[Congressional Record Volume 145, Number 111 (Monday, August 2, 1999)]
[House]
[Pages H6780-H6785]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GOVERNMENT WASTE, FRAUD, AND ERROR REDUCTION ACT OF 1999
Mr. HORN. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1442) to amend the Federal Property and Administrative Services
Act of 1949 to continue and extend authority for transfers to State and
local governments of certain property for law enforcement, public
safety, and emergency response purposes, as amended.
The Clerk read as follows:
H.R. 1442
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 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.
TITLE VI--FEDERAL PROPERTY
Sec. 601. Amendment to Federal Property and Administrative Services Act
of 1949.
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 H6781]]
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 H6782]]
``(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 H6783]]
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.''.
TITLE VI--FEDERAL PROPERTY
SEC. 601. AMENDMENT OF FEDERAL PROPERTY AND ADMINISTRATIVE
SERVICES ACT OF 1949.
Section 203(p)(1)(B) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 484(p)(1)(B))
is amended--
(1) by striking clause (ii);
(2) by striking ``(i)'';
(3) by striking ``(I)'' and inserting ``(i)''; and
(4) by striking ``(II)'' and inserting ``(ii)''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Horn) and the gentleman from Texas (Mr. Turner) each
will control 20 minutes.
The Chair recognizes the gentleman from California (Mr. Horn).
Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
H.R. 1442 the Law Enforcement and Public Enhancement Act of 1999 is a
bill introduced by my colleague from California (Mr. Calvert). The
amendment I am offering aims to accomplish two goals. First, it would
improve the efficiency and economy of Federal debt collection
practices, Federal credit management and Federal travel practices.
Second, the bill would also eliminate a December 31, 1999, sunset
date for a provision in the Federal Property and Administrative
Services Act that authorizes the transfer of surplus Federal real
property at no cost to the State and local governments for law
enforcement and emergency response purposes.
In a moment I will yield to the gentleman from California (Mr.
Calvert) to explain the portion of the bill that would amend the
Federal Property and Administrative Services Act of 1949. First,
however, let me say that the bill before us contains a number of
provisions that are designed to improve Federal debt collection, credit
management and travel management. As the Subcommittee on Government
Management, Information and Technology learned at its June 15, 1999,
hearing on Federal debt collection, at the end of fiscal year 1998 the
Federal Government was owed more than $60 billion in delinquent, non-
tax debt such as student loans and housing loans.
More than $49 billion of this $60 billion in delinquent non-tax debts
was delinquent for more than 180 days. To facilitate collection of this
enormous amount of non-tax debt, Congress passed and the President
signed into law the Debt Collection Improvement Act of 1996. This
bipartisan legislation in which the gentlewoman from New York (Mrs.
Maloney) was the ranking member and joined me in authoring this
legislation, this bipartisan legislation established significant new
debt collection authorities and enhanced existing ones.
H.R. 1442, as amended, builds upon the Debt Collection Improvement
Act by providing the Federal Government with additional authorities to
improve its collection of delinquent non-tax debts. The bill would
prohibit Federal agencies from writing off delinquent non-tax debts
prior to initiating collection procedures. The bill authorizes the
offset or withholding of Social Security benefits to recipients who owe
past-due child support to a State.
Currently, Social Security benefits can be intercepted to offset a
recipient's debt to the Federal Government. This bill would assist
States in their efforts to collect the billions of dollars in unpaid
child support, billions of dollars in unpaid child support. According
to the Congressional Budget Office, this added offset authority would
recover $17 million each year in past-due child support. To help
eliminate waste, fraud, and error in Federal benefit and credit
programs, H.R. 1442, as amended, would authorize Federal agencies to
bar delinquent debtors from obtaining a Federal permit, license or from
receiving financial assistance in the form of a loan or loan guarantee
until the debt is repaid.
The bill also focuses attention on large debts. It would require
agencies to report annually to Congress on their high value delinquent
debts of $1 million or more. H.R. 1442, as amended, promotes the sale
of new and delinquent loans by Federal agencies. Loan sale programs
would benefit the Federal Government in a number of ways. Loans that
are sold in a competitive market could yield substantial proceeds,
reduce administrative costs, and allow agencies to focus their limited
resources on other programs. An agency with guidance from the Office of
Management and Budget could exempt any class of debt from the sale
provisions of this bill if it were determined that the sale would
interfere with agencies, programs or mission.
For example, certain performing loans requiring specialized services
provided by the Federal departments and agencies could be exempt from
the sales provision of this bill by the agency head in consultation
with the director of the Office of Management and Budget provided that
the sale would interfere with the mission of an agency and be not in
the financial interests of the United States.
The bill, as amended, also includes provisions to improve Federal
employee travel management. The administrator of General Services would
be required to develop a mechanism to ensure that employees of
executive branch agencies are not charged State and local taxes on
travel expenses relating to official business. H.R. 1442 also includes
a provision that would remove a December 31, 1999, sunset provision in
the Federal Property and Administrative Services Act of 1949. It would
make permanent the authority for State and local governments to acquire
surplus Federal property for law enforcement and emergency response
purposes.
Mr. Speaker, I yield such time as he may consume to the gentleman
from California (Mr. Calvert).
{time} 1530
Mr. CALVERT. Mr. Speaker, I rise to support passage of this bill.
H.R. 1442 will amend the Federal Property and Administrative Services
Act of 1949 to extend authority for transfers to State and local
governments of certain property for law enforcement and emergency
response purposes.
I introduced H.R. 1442, the Law Enforcement Public Safety Enhancement
Act of 1999, to permanently extend the pilot program that has become an
important tool for local law enforcement and public safety officials.
Without the help, leadership and support of the gentleman from
California (Mr. Horn), my good friend from Long Beach, California,
chairman of the Subcommittee on Government Management, Information and
Technology, this legislation would never have come to the House floor.
I owe a debt of gratitude to him for helping to find the offsets
necessary for this bill to conform to budgetary constraints.
I would also like to thank the chairman of the Committee on
Government Reform as well as the ranking members of the full committee
and subcommittee for their efforts.
As we all know, one of the keys to crime prevention is a well-trained
local police force and public safety officials. My bill will strengthen
law enforcement and emergency management training, while saving these
organizations thousands, sometimes millions, of dollars.
When the Federal Government declares real property as a surplus,
various local entities may apply for the property on a no-cost basis if
they use the property for some valid social purpose. To obtain the
excess Federal property, the local entity must apply to a Federal
agency to sponsor the no-cost transfer. My bill would permanently
extend this 2-year-old authority to allow local agencies the ability to
apply for surplus property at no cost for the purpose of law
enforcement and emergency response training.
Due to the efforts of the Riverside, California, Sheriff's Department
to create a comprehensive multijurisdictional training center, the need
for this legislation became clear. In 1997, Congress passed legislation
to create a 2-year pilot program to allow the Department of Justice and
the Federal Emergency Management Agency to sponsor local law
enforcement and emergency management response entities for a no cost
transfer. The results of this 2-year program are startling. Twenty-one
separate local agencies in 11 States applied for this program. Their
applications are in various stages of the process. Without this
legislation, these projects will be stopped in their tracks.
I would like to encourage all of my colleagues to support this pro-
law enforcement legislation and give back to
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the men and women that battle on our streets every day.
Mr. TURNER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the Federal Property Act currently allows surplus
Federal property to be transferred to state and local governments at a
discount off the fair market value. Public benefit discounts are
available under current law for public health or educational uses,
public parks or recreational areas, historic monuments, correctional
institutions, port facilities, public airports and wildlife
conservation.
In 1997, this Congress overwhelmingly passed a bill that made Federal
surplus property available to State and local authorities for law
enforcement and emergency response purposes for a 2-year trial period.
With the sunset date fast approaching in December of this year, H.R.
1442, which was introduced through the good work of the gentleman from
California (Mr. Calvert), we will extend that worthwhile provision and
make it permanent.
Mr. Speaker, this bill would allow the Department of Justice and FEMA
to sponsor the use of excess Federal property for law enforcement and
fire fighting and rescue training purposes. I expect this bill will
move quickly through the legislative process and become law. Only last
week the Senate successfully included a similar provision in the
Commerce-Justice-State appropriations bill for fiscal year 2000.
There are currently at least 22 jurisdictions around the country who
have submitted applications to acquire surplus Federal property for
these purposes, and at least three of them have successfully acquired
their property. We must not deny the remaining 19 the opportunity to
complete their application process and to secure the property that they
need to make their communities safer.
Law enforcement and fire rescue services provide vital services for
State and local governments, and it is critical that we allow them to
acquire this Federal surplus property at a discount.
This legislation benefits police officers, fire fighters, and other
emergency response officials across the country, and I commend the
gentleman from California (Mr. Calvert) for his hard work on this
particular provision.
In addition, H.R. 1442, as amended, is designed to address problems
with Federal debt collection and Federal credit management. In 1996
Congress passed the Debt Collection Improvement Act, which was designed
to centralize management of Federal debt collection at the Department
of Treasury and to enhance cooperation of Federal agencies in the
collection of delinquent debt.
Within the past 2 years, the Federal Government centralized debt
collection activities at the Financial Management Service have begun to
work more efficiently. In fact, collections have grown from $1.7
million in fiscal year 1997 to $2.5 billion in fiscal year 1999, after
the Debt Collection Improvement Act enhanced the Treasury's offset
authority.
Clearly there has been improvement in the government collection
efforts. There are, however, many challenges that remain. According to
the Department of Treasury, the Federal Government is owed
approximately $50 billion in delinquent, non-taxed debt. Of this
amount, $47 billion has been delinquent for more than 180 days. In
addition, the Federal Government writes off about $10 billion in
delinquent debts every year.
H.R. 1442 focuses management attention on high-risk programs and
builds upon prior initiatives to improve Federal debt collection
practices by providing Federal agencies with the additional tools they
need to improve Federal debt collection. It is almost identical to H.R.
4857, a bill that passed the House of Representatives with overwhelming
bipartisan support under suspension of the rules in the 105th Congress.
We passed these provisions by a vote of 419 to 1 earlier this year.
I would like to commend the gentleman from California (Chairman
Horn), who has done an outstanding job in leading to improve the
Federal debt collection practices through his diligent legislative
oversight activities. The gentleman has worked to assure that the
taxpayers get every dollar they are entitled to and no more.
I also want to mention and commend the leadership of the gentlewoman
from New York (Mrs. Maloney), who has continued her partnership with
the gentleman from California (Chairman Horn) since the time she served
in the position of ranking member of this subcommittee.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I just want to thank the gentleman from Texas (Mr.
Turner), the ranking member. He had an excellent series of questions
this morning of the Commissioner of Internal Revenue and the General
Accounting Officer. The gentleman is deeply committed to an effective
and efficient government, and especially to getting at the non-tax
debt.
Mr. Speaker, I urge my colleagues to support this legislation. H.R.
1442, as amended, contains provisions designed to improve the
efficiency and effectiveness of Federal debt collection and credit
management. It would also assist State and local governments in their
efforts to acquire much needed surplus property for law enforcement and
emergency response. This legislation has broad bipartisan support, as
was evident on the floor. The provisions are the result of a bipartisan
effort between majority and minority on the Committee on Government
Reform, working closely with the administration.
Mr. CRAMER. Mr. Speaker, I rise today in support of H.R. 1442, the
Law Enforcement and Public Safety Enhancement Act of 1999. I am a co-
sponsor of this legislation which makes permanent the General Services
Administration authority to transfer federal surplus lands at no cost
to state and local governments for the purpose of law enforcement and
emergency response services.
H.R. 1442 will have a direct and immediate impact on my Congressional
District as well as a number of other districts throughout the country.
Currently, thirteen sites across the nation, one of which is in my
District, are utilizing a temporary authorization allowing the
Department of Justice (DOJ) to transfer excess federal property to
local government entities for law enforcement and public safety
purposes.
This temporary authority, which expires December 31, 1999, allows
local law enforcement, fire services, and emergency management agencies
the opportunity to receive federal surplus property through a ``no-
cost'' transfer. This legislation aims to make permanent this temporary
authority.
In my Congressional District, the Fifth District of Alabama, the City
of Huntsville has applied for the transfer of a Naval Reserve Center to
the City for use as a public safety training facility for our police
officers, firefighters, and rescue personnel. This facility will allow
Huntsville to provide excellent training to the men and women who
safeguard our citizens. Currently, Huntsville's application is under
review. Many projects that are currently underway or those pending
applications for land transfers--like the one in my district--will be
severely impacted by the quickly approaching sunset date of December
31, 1999. This legislation will permanently allow the Department of
Justice (DOJ) and the Federal Emergency Management Agency (FEMA) to
sponsor the use of excess federal property for law enforcement, public
safety, and emergency management purposes.
I would like to once again express my strong support for this
legislation. We in Congress can and should do everything in our power
to assist law enforcement officers, firefighters, and emergency
management personnel in their efforts to improve public safety on our
streets, in our schools, and in our neighborhoods.
Mr. HORN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Horn) that the House suspend the rules
and pass the bill, H.R. 1442, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``To reduce waste,
fraud, and error in Government programs by making improvements with
respect to
[[Page H6785]]
Federal management and debt collection practices, Federal payment
systems, Federal benefit programs, and for other purposes.''.
A motion to reconsider was laid on the table.
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