Sec. 1.1927  Notification.

    (a) Salary offset deductions shall not be made unless the Managing 
Director of the Commission, or such other official as may be named in 
the future by the Managing Director of the Commission, provides the 
employee at least 30 days before any deduction written notice stating at 
a minimum:
    (1) The agency's determination that a debt is owed, including the 
origin, nature, and amount of the debt;
    (2) The agency's intention to collect the debt by means of deduction 
from the employee's current disposable pay account;
    (3) The amount, frequency, proposed beginning date, and duration of 
the intended deductions;
    (4) An explanation of the agency's policy concerning interest, 
penalties, and administrative costs (Secs. 1.1940 and 1.1941 of this 
regulation), a statement that such assessments must be made unless 
excused in accordance with the FCCS;
    (5) The employee's right to inspect and copy Government records 
relating to the debt or, if the employee or his or her representative 
cannot personally inspect the records, to request and receive a copy of 
such records.
    (6) If not previously provided, the opportunity (under terms 
agreeable to the agency) to establish a schedule for the voluntary 
repayment of the debt or to enter into a written agreement to establish 
a schedule for repayment of the debt in lieu of offset. The agreement 
must be in writing, signed by both the employee and the Managing 
Director (or designee) of the Commission and documented in agency files 
(4 CFR 102.2(e)).
    (7) The employee's right to a hearing conducted by an official 
arranged by the agency (an administrative law judge, or alternatively, a 
hearing official not under the control of the head of the agency) if a 
petition is filed as prescribed by this subpart.
    (8) The method and time period for petitioning for a hearing;
    (9) That the timely filing of a petition for hearing will stay the 
commencement of collection proceedings;
    (10) That the final decision in the hearing (if one is requested) 
will be issued at the earliest practical date, but not later than 60 
days after the filing of the petition requesting the hearing unless the 
employee requests and the hearing official grants a delay in the 
proceedings;
    (11) That any knowingly false, misleading, or frivolous statements, 
representations, or evidence may subject the employee to:
    (i) Disciplinary procedures appropriate under Chapter 75 of Title 5, 
United States Code, part 752 of title 5, Code

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of Federal Regulations, or any other applicable statutes or regulations.
    (ii) Penalties under the False Claims Act sections 3729-3731 of 
Title 31, United States Code, or any other applicable statutory 
authority; or
    (iii) Criminal penalties under sections 286, 287, 1001, and 1002 of 
Title 18, United States Code, or any other applicable statutory 
authority.
    (12) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made; and
    (13) Unless there are applicable contractual or statutory provisions 
to the contrary, that amounts paid on or deducted for the debt which are 
later waived or found not owed to the United States will be promptly 
refunded to the employee.
    (b) Notifications under this section shall be hand delivered with a 
record made of the date of delivery, or shall be mailed by certified 
mail return receipt requested.
    (c) No notification, hearing, written responses or final decisions 
under this regulation are required by the Commission for any adjustment 
to pay arising out of an employee's election of coverage, or change in 
coverage, under a Federal benefit program requiring periodic deductions 
from pay, if the amount to be recovered was accumulated over four pay 
periods or less.