[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 300 Enrolled Bill (ENR)]

        S.300

                      One Hundred Twelfth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
            the third day of January, two thousand and twelve


                                 An Act


 
              To prevent abuse of Government charge cards.

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

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.