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 NEWS  News  Media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACT:  April  13,  2004  Audrey  Spivack  at  (202)  418-  0512 
 RULES  ADOPTED  TO  IMPLEMENT  DEBT  COLLECTION  IMPROVEMENT  ACT  AND  GOVERNING  APPLICATIONS  OR  OTHER  REQUESTS  FOR  BENEFITS  BY 
 DELINQUENT  DEBTORS 


 Washington,  DC  –  Today  the  Federal  Communications  Commission  (FCC)  released  a  report  and  order  amending  its  rules  governing  the  collection  of  claims  owed  the  United  Sates  47 
 C.  F.  R.  Part  1  Subpart  O. 
 The  new  rules  incorporate  statutory  changes  adopted  in  the  Debt  Collection  Improvement  Act  of  1996  (DCIA),  and  the  implementing  regulations  adopted  by  the  Departments  of  Treasury 
 and  Justice,  adjusted  to  take  into  account  the  special  circumstances  of  debts  arising  under  our  auction  rules. 


 The  major  changes  to  the  Commission’s  debt  collection  rules  include: 
 (a)  increasing  the  maximum  dollar  amount  of  claims  that  can  be  compromised,  suspended,  or  terminated  by  the  agency  and  the  minimum  dollar  amount  of  claims  that  may  be 
 referred  to  Department  of  Justice; 
 (b)  modifying  the  procedures  for  the  transfer  or  referral  of  delinquent  debt  to  the  Department  of  Treasury  or  Treasury-  designated  debt  collection  centers  for  collection; 


 (c)  requiring  mandatory,  centralized  administrative  offset  of  debt  by  disbursing  officials; 
 (d)  requiring  mandatory  reporting  of  delinquent  debt  to  credit  bureaus; 
 (e)  mandatory  prohibition  against  extending  Federal  assistance  in  the  form  of  loan  or  loan  guarantees  to  delinquent  debtors;  and 


 (f)  incorporating  the  DCIA  administrative  wage  garnishment  requirements  and  the  Federal  salary  offset  procedures  into  agency  rules. 
 The  new  rules  also  include  provisions  requiring  the  agency  to  withhold  action  on  applications  and  other  requests  for  benefits  when  the  entity  applying  for  or  seeking  benefits  is 
 delinquent  in  non-  tax  debts  owed  the  Commission,  and  to  dismiss  such  applications  or  request  if 
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 the  delinquency  is  not  resolved.  The  rules  specify  how  the  agency  will  determine  whether  an  entity  has  an  outstanding  delinquency,  as  well  as  the  consequences  of  an  outstanding  delinquent 
 debt.  The  rules  provide  limited  exceptions  to  these  procedures. 
 The  amended  and  new  rules  will  become  effective  30  days  after  publication  in  the  Federal  Register,  except  for  changes  to  rules  1.1112,  1.1116,  1.1161  and  1.1164  and  newly 
 adopted  rule  1.1910  (relating  to  the  handling  of  applications  and  other  requests  by  delinquent  debtors),  which  will  become  effective  October  1,  2004. 


 The  full  text  of  the  R&  O  is  available  on  the  FCC  website  at:  www.  fcc.  gov  or  for  public  inspection  and  copying  during  regular  business  hours  at  the  FCC  Reference  Information  Center, 
 Portals  II,  445  12  th  Street,  SW,  Room  CYA257,  Washington,  DC,  20054. 
 Action  by  the  Commission  March  25,  2004,  by  Report  and  Order  (FCC  04-  72).  Chairman  Powell,  Commissioners  Adelstein,  Abernathy,  Copps  and  Martin. 


 For  further  information  contact,  Mark  Reger,  Chief  Financial  Officer  202-  418-  1925. 
 MD  Docket  No.  02-  339 


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