Title 31 — Money and Finance — § 3716. Administrative offset
Summary
This U.S. Code page prints 31 U.S.C. § 3716, which lets the head of an executive, judicial, or legislative agency collect a claim by administrative offset after trying to collect it under section 3711(a). Before offsetting, the agency must give the debtor written notice of the type and amount of the claim, an opportunity to inspect and copy the agency's records, an opportunity for review within the agency, and an opportunity to make a written agreement to repay. Under subsection (c), Treasury disbursing officials offset federal payments, including payments due under the Social Security Act, part B of the Black Lung Benefits Act and laws administered by the Railroad Retirement Board. A levy under the Internal Revenue Code takes precedence over other requests for administrative offset, and no time limit on starting an offset is effective.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
§ 3714 TITLE 31—MONEY AND FINANCE Page 312
‘‘property’’ is substituted for ‘‘estate and effects’’ to § 3716. Administrative offset
eliminate unnecessary words. The words ‘‘absconding,
concealed, or’’ and ‘‘by process of law’’ are omitted as (a) After trying to collect a claim from a per-
surplus. son under section 3711(a) of this title, the head
In subsection (a)(2), the words ‘‘The priority estab- of an executive, judicial, or legislative agency
lished under . . . however’’ are omitted as surplus. may collect the claim by administrative offset.
In subsection (b), the words ‘‘A representative of a
person or an estate’’ are substituted for ‘‘executor, ad-
The head of the agency may collect by adminis-
ministrator, or assignee, or other’’ for clarity and to trative offset only after giving the debtor—
eliminate unnecessary words. The words ‘‘for whom or (1) written notice of the type and amount of
for which he acts’’, ‘‘satisfies and’’, and ‘‘from such per- the claim, the intention of the head of the
son or estate’’ are omitted as surplus. The word ‘‘lia- agency to collect the claim by administrative
ble’’ is substituted for ‘‘answerable in his own person offset, and an explanation of the rights of the
and estate’’ for consistency. debtor under this section;
§ 3714. Keeping money due States in default (2) an opportunity to inspect and copy the
records of the agency related to the claim;
The Secretary of the Treasury shall keep the (3) an opportunity for a review within the
necessary amount of money the United States agency of the decision of the agency related to
Government owes a State when the State de- the claim; and
faults in paying principal or interest on invest- (4) an opportunity to make a written agree-
ments in stocks or bonds the State issues or ment with the head of the agency to repay the
guarantees and that the Government holds in amount of the claim.
trust. The money shall be used to pay the prin-
(b) Before collecting a claim by administrative
cipal or interest or reimburse, with interest,
offset, the head of an executive, judicial, or leg-
money the Government advanced for interest
islative agency must either—
due on the stocks or bonds.
(1) adopt, without change, regulations on
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 972.) collecting by administrative offset promul-
HISTORICAL AND REVISION NOTES
gated by the Department of Justice, the Gov-
ernment Accountability Office, or the Depart-
Revised
Source (U.S. Code) Source (Statutes at Large)
ment of the Treasury; or
Section (2) prescribe regulations on collecting by ad-
3714 ......... 31:207. R.S. § 3481. ministrative offset consistent with the regula-
tions referred to in paragraph (1).
The word ‘‘amount’’ is substituted for ‘‘whole, or so
much thereof’’ for clarity. The word ‘‘owes’’ is sub- (c)(1)(A) Except as otherwise provided in this
stituted for ‘‘due on any account from the . . . to’’ to subsection, a disbursing official of the Depart-
eliminate unnecessary words. The words ‘‘or either’’ ment of the Treasury, the Department of De-
and ‘‘thereon’’ are omitted as surplus. fense, the United States Postal Service, the De-
partment of Health and Human Services, or any
§ 3715. Buying real property of a debtor
other government corporation, or any disbursing
The head of an agency for whom a civil action official of the United States designated by the
is brought against a debtor of the United States Secretary of the Treasury, shall offset at least
Government may buy real property of the debtor annually the amount of a payment which a pay-
at a sale on execution of the real property of the ment certifying agency has certified to the dis-
debtor resulting from the action. The head of bursing official for disbursement, by an amount
the agency may not bid more for the property equal to the amount of a claim which a creditor
than the amount of the judgment for which the agency has certified to the Secretary of the
property is being sold, and costs. The marshal of Treasury pursuant to this subsection.
the district in which the sale is held shall trans- (B) An agency that designates disbursing offi-
fer the property to the Government. cials pursuant to section 3321(c) of this title is
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 972.) not required to certify claims arising out of its
operations to the Secretary of the Treasury be-
HISTORICAL AND REVISION NOTES fore such agency’s disbursing officials offset
such claims.
Revised
Section Source (U.S. Code) Source (Statutes at Large) (C) Payments certified by the Department of
Education under a program administered by the
3715 ......... 31:195. R.S. § 3470; June 2, 1965, Pub.
L. 89–30, § 5, 79 Stat. 119. Secretary of Education under title IV of the
Higher Education Act of 1965 shall not be subject
The words ‘‘by such agent as . . . shall appoint’’ are to administrative offset under this subsection.
omitted as unnecessary. The word ‘‘agency’’ is sub- (2) Neither the disbursing official nor the pay-
stituted for ‘‘department or independent agency’’ be- ment certifying agency shall be liable—
cause of the restatement. The words ‘‘for whom a civil (A) for the amount of the administrative off-
action is brought’’ are substituted for ‘‘at whose in-
stance suit was instituted’’ for consistency. The words
set on the basis that the underlying obliga-
‘‘real property’’ are substituted for ‘‘lands or tene- tion, represented by the payment before the
ments’’ for clarity and consistency. The words ‘‘in be- administrative offset was taken, was not satis-
half of the United States’’ are omitted as surplus. The fied; or
words ‘‘for the property’’ are added for clarity. The (B) for failure to provide timely notice under
word ‘‘property’’ is substituted for ‘‘such estate’’ for paragraph (8).
consistency in the section. The words ‘‘Whenever such
purchase is made’’ are omitted as surplus. The words (3)(A)(i) Notwithstanding any other provision
‘‘transfer the property’’ are substituted for ‘‘make all of law (including sections 207 and 1631(d)(1) of
needful conveyances, assignments, or transfers’’ to the Social Security Act (42 U.S.C. 407 and
eliminate unnecessary words and for clarity. 1383(d)(1)), section 413(b) of Public Law 91–173 (30
Page 313 TITLE 31—MONEY AND FINANCE § 3716
U.S.C. 923(b)), and section 14 of the Act of Au- agencies shall be based on actual administrative
gust 29, 1935 (45 U.S.C. 231m)), except as provided offsets completed. Amounts received by the
in clause (ii), all payments due to an individual United States as fees under this subsection shall
under— be deposited into the account of the Department
(I) the Social Security Act, of the Treasury under section 3711(g)(7) of this
(II) part B of the Black Lung Benefits Act, title, and shall be collected and accounted for in
or accordance with the provisions of that section.
(III) any law administered by the Railroad (5) The Secretary of the Treasury in consulta-
Retirement Board (other than payments that tion with the Commissioner of Social Security
such Board determines to be tier 2 benefits), and the Director of the Office of Management
and Budget, may prescribe such rules, regula-
shall be subject to offset under this section. tions, and procedures as the Secretary of the
(ii) An amount of $9,000 which a debtor may re- Treasury considers necessary to carry out this
ceive under Federal benefit programs cited subsection. The Secretary shall consult with the
under clause (i) within a 12-month period shall heads of affected agencies in the development of
be exempt from offset under this subsection. In such rules, regulations, and procedures.
applying the $9,000 exemption, the disbursing of- (6)(A) Any Federal agency that is owed by a
ficial shall— person a past due, legally enforceable nontax
(I) reduce the $9,000 exemption amount for debt that is over 120 days delinquent, including
the 12-month period by the amount of all Fed- nontax debt administered by a third party act-
eral benefit payments made during such 12- ing as an agent for the Federal Government,
month period which are not subject to offset shall notify the Secretary of the Treasury of all
under this subsection; and such nontax debts for purposes of administrative
(II) apply a prorated amount of the exemp- offset under this subsection.
tion to each periodic benefit payment to be (B) The Secretary of the Treasury shall notify
made to the debtor during the applicable 12- Congress of any instance in which an agency
month period. fails to notify the Secretary as required under
For purposes of the preceding sentence, the subparagraph (A).
amount of a periodic benefit payment shall be (7)(A) The disbursing official conducting an
the amount after any reduction or deduction re- administrative offset with respect to a payment
quired under the laws authorizing the program to a payee shall notify the payee in writing of—
(i) the occurrence of the administrative off-
under which such payment is authorized to be
set to satisfy a past due legally enforceable
made (including any reduction or deduction to
debt, including a description of the type and
recover any overpayment under such program).
amount of the payment otherwise payable to
(B) The Secretary of the Treasury shall ex-
the payee against which the offset was exe-
empt from administrative offset under this sub-
cuted;
section payments under means-tested programs (ii) the identity of the creditor agency re-
when requested by the head of the respective questing the offset; and
agency. The Secretary may exempt other pay- (iii) a contact point within the creditor
ments from administrative offset under this sub- agency that will handle concerns regarding
section upon the written request of the head of the offset.
a payment certifying agency. A written request
for exemption of other payments must provide (B) If the payment to be offset is a periodic
justification for the exemption under standards benefit payment, the disbursing official shall
prescribed by the Secretary. Such standards take reasonable steps, as determined by the Sec-
shall give due consideration to whether adminis- retary of the Treasury, to provide the notice to
trative offset would tend to interfere substan- the payee not later than the date on which the
tially with or defeat the purposes of the pay- payee is otherwise scheduled to receive the pay-
ment certifying agency’s program. The Sec- ment, or as soon as practical thereafter, but no
retary shall report to the Congress annually on later than the date of the administrative offset.
exemptions granted under this section. Notwithstanding the preceding sentence, the
(C) The provisions of sections 205(b)(1), failure of the debtor to receive such notice shall
809(a)(1), and 1631(c)(1) of the Social Security not impair the legality of such administrative
offset.
Act shall not apply to any administrative offset
(8) A levy pursuant to the Internal Revenue
executed pursuant to this section against bene-
Code of 1986 shall take precedence over requests
fits authorized by title II, VIII, or title XVI of for administrative offset pursuant to other laws.
the Social Security Act, respectively. (d) Nothing in this section is intended to pro-
(D) This section shall apply to payments made hibit the use of any other administrative offset
after the date which is 90 days after the enact- authority existing under statute or common
ment of this subparagraph (or such earlier date law.
as designated by the Secretary of Health and (e)(1) Notwithstanding any other provision of
Human Services) with respect to claims or law, regulation, or administrative limitation, no
debts, and to amounts payable, under title XVIII limitation on the period within which an offset
of the Social Security Act. may be initiated or taken pursuant to this sec-
(4) The Secretary of the Treasury may charge tion shall be effective.
a fee sufficient to cover the full cost of imple- (2) This section does not apply when a statute
menting this subsection. The fee may be col- explicitly prohibits using administrative offset
lected either by the retention of a portion of or setoff to collect the claim or type of claim in-
amounts collected pursuant to this subsection, volved.
or by billing the agency referring or transferring (f) The Secretary may waive the requirements
a claim for those amounts. Fees charged to the of sections 552a(o) and (p) of title 5 for adminis-
§ 3716 TITLE 31—MONEY AND FINANCE Page 314
trative offset or claims collection upon written In subsection (b)(1), the word ‘‘Government’’ is added
certification by the head of a State or an execu- for consistency in the revised title and with other titles
tive, judicial, or legislative agency seeking to of the Code.
In subsection (b)(3), the word ‘‘civil’’ is added for con-
collect the claim that the requirements of sub- sistency in the revised title and with other titles of the
section (a) of this section have been met. Code.
(g) The Data Integrity Board of the Depart- In subsection (c)(2), the word ‘‘either’’ is omitted as
ment of the Treasury established under 552a(u) surplus.
of title 5 shall review and include in reports
under paragraph (3)(D) of that section a descrip- Editorial Notes
tion of any matching activities conducted under REFERENCES IN TEXT
this section. If the Secretary has granted a
The Higher Education Act of 1965, referred to in sub-
waiver under subsection (f) of this section, no
sec. (c)(1)(C), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219.
other Data Integrity Board is required to take Title IV of the Act is classified generally to subchapter
any action under section 552a(u) of title 5. IV (§ 1070 et seq.) of chapter 28 of Title 20, Education.
(h)(1) The Secretary may, in the discretion of For complete classification of this Act to the Code, see
the Secretary, apply subsection (a) with respect Short Title note set out under section 1001 of Title 20
to any past-due, legally-enforceable debt owed and Tables.
to a State if— The Social Security Act, referred to in subsec.
(A) the appropriate State disbursing official (c)(3)(A)(i)(I), (C), (D), is act Aug. 14, 1935, ch. 531, 49
requests that an offset be performed; and Stat. 620, which is classified generally to chapter 7 (§ 301
et seq.) of Title 42, The Public Health and Welfare. Ti-
(B) a reciprocal agreement with the State is tles II, VIII, XVI, and XVIII of the Act are classified
in effect which contains, at a minimum— generally to subchapters II (§ 401 et seq.), VIII (§ 1001 et
(i) requirements substantially equivalent seq.), XVI (§ 1381 et seq.), and XVIII (§ 1395 et seq.), re-
to subsection (b) of this section; and spectively, of chapter 7 of Title 42. Sections 205(b)(1),
(ii) any other requirements which the Sec- 809(a)(1), and 1631(c)(1) of the Act are classified to sec-
retary considers appropriate to facilitate the tions 405(b)(1), 1009(a)(1), and 1383(c)(1), respectively, of
offset and prevent duplicative efforts. Title 42. For complete classification of this Act to the
Code, see section 1305 of Title 42 and Tables.
(2) This subsection does not apply to— The Black Lung Benefits Act, referred to in subsec.
(A) the collection of a debt or claim on (c)(3)(A)(i)(II), is title IV of Pub. L. 91–173, Dec. 30, 1969,
which the administrative costs associated 83 Stat. 792. Part B of the Act is classified generally to
with the collection of the debt or claim exceed part B (§ 921 et seq.) of subchapter IV of chapter 22 of
the amount of the debt or claim; Title 30, Mineral Lands and Mining. For complete clas-
(B) any collection of any other type, class, sification of this Act to the Code, see section 901(b) of
or amount of claim, as the Secretary considers Title 30 and Tables.
The enactment of this subparagraph, referred to in
necessary to protect the interest of the United subsec. (c)(3)(D), refers to the date of enactment of Pub.
States; or L. 110–275, which was approved July 15, 2008.
(C) the disbursement of any class or type of The Internal Revenue Code of 1986, referred to in sub-
payment exempted by the Secretary of the sec. (c)(8), is classified to Title 26, Internal Revenue
Treasury at the request of a Federal agency. Code.
(3) In applying this section with respect to any CODIFICATION
debt owed to a State, subsection (c)(3)(A) shall Pub. L. 110–234 and Pub. L. 110–246 made identical
not apply. amendments to this section. The amendments by Pub.
L. 110–234 were repealed by section 4(a) of Pub. L.
(Added Pub. L. 97–452, § 1(16)(A), Jan. 12, 1983, 96 110–246.
Stat. 2471; amended Pub. L. 104–134, title III,
§ 31001(c)(1), (d)(2), (e), (f), Apr. 26, 1996, 110 Stat. AMENDMENTS
1321–359, 1321–362; Pub. L. 106–169, title II, 2014—Subsec. (c)(6). Pub. L. 113–101 designated exist-
§ 251(b)(10), Dec. 14, 1999, 113 Stat. 1856; Pub. L. ing provisions as subpar. (A), substituted ‘‘120 days’’ for
108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. ‘‘180 days’’, and added subpar. (B).
110–234, title XIV, § 14219(a), May 22, 2008, 122 2008—Subsec. (c)(1)(A). Pub. L. 110–275, § 189(b)(1), in-
Stat. 1482; Pub. L. 110–246, § 4(a), title XIV, serted ‘‘the Department of Health and Human Serv-
ices,’’ after ‘‘United States Postal Service,’’.
§ 14219(a), June 18, 2008, 122 Stat. 1664, 2244; Pub. Subsec. (c)(3)(D). Pub. L. 110–275, § 189(b)(2), added sub-
L. 110–275, title I, § 189(b), July 15, 2008, 122 Stat. par. (D).
2590; Pub. L. 113–101, § 5, May 9, 2014, 128 Stat. Subsec. (e). Pub. L. 110–246, § 14219(a), amended subsec.
1153.) (e) generally. Prior to amendment, subsec. (e) read as
follows: ‘‘This section does not apply—
HISTORICAL AND REVISION NOTES ‘‘(1) to a claim under this subchapter that has been
outstanding for more than 10 years; or
Revised
Section Source (U.S. Code) Source (Statutes at Large) ‘‘(2) when a statute explicitly prohibits using ad-
ministrative offset or setoff to collect the claim or
3716(a) ..... 31 App.:954(a) July 19, 1966, Pub. L. 89–508, 80 type of claim involved.’’
(words before last Stat. 308, § 5(a)–(d); added 2004—Subsec. (b)(1). Pub. L. 108–271 substituted ‘‘Gov-
comma), (c). Oct. 25, 1982, Pub. L. 97–365,
§ 10(2), 96 Stat. 1754. ernment Accountability Office’’ for ‘‘General Account-
3716(b) ..... 31 App.:954(b). ing Office’’.
3716(c)(1) 31 App.:954(a) 1999—Subsec. (c)(3)(C). Pub. L. 106–169 substituted
(words after last
comma). ‘‘sections 205(b)(1), 809(a)(1),’’ for ‘‘sections 205(b)(1)’’
3716(c)(2) 31 App.:954(d). and ‘‘title II, VIII,’’ for ‘‘either title II’’.
1996—Subsec. (a). Pub. L. 104–134, § 31001(c)(1), sub-
In the subchapter, the words ‘‘or his designee’’ are stituted ‘‘the head of an executive, judicial, or legisla-
omitted as unnecessary. tive agency’’ for ‘‘the head of an executive or legisla-
In subsection (a)(1), the words ‘‘head of the’’ are tive agency’’ in introductory provisions.
added for consistency in the revised title and with Subsec. (b). Pub. L. 104–134, § 31001(d)(2)(A), amended
other titles of the United States Code. subsec. (b) generally. Prior to amendment, subsec. (b)
Page 315 TITLE 31—MONEY AND FINANCE § 3716
read as follows: ‘‘Before collecting a claim by adminis- propriations Act of 1996. While the primary purpose of
trative offset under subsection (a) of this section, the the Debt Collection Improvement Act is to increase the
head of an executive or legislative agency must pre- collection of nontax debts owed to the Federal Govern-
scribe regulations on collecting by administrative off- ment, the Act also contains important provisions that
set based on— can be used to assist families in collecting past-due
‘‘(1) the best interests of the United States Govern- child support obligations.
ment; The failure of some parents to meet their child sup-
‘‘(2) the likelihood of collecting a claim by adminis- port obligations threatens the health, education, and
trative offset; and well-being of their children. Compounding this prob-
‘‘(3) for collecting a claim by administrative offset lem, States have experienced difficulties enforcing
after the 6-year period for bringing a civil action on child support obligations once a parent has moved to
a claim under section 2415 of title 28 has expired, the another State. With this Executive order, my Adminis-
cost effectiveness of leaving a claim unresolved for tration takes additional steps to support our children
more than 6 years.’’ and strengthen American families by facilitating the
Pub. L. 104–134, § 31001(c)(1), substituted ‘‘the head of collection of delinquent child support obligations from
an executive, judicial, or legislative agency’’ for ‘‘the persons who may be entitled or eligible to receive cer-
head of an executive or legislative agency’’ in introduc- tain Federal payments or Federal assistance.
tory provisions. Accordingly, by the authority vested in me as Presi-
Subsec. (c). Pub. L. 104–134, § 31001(d)(2)(D), added sub- dent by the Constitution and the laws of the United
sec. (c). Former subsec. (c) redesignated (e). States of America, it is hereby ordered as follows:
SECTION 1. Administrative Offsets. (a)(1) The Secretary
Subsec. (c)(2). Pub. L. 104–134, § 31001(d)(2)(B), amend-
of the Treasury (‘‘the Secretary’’), in accordance with
ed par. (2) generally. Prior to amendment, par. (2) read
the provisions of the Debt Collection Improvement Act
as follows: ‘‘when a statute explicitly provides for or
of 1996 and to the extent permitted by law, and in con-
prohibits using administrative offset to collect the sultation with the Secretary of Health and Human
claim or type of claim involved.’’ Services and other affected agencies, shall promptly de-
Subsec. (d). Pub. L. 104–134, § 31001(d)(2)(D), added sub- velop and implement procedures necessary for the Sec-
sec. (d). retary to collect past-due child support debts by admin-
Subsec. (e). Pub. L. 104–134, § 31001(d)(2)(C), redesig- istrative offset, and shall issue such rules, regulations,
nated subsec. (c) as (e). and procedures as the Secretary, in consultation with
Subsecs. (f) to (h). Pub. L. 104–134, § 31001(e), (f), added the heads of affected agencies, deems appropriate to
subsecs. (f) to (h). govern administrative offsets by the Department of the
Treasury and other executive departments and agencies
Statutory Notes and Related Subsidiaries that disburse Federal payments.
EFFECTIVE DATE OF 2008 AMENDMENT (2) The Secretary may enter into reciprocal agree-
ments with States concerning the collection by the
Pub. L. 110–275, title I, § 189(c), July 15, 2008, 122 Stat. Secretary of delinquent child support debts through ad-
2591, provided that: ‘‘The amendments made by this ministrative offsets.
section [amending this section and section 1395kk of (b) The Secretary of Health and Human Services
Title 42, The Public Health and Welfare] shall take ef- shall, within 120 days of the date of this order, imple-
fect on the date of the enactment of this Act [July 15, ment procedures necessary to report to the Secretary
2008].’’ of the Treasury information on past-due child support
Amendment of this section and repeal of Pub. L. claims referred by States (including claims enforced by
110–234 by Pub. L. 110–246 effective May 22, 2008, the States pursuant to cooperative agreements with or by
date of enactment of Pub. L. 110–234, except as other- Indian tribal governments) to the Department of
wise provided, see section 4 of Pub. L. 110–246, set out Health and Human Services.
as an Effective Date note under section 8701 of Title 7, (c) The head of each executive department and agen-
Agriculture. cy that certifies payments to the Secretary or to an-
Pub. L. 110–234, title XIV, § 14219(b), May 22, 2008, 122 other disbursing official shall review each class of pay-
Stat. 1483, and Pub. L. 110–246, § 4(a), title XIV, ments that the department or agency certifies to deter-
§ 14219(b), June 18, 2008, 122 Stat. 1664, 2245, provided mine if any such class should be exempt from offset
that: ‘‘The amendment made by subsection (a) [amend- and, if any class is so identified, submit to the Sec-
ing this section] shall apply to any debt outstanding on retary a request for such an exemption together with
or after the date of the enactment of this Act [June 18, the reasons therefor. With respect to classes of pay-
2008].’’ ments under means-tested programs existing on the
[Pub. L. 110–234 and Pub. L. 110–246 enacted identical date of this order, such submission shall be made with-
provisions. Pub. L. 110–234 was repealed by section 4(a) in 30 days of the date of this order. With respect to
of Pub. L. 110–246, set out as a note under section 8701 classes of payments other than payments under means-
of Title 7, Agriculture.] tested programs existing on the date of this order, such
submissions shall be made within 30 days of the date
OFFSETS FROM SOCIAL SECURITY PAYMENTS the Secretary establishes standards pursuant to section
3716(c)(3) of title 31, United States Code. With respect
Pub. L. 104–134, title III, § 31001(a)(2)(B), Apr. 26, 1996,
to a class of payments established after the date of this
110 Stat. 1321–358, provided that: ‘‘Subparagraph (A) of
order, such submissions shall be made not later than 30
section 3716(c)(3) of title 31, United States Code (as
days after such class is established.
added by subsection (d)(2) of this section), shall apply
(d) The head of each executive department and agen-
only to payments made after the date which is 4
cy that certifies payments to the Secretary shall
months after the date of the enactment of this Act
promptly implement any rule, regulation, or procedure
[Apr. 26, 1996].’’
issued by the Secretary pursuant to this section.
(e) The head of each executive department and agen-
Executive Documents cy that is authorized by law to disburse payments shall
EX. ORD. NO. 13019. SUPPORTING FAMILIES: COLLECTING promptly implement any rule, regulation, or procedure
DELINQUENT CHILD SUPPORT OBLIGATIONS issued by the Secretary pursuant to this section and
shall:
Ex. Ord. No. 13019, Sept. 28, 1996, 61 F.R. 51763, pro- (1) match, consistent with computer privacy match-
vided that: ing laws, the payment certification records of such de-
The Debt Collection Improvement Act of 1996, Public partment or agency with records of persons delinquent
Law 104–134 [§ 31001] (110 Stat. 1321–358 et seq.) [see Short in child support payments as directed by the Secretary;
Title of 1996 Amendment note set out under section 3701 and
of this title], was enacted into law on April 26, 1996, as (2) conduct administrative offsets to collect delin-
part of the Omnibus Consolidated Rescissions and Ap- quent child support payments.
§ 3717 TITLE 31—MONEY AND FINANCE Page 316
(f) The Secretary shall, to the extent permitted by at law by a party against the United States, its agen-
law, share with the Secretary of Health and Human cies, its officers, or any person.
Services any information contained in payment certifi- WILLIAM J. CLINTON.
cation records of persons who are delinquent in child
support obligations that would assist in the collection § 3717. Interest and penalty on claims
of such debts, whether or not an administrative offset
is conducted. (a)(1) The head of an executive, judicial, or
SEC. 2. Denial of Federal Assistance. (a) The Secretary legislative agency shall charge a minimum an-
shall, to the extent permitted by law, ensure that infor- nual rate of interest on an outstanding debt on
mation concerning individuals whose payments are a United States Government claim owed by a
subject to administrative offset because of delinquent person that is equal to the average investment
child support obligations is made available to the head
of each executive department and agency that provides
rate for the Treasury tax and loan accounts for
Federal financial assistance to individuals. the 12-month period ending on September 30 of
(b) In conformance with section 2(e) of this order, the each year, rounded to the nearest whole percent-
head of each executive department and agency shall, age point. The Secretary of the Treasury shall
with respect to any individuals whose payments are publish the rate before November 1 of that year.
subject to administrative offset because of a delinquent The rate is effective on the first day of the next
child support obligation, promptly implement proce- calendar quarter.
dures to deny Federal financial assistance to such indi-
viduals.
(2) The Secretary may change the rate of in-
(c) The Attorney General, in consultation with the terest for a calendar quarter if the average in-
Secretary of Health and Human Services and other af- vestment rate for the 12-month period ending at
fected agencies, shall promptly issue guidelines for de- the close of the prior calendar quarter, rounded
partments and agencies concerning minimum due-proc- to the nearest whole percentage point, is more
ess standards to be included in the procedures required or less than the existing published rate by 2 per-
by subsection (b) of this section. centage points.
(d) For purposes of this section, Federal financial as-
sistance means any Federal loan (other than a disaster (b) Interest under subsection (a) of this section
loan), loan guarantee, or loan insurance. accrues from the date—
(e)(1) A class of Federal financial assistance shall not (1) on which notice is mailed after October
be subject to denial if the head of the concerned depart- 25, 1982, if notice was first mailed before Octo-
ment or agency determines: ber 25, 1982; or
(A) in consultation with the Attorney General and (2) notice of the amount due is first mailed
the Secretary of Health and Human Services, that such
action:
to the debtor at the most current address of
(i) is not permitted by law; or the debtor available to the head of the execu-
(ii) would likely result in valid legal claims for dam- tive or 1 legislative agency, if notice is first
ages against the United States; mailed after October 24, 1982.
(B) that such action would be inconsistent with the
best interests of the child or children with respect to (c) The rate of interest charged under sub-
whom a child support obligation is owed; or section (a) of this section—
(C) that such action should be waived. (1) is the rate in effect on the date from
(2) The head of each executive department and agen- which interest begins to accrue under sub-
cy shall provide written notification to the Secretary
upon determining that the denial of a class of Federal
section (b) of this section; and
financial assistance is not permitted by law or should (2) remains fixed at that rate for the dura-
be waived. tion of the indebtedness.
(f) The head of each executive department and agency
(d) Interest under subsection (a) of this section
shall:
(1) review all laws under the jurisdiction of the de- may not be charged if the amount due on the
partment or agency that do not permit the denial of claim is paid within 30 days after the date from
Federal financial assistance to individuals and whose which interest accrues under subsection (b) of
payments are subject to administrative offset because this section. The head of an executive, judicial,
of a delinquent child support obligation and, where ap- or legislative agency may extend the 30-day pe-
propriate, transmit to the Director of the Office of riod.
Management and Budget recommendations for statu-
(e) The head of an executive, judicial, or legis-
tory changes; and
(2) to the extent practicable, review all rules, regula- lative agency shall assess on a claim owed by a
tions, and procedures implementing laws under the ju- person—
risdiction of the department or agency governing the (1) a charge to cover the cost of processing
provision of any Federal financial assistance to individ- and handling a delinquent claim; and
uals and, where appropriate, conform such rules, regu- (2) a penalty charge of not more than 6 per-
lations, and procedures to the provisions of this order cent a year for failure to pay a part of a debt
and the rules, regulations, and procedures issued by the more than 90 days past due.
Secretary pursuant to section 1 of this order.
SEC. 3. Reports. (a) The head of each executive depart- (f) Interest under subsection (a) of this section
ment and agency shall provide to the Secretary such does not accrue on a charge assessed under sub-
information as the Secretary may request concerning section (e) of this section.
the implementation of this order, the provisions of the
Debt Collection Improvement Act of 1996 applicable to
(g) This section does not apply—
delinquent child support obligations, and the rules, reg- (1) if a statute, regulation required by stat-
ulations, and procedures issued by the Secretary pursu- ute, loan agreement, or contract prohibits
ant to section 1 of this order. charging interest or assessing charges or ex-
(b) The Secretary shall report annually to the Presi- plicitly fixes the interest or charges; and
dent concerning the implementation by departments (2) to a claim under a contract executed be-
and agencies of this order and the provisions of the fore October 25, 1982, that is in effect on Octo-
Debt Collection Improvement Act of 1996 applicable to
ber 25, 1982.
delinquent child support obligations.
SEC. 4. Judicial Review. This order does not create any
right or benefit, substantive or procedural, enforceable 1 So in original. Probably should be ‘‘, judicial, or’’.
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