31 U.S.C. § 3720B — Barring delinquent Federal debtors from

Page 323 TITLE 31—MONEY AND FINANCE § 3720B (B) the amount of such offset; and (C) any other information required by reg- ulations; and (3) shall match payment records with re- quests for offset by using a name control, tax- payer 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 Sec- retary 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. (Added Pub. L. 98–369, div. B, title VI, § 2653(a)(1), July 18, 1984, 98 Stat. 1153; amended Pub. L. 101–508, title V, § 5129(b), Nov. 5, 1990, 104 Stat. 1388–287; Pub. L. 102–589, § 3, Nov. 10, 1992, 106 Stat. 5133; Pub. L. 103–296, title I, § 108(j)(2), Aug. 15, 1994, 108 Stat. 1488; Pub. L. 104–134, title III, § 31001(u)(1), (v)(1), (w), Apr. 26, 1996, 110 Stat. 1321–375.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (f)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title II of the Act is classified generally to subchapter II (§ 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, re- ferred to in subsec. (h)(3), is classified to section 6109 of Title 26, Internal Revenue Code. AMENDMENTS 1996—Subsec. (a). Pub. L. 104–134, § 31001(v)(1), amend- ed 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 Govern- ment, by a named person shall, in accordance with reg- ulations issued pursuant to subsections (b) and (d), no- tify the Secretary of the Treasury at least once a year of the amount of all such debt.’’ Subsec. (h). Pub. L. 104–134, § 31001(w), amended sub- sec. (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 delin- quency 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 associa- tion.’’ Subsec. (i). Pub. L. 104–134, § 31001(u)(1), added subsec. (i). 1994—Subsec. (f)(2). Pub. L. 103–296 substituted ‘‘Com- missioner of Social Security’’ for ‘‘Secretary of Health and Human Services’’ wherever appearing. 1992—Subsec. (a). Pub. L. 102–589, § 3(1), amended sub- sec. (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, § 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, § 3(5), added subsec. (g). Former subsec. (g) redesignated (h). Subsec. (h). Pub. L. 102–589, § 3(3), (4), redesignated subsec. (g) as (h) and added par. (4). 1990—Subsec. (a). Pub. L. 101–508, § 5129(b)(1), struck out ‘‘OASDI overpayment and’’ after ‘‘other than any’’. Subsecs. (f), (g). Pub. L. 101–508, § 5129(b)(2), (3), added subsec. (f) and redesignated former subsec. (f) as (g). Statutory Notes and Related Subsidiaries 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 Amend- ment 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 sec- tion 2653 of Pub. L. 98–369, enacting this section, be con- strued as exempting debts of corporations or any other category of persons from application of such amend- ments, 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 sec- tion 6402 of Title 26, Internal Revenue Code. § 3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees (a) Unless this subsection is waived by the head of a Federal agency, a person may not ob- tain 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 Page 324 TITLE 31—MONEY AND FINANCE § 3720C standards prescribed by the Secretary of the Treasury. Such a person may obtain additional loans or loan guarantees only after such delin- quency 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 waiv- er authority may be redelegated only to the Deputy Chief Financial Officer of the agency. (Added Pub. L. 104–134, title III, § 31001(j)(1), Apr. 26, 1996, 110 Stat. 1321–365; amended Pub. L. 106–387, § 1(a) [title VIII, § 845(a)], Oct. 28, 2000, 114 Stat. 1549, 1549A–65.) Editorial Notes 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. Subtitle C of the Act is classified gen- erally to subchapter III (§ 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 sub- sec. (a), is classified to Title 26, Internal Revenue Code. AMENDMENTS 2000—Subsec. (a). Pub. L. 106–387 inserted ‘‘or a mar- keting 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’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–387, § 1(a) [title VIII, § 845(c)], Oct. 28, 2000, 114 Stat. 1549, 1549A–65, provided that: ‘‘(1) IN GENERAL.—The amendment made by sub- section (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 amend- ment made by subsection (a), the producers shall be eli- gible 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, § 1(a) [title VIII, § 845(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A–65, provided that: ‘‘Any payment made by the Commodity Credit Corporation to a pro- ducer 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.’’ § 3720C. Debt Collection Improvement Account (a)(1) There is hereby established in the Treas- ury a special fund to be known as the ‘‘Debt Col- lection Improvement Account’’ (hereinafter in this section referred to as the ‘‘Account’’). (2) The Account shall be maintained and man- aged 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 Ac- count the amount described in paragraph (3), as adjusted under paragraph (4). (2) Agency transfers to the Account may in- clude 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 man- agement, 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 re- imburse 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 collec- tion, and debt recovery activities, including— (A) account servicing (including cross-serv- icing under section 3711(g) of this title), (B) automatic data processing equipment ac- quisitions, (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 Treas- ury for purposes of this section to the extent and in amounts provided in advance in appro- priations Acts. (B) As soon as practicable after the end of the third fiscal year after which amounts trans- ferred are first available pursuant to this sec- tion, and every 3 years thereafter, any uncom- mitted balance in the Account shall be trans-