Legislación
US (United States) Code. Title 31. Subtitle III: Financial management. Chapter 37: Claims
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31 USC CHAPTER 37 - CLAIMS 01/06/03
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TITLE 31 - MONEY AND FINANCE
SUBTITLE III - FINANCIAL MANAGEMENT
CHAPTER 37 - CLAIMS
-HEAD-
CHAPTER 37 - CLAIMS
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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-
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31 USC SUBCHAPTER I - GENERAL 01/06/03
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TITLE 31 - MONEY AND FINANCE
SUBTITLE III - FINANCIAL MANAGEMENT
CHAPTER 37 - CLAIMS
SUBCHAPTER I - GENERAL
-HEAD-
SUBCHAPTER I - GENERAL
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31 USC Sec. 3701 01/06/03
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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.)
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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).
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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.
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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-
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31 USC Sec. 3702 01/06/03
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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-
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Enviado por: | El remitente no desea revelar su nombre |
Idioma: | inglés |
País: | Estados Unidos |