[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4857 Engrossed in House (EH)]


  2d Session

                               H. R. 4857

_______________________________________________________________________

                                 AN ACT

  To reduce waste, fraud, and error in Government programs by making 
  improvements with respect to Federal management and debt collection 
 practices, Federal payment systems, Federal benefit programs, and for 
                            other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                H. R. 4857

_______________________________________________________________________

                                 AN ACT


 
  To reduce waste, fraud, and error in Government programs by making 
  improvements with respect to Federal management and debt collection 
 practices, Federal payment systems, Federal benefit programs, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government Waste, 
Fraud, and Error Reduction Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definition.
Sec. 4. Application of Act.
                TITLE I--GENERAL MANAGEMENT IMPROVEMENTS

Sec. 101. Improving financial management.
Sec. 102. Improving travel management.
         TITLE II--IMPROVING FEDERAL DEBT COLLECTION PRACTICES

Sec. 201. Miscellaneous technical corrections to subchapter II of 
                            chapter 37 of title 31, United States Code.
Sec. 202. Barring delinquent Federal debtors from obtaining Federal 
                            benefits.
Sec. 203. Collection and compromise of nontax debts and claims.
             TITLE III--SALE OF DEBTS OWED TO UNITED STATES

Sec. 301. Authority to sell debts.
Sec. 302. Requirement to sell certain debts.
                TITLE IV--TREATMENT OF HIGH VALUE DEBTS

Sec. 401. Annual report on high value debts.
Sec. 402. Review by Inspectors General.
Sec. 403. Requirement to seek seizure and forfeiture of assets securing 
                            high value debt.
                       TITLE V--FEDERAL PAYMENTS

Sec. 501. Promoting electronic payments.

SEC. 2. PURPOSES.

    The purposes of this Act are the following:
            (1) To reduce waste, fraud, and error in Federal benefit 
        programs.
            (2) To focus Federal agency management attention on high-
        risk programs.
            (3) To better collect debts owed to the United States.
            (4) To improve Federal payment systems.
            (5) To improve reporting on Government operations.

SEC. 3. DEFINITION.

    As used in this Act, the term ``nontax debt'' means any debt 
(within the meaning of that term as used in chapter 37 of title 31, 
United States Code) other than a debt under the Internal Revenue Code 
of 1986 or the Tariff Act of 1930.

SEC. 4. APPLICATION OF ACT.

    No provision of this Act shall apply to the Department of the 
Treasury or the Internal Revenue Service to the extent that such 
provision--
            (1) involves the administration of the internal revenue 
        laws; or
            (2) conflicts with the Internal Revenue Service 
        Restructuring and Reform Act of 1998, the Internal Revenue Code 
        of 1986, or the Tariff Act of 1930.

                TITLE I--GENERAL MANAGEMENT IMPROVEMENTS

SEC. 101. IMPROVING FINANCIAL MANAGEMENT.

    (a) Repeal.--Section 3515 of title 31, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``1997'' and inserting ``1999''; 
                and
                    (B) by inserting ``Congress and'' after ``submit 
                to'';
            (2) by striking subsection (e); and
            (3) by striking subsections (f), (g), and (h).
    (b) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on the date of the enactment of this 
        Act.
            (2) Secretary's waiver authority.--Subsection (a)(1) of 
        this section shall take effect March 1, 1998.

SEC. 102. IMPROVING TRAVEL MANAGEMENT.

    (a) Limited Exclusion From Requirement Regarding Occupation of 
Quarters.--Section 5911(e) of title 5, United States Code, is amended 
by adding at the end the following new sentence: ``The preceding 
sentence shall not apply with respect to lodging provided under chapter 
57 of this title.''.
    (b) Use of Travel Management Centers, Agents, and Electronic 
Payment Systems.--
            (1) Requirement to encourage use.--The head of each 
        executive agency shall, with respect to travel by employees of 
        the agency in the performance of the employment duties by the 
        employee, require, to the extent practicable, the use by such 
        employees of travel management centers, travel agents 
        authorized for use by such employees, and electronic 
        reservation and payment systems for the purpose of improving 
        efficiency and economy regarding travel by employees of the 
        agency.
            (2) Plan for implementation.--(A) The Administrator of 
        General Services shall develop a plan regarding the 
        implementation of this subsection and shall, after consultation 
        with the heads of executive agencies, submit to Congress a 
        report describing such plan and the means by which such agency 
        heads plan to ensure that employees use travel management 
        centers, travel agents, and electronic reservation and payment 
        systems as required by this subsection.
            (B) The Administrator shall submit the plan required under 
        subparagraph (A) not later than March 31, 1999.
    (c) Payment of State and Local Taxes on Travel Expenses.--
            (1) In general.--The Administrator of General Services 
        shall ensure that employees of executive agencies are not 
        inappropriately charged State and local taxes on travel 
        expenses, including transportation, lodging, automobile rental, 
        and other miscellaneous travel expenses.
            (2) Report.--Not later than March 31, 1999, the 
        Administrator shall, after consultation with the heads of 
        executive agencies, submit to Congress a report describing the 
        steps taken, and proposed to be taken, to carry out this 
        subsection.

         TITLE II--IMPROVING FEDERAL DEBT COLLECTION PRACTICES

SEC. 201. MISCELLANEOUS TECHNICAL CORRECTIONS TO SUBCHAPTER II OF 
              CHAPTER 37 OF TITLE 31, UNITED STATES CODE.

    (a) Child Support Enforcement.--Section 3716(h)(3) of title 31, 
United States Code, is amended to read as follows:
            ``(3) In applying this subsection with respect to any debt 
        owed to a State, other than past due support being enforced by 
        the State, subsection (c)(3)(A) shall not apply.''.
    (b) Debt Sales.--Section 3711 of title 31, United States Code, is 
amended by striking subsection (i).
    (c) Gainsharing.--Section 3720C(b)(2)(D) of title 31, United States 
Code, is amended by striking ``delinquent loans'' and inserting 
``debts''.
    (d) Provisions Relating to Private Collection Contractors.--
            (1) Collection by secretary of the treasury.--Section 
        3711(g) of title 31, United States Code, is further amended by 
        adding at the end the following:
    ``(11) In attempting to collect under this subsection through the 
use of garnishment any debt owed to the United States, a private 
collection contractor shall not be precluded from verifying the 
debtor's current employer, the location of the payroll office of the 
debtor's current employer, the period the debtor has been employed by 
the current employer of the debtor, and the compensation received by 
the debtor from the current employer of the debtor.
    ``(12)(A) The Secretary of the Treasury shall provide that any 
contract with a private collection contractor under this subsection 
shall include a provision that the contractor shall be subject to 
penalties under the contract--
            ``(i) if the contractor fails to comply with any 
        restrictions under applicable law regarding the collection 
        activities of debt collectors; or
            ``(ii) if the contractor engages in unreasonable or abusive 
        debt collection practices in connection with the collection of 
        debt under the contract.
    ``(B) Notwithstanding any other provision of law, a private 
collection contractor under this subsection shall not be subject to any 
liability or contract penalties in connection with efforts to collect a 
debt pursuant to a contract under this subsection by reason of actions 
that are required by the contract or by applicable law or regulations.
    ``(13) In evaluating the performance of a contractor under any 
contract entered into under this subsection, the Secretary of the 
Treasury shall consider the contractor's gross collections net of 
commissions (as a percentage of account amounts placed with the 
contractor) under the contract. The frequency of valid debtor 
complaints shall also be considered in the evaluation criteria.
    ``(14) In selecting contractors for performance of collection 
services, the Secretary of the Treasury shall evaluate bids received 
through a methodology that considers the bidder's prior performance in 
terms of net amounts collected under government collection contracts of 
similar size, if applicable. The frequency of valid debtor complaints 
shall also be considered in the evaluation criteria.''.
            (2) Collection by program agency.--Section 3718 of title 
        31, United States Code, is further amended by adding at the end 
        the following:
    ``(h) In attempting to collect under this subsection through the 
use of garnishment any debt owed to the United States, a private 
collection contractor shall not be precluded from verifying the current 
place of employment of the debtor, the location of the payroll office 
of the debtor's current employer, the period the debtor has been 
employed by the current employer of the debtor, and the compensation 
received by the debtor from the current employer of the debtor.
    ``(i)(1) The head of an executive, judicial, or legislative agency 
that contracts with a private collection contractor to collect a debt 
owed to the agency, or a guaranty agency or institution of higher 
education that contracts with a private collection contractor to 
collect a debt owed under any loan program authorized under title IV of 
the Higher Education Act of 1965, shall include a provision in the 
contract that the contractor--
            ``(A) shall be subject to penalties under the contract if 
        the contractor fails to comply with any restrictions imposed 
        under applicable law on the collection activities of debt 
        collectors; and
            ``(B) shall be subject to penalties under the contract if 
        the contractor engages in unreasonable or abusive debt 
        collection practices in connection with the collection of debt 
        under the contract.
    ``(2) Notwithstanding any other provision of law, a private 
collection contractor under this section shall not be subject to any 
liability or contract penalties in connection with efforts to collect a 
debt owed to an executive, judicial, or legislative agency, or owed 
under any loan program authorized under title IV of the Higher 
Education Act of 1965, by reason of actions required by the contract, 
or by applicable law or regulations.
    ``(j) In evaluating the performance of a contractor under any 
contract for the performance of debt collection services entered into 
by an executive, judicial, or legislative agency, the head of the 
agency shall consider the contractor's gross collections net of 
commissions (as a percentage of account amounts placed with the 
contractor) under the contract. The frequency of valid debtor 
complaints shall also be considered in the evaluation criteria.
    ``(k) In selecting contractors for performance of collection 
services, the head of an executive, judicial, or legislative agency 
shall evaluate bids received through a methodology that considers the 
bidder's prior performance in terms of net amounts collected under 
government collection contracts of similar size, if applicable. The 
frequency of valid debtor complaints shall also be considered in the 
evaluation criteria.''.
            (3) Construction.--None of the amendments made by this 
        subsection shall be construed as altering or superseding the 
        provisions in section 362 of title 11, United States Code or 
        section 6103 of the Internal Revenue Code of 1986.
    (e) Clerical Amendment.--Section 3720A(h) of title 31, United 
States Code, is amended--
            (1) beginning in paragraph (3), by striking the close 
        quotation marks and all that follows through the matter 
        preceding subsection (i); and
            (2) by adding at the end the following:
``For purposes of this subsection, the disbursing official for the 
Department of the Treasury is the Secretary of the Treasury or his or 
her designee.''.
    (f) Correction of References to Federal Agency.--(1) Sections 
3716(c)(6) and 3720A(a), (b), (c), and (e) of title 31, United States 
Code, are each amended by striking ``Federal agency'' each place it 
appears and inserting ``executive, judicial, or legislative agency''.
    (2) Section 3716(h)(2)(C), of title 31, United States Code, is 
amended by striking ``a Federal agency'' and inserting ``an executive, 
judicial, or legislative agency''.
    (g) Clarification of Inapplicability of Act to Certain Agencies.--
Notwithstanding any other provision of law, no provision in this Act, 
the Debt Collection Improvement Act of 1996 (chapter 10 of title III of 
Public Law 104-134; 31 U.S.C. 3701 note), chapter 37 or subchapter II 
of chapter 33 of title 31, United States Code, or any amendments made 
by such Acts or any regulations issued thereunder, shall apply to 
activities carried out pursuant to a law enacted to protect, operate, 
and administer any deposit insurance funds, including the resolution 
and liquidation of failed or failing insured depository institutions.
    (h) Contracts for Collection Services.--Section 3718 of title 31, 
United States Code, is amended--
            (1) in the first sentence of subsection (b)(1)(A), by 
        inserting ``, or any monetary claim, including any claims for 
        civil fines or penalties, asserted by the Attorney General'' 
        before the period;
            (2) in the third sentence of subsection (b)(1)(A)--
                    (A) by inserting ``or in connection with other 
                monetary claims'' after ``collection of claims of 
                indebtedness'';
                    (B) by inserting ``or claim'' after ``the 
                indebtedness''; and
                    (C) by inserting ``or other person'' after ``the 
                debtor''; and
            (3) in subsection (d), by inserting ``or any other monetary 
        claim of'' after ``indebtedness owed''.

SEC. 202. BARRING DELINQUENT FEDERAL DEBTORS FROM OBTAINING FEDERAL 
              BENEFITS.

    (a) In General.--Section 3720B of title 31, United States Code, is 
amended to read as follows:
``Sec. 3720B. Barring delinquent Federal debtors from obtaining Federal 
              benefits
    ``(a)(1) A person shall not be eligible for the award or renewal of 
any Federal benefit described in paragraph (2) if the person has an 
outstanding nontax debt that is in a delinquent status with any 
executive, judicial, or legislative agency, as determined under 
standards prescribed by the Secretary of the Treasury. Such a person 
may obtain additional Federal benefits described in paragraph (2) only 
after such delinquency is resolved in accordance with those standards.
    ``(2) The Federal benefits referred to in paragraph (1) are the 
following:
            ``(A) Financial assistance in the form of a loan (other 
        than a disaster loan) or loan insurance or guarantee.
            ``(B) Any Federal permit or license otherwise required by 
        law.
    ``(b) The Secretary of the Treasury may exempt any class of claims 
from the application of subsection (a) at the request of an executive, 
judicial, or legislative agency.
    ``(c)(1) The head of any executive, judicial, or legislative agency 
may waive the application of subsection (a) to any Federal benefit that 
is administered by the agency based on standards promulgated by the 
Secretary of the Treasury.
    ``(2) The head of an executive, judicial, or legislative agency may 
delegate the waiver authority under paragraph (1) to the chief 
financial officer of the agency.
    ``(3) The chief financial officer of an agency to whom waiver 
authority is delegated under paragraph (2) may redelegate that 
authority only to the deputy chief financial officer of the agency. The 
deputy chief financial officer may not redelegate such authority.
    ``(d) As used in this section, the term `nontax debt' means any 
debt other than a debt under the Internal Revenue Code of 1986 or the 
Tariff Act of 1930.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 37 of title 31, United States Code, is amended by striking the 
item relating to section 3720B and inserting the following:

``3720B. Barring delinquent Federal debtors from obtaining Federal 
                            benefits.''.
    (c) Construction.--The amendment made by this section shall not be 
construed as altering or superseding the provisions in section 525 of 
title 11, United States Code.

SEC. 203. COLLECTION AND COMPROMISE OF NONTAX DEBTS AND CLAIMS.

    (a) Use of Private Collection Contractors and Federal Debt 
Collection Centers.--Paragraph (5) of section 3711(g) of title 31, 
United States Code, is amended to read as follows:
    ``(5)(A) Nontax debts referred or transferred under this subsection 
shall be serviced, collected, or compromised, or collection action 
thereon suspended or terminated, in accordance with otherwise 
applicable statutory requirements and authorities.
    ``(B) The head of each executive agency that operates a debt 
collection center may enter into an agreement with the Secretary of the 
Treasury to carry out the purposes of this subsection.
    ``(C) The Secretary of the Treasury shall--
            ``(i) maintain a schedule of private collection contractors 
        and debt collection centers operated by agencies that are 
        eligible for referral of claims under this subsection;
            ``(ii) maximize collections of delinquent nontax debts by 
        referring delinquent nontax debts promptly;
            ``(iii) maintain competition between private collection 
        contractors;
            ``(iv) ensure, to the maximum extent practicable, that a 
        private collection contractor to which a nontax debt is 
        referred is responsible for any administrative costs associated 
        with the contract under which the referral is made.
    ``(D) As used in this paragraph, the term `nontax debt' means any 
debt other than a debt under the Internal Revenue Code of 1986 or the 
Tariff Act of 1930.''.
    (b) Limitation on Discharge Before Use of Private Collection 
Contractor or Debt Collection Center.--Paragraph (9) of section 3711(g) 
of title 31, United States Code, is amended--
            (1) by redesignating subparagraphs (A) through (H) as 
        clauses (i) through (viii);
            (2) by inserting ``(A)'' after ``(9)'';
            (3) in subparagraph (A) (as designated by paragraph (2) of 
        this subsection) in the matter preceding clause (i) (as 
        designated by paragraph (1) of this subsection), by inserting 
        ``and subject to subparagraph (B)'' after ``as applicable''; 
        and
            (4) by adding at the end the following:
    ``(B)(i) The head of an executive, judicial, or legislative agency 
may not discharge a nontax debt or terminate collection action on a 
nontax debt unless the debt has been referred to a private collection 
contractor or a debt collection center, referred to the Attorney 
General for litigation, sold without recourse, administrative wage 
garnishment has been undertaken, or in the event of bankruptcy, death, 
or disability.
    ``(ii) The head of an executive, judicial, or legislative agency 
may waive the application of clause (i) to any nontax debt, or class of 
nontax debts if the head of the agency determines that the waiver is in 
the best interest of the United States.
    ``(iii) As used in this subparagraph, the term `nontax debt' means 
any debt other than a debt under the Internal Revenue Code of 1986 or 
the Tariff Act of 1930.''.

         TITLE III--SALE OF NONTAX DEBTS OWED TO UNITED STATES

SEC. 301. AUTHORITY TO SELL NONTAX DEBTS.

    (a) Purpose.--The purpose of this section is to provide that the 
head of each executive, judicial, or legislative agency shall establish 
a program of nontax debt sales in order to--
            (1) minimize the loan and nontax debt portfolios of the 
        agency;
            (2) improve credit management while serving public needs;
            (3) reduce delinquent nontax debts held by the agency;
            (4) obtain the maximum value for loan and nontax debt 
        assets; and
            (5) obtain valid data on the amount of the Federal subsidy 
        inherent in loan programs conducted pursuant to the Federal 
        Credit Reform Act of 1990 (Public Law 93-344).
    (b) Sales Authorized.--(1) The head of an executive, judicial, or 
legislative agency may sell, subject to section 504(b) of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661c(b)) and using competitive 
procedures, any nontax debt owed to the United States that is 
administered by the agency.
    (2) Costs the agency incurs in selling nontax debt pursuant to this 
section may be deducted from the proceeds received from the sale. Such 
costs may include, but are not limited to--
            (A) the costs of any contract for identification, billing, 
        or collection services;
            (B) the costs of contractors assisting in the sale of 
        nontax debt;
            (C) the fees of appraisers, auctioneers, and realty 
        brokers;
            (D) the costs of advertising and surveying; and
            (E) other reasonable costs incurred by the agency.
    (3) Sales of nontax debt under this section--
            (A) shall be for--
                    (i) cash; or
                    (ii) cash and a residuary equity, joint venture, or 
                profit participation, if the head of the agency, in 
                consultation with the Director of the Office of 
                Management and Budget and the Secretary of the 
                Treasury, determines that the proceeds will be greater 
                than the proceeds from a sale solely for cash;
            (B) shall be without recourse against the United States, 
        but may include the use of guarantees if otherwise authorized 
        by law; and
            (C) shall transfer to the purchaser all rights of the 
        United States to demand payment of the nontax debt, other than 
        with respect to a residuary equity, joint venture, or profit 
        participation under subparagraph (A)(ii).
    (c) Existing Authority Not Affected.--This section is not intended 
to limit existing statutory authority of the head of an executive, 
judicial, or legislative agency to sell loans, nontax debts, or other 
assets.

SEC. 302. REQUIREMENT TO SELL CERTAIN NONTAX DEBTS.

    (a) Sale of Delinquent Loans.--The head of each executive, 
judicial, or legislative agency shall sell any nontax loan owed to the 
United States by the later of--
            (1) the date on which the nontax debt becomes 24 months 
        delinquent; or
            (2) 24 months after referral of the nontax debt to the 
        Secretary of the Treasury pursuant to section 3711(g)(1) of 
        title 31, United States Code. Sales under this subsection shall 
        be conducted under the authority in section 301.
    (b) Sale of New Loans.--The head of each executive, judicial, or 
legislative agency shall sell each loan obligation arising from a 
program administered by the agency, not later than 6 months after the 
loan is disbursed, unless the head of the agency determines that the 
sale would interfere with the mission of the agency administering the 
program under which the loan was disbursed, or the head of the agency, 
in consultation with the Director of the Office of Management and 
Budget and the Secretary of the Treasury, determines that a longer 
period is necessary to protect the financial interests of the United 
States. Such loan obligations shall be audited annually in accordance 
with generally accepted audit standards. Sales under this subsection 
shall be conducted under the authority in section 301.
    (c) Sale of Nontax Debts After Termination of Collection Action.--
After terminating collection action, the head of an executive, 
judicial, or legislative agency shall sell, using competitive 
procedures, any nontax debt or class of nontax debts owed to the United 
States unless the head of the agency, in consultation with the Director 
of the Office of Management and Budget and the Secretary of the 
Treasury, determines that the sale is not in the best financial 
interests of the United States. Such nontax debts shall be audited 
annually in accordance with generally accepted audit standards.
    (d) Limitations.--(1) The head of an executive, judicial, or 
legislative agency shall not, without the approval of the Attorney 
General, sell any nontax debt that is the subject of an allegation of 
or investigation for fraud, or that has been referred to the Department 
of Justice for litigation.
    (2) The head of an executive, judicial, or legislative agency may 
exempt from sale any class of nontax debts if the head of the agency 
determines that the sale would interfere with the mission of the agency 
administering the program under which the indebtedness was incurred.

             TITLE IV--TREATMENT OF HIGH VALUE NONTAX DEBTS

SEC. 401. ANNUAL REPORT ON HIGH VALUE NONTAX DEBTS.

    (a) In General.--Not later than 90 days after the end of each 
fiscal year, the head of each agency that administers a program that 
gives rise to a delinquent high value nontax debt shall submit a report 
to Congress that lists each such debt.
    (b) Content.--A report under this section shall, for each debt 
listed in the report, include the following:
            (1) The name of each person liable for the debt, including, 
        for a person that is a company, cooperative, or partnership, 
        the names of the owners and principal officers.
            (2) The amounts of principal, interest, and penalty 
        comprising the debt.
            (3) The actions the agency has taken to collect the debt, 
        and prevent future losses.
            (4) Specification of any portion of the debt that has been 
        written-down administratively or due to a bankruptcy 
        proceeding.
            (5) An assessment of why the borrower defaulted.
    (c) Definitions.--In this section:
            (1) Agency.--The term ``agency'' has the meaning that term 
        has in chapter 37 of title 31, United States Code, as amended 
        by this Act.
            (2) High value nontax debt.--The term ``high value nontax 
        debt'' means a nontax debt having an outstanding value 
        (including principal, interest, and penalties) that exceeds 
        $1,000,000.

SEC. 402. REVIEW BY INSPECTORS GENERAL.

    The Inspector General of each agency shall review the annual report 
to Congress required in section 401 and make such recommendations as 
necessary to improve performance of the agency. Each Inspector General 
shall periodically review and report to Congress on the agency's nontax 
debt collection management practices. As part of such reviews, the 
Inspector General shall examine agency efforts to reduce the aggregate 
amount of high value nontax debts that are resolved in whole or in part 
by compromise, default, or bankruptcy.

SEC. 403. REQUIREMENT TO SEEK SEIZURE AND FORFEITURE OF ASSETS SECURING 
              HIGH VALUE NONTAX DEBT.

    The head of an agency authorized to collect a high value nontax 
debt that is delinquent shall, when appropriate, promptly seek seizure 
and forfeiture of assets pledged to the United States in any 
transaction giving rise to the nontax debt. When an agency determines 
that seizure or forfeiture is not appropriate, the agency shall include 
a justification for such determination in the report under section 401.

                       TITLE V--FEDERAL PAYMENTS

SEC. 501. PROMOTING ELECTRONIC PAYMENTS.

    (a) Early Release of Electronic Payments.--Section 3903(a) of title 
31, United States Code, is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) provide that the required payment date is--
                    ``(A) the date payment is due under the contract 
                for the item of property or service provided; or
                    ``(B) no later than 30 days after a proper invoice 
                for the amount due is received if a specific payment 
                date is not established by contract;''; and
            (2) by striking ``and'' after the semicolon at the end of 
        paragraph (8), by striking the period at the end of paragraph 
        (9) and inserting ``; and'', and by adding at the end the 
        following:
            ``(10) provide that the Director of the Office of 
        Management and Budget may waive the application of requirements 
        under paragraph (1) to provide for early payment of vendors in 
        cases where an agency will implement an electronic payment 
        technology which improves agency cash management and business 
        practice.''.
    (b) Authority To Accept Electronic Payment.--
            (1) In general.--Subject to an agreement between the head 
        of an executive agency and the applicable financial institution 
        or institutions based on terms acceptable to the Director of 
        the Office of Management and Budget, the head of such agency 
        may accept an electronic payment, including debit and credit 
        cards, to satisfy a nontax debt owed to the agency.
            (2) Guidelines for agreements regarding payment.--The 
        Director of the Office of Management and Budget shall develop 
        guidelines regarding agreements between agencies and financial 
        institutions under paragraph (1).

            Passed the House of Representatives October 20, 1998.

            Attest:

                                                                 Clerk.