[Congressional Record Volume 145, Number 29 (Wednesday, February 24, 1999)]
[House]
[Pages H739-H743]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   MAKING IN ORDER AS ORIGINAL BILL THE AMENDMENT IN THE NATURE OF A 
  SUBSTITUTE NUMBERED 1, PRINTED IN THE CONGRESSIONAL RECORD, DURING 
CONSIDERATION OF H.R. 436, GOVERNMENT WASTE, FRAUD, AND ERROR REDUCTION 
                              ACT OF 1999

  Mr. HORN. Mr. Speaker, I ask unanimous consent that during the 
consideration of H.R. 436 in the Committee of the Whole, pursuant to 
House Resolution 43, that it be in order to consider

[[Page H740]]

as an original bill for the purpose of amendment under the 5-minute 
rule the amendment in the nature of a substitute that is printed in the 
Congressional Record at pages H-718 through H-721; that the amendment 
in the nature of a substitute be considered as read; that points of 
order against the amendment in the nature of a substitute for failure 
to comply with clause 4 of rule XXI and section 303 of the 
Congressional Budget Act of 1974 be waived; and that any Member may 
demand a separate vote in the House on any amendment adopted in the 
Committee of the Whole to the bill or to that amendment in the nature 
of a substitute.
  This language has been cleared with our friends on the other side of 
the aisle.
  The SPEAKER pro tempore. The Clerk will report the amendment in the 
nature of a substitute.
  The Clerk read as follows:

       Amendment in the nature of a substitute numbered 1, printed 
     in the Congressional Record, offered by Mr. Horn:
       Strike all after the enacting clause and insert the 
     following:

     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 1999''.
       (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 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 NONTAX DEBTS OWED TO UNITED STATES

Sec. 301. Authority to sell nontax debts.
Sec. 302. Requirement to sell certain nontax debts.

             TITLE IV--TREATMENT OF HIGH VALUE NONTAX DEBTS

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

                       TITLE V--FEDERAL PAYMENTS

Sec. 501. Transfer of responsibility to Secretary of the Treasury with 
              respect to prompt payment.
Sec. 502. Promoting electronic payments.
Sec. 503. Debt services account.

     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.

       Section 3515 of title 31, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``1997'' and inserting ``2000''; and
       (B) by inserting ``Congress and'' after ``submit to''; and
       (2) by striking subsections (e), (f), (g), and (h).

     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, 2000.
       (c) Payment of State and Local Taxes on Travel Expenses.--
       (1) In general.--The Administrator of General Services 
     shall develop a mechanism to 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, 2000, 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 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 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) 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 existence and frequency of valid debtor 
     complaints shall also be considered in the evaluation 
     criteria.
       ``(13) 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 existence and 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 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) 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 existence and frequency of valid 
     debtor complaints shall also be considered in the evaluation 
     criteria.
       ``(j) 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

[[Page H741]]

     under government collection contracts of similar size, if 
     applicable. The existence and 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 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.--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''.
       (g) 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, if appropriate, 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 Federal license 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 or, in the case of any Federal 
     performance-based organization, the chief operating officer 
     of the agency.
       ``(3) The chief financial officer or chief operating 
     officer of an agency to whom waiver authority is delegated 
     under paragraph (2) may redelegate that authority only to the 
     deputy chief financial officer or deputy chief operating 
     officer of the agency. Such deputy chief financial officer or 
     deputy chief operating 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 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 to private collection 
     contractors 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) Section 3711 of title 31, United 
     States Code, is amended by inserting after subsection (h) the 
     following new subsection:
       ``(i)(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 subsection may be deducted from the proceeds 
     received from the sale. Such costs include--
       ``(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, as 
     determined by the Director of the Office of Management and 
     Budget.
       ``(3) Sales of nontax debt under this subsection--
       ``(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; 
     and

[[Page H742]]

       ``(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), but shall 
     not transfer to the purchaser any rights or defenses uniquely 
     available to the United States.
       ``(3) This subsection 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.

       Section 3711 of title 31, United States Code, is amended 
     further by adding at the end the following new subsection:
       ``(j)(1)(A) The head of each executive, judicial, or 
     legislative agency shall sell any nontax loan owed to the 
     United States by the later of--
       ``(i) the date on which the nontax debt becomes 24 months 
     delinquent; or
       ``(ii) 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) The head of an executive, judicial, or legislative 
     agency, in consultation with the Director of the Office of 
     Management and Budget and the Secretary of the Treasury, may 
     exempt from sale delinquent debt or debts under this 
     subsection if the head of the agency determines that the sale 
     is not in the best financial interest of the United States.
       ``(2) 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. Sales 
     under this subsection shall be conducted under the authority 
     in section 301.
       ``(3) 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. Sales under this paragraph 
     shall be conducted under the authority of subsection (i).
       ``(4)(A) 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.
       ``(B) The head of an executive, judicial, or legislative 
     agency may exempt from sale under this subsection any class 
     of nontax debts or loans 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 debtor defaulted.
       (c) Definitions.--In this title:
       (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 
     applicable 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. TRANSFER OF RESPONSIBILITY TO SECRETARY OF THE 
                   TREASURY WITH RESPECT TO PROMPT PAYMENT.

       (a) Definition.--Section 3901(a)(3) of title 31, United 
     States Code, is amended by striking ``Director of the Office 
     of Management and Budget'' and inserting ``Secretary of the 
     Treasury''.
       (b) Interest.--Section 3902(c)(3)(D) of title 31, United 
     States Code, is amended by striking ``Director of the Office 
     of Management and Budget'' and inserting ``Secretary of the 
     Treasury''.
       (c) Regulations.--Section 3903(a) of title 31, United 
     States Code, is amended by striking ``Director of the Office 
     of Management and Budget'' and inserting ``Secretary of the 
     Treasury''.

     SEC. 502. 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 Secretary of the Treasury 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 
     Secretary of the Treasury, 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 
     Secretary of the Treasury shall develop guidelines regarding 
     agreements between agencies and financial institutions under 
     paragraph (1).

     SEC. 503. DEBT SERVICES ACCOUNT.

       (a) Transfer of Funds to Debt Services Account.--The 
     Secretary of the Treasury may transfer balances in accounts 
     established before the date of the enactment of this Act 
     pursuant to section of 3711(g)(7) of title 31, United States 
     Code, to the Debt Services Account established under 
     subsection (b). All amounts transferred to the Debt Services 
     Account under this section shall remain available until 
     expended.
       (b) Establishment of Debt Services Account.--Subsection 
     (g)(7) of section 3711 of title 31, United States Code, is 
     amended by striking the second sentence and inserting the 
     following: ``Any fee charged pursuant to this subsection 
     shall be deposited into an account established in the 
     Treasury to be known as the `Debt Services Account' 
     (hereinafter referred to in this section as the `Account').''
       (c) Reimbursement of Funds.--Section 3711(g) of title 31, 
     United States Code, is amended--
       (1) by striking paragraph (8);
       (2) by redesignating paragraphs (9) and (10) as paragraphs 
     (8) and (9), respectively; and
       (3) by amending paragraph (9) (as redesignated by paragraph 
     (2)) to read as follows:
       ``(9) To carry out the purposes of this subsection, 
     including services provided under sections 3716 and 3720A, 
     the Secretary of the Treasury may--
       ``(A) prescribe such rules, regulations, and procedures as 
     the Secretary considers necessary;
       ``(B) transfer such funds from funds appropriated to the 
     Department of the Treasury as may be necessary to meet 
     liabilities and obligations incurred prior to the receipt of 
     fees that result from debt collection; and
       ``(C) reimburse any funds from which funds were transferred 
     under subparagraph (B) from fees collected pursuant to 
     sections 3711, 3716, and 3720A. Any reimbursement under this 
     subparagraph shall occur during the period of availability of 
     the funds transferred under subparagraph (B) and shall be 
     available to the same extent and for the same purposes as the 
     funds originally transferred.''.
       (d) Deposit of Tax Refund Offset Fees.--The last sentence 
     of section 3720A(d) of title 31, United States Code, is 
     amended to read as follows: ``Amounts paid to the Secretary 
     of the Treasury as fees under this section shall

[[Page H743]]

     be deposited into the Debt Services Account of the Department 
     of the Treasury described in section 3711(g)(7) and shall be 
     collected and accounted for in accordance with the provisions 
     of that section.''.

  Mr. HORN (during the reading). Mr. Speaker, I ask unanimous consent 
that the amendment in the nature of a substitute be considered as read 
and printed in the Record.
  The Speaker pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  The Speaker pro tempore. Is there objection to the original request 
of the gentleman from California?
  There was no objection.

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