dismiss an action brought by the person on discovering" are

substituted for "shall have no jurisdiction to proceed with any

such suit . . . or pending suit . . . whenever it shall be made to

appear that" to eliminate unnecessary words. The words "or any

agency, officer, or employee thereof" are omitted as unnecessary.

The text of 31:232(C)(last sentence proviso) and (D) is omitted as

executed.

In subsection (c), the words "herein provided", "fair and . . .

compensation to such person", and "involved therein, which shall be

collected" are omitted as surplus.

In subsection (c)(2), the words "whether heretofore or hereafter

brought" are omitted as unnecessary. The words "bringing the action

or settling the claim" are substituted for "who brought such suit

and prosecuted it to final judgment, or to settlement" for clarity

and consistency. The words "as provided in clause (B) of this

section" are omitted as unnecessary. The words "the civil penalty"

are substituted for "forfeiture" for clarity and consistency. The

words "to his own use", "the court may", and "to be allowed and

taxed according to any provision of law or rule of court in force,

or that shall be in force in suits between private parties in said

court" are omitted as surplus.

Subsection (d) is substituted for 31:232(B)(words between 3d and

4th commas) and (E)(2)(proviso) to eliminate unnecessary words.

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec.

(b)(2), (3), are set out in the Appendix to Title 28, Judiciary and

Judicial Procedure.

Section 101(f) of the Ethics in Government Act of 1978, referred

to in subsec. (e)(2)(B), is section 101(f) of Pub. L. 95-521, title

I, Oct. 26, 1978, 92 Stat. 1824, as amended, which was set out in

the Appendix to Title 5, Government Organization and Employees.

-MISC2-

AMENDMENTS

1994 - Subsec. (e)(2)(B). Pub. L. 103-272 substituted "paragraphs

(1) through (8)" for "section paragraphs (1) through (8)".

1990 - Subsec. (e)(2)(B). Pub. L. 101-280 substituted "paragraphs

(1) through (8) of section 101(f)" for "201(f)".

1988 - Subsec. (c)(4). Pub. L. 100-700, Sec. 9(b)(1), which

directed amendment of section 3730 of title 28 by substituting

"with the action" for "with action" in subsec. (c)(4), was executed

to subsec. (c)(4) of this section as the probable intent of

Congress.

Subsec. (d)(3). Pub. L. 100-700, Sec. 9(a)(1), (2), added par.

(3). Former par. (3) redesignated (4).

Subsec. (d)(4). Pub. L. 100-700, Sec. 9(b)(2), which directed

amendment of section 3730 of title 28 by substituting "claim of the

person bringing the action" for "claim of the person bringing the

actions" in subsec. (d)(4), was executed to subsec. (d)(4) of this

section as the probable intent of Congress.

Pub. L. 100-700, Sec. 9(a)(1), redesignated former par. (3) as

(4).

1986 - Pub. L. 99-562, Sec. 3, amended section generally,

revising and expanding provisions of subsecs. (a) to (c), adding

subsecs. (d) and (e), redesignating former subsec. (d) as (f), and

adding subsec. (g).

Subsec. (h). Pub. L. 99-562, Sec. 4, added subsec. (h).

EFFECTIVE DATE OF 1990 AMENDMENT

Section 10(c) of Pub. L. 101-280 provided that: "The amendments

made by subsections (a) and (b) [amending this section and section

2397a of Title 10, Armed Forces] shall take effect on January 1,

1991."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3731, 3732, 3733 of this

title; title 15 sections 637, 657a; title 42 section 1395i.

-FOOTNOTE-

(!1) So in original. Probably should be "General".

(!2) So in original. Probably should be "General".

-End-

-CITE-

31 USC Sec. 3731 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3731. False claims procedure

-STATUTE-

(a) A subpena requiring the attendance of a witness at a trial or

hearing conducted under section 3730 of this title may be served at

any place in the United States.

(b) A civil action under section 3730 may not be brought -

(1) more than 6 years after the date on which the violation of

section 3729 is committed, or

(2) more than 3 years after the date when facts material to the

right of action are known or reasonably should have been known by

the official of the United States charged with responsibility to

act in the circumstances, but in no event more than 10 years

after the date on which the violation is committed,

whichever occurs last.

(c) In any action brought under section 3730, the United States

shall be required to prove all essential elements of the cause of

action, including damages, by a preponderance of the evidence.

(d) Notwithstanding any other provision of law, the Federal Rules

of Criminal Procedure, or the Federal Rules of Evidence, a final

judgment rendered in favor of the United States in any criminal

proceeding charging fraud or false statements, whether upon a

verdict after trial or upon a plea of guilty or nolo contendere,

shall estop the defendant from denying the essential elements of

the offense in any action which involves the same transaction as in

the criminal proceeding and which is brought under subsection (a)

or (b) of section 3730.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 979; Pub. L. 99-562, Sec.

5, Oct. 27, 1986, 100 Stat. 3158.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3731(a) 31:232(F). R.S. Sec. 3491(F); added Nov.

2, 1978, Pub. L. 95-582, Sec.

1, 92 Stat. 2479.

3731(b) 31:235. R.S. Sec. 3494.

--------------------------------------------------------------------

In subsection (b), the words "A civil action under section 3730

of this title" are substituted for "Every such suit" for clarity.

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Criminal Procedure, referred to in subsec.

(d), are set out in the Appendix to Title 18, Crimes and Criminal

Procedure.

The Federal Rules of Evidence, referred to in subsec. (d), are

set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-MISC2-

AMENDMENTS

1986 - Subsecs. (b) to (d). Pub. L. 99-562 added subsecs. (b) to

(d) and struck out former subsec. (b) which read as follows: "A

civil action under section 3730 of this title must be brought

within 6 years from the date the violation is committed."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3733 of this title; title

15 sections 637, 657a; title 42 section 1395i.

-End-

-CITE-

31 USC Sec. 3732 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3732. False claims jurisdiction

-STATUTE-

(a) Actions Under Section 3730. - Any action under section 3730

may be brought in any judicial district in which the defendant or,

in the case of multiple defendants, any one defendant can be found,

resides, transacts business, or in which any act proscribed by

section 3729 occurred. A summons as required by the Federal Rules

of Civil Procedure shall be issued by the appropriate district

court and served at any place within or outside the United States.

(b) Claims Under State Law. - The district courts shall have

jurisdiction over any action brought under the laws of any State

for the recovery of funds paid by a State or local government if

the action arises from the same transaction or occurrence as an

action brought under section 3730.

-SOURCE-

(Added Pub. L. 99-562, Sec. 6(a), Oct. 21, 1986, 100 Stat. 3158.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec. (a),

are set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3733 of this title; title

15 sections 637, 657a; title 20 section 1078-9; title 42 section

1395i.

-End-

-CITE-

31 USC Sec. 3733 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 - CLAIMS

SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT

-HEAD-

Sec. 3733. Civil investigative demands

-STATUTE-

(a) In General. -

(1) Issuance and service. - Whenever the Attorney General has

reason to believe that any person may be in possession, custody,

or control of any documentary material or information relevant to

a false claims law investigation, the Attorney General may,

before commencing a civil proceeding under section 3730 or other

false claims law, issue in writing and cause to be served upon

such person, a civil investigative demand requiring such person -

(A) to produce such documentary material for inspection and

copying,

(B) to answer in writing written interrogatories with respect

to such documentary material or information,

(C) to give oral testimony concerning such documentary

material or information, or

(D) to furnish any combination of such material, answers, or

testimony.

The Attorney General may not delegate the authority to issue

civil investigative demands under this subsection. Whenever a

civil investigative demand is an express demand for any product

of discovery, the Attorney General, the Deputy Attorney General,

or an Assistant Attorney General shall cause to be served, in any

manner authorized by this section, a copy of such demand upon the

person from whom the discovery was obtained and shall notify the

person to whom such demand is issued of the date on which such

copy was served.

(2) Contents and deadlines. -

(A) Each civil investigative demand issued under paragraph

(1) shall state the nature of the conduct constituting the

alleged violation of a false claims law which is under

investigation, and the applicable provision of law alleged to

be violated.

(B) If such demand is for the production of documentary

material, the demand shall -

(i) describe each class of documentary material to be

produced with such definiteness and certainty as to permit

such material to be fairly identified;

(ii) prescribe a return date for each such class which will

provide a reasonable period of time within which the material

so demanded may be assembled and made available for

inspection and copying; and

(iii) identify the false claims law investigator to whom

such material shall be made available.

(C) If such demand is for answers to written interrogatories,

the demand shall -

(i) set forth with specificity the written interrogatories

to be answered;

(ii) prescribe dates at which time answers to written

interrogatories shall be submitted; and

(iii) identify the false claims law investigator to whom

such answers shall be submitted.

(D) If such demand is for the giving of oral testimony, the

demand shall -

(i) prescribe a date, time, and place at which oral

testimony shall be commenced;

(ii) identify a false claims law investigator who shall

conduct the examination and the custodian to whom the

transcript of such examination shall be submitted;

(iii) specify that such attendance and testimony are

necessary to the conduct of the investigation;

(iv) notify the person receiving the demand of the right to

be accompanied by an attorney and any other representative;

and

(v) describe the general purpose for which the demand is

being issued and the general nature of the testimony,

including the primary areas of inquiry, which will be taken

pursuant to the demand.

(E) Any civil investigative demand issued under this section

which is an express demand for any product of discovery shall

not be returned or returnable until 20 days after a copy of

such demand has been served upon the person from whom the

discovery was obtained.

(F) The date prescribed for the commencement of oral

testimony pursuant to a civil investigative demand issued under

this section shall be a date which is not less than seven days

after the date on which demand is received, unless the Attorney

General or an Assistant Attorney General designated by the

Attorney General determines that exceptional circumstances are

present which warrant the commencement of such testimony within

a lesser period of time.

(G) The Attorney General shall not authorize the issuance

under this section of more than one civil investigative demand

for oral testimony by the same person unless the person

requests otherwise or unless the Attorney General, after

investigation, notifies that person in writing that an

additional demand for oral testimony is necessary. The Attorney

General may not, notwithstanding section 510 of title 28,

authorize the performance, by any other officer, employee, or

agency, of any function vested in the Attorney General under

this subparagraph.

(b) Protected Material or Information. -

(1) In general. - A civil investigative demand issued under

subsection (a) may not require the production of any documentary

material, the submission of any answers to written

interrogatories, or the giving of any oral testimony if such

material, answers, or testimony would be protected from

disclosure under -

(A) the standards applicable to subpoenas or subpoenas duces

tecum issued by a court of the United States to aid in a grand

jury investigation; or

(B) the standards applicable to discovery requests under the

Federal Rules of Civil Procedure, to the extent that the

application of such standards to any such demand is appropriate

and consistent with the provisions and purposes of this

section.

(2) Effect on other orders, rules, and laws. - Any such demand

which is an express demand for any product of discovery

supersedes any inconsistent order, rule, or provision of law

(other than this section) preventing or restraining disclosure of

such product of discovery to any person. Disclosure of any

product of discovery pursuant to any such express demand does not

constitute a waiver of any right or privilege which the person

making such disclosure may be entitled to invoke to resist

discovery of trial preparation materials.

(c) Service; Jurisdiction. -

(1) By whom served. - Any civil investigative demand issued

under subsection (a) may be served by a false claims law

investigator, or by a United States marshal or a deputy marshal,

at any place within the territorial jurisdiction of any court of

the United States.

(2) Service in foreign countries. - Any such demand or any

petition filed under subsection (j) may be served upon any person

who is not found within the territorial jurisdiction of any court

of the United States in such manner as the Federal Rules of Civil

Procedure prescribe for service in a foreign country. To the

extent that the courts of the United States can assert

jurisdiction over any such person consistent with due process,

the United States District Court for the District of Columbia

shall have the same jurisdiction to take any action respecting

compliance with this section by any such person that such court

would have if such person were personally within the jurisdiction

of such court.

(d) Service Upon Legal Entities and Natural Persons. -

(1) Legal entities. - Service of any civil investigative demand

issued under subsection (a) or of any petition filed under

subsection (j) may be made upon a partnership, corporation,

association, or other legal entity by -

(A) delivering an executed copy of such demand or petition to

any partner, executive officer, managing agent, or general

agent of the partnership, corporation, association, or entity,

or to any agent authorized by appointment or by law to receive

service of process on behalf of such partnership, corporation,

association, or entity;

(B) delivering an executed copy of such demand or petition to

the principal office or place of business of the partnership,

corporation, association, or entity; or

(C) depositing an executed copy of such demand or petition in

the United States mails by registered or certified mail, with a

return receipt requested, addressed to such partnership,

corporation, association, or entity at its principal office or

place of business.

(2) Natural persons. - Service of any such demand or petition

may be made upon any natural person by -

(A) delivering an executed copy of such demand or petition to

the person; or

(B) depositing an executed copy of such demand or petition in

the United States mails by registered or certified mail, with a

return receipt requested, addressed to the person at the

person's residence or principal office or place of business.

(e) Proof of Service. - A verified return by the individual

serving any civil investigative demand issued under subsection (a)

or any petition filed under subsection (j) setting forth the manner

of such service shall be proof of such service. In the case of

service by registered or certified mail, such return shall be

accompanied by the return post office receipt of delivery of such

demand.

(f) Documentary Material. -

(1) Sworn certificates. - The production of documentary

material in response to a civil investigative demand served under

this section shall be made under a sworn certificate, in such

form as the demand designates, by -

(A) in the case of a natural person, the person to whom the

demand is directed, or

(B) in the case of a person other than a natural person, a

person having knowledge of the facts and circumstances relating

to such production and authorized to act on behalf of such

person.

The certificate shall state that all of the documentary material

required by the demand and in the possession, custody, or control

of the person to whom the demand is directed has been produced

and made available to the false claims law investigator

identified in the demand.

(2) Production of materials. - Any person upon whom any civil

investigative demand for the production of documentary material

has been served under this section shall make such material

available for inspection and copying to the false claims law

investigator identified in such demand at the principal place of

business of such person, or at such other place as the false

claims law investigator and the person thereafter may agree and

prescribe in writing, or as the court may direct under subsection

(j)(1). Such material shall be made so available on the return

date specified in such demand, or on such later date as the false

claims law investigator may prescribe in writing. Such person

may, upon written agreement between the person and the false

claims law investigator, substitute copies for originals of all

or any part of such material.

(g) Interrogatories. - Each interrogatory in a civil

investigative demand served under this section shall be answered

separately and fully in writing under oath and shall be submitted

under a sworn certificate, in such form as the demand designates,

by -

(1) in the case of a natural person, the person to whom the

demand is directed, or

(2) in the case of a person other than a natural person, the

person or persons responsible for answering each interrogatory.

If any interrogatory is objected to, the reasons for the objection

shall be stated in the certificate instead of an answer. The

certificate shall state that all information required by the demand

and in the possession, custody, control, or knowledge of the person

to whom the demand is directed has been submitted. To the extent

that any information is not furnished, the information shall be

identified and reasons set forth with particularity regarding the

reasons why the information was not furnished.

(h) Oral Examinations. -

(1) Procedures. - The examination of any person pursuant to a

civil investigative demand for oral testimony served under this

section shall be taken before an officer authorized to administer

oaths and affirmations by the laws of the United States or of the

place where the examination is held. The officer before whom the

testimony is to be taken shall put the witness on oath or

affirmation and shall, personally or by someone acting under the

direction of the officer and in the officer's presence, record

the testimony of the witness. The testimony shall be taken

stenographically and shall be transcribed. When the testimony is

fully transcribed, the officer before whom the testimony is taken

shall promptly transmit a copy of the transcript of the testimony

to the custodian. This subsection shall not preclude the taking

of testimony by any means authorized by, and in a manner

consistent with, the Federal Rules of Civil Procedure.

(2) Persons present. - The false claims law investigator

conducting the examination shall exclude from the place where the

examination is held all persons except the person giving the

testimony, the attorney for and any other representative of the

person giving the testimony, the attorney for the Government, any

person who may be agreed upon by the attorney for the Government

and the person giving the testimony, the officer before whom the

testimony is to be taken, and any stenographer taking such

testimony.

(3) Where testimony taken. - The oral testimony of any person

taken pursuant to a civil investigative demand served under this

section shall be taken in the judicial district of the United

States within which such person resides, is found, or transacts

business, or in such other place as may be agreed upon by the

false claims law investigator conducting the examination and such

person.

(4) Transcript of testimony. - When the testimony is fully

transcribed, the false claims law investigator or the officer

before whom the testimony is taken shall afford the witness, who

may be accompanied by counsel, a reasonable opportunity to

examine and read the transcript, unless such examination and

reading are waived by the witness. Any changes in form or

substance which the witness desires to make shall be entered and

identified upon the transcript by the officer or the false claims

law investigator, with a statement of the reasons given by the

witness for making such changes. The transcript shall then be

signed by the witness, unless the witness in writing waives the

signing, is ill, cannot be found, or refuses to sign. If the

transcript is not signed by the witness within 30 days after

being afforded a reasonable opportunity to examine it, the

officer or the false claims law investigator shall sign it and

state on the record the fact of the waiver, illness, absence of

the witness, or the refusal to sign, together with the reasons,

if any, given therefor.

(5) Certification and delivery to custodian. - The officer

before whom the testimony is taken shall certify on the

transcript that the witness was sworn by the officer and that the

transcript is a true record of the testimony given by the

witness, and the officer or false claims law investigator shall

promptly deliver the transcript, or send the transcript by

registered or certified mail, to the custodian.

(6) Furnishing or inspection of transcript by witness. - Upon

payment of reasonable charges therefor, the false claims law

investigator shall furnish a copy of the transcript to the

witness only, except that the Attorney General, the Deputy

Attorney General, or an Assistant Attorney General may, for good

cause, limit such witness to inspection of the official

transcript of the witness' testimony.

(7) Conduct of oral testimony. - (A) Any person compelled to

appear for oral testimony under a civil investigative demand

issued under subsection (a) may be accompanied, represented, and

advised by counsel. Counsel may advise such person, in

confidence, with respect to any question asked of such person.

Such person or counsel may object on the record to any question,

in whole or in part, and shall briefly state for the record the

reason for the objection. An objection may be made, received, and

entered upon the record when it is claimed that such person is

entitled to refuse to answer the question on the grounds of any

constitutional or other legal right or privilege, including the

privilege against self-incrimination. Such person may not

otherwise object to or refuse to answer any question, and may not

directly or through counsel otherwise interrupt the oral

examination. If such person refuses to answer any question, a

petition may be filed in the district court of the United States

under subsection (j)(1) for an order compelling such person to

answer such question.

(B) If such person refuses to answer any question on the

grounds of the privilege against self-incrimination, the

testimony of such person may be compelled in accordance with the

provisions of part V of title 18.

(8) Witness fees and allowances. - Any person appearing for

oral testimony under a civil investigative demand issued under

subsection (a) shall be entitled to the same fees and allowances

which are paid to witnesses in the district courts of the United

States.

(i) Custodians of Documents, Answers, and Transcripts. -

(1) Designation. - The Attorney General shall designate a false

claims law investigator to serve as custodian of documentary

material, answers to interrogatories, and transcripts of oral

testimony received under this section, and shall designate such

additional false claims law investigators as the Attorney General

determines from time to time to be necessary to serve as deputies

to the custodian.

(2) Responsibility for materials; disclosure. - (A) A false

claims law investigator who receives any documentary material,

answers to interrogatories, or transcripts of oral testimony

under this section shall transmit them to the custodian. The

custodian shall take physical possession of such material,

answers, or transcripts and shall be responsible for the use made

of them and for the return of documentary material under

paragraph (4).

(B) The custodian may cause the preparation of such copies of

such documentary material, answers to interrogatories, or

transcripts of oral testimony as may be required for official use

by any false claims law investigator, or other officer or

employee of the Department of Justice, who is authorized for such

use under regulations which the Attorney General shall issue.

Such material, answers, and transcripts may be used by any such

authorized false claims law investigator or other officer or

employee in connection with the taking of oral testimony under

this section.

(C) Except as otherwise provided in this subsection, no

documentary material, answers to interrogatories, or transcripts

of oral testimony, or copies thereof, while in the possession of

the custodian, shall be available for examination by any

individual other than a false claims law investigator or other

officer or employee of the Department of Justice authorized under

subparagraph (B). The prohibition in the preceding sentence on

the availability of material, answers, or transcripts shall not

apply if consent is given by the person who produced such

material, answers, or transcripts, or, in the case of any product

of discovery produced pursuant to an express demand for such

material, consent is given by the person from whom the discovery

was obtained. Nothing in this subparagraph is intended to prevent

disclosure to the Congress, including any committee or

subcommittee of the Congress, or to any other agency of the

United States for use by such agency in furtherance of its

statutory responsibilities. Disclosure of information to any such

other agency shall be allowed only upon application, made by the

Attorney General to a United States district court, showing

substantial need for the use of the information by such agency in

furtherance of its statutory responsibilities.

(D) While in the possession of the custodian and under such

reasonable terms and conditions as the Attorney General shall

prescribe -

(i) documentary material and answers to interrogatories shall

be available for examination by the person who produced such

material or answers, or by a representative of that person

authorized by that person to examine such material and answers;

and

(ii) transcripts of oral testimony shall be available for

examination by the person who produced such testimony, or by a

representative of that person authorized by that person to

examine such transcripts.

(3) Use of material, answers, or transcripts in other

proceedings. - Whenever any attorney of the Department of Justice

has been designated to appear before any court, grand jury, or

Federal agency in any case or proceeding, the custodian of any

documentary material, answers to interrogatories, or transcripts

of oral testimony received under this section may deliver to such

attorney such material, answers, or transcripts for official use

in connection with any such case or proceeding as such attorney

determines to be required. Upon the completion of any such case

or proceeding, such attorney shall return to the custodian any

such material, answers, or transcripts so delivered which have

not passed into the control of such court, grand jury, or agency

through introduction into the record of such case or proceeding.

(4) Conditions for return of material. - If any documentary

material has been produced by any person in the course of any

false claims law investigation pursuant to a civil investigative

demand under this section, and -

(A) any case or proceeding before the court or grand jury

arising out of such investigation, or any proceeding before any

Federal agency involving such material, has been completed, or

(B) no case or proceeding in which such material may be used

has been commenced within a reasonable time after completion of

the examination and analysis of all documentary material and

other information assembled in the course of such

investigation,

the custodian shall, upon written request of the person who

produced such material, return to such person any such material

(other than copies furnished to the false claims law investigator

under subsection (f)(2) or made for the Department of Justice

under paragraph (2)(B)) which has not passed into the control of

any court, grand jury, or agency through introduction into the

record of such case or proceeding.

(5) Appointment of successor custodians. - In the event of the

death, disability, or separation from service in the Department

of Justice of the custodian of any documentary material, answers

to interrogatories, or transcripts of oral testimony produced

pursuant to a civil investigative demand under this section, or

in the event of the official relief of such custodian from

responsibility for the custody and control of such material,

answers, or transcripts, the Attorney General shall promptly -

(A) designate another false claims law investigator to serve

as custodian of such material, answers, or transcripts, and

(B) transmit in writing to the person who produced such

material, answers, or testimony notice of the identity and

address of the successor so designated.

Any person who is designated to be a successor under this

paragraph shall have, with regard to such material, answers, or

transcripts, the same duties and responsibilities as were imposed

by this section upon that person's predecessor in office, except

that the successor shall not be held responsible for any default

or dereliction which occurred before that designation.

(j) Judicial Proceedings. -

(1) Petition for enforcement. - Whenever any person fails to

comply with any civil investigative demand issued under

subsection (a), or whenever satisfactory copying or reproduction

of any material requested in such demand cannot be done and such

person refuses to surrender such material, the Attorney General

may file, in the district court of the United States for any

judicial district in which such person resides, is found, or

transacts business, and serve upon such person a petition for an

order of such court for the enforcement of the civil

investigative demand.

(2) Petition to modify or set aside demand. - (A) Any person

who has received a civil investigative demand issued under

subsection (a) may file, in the district court of the United

States for the judicial district within which such person

resides, is found, or transacts business, and serve upon the

false claims law investigator identified in such demand a

petition for an order of the court to modify or set aside such

demand. In the case of a petition addressed to an express demand

for any product of discovery, a petition to modify or set aside

such demand may be brought only in the district court of the

United States for the judicial district in which the proceeding

in which such discovery was obtained is or was last pending. Any

petition under this subparagraph must be filed -

(i) within 20 days after the date of service of the civil

investigative demand, or at any time before the return date

specified in the demand, whichever date is earlier, or

(ii) within such longer period as may be prescribed in

writing by any false claims law investigator identified in the

demand.

(B) The petition shall specify each ground upon which the

petitioner relies in seeking relief under subparagraph (A), and

may be based upon any failure of the demand to comply with the

provisions of this section or upon any constitutional or other

legal right or privilege of such person. During the pendency of

the petition in the court, the court may stay, as it deems

proper, the running of the time allowed for compliance with the

demand, in whole or in part, except that the person filing the

petition shall comply with any portions of the demand not sought

to be modified or set aside.

(3) Petition to modify or set aside demand for product of

discovery. - (A) In the case of any civil investigative demand

issued under subsection (a) which is an express demand for any

product of discovery, the person from whom such discovery was

obtained may file, in the district court of the United States for

the judicial district in which the proceeding in which such

discovery was obtained is or was last pending, and serve upon any

false claims law investigator identified in the demand and upon

the recipient of the demand, a petition for an order of such

court to modify or set aside those portions of the demand

requiring production of any such product of discovery. Any

petition under this subparagraph must be filed -

(i) within 20 days after the date of service of the civil

investigative demand, or at any time before the return date

specified in the demand, whichever date is earlier, or

(ii) within such longer period as may be prescribed in

writing by any false claims law investigator identified in the

demand.

(B) The petition shall specify each ground upon which the

petitioner relies in seeking relief under subparagraph (A), and

may be based upon any failure of the portions of the demand from

which relief is sought to comply with the provisions of this

section, or upon any constitutional or other legal right or

privilege of the petitioner. During the pendency of the petition,

the court may stay, as it deems proper, compliance with the

demand and the running of the time allowed for compliance with

the demand.

(4) Petition to require performance by custodian of duties. -

At any time during which any custodian is in custody or control

of any documentary material or answers to interrogatories

produced, or transcripts of oral testimony given, by any person

in compliance with any civil investigative demand issued under

subsection (a), such person, and in the case of an express demand

for any product of discovery, the person from whom such discovery

was obtained, may file, in the district court of the United

States for the judicial district within which the office of such

custodian is situated, and serve upon such custodian, a petition

for an order of such court to require the performance by the

custodian of any duty imposed upon the custodian by this section.

(5) Jurisdiction. - Whenever any petition is filed in any

district court of the United States under this subsection, such

court shall have jurisdiction to hear and determine the matter so

presented, and to enter such order or orders as may be required

to carry out the provisions of this section. Any final order so

entered shall be subject to appeal under section 1291 of title

28. Any disobedience of any final order entered under this

section by any court shall be punished as a contempt of the

court.

(6) Applicability of federal rules of civil procedure. - The

Federal Rules of Civil Procedure shall apply to any petition

under this subsection, to the extent that such rules are not

inconsistent with the provisions of this section.

(k) Disclosure Exemption. - Any documentary material, answers to

written interrogatories, or oral testimony provided under any civil

investigative demand issued under subsection (a) shall be exempt

from disclosure under section 552 of title 5.

(l) Definitions. - For purposes of this section -

(1) the term "false claims law" means -

(A) this section and sections 3729 through 3732; and

(B) any Act of Congress enacted after the date of the

enactment of this section which prohibits, or makes available

to the United States in any court of the United States any

civil remedy with respect to, any false claim against, bribery

of, or corruption of any officer or employee of the United

States;

(2) the term "false claims law investigation" means any inquiry

conducted by any false claims law investigator for the purpose of

ascertaining whether any person is or has been engaged in any

violation of a false claims law;

(3) the term "false claims law investigator" means any attorney

or investigator employed by the Department of Justice who is

charged with the duty of enforcing or carrying into effect any

false claims law, or any officer or employee of the United States

acting under the direction and supervision of such attorney or

investigator in connection with a false claims law investigation;

(4) the term "person" means any natural person, partnership,

corporation, association, or other legal entity, including any

State or political subdivision of a State;

(5) the term "documentary material" includes the original or

any copy of any book, record, report, memorandum, paper,

communication, tabulation, chart, or other document, or data

compilations stored in or accessible through computer or other

information retrieval systems, together with instructions and all

other materials necessary to use or interpret such data

compilations, and any product of discovery;

(6) the term "custodian" means the custodian, or any deputy

custodian, designated by the Attorney General under subsection

(i)(1); and

(7) the term "product of discovery" includes -

(A) the original or duplicate of any deposition,

interrogatory, document, thing, result of the inspection of

land or other property, examination, or admission, which is

obtained by any method of discovery in any judicial or

administrative proceeding of an adversarial nature;

(B) any digest, analysis, selection, compilation, or

derivation of any item listed in subparagraph (A); and

(C) any index or other manner of access to any item listed in

subparagraph (A).

-SOURCE-

(Added Pub. L. 99-562, Sec. 6(a), Oct. 27, 1986, 100 Stat. 3159.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsecs.

(b)(1)(B), (c)(2), (h)(1), and (j)(6), are set out in the Appendix

to Title 28, Judiciary and Judicial Procedure.

The date of enactment of this section, referred to in subsec.

(l)(1)(B), is the date of enactment of Pub. L. 99-562, which was

approved Oct. 27, 1986.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 15 sections 637, 657a; title

20 section 1078-9; title 42 section 1395i.

-End-