PUBLIC LAW 97-365—OCT. 25, 1982 and, with respect to the collection of claims by means of administrative offset after the six-year period provided in section 2415 of title 28, United States Code, has expired for bringing an action on such a claim, the cost effectiveness of leaving such claim unresolved for more than six years. "(c) Prior to collecting any claim through administrative offset, the head of the agency or his designee shall provide the debtor with— "(1) written notification of the nature and amount of the claim, the intention of the agency to collect the claim through 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 with respect to the claim; "(3) an opportunity for the review, within the agency, of the determination of the agency with respect to the claim; and "(4) an opportunity to enter into a written agreement with the head of the agency or his designee, for the repayment of the amount of the claim. "(d) The provisions of this section shall not apply in any case in which a statute either explicitly provides for or prohibits the collection through administrative offset of the claim or type of claim involved. "(e) For purposes of this section— "(1) the term 'administrative offset' means the withholding of money payable by the United States to or held by the United States on behalf of a person to satisfy a debt owed the United States by that person; and "(2) the term 'person' does not include any agency of the United States, or of any State or local government.".
96 STAT. 1755
Provisions affecting debtor.
"Administrative offset."
"Person.
INTEREST AND PENALTY ON INDEBTEDNESS TO THE UNITED STATES
SEC. 11. Section 3 of the Federal Claims Collection Act of 1966 (31 U.S.C. 952) (as amended by section 3 of this Act) is further amended by adding at the end thereof the following new subsection: "(e)(1) Except as provided in paragraph (3), the head of an agency or his designee shall charge a minimum annual rate of interest on outstanding debts on claims owed by persons that is equal to the average investment rate for the Treasury tax and loan accounts for the twelve-month period ending on September 30 of each year, rounded to the nearest whole per centum. The Secretary of the Treasury or his designee shall publish such rate each year not later than October 31 and such rate shall become effective on the first day of the next calendar quarter. The Secretary of the Treasury may revise such rate quarterly if the average investment rate for the twelve-month period ending at the close of that calendar quarter, rounded to the nearest whole per centum, is greater or less than the existing published rate by 2 per centum. For purposes of this paragraph, 'calendar quarter' means any three-month period beginning on January 1, April 1, July 1, or October 1. "(2) Except as provided in paragraph (3), the head of an agency or his designee shall, with respect to claims owed by persons— "(A) assess charges to cover the costs of processing and handling delinquent claims, and
Publication of rate.
"Calendar quarter."
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