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B-212222 1 (1983-08-23)

handle is hein.gao/gaobadlgt0001 and id is 1 raw text is:                                                          /I i/ 7 v I I - • - -

                                THE COMPTROLLER GENERAL
   OECISION          T,         OP THE UNITED ETATES                    jb
                                WASH4INGTON. O.C. 920548




   ILEZB_212222                        DATE:      Augst 23, 1983

   MATTER OF:Debt Collection-Administrative Offset and
                 Interest against State and local governments.
   DIGEST:                                         /
            Sections 10 and 11 of the Debt Collection Act of
            1982, 31 U.S.C. SS 3716 and 3717, authorize use
            of administrative offset and assessment of inter-
            est and other charges when collecting debts owed
            to Federal Government by persons. Statute fur-
            ther defines person as not including agencies of
            State or local governments.  Absent any indica-
            tion of contrary legislative intent, sections 10
            and 11 are not exclusive and do not prohibit use
            of offset or charging of interest against State or
            local governments when and to the extent autho-
            rized by some other statute or under the comion
            law.

     The Department of Agriculture has requested our decision con-
cerning the meaning and effect of sections 10 and 11 of the Debt
Collection Act of 1982, 96 Stat. 1749, 1754-1756. The question is
whether these sections prohibit the use of administrative offset and
the assessment of interest, processing and handling fees, or late
payment penalty charges on debts owed to the Federal Government by
State and local governments. As is explained below, we think they
do not. Instead, it is our opinion that the language at issue
simply exempts debts owed by State and local governments from the
requirements of sections 10 and 11 of the Debt Collection Act. Such
debts are still subject to administrative offset or the assessment
of interest and other charges whenever authorized by other statutes
or principles of common law.

     The Debt Collection Act of 1982 made several amendments to the
 Federal Claims Collection Act of 1966 (FCCA), 31 U.S.C. S 3701 et
 se. (formerly  31 U.S.C. S 951 et s  .). Section 10 of the Debt
 Collection Act added a new section 5 to the FCCA which authorizes
 agencies to collect a claim from a person by means of administra-
 tive offset. Section 11 amended section 3 of the FCCA to direct
 agencies to assess interest, processing and handling charges, and
 penalties on debts owed by persons under certain circumstances.
 Sections 10 ard 11 have been codified as 31 U.S.C. SS 3716 and 3717
.respectively. Pub. L. No. 97-452 (January 12, 1983), 96 Stat. 2467,
2471-72.


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