31 U.S.C. § 3702 — Authority to settle claims

Page 303 TITLE 31—MONEY AND FINANCE § 3702 ‘‘(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 Ad- ministration.’’ § 3702. Authority to settle claims (a) Except as provided in this chapter or an- other 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, transpor- tation, payments for unused accrued leave, retired pay, and survivor benefits; and (B) claims by transportation carriers in- volving 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 trav- el and transportation, and for relocation ex- penses 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 pro- vision of law. (b)(1) A claim against the Government pre- sented under this section must contain the sig- nature and address of the claimant or an author- ized representative. The claim must be received by the official responsible under subsection (a) for settling the claim or by the agency that con- ducts 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 Colum- bia, 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 be- fore war begins, the claim must be received within 5 years after peace is established or with- in the period provided in paragraph (1) of this subsection, whichever is later. (3) A claim that is not received in the time re- quired 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 with- in 1 year after the date of issuance of the check or the effective date of this subsection, which- ever is later. (2) Nothing in this subsection affects the un- derlying 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 Con- gress on a claim against the Government that is timely presented under this section that may not be adjusted by using an existing appropria- tion, 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 re- spect 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 sub- section (a)(1)(A) shall be made from an appro- priation that is available, for the fiscal year in which the payment is made, for the same pur- pose as the appropriation to which the obliga- tion claimed would have been charged if the ob- ligation had been timely paid, except that in the case of a claim for retired pay or survivor bene- fits, if the obligation claimed would have been paid from a trust fund if timely paid, the pay- ment of the claim shall be made from that trust fund. (3) This subsection does not apply to a claim in excess of $25,000. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 970; Pub. L. 97–452, § 1(14), Jan. 12, 1983, 96 Stat. 2470; Pub. L. 100–86, title X, § 1004(b), Aug. 10, 1987, 101 Stat. 659; Pub. L. 104–201, div. A, title VI, § 608, Sept. 23, 1996, 110 Stat. 2542; Pub. L. 104–316, title II, § 202(n)(1), Oct. 19, 1996, 110 Stat. 3843; Pub. L. 105–85, div. A, title X, § 1012, Nov. 18, 1997, 111 Stat. 1874; Pub. L. 106–398, § 1 [[div. A], title VI, § 664], Oct. 30, 2000, 114 Stat. 1654, 1654A–168; Pub. L. 107–314, div. A, title VI, § 635(a), (b), Dec. 2, 2002, 116 Stat. 2574; Pub. L. 109–163, div. A, title X, § 1056(e)(2), Jan. 6, 2006, 119 Stat. 3440.) HISTORICAL AND REVISION NOTES 1982 ACT Revised Section Source (U.S. Code) Source (Statutes at Large) 3702(a) ..... 31:44(1st sentence). June 10, 1921, ch. 18, § 304(1st par. 1st sentence), 42 Stat. 24. 31:71(related to claims). R.S. § 236(related to claims); June 10, 1921, ch. 18, § 305, 42 Stat. 24. 31:86. July 31, 1894, ch. 174, § 14, 28 Stat. 210. 3702(b)(1) 31:71a(1)(less pro- viso). Oct. 9, 1940, ch. 788, 54 Stat. 1061; Jan. 2, 1975, Pub. L. 93–604, § 801, 88 Stat. 1965. 31:237(1)(less pro- viso). 3702(b)(2) 31:71a(1)(proviso). 31:237(1)(proviso). 3702(b)(3) 31:71a(2). 31:237(2). 3702(c) ..... 31:122. June 22, 1926, ch. 650, § 2, 44 Stat. 761; Aug. 28, 1957, Pub. L. 85–183, § 3(a), 71 Stat. 465. 3702(d) ..... 31:236. Apr. 10, 1928, ch. 334, 45 Stat. 413. In the section, the words ‘‘Comptroller General’’ are substituted for ‘‘General Accounting Office’’ for con- sistency. 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 re- vised title and with other titles of the United States Code. Page 304 TITLE 31—MONEY AND FINANCE § 3702 In subsection (b)(1), before clause (A), the words ‘‘or demand’’ are omitted as surplus. The word ‘‘Govern- ment’’ is substituted for ‘‘United States’’ for consist- ency 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 sur- plus. 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 mili- tary or naval forces of the United States’’ for consist- ency with title 10. The words ‘‘to the Comptroller Gen- eral’’ 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 communica- tion is required’’ are substituted for ‘‘such action shall be a complete response without further communica- tion’’ to eliminate unnecessary words. In subsection (c), the text of 31:122(1st sentence words before 2d comma and last sentence) is omitted as exe- cuted. The words ‘‘Secretary of the Treasury’’ are sub- stituted for ‘‘Treasury Department’’ for consistency. The word ‘‘Secretary’’ is substituted for ‘‘Treasurer of the United States’’ because of Department of the Treas- ury Order 229 of January 14, 1974 (39 F.R. 2280). In subsection (d), the words ‘‘report . . . on’’ are sub- stituted 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 Of- fice’’ 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 inad- vertently omitted in the codification of title 31. Editorial Notes REFERENCES IN TEXT The effective date of this subsection, referred to in subsec. (c)(1), probably means the effective date of sub- sec. (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. AMENDMENTS 2006—Subsec. (e)(1). Pub. L. 109–163 amended directory language of Pub. L. 107–314, § 635(a). See 2002 Amend- ment note below. 2002—Subsec. (e)(1). Pub. L. 107–314, § 635(b)(1), sub- stituted ‘‘The Secretary of Defense’’ for ‘‘Upon the re- quest of the Secretary concerned (as defined in section 101 of title 37, United States Code), the Secretary of De- fense’’, 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 re- spect to a member of the uniformed services who is not under the jurisdiction of the Secretary of a military de- partment, such a waiver may be made only upon the re- quest of the Secretary concerned (as defined in section 101 of title 37).’’ Pub. L. 107–314, § 635(a), as amended by Pub. L. 109–163, 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, § 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, § 1 [[div. A], title VI, § 664(a)], inserted ‘‘payments for unused ac- crued leave,’’ after ‘‘transportation,’’. Subsec. (e)(1). Pub. L. 106–398, § 1 [[div. A], title VI, § 664(b)], substituted ‘‘claim for pay, allowances, or pay- ment for unused accrued leave under title 37 or a claim for retired pay under title 10’’ for ‘‘claim for pay or al- lowances provided under title 37’’. 1997—Subsec. (e)(1). Pub. L. 105–85, § 1012(1), sub- stituted ‘‘Secretary of Defense’’ for ‘‘Comptroller Gen- eral’’. Subsec. (e)(2). Pub. L. 105–85, § 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 pay- ment of that particular claim.’’ 1996—Pub. L. 104–316, § 202(n)(1)(A), struck out ‘‘of the Comptroller General’’ after ‘‘Authority’’ in section catchline. Subsec. (a). Pub. L. 104–316, § 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 exam- ined by 2 officers or employees of the General Account- ing Office independently of each other.’’ Subsec. (b)(1). Pub. L. 104–316, § 202(n)(1)(C), in intro- ductory provisions substituted ‘‘The claim must be re- ceived 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, § 202(n)(1)(D), sub- stituted ‘‘received’’ for ‘‘presented to the Comptroller General’’ and ‘‘in paragraph’’ for ‘‘in clause’’. Subsec. (b)(3). Pub. L. 104–316, § 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 commu- nication is required.’’ Subsec. (d). Pub. L. 104–316, § 202(n)(1)(F), substituted ‘‘official responsible under subsection (a) for settling the claim’’ for ‘‘Comptroller General’’ before ‘‘shall re- port to Congress’’ and ‘‘official’’ for ‘‘Comptroller Gen- eral’’ 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 fol- lows: ‘‘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’’ be- fore ‘‘subsection’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–163, div. A, title X, § 1056(e)(2), Jan. 6, 2006, 119 Stat. 3440, as amended by Pub. L. 111–383, div. A, title X, § 1075(h)(3), Jan. 7, 2011, 124 Stat. 4377, provided that the amendment by section 1056(e)(2) is effective as of Dec. 2, 2002, and as if included in Pub. L. 107–314 as enacted. EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107–314, div. A, title VI, § 635(c), Dec. 2, 2002, 116 Stat. 2574, provided that: ‘‘The amendment made by Page 305 TITLE 31—MONEY AND FINANCE § 3711 1 So in original. Probably should be ‘‘Attorney General and the Secretary of the Treasury may prescribe jointly.’’ 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 en- actment 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 nec- essary 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. SUBCHAPTER II—CLAIMS OF THE UNITED STATES GOVERNMENT § 3711. Collection and compromise (a) The head of an executive, judicial, or legis- lative 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 Govern- ment of not more than $100,000 (excluding in- terest) 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 ac- tion, except that only the Comptroller General may compromise a claim arising out of an ex- ception 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 sub- section 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 ap- pears 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 re- quirement prescribed or order issued under any of those chapters. (c) A compromise under this section is final and conclusive unless gotten by fraud, misrepre- sentation, 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 legis- lative 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 sys- tem 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 dis- closed to the consumer reporting agency; and (iv) of the rights the person has to a com- plete explanation of the claim, to dispute in- formation 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 re- porting agency to which the original disclo- sure 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 re- porting agency for verification of informa- tion 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 con- sumer reporting agency is limited to— (i) information necessary to establish the identity of the person, including name, ad- dress, and taxpayer identification number; (ii) the amount, status, and history of the claim; and