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Federal Register / Vol. 61, No. 193 / Thursday, October 3, 1996 / Presidential Documents

of title 31, United States Code. With respect to a class of payments established
after the date of this order, such submissions shall be made not later than
30 days after such class is established.

(d) The head of each executive department and agency that certifies pay-
ments to the Secretary shall promptly implement any rule, regulation, or
procedure issued by the Secretary pursuant to this section.

(e) The head of each executive department and agency that is authorized
by law to disburse payments shall promptly implement any rule, regulation,
or procedure issued by the Secretary pursuant to this section and shall:

(1) match, consistent with computer privacy matching laws, the payment
certification records of such department or agency with records of persons
delinquent in child support payments as directed by the Secretary; and

(2) conduct administrative offsets to collect delinquent child support pay-
ments.

() The Secretary shall, to the extent permitted by law, share with the
Secretary of Health and Human Services any information contained in pay-
ment certification records of persons who are delinquent in child support
obligations that would assist in the collection of such debts, whether or
not an administrative offset is conducted.

Sec. 2. Denial of Federal Assistance. (a) The Secretary shall, to the extent
permitted by law, ensure that information concerning individuals whose
payments are subject to administrative offset because of delinquent child
support obligations is made available to the head of each executive depart-
ment and agency that provides Federal financial assistance to individuals.

(b) In conformance with section 2(e) of this order, the head of each
executive department and agency shall, with respect to any individuals
whose payments are subject to administrative offset because of a delinquent
child support obligation, promptly implement procedures to deny Federal
financial assistance to such individuals.

(c) The Attorney General, in consultation with the Secretary of Health
and Human Services and other affected agencies, shall promptly issue guide-
lines for departments and agencies concerning minimum due-process stand-
ards to be included in the procedures required by subsection (b) of this
section.

(d) For purposes of this section, Federal financial assistance means any
Federal loan (other than a disaster loan), loan guarantee, or loan insurance.

(e)(1) A class of Federal financial assistance shall not be subject to denial
if the head of the concerned department or agency determines:

(A) in consultation with the Attorney General and the Secretary of Health
and Human Services, that such action:

(i) is not permitted by law; or

(ii) would likely result in valid legal claims for damages against the
United States;

(B) that such action would be inconsistent with the best interests of
the child or children with respect to whom a child support obligation
is owed; or

(©) that such action should be waived.

(2) The head of each executive department and agency shall provide
written notification to the Secretary upon determining that the denial of
a class of Federal financial assistance is not permitted by law or should
be waived.

(f) The head of each executive department and agency shall:

(1) review all laws under the jurisdiction of the department or agency
that do not permit the denial of Federal financial assistance to individuals
and whose payments are subject to administrative offset because of a delin-


51763

Federal Register
Vol. 61, No. 193

Thursday, October 3, 1996

Presidential Documents

Title 3—
The President

Executive Order 13019 of September 28, 1996

Supporting Families: Collecting Delinquent Child Support
Obligations

The Debt Collection Improvement Act of 1996, Public Law 104-134 (110
Stat. 1321-358 et seq.), was enacted into law on April 26, 1996, as part
of the Omnibus Consolidated Rescissions and Appropriations Act of 1996.
While the primary purpose of the Debt Collection Improvement Act is to
increase the collection of nontax debts owed to the Federal Government,
the Act also contains important provisions that can be used to assist families
in collecting past-due child support obligations.

The failure of some parents to meet their child support obligations threatens
the health, education, and well-being of their children. Compounding this
problem, States have experienced difficulties enforcing child support obliga-
tions once a parent has moved to another State. With this Executive order,
my Administration takes additional steps to support our children and
strengthen American families by facilitating the collection of delinquent
child support obligations from persons who may be entitled or eligible
to receive certain Federal payments or Federal assistance.

Accordingly, by the authority vested in me as President by the Constitution
and the laws of the United States of America, it is hereby ordered as
follows:

Section 1. Administrative Offsets. (a)(1) The Secretary of the Treasury ('‘the
Secretary”), in accordance with the provisions of the Debt Collection Im-
provement Act of 1996 and to the extent permitted by law, and in consulta-
tion with the Secretary of Health and Human Services and other affected
agencies, shall promptly develop and implement procedures necessary for
the Secretary to collect past-due child support debts by administrative offset,
and shall issue such rules, regulations, and procedures as the Secretary,
in consultation with the heads of affected agencies, deems appropriate to
govern administrative offsets by the Department of the Treasury and other
executive departments and agencies that disburse Federal payments.

(2) The Secretary may enter into reciprocal agreements with States concern-
ing the collection by the Secretary of delinquent child support debts through
administrative offsets.

(b) The Secretary of Health and Human Services shall, within 120 days
of the date of this order, implement procedures necessary to report to the
Secretary of the Treasury information on past-due child support claims
referred by States (including claims enforced by States pursuant to coopera-
tive agreements with or by Indian tribal governments) to the Department
of Health and Human Services.

(c) The head of each executive department and agency that certifies pay-
ments to the Secretary or to another disbursing official shall review each
class of payments that the department or agency certifies to determine if
any such class should be exempt from offset and, if any class is so identified,
submit to the Secretary a request for such an exemption together with
the reasons therefor. With respect to classes of payments under means-
tested programs existing on the date of this order, such submission shall
be made within 30 days of the date of this order. With respect to classes
of payments other than payments under means-tested programs existing
on the date of this order, such submissions shall be made within 30 days
of the date the Secretary establishes standards pursuant to section 3716(c)(3)


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Billing code 3195-01-P

quent child support obligation and, where appropriate, transmit to the Direc-
tor of the Office of Management and Budget recommendations for statutory
changes; and

(2) to the extent practicable, review all rules, regulations, and procedures

implementing laws under the jurisdiction of the department or agency govern-
ing the provision of any Federal financial assistance to individuals and,
where appropriate, conform such rules, regulations, and procedures to the
provisions of this order and the rules, regulations, and procedures issued
by the Secretary pursuant to section 1 of this order.
Sec. 3. Reports. (a) The head of each executive department and agency
shall provide to the Secretary such information as the Secretary may request
concerning the implementation of this order, the provisions of the Debt
Collection Improvement Act of 1996 applicable to delinquent child support
obligations, and the rules, regulations, and procedures issued by the Secretary
pursuant to section 1 of this order.

(b) The Secretary shall report annually to the President concerning the
implementation by departments and agencies of this order and the provisions
of the Debt Collection Improvement Act of 1996 applicable to delinquent
child support obligations.

Sec. 4, Judicial Review. This order does not create any right or benefit,
substantive or procedural, enforceable at law by a party against the United
States, its agencies, its officers, or any person.

THE WHITE HOUSE,
September 28, 1996.


DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.

SECRETARY OF THE TREASURY

November 30, 2011

The President
The White House
Washington, DC 20500

Dear Mr. President:

Through this letter, 1 am pleased to provide the Department of the Treasury’s annual report of
compliance with Executive Order 13019 — Supporting Families: Collecting Delinquent Child
Support Obligations. In fiscal year 2011, Treasury continued to collect substantial amounts of
delinquent child support debts through its Treasury Offset Program (TOP).

TOP collects delinquent child support debts by intercepting federal payments, a process known
as “offset.” Treasury has been offsetting federal income tax refunds to collect delinquent child
support debts since the early 1980s. A key objective of the Executive Order, issued on
September 28, 1996, is to collect delinquent child support obligations through the offset of non-
tax federal payments. Treasury and the Department of Health and Human Services work jointly
and with states and territories to further this goal.

In fiscal year 2011, Treasury collected approximately $2.29 billion in delinquent child support
debts through offset. Of this amount, $2.28 billion was collected from tax refund payments and
$10.5 million was collected from offsets of federal non-tax payments. This $2.29 billion
represents an increase of $186 million or 8.8% over fiscal year 2010. Since the issuance of
Executive Order 13019 more than $26 billion has been collected through TOP from more than
26 million offsets to assist in the collection of past-due support owed to children and families.

Treasury remains strongly committed to collecting delinquent child support obligations through

the use of offset of both federal tax refunds and non-tax payments. We will continue to support
the important goal of carrying out the provisions of Executive Order 13019.

Timothy &/Geithner

cc: The Honorable Kathleen Sebelius


TIRE CLEARANCE: Annual Letter to the President:
Implementation of Executive Order 13019 (FMS)

Start Date: November 8, 2011

Original Draft Office: Sara Garris, FMS

Required Clearance
AGC-B&F, Jeff King, clear 11/9

OFAS, Judith Courtney, clear 11/9

PA, Matt Anderson, clear 11/9

LA, Lisa Pefia, clear 11/17

DF, Bret Hester, clear 11/18

DES, Sam Valverde and Carlo Passeri, clear with edits 11/22
OG ~ Arex (rwecic ~ use la

Khe! pues «bh - 3]


DEPARTMENT OF THE TREASURY
FINANCIAL MANAGEMENT SERVICE
WASHINGTON, D.C. 20227

NOV 30 99%

ACTION MEMORANDUM FOR SECRETARY GEITHNER

THROUGH: Richard L. Gregg ullPoay
efary

Fiscal Assistant Sec

FROM: David A. Lebryk, Commision LE a

Financial Management Service

SUBJECT: Report to the President: Implementation of Executive Order 13019
(Supporting Families: Collecting Delinquent Child Support Obligations)

RECOMMENDATION
That you sign the attached letter to the President.

Approve Disapprove Let’s Discuss

BACKGROUND

Executive Order 13019 requires Treasury to report annually to the President on the collection of
delinquent child support obligations.

As authorized by the Omnibus Budget Reconciliation Act of 1981, Treasury has been
intercepting federal tax refund payments to collect delinquent child support since 1982.

The Debt Collection Improvement Act of 1996 (DCIA) authorizes Treasury to intercept certain
federal non-tax payments to collect delinquent child support obligations, a process known as
administrative offset.

Executive Order 13019 instructs Treasury, in consultation with the Department of Health and
Human Services (HHS), to implement the DCIA provisions related to child support collection.
In addition, the Executive Order requires the Attorney General to issue due process guidelines
for federal agencies to deny direct and indirect loan assistance to delinquent child support
debtors whose payments are subject to administrative offset.

The attached letter to the President details the efforts and accomplishments of Treasury and HHS
in implementing the Executive Order.

ATTACHMENTS

1. 2011 Annual Child Support Letter to the President

2. Executive Order 13019 - Supporting Families: Collecting Delinquent
Child Support Obligations


The President

Executive Order 13019—Supporting
Families: Collecting Delinquent Child
Support Obligations

Thursday

October 3, 1996
e

Part IV

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