[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 300 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
August 1, 2012.
Resolved, That the bill from the Senate (S. 300) entitled ``An Act
to prevent abuse of Government charge cards.'', do pass with the
following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Government Charge Card Abuse
Prevention Act of 2012''.
SEC. 2. MANAGEMENT OF PURCHASE CARDS.
(a) Government-wide Safeguards and Internal Controls.--
(1) In general.--Chapter 19 of title 41, United States
Code, is amended by adding at the end the following new
section:
``Sec. 1909. Management of purchase cards
``(a) Required Safeguards and Internal Controls.--The head of each
executive agency that issues and uses purchase cards and convenience
checks shall establish and maintain safeguards and internal controls to
ensure the following:
``(1) There is a record in each executive agency of each
holder of a purchase card issued by the agency for official
use, annotated with the limitations on single transactions and
total transactions that are applicable to the use of each such
card or check by that purchase card holder.
``(2) Each purchase card holder and individual issued a
convenience check is assigned an approving official other than
the card holder with the authority to approve or disapprove
transactions.
``(3) The holder of a purchase card and each official with
authority to authorize expenditures charged to the purchase
card are responsible for--
``(A) reconciling the charges appearing on each
statement of account for that purchase card with
receipts and other supporting documentation; and
``(B) forwarding a summary report to the certifying
official in a timely manner of information necessary to
enable the certifying official to ensure that the
Federal Government ultimately pays only for valid
charges that are consistent with the terms of the
applicable Government-wide purchase card contract
entered into by the Administrator of General Services.
``(4) Any disputed purchase card charge, and any
discrepancy between a receipt and other supporting
documentation and the purchase card statement of account, is
resolved in the manner prescribed in the applicable Government-
wide purchase card contract entered into by the Administrator
of General Services.
``(5) Payments on purchase card accounts are made promptly
within prescribed deadlines to avoid interest penalties.
``(6) Rebates and refunds based on prompt payment, sales
volume, or other actions by the agency on purchase card
accounts are reviewed for accuracy and properly recorded as a
receipt to the agency that pays the monthly bill.
``(7) Records of each purchase card transaction (including
records on associated contracts, reports, accounts, and
invoices) are retained in accordance with standard Government
policies on the disposition of records.
``(8) Periodic reviews are performed to determine whether
each purchase card holder has a need for the purchase card.
``(9) Appropriate training is provided to each purchase
card holder and each official with responsibility for
overseeing the use of purchase cards issued by the executive
agency.
``(10) The executive agency has specific policies regarding
the number of purchase cards issued by various component
organizations and categories of component organizations, the
credit limits authorized for various categories of card
holders, and categories of employees eligible to be issued
purchase cards, and that those policies are designed to
minimize the financial risk to the Federal Government of the
issuance of the purchase cards and to ensure the integrity of
purchase card holders.
``(11) The executive agency uses effective systems,
techniques, and technologies to prevent or identify illegal,
improper, or erroneous purchases.
``(12) The executive agency invalidates the purchase card
of each employee who--
``(A) ceases to be employed by the agency,
immediately upon termination of the employment of the
employee; or
``(B) transfers to another unit of the agency,
immediately upon the transfer of the employee unless
the agency determines that the units are covered by the
same purchase card authority.
``(13) The executive agency takes steps to recover the cost
of any illegal, improper, or erroneous purchase made with a
purchase card or convenience check by an employee, including,
as necessary, through salary offsets.
``(b) Guidance.--The Director of the Office of Management and
Budget shall review existing guidance and, as necessary, prescribe
additional guidance governing the implementation of the requirements of
subsection (a) by executive agencies.
``(c) Penalties for Violations.--
``(1) In general.--The head of each executive agency shall
provide for appropriate adverse personnel actions or other
punishment to be imposed in cases in which employees of the
agency violate agency policies implementing the guidance
required by subsection (b) or make illegal, improper, or
erroneous purchases with purchase cards or convenience checks.
``(2) Dismissal.--Penalties prescribed for employee misuse
of purchase cards or convenience checks shall include dismissal
of the employee, as appropriate.
``(3) Reports on violations.--The guidance prescribed under
subsection (b) shall direct each head of an executive agency
with more than $10,000,000 in purchase card spending annually,
and each Inspector General of such an executive agency, on a
semiannual basis, to submit to the Director of the Office of
Management and Budget a joint report on violations or other
actions covered by paragraph (1) by employees of such executive
agency. At a minimum, the report shall set forth the following:
``(A) A summary description of confirmed violations
involving misuse of a purchase card following
completion of a review by the agency or by the
Inspector General of the agency.
``(B) A summary description of all adverse
personnel action, punishment, or other action taken
based on each violation.
``(d) Risk Assessments and Audits.--The Inspector General of each
executive agency shall--
``(1) conduct periodic assessments of the agency purchase
card or convenience check programs to identify and analyze
risks of illegal, improper, or erroneous purchases and payments
in order to develop a plan for using such risk assessments to
determine the scope, frequency, and number of periodic audits
of purchase card or convenience check transactions;
``(2) perform analysis or audits, as necessary, of purchase
card transactions designed to identify--
``(A) potentially illegal, improper, or erroneous
uses of purchase cards;
``(B) any patterns of such uses; and
``(C) categories of purchases that could be made by
means other than purchase cards in order to better
aggregate purchases and obtain lower prices (excluding
transactions made under card-based strategic sourcing
arrangements);
``(3) report to the head of the executive agency concerned
on the results of such analysis or audits; and
``(4) report to the Director of the Office of Management
and Budget on the implementation of recommendations made to the
head of the executive agency to address findings of any
analysis or audit of purchase card and convenience check
transactions or programs for compilation and transmission by
the Director to Congress and the Comptroller General.
``(e) Relationship to Department of Defense Purchase Card
Regulations.--The requirements of this section shall not apply to the
Department of Defense. See section 2784 of title 10 for provisions
relating to management of purchase cards in the Department.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 19 of title 41, United States Code, is
amended by adding at the end the following new item:
``1909. Management of purchase cards.''.
(b) Conforming Amendments to Department of Defense Purchase Card
Provisions.--Subsection (b) of section 2784 of title 10, United States
Code, is amended--
(1) by moving paragraph (8) to the end of the subsection
and redesignating that paragraph as paragraph (14);
(2) by redesignating paragraphs (2), (3), (4), (5), (6),
and (7) as paragraphs (3), (4), (5), (6), (7), and (8),
respectively;
(3) by inserting after paragraph (1) the following new
paragraph (2):
``(2) That each purchase card holder and individual issued
a convenience check is assigned an approving official other
than the card holder with the authority to approve or
disapprove transactions.'';
(4) by adding after paragraph (10) the following new
paragraphs:
``(11) That the Department of Defense uses effective
systems, techniques, and technologies to prevent or identify
potential fraudulent purchases.
``(12) That the Department of Defense takes appropriate
steps to invalidate the purchase card of each card holder who--
``(A) in the case of an employee of the
Department--
``(i) ceases to be employed by the
Department, immediately upon termination of the
employment of the employee; or
``(ii) transfers to another unit of the
Department, immediately upon the transfer of
the employee unless the Secretary of Defense
determines that the units are covered by the
same purchase card authority; and
``(B) in the case of a member of the armed forces,
is separated or released from active duty or full-time
National Guard duty.
``(13) That the Department of Defense takes steps to
recover the cost of any illegal, improper, or erroneous
purchase made with a purchase card or convenience check by an
employee or member of the armed forces, including, as
necessary, through salary offsets.''; and
(5) by adding at the end the following new paragraph:
``(15) That the Inspector General of the Department of
Defense conducts periodic audits or reviews of purchase card or
convenience check programs to identify and analyze risks of
illegal, improper, or erroneous purchases and payments and that
the findings of such audits or reviews, along with
recommendations to prevent abuse of purchase cards or
convenience checks, are reported to the Director of the Office
of Management and Budget and Congress.''.
(c) Deadline for Guidance on Management of Purchase Cards.--The
Director of the Office of Management and Budget shall prescribe the
guidance required by section 1909(b) of title 41, United States Code,
as added by subsection (a), not later than 180 days after the date of
the enactment of this Act.
SEC. 3. MANAGEMENT OF TRAVEL CARDS.
Section 2 of the Travel and Transportation Reform Act of 1998
(Public Law 105-264; 5 U.S.C. 5701 note) is amended by adding at the
end the following new subsection:
``(h) Management of Travel Charge Cards.--
``(1) Required safeguards and internal controls.--The head
of each executive agency that has employees that use travel
charge cards shall establish and maintain the following
internal control activities to ensure the proper, efficient,
and effective use of such travel charge cards:
``(A) There is a record in each executive agency of
each holder of a travel charge card issued on behalf of
the agency for official use, annotated with the
limitations on amounts that are applicable to the use
of each such card by that travel charge card holder.
``(B) Rebates and refunds based on prompt payment,
sales volume, or other actions by the agency on travel
charge card accounts are monitored for accuracy and
properly recorded as a receipt of the agency that
employs the card holder.
``(C) Periodic reviews are performed to determine
whether each travel charge card holder has a need for
the travel charge card.
``(D) Appropriate training is provided to each
travel charge card holder and each official with
responsibility for overseeing the use of travel charge
cards issued by the executive agency.
``(E) Each executive agency has specific policies
regarding travel charge cards issued for various
component organizations and categories of component
organizations, the credit limits authorized for various
categories of card holders, and categories of employees
eligible to be issued travel charge cards, and designs
those policies to minimize the financial risk to the
Federal Government of the issuance of the travel charge
cards and to ensure the integrity of travel charge card
holders.
``(F) Each executive agency has policies to ensure
its contractual arrangement with each travel charge
card issuing contractor contains a requirement that the
creditworthiness of an individual be evaluated before
the individual is issued a travel charge card, and that
no individual be issued a travel charge card if that
individual is found not creditworthy as a result of the
evaluation (except that this paragraph shall not
preclude issuance of a restricted use, prepaid,
declining balance, controlled-spend, or stored value
card when the individual lacks a credit history or has
a credit score below the minimum credit score
established by the Director of the Office of Management
and Budget). The Director of the Office of Management
and Budget shall establish a minimum credit score for
determining the creditworthiness of an individual based
on rigorous statistical analysis of the population of
card holders and historical behaviors. Notwithstanding
any other provision of law, such evaluation shall
include an assessment of an individual's consumer
report from a consumer reporting agency as those terms
are defined in section 603 of the Fair Credit Reporting
Act (15 U.S.C. 1681a).
``(G) Each executive agency uses effective systems,
techniques, and technologies to prevent or identify
improper purchases.
``(H) Each executive agency ensures that the travel
charge card of each employee who ceases to be employed
by the agency is invalidated immediately upon
termination of the employment of the employee (or, in
the case of a member of the uniformed services, upon
separation or release from active duty or full-time
National Guard duty).
``(I) Each executive agency shall ensure that,
where appropriate, travel card payments are issued
directly to the travel card-issuing bank for credit to
the employee's individual travel card account.
``(2) Guidance on management of travel charge cards.--Not
later than 180 days after the date of the enactment of the
Government Charge Card Abuse Prevention Act of 2012, the
Director of the Office of Management and Budget shall review
the existing guidance and, as necessary, prescribe additional
guidance for executive agencies governing the implementation of
the requirements in paragraph (1).
``(3) Inspector general audit.--The Inspector General of
each executive agency with more than $10,000,000 in travel card
spending shall conduct periodic audits or reviews of travel
card programs to analyze risks of illegal, improper, or
erroneous purchases and payments. The findings of such audits
or reviews along with recommendations to prevent improper use
of travel cards shall be reported to the Director of the Office
of Management and Budget and Congress.
``(4) Penalties for violations.--Consistent with the
guidance prescribed under paragraph (2), each executive agency
shall provide for appropriate adverse personnel actions to be
imposed in cases in which employees of the executive agency
fail to comply with applicable travel charge card terms and
conditions or applicable agency regulations or commit fraud
with respect to a travel charge card, including removal in
appropriate cases.
``(5) Definitions.--In this subsection:
``(A) Executive agency.--The term `executive
agency' means an agency as that term is defined in
subparagraphs (A) and (B) of section 5701(1) of title
5, United States Code.
``(B) Travel charge card.--The term `travel charge
card' means any Federal contractor-issued travel charge
card that is individually billed to each card
holder.''.
SEC. 4. MANAGEMENT OF CENTRALLY BILLED ACCOUNTS.
(a) Required Internal Controls for Centrally Billed Accounts.--The
head of an executive agency that has employees who use a travel charge
card that is billed directly to the United States Government shall
establish and maintain the following internal control activities:
(1) The executive agency shall ensure that officials with
the authority to approve official travel verify that centrally
billed account charges are not reimbursed to an employee.
(2) The executive agency shall dispute unallowable and
erroneous charges and track the status of the disputed
transactions to ensure appropriate resolution.
(3) The executive agency shall submit requests to servicing
airlines for refunds of fully or partially unused tickets, when
entitled to such refunds, and track the status of unused
tickets to ensure appropriate resolution.
(b) Guidance.--Not later than 180 days after the date of the
enactment of this Act, the Director of the Office of Management and
Budget shall review the existing guidance and, as necessary, prescribe
additional guidance for executive agencies implementing the
requirements of subsection (a).
SEC. 5. DEFINITIONS.
In this Act:
(1) Executive agency.--The term ``executive agency'' has
the meaning given such term in section 133 of title 41, United
States Code.
(2) Employee.--The term ``employee'' has the meaning given
such term in section 2(d)(3) of the Travel and Transportation
Reform Act of 1998 (Public Law 105-264; 5 U.S.C. 5701 note).
SEC. 6. CONSTRUCTION.
(a) Executive Agency Accounting.--Nothing in this Act, or the
amendments made by this Act, shall be construed to excuse the head of
an executive agency from the responsibilities set out in section 3512
of title 31, United States Code, or in the Improper Payments
Information Act of 2002 (31 U.S.C. 3321 note).
(b) Personal Information.--Nothing in this Act, or the amendments
made by this Act, shall be construed to require the disclosure of
personally identifying information that is otherwise protected from
disclosure under section 552a of title 5, United States Code (popularly
known as the Privacy Act of 1974).
Attest:
Clerk.
112th CONGRESS
2d Session
S. 300
_______________________________________________________________________
AMENDMENT