TEXT

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 obligations 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 Improvement Act of 1996 and to the extent
permitted by law, and in consultation 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 concerning 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 cooperative 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 payments 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) 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 payments 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 payments.

     (f) The Secretary shall, to the extent permitted by law,
share with the Secretary of Health and Human Services any
information contained in payment 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 department 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 guidelines for departments and agencies concerning
minimum due-process standards to be included in the procedures
required by subsection (b) of this section.

     (d) For purpose 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

     (C) 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 delinquent child support
obligation and, where appropriate, transmit to the Director 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 governing 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 officer, or any
person.

                         /s/William J. Clinton


THE WHITE HOUSE,
September 28, 1996.