[Congressional Record Volume 157, Number 111 (Friday, July 22, 2011)]
[Senate]
[Pages S4850-S4852]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GOVERNMENT CHARGE CARD ABUSE PREVENTION ACT OF 2011
Mr. DURBIN. Mr. President, I ask unanimous consent that the Senate
proceed to the consideration of Calendar No. 104, S. 300.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 300) to prevent abuse of Government charge
cards.
There being no objection, the Senate proceeded to consider the
bill, which had been reported from the Committee on Homeland Security
and Governmental Affairs, with amendments; as follows:
(The parts of the bill intended to be stricken are shown in boldface
brackets and the parts of the bill intended to be inserted are shown in
italic.)
S. 300
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 2011''.
SEC. 2. 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:
[[Page S4851]]
(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 cardholder.
(2) Each purchase cardholder and individual issued a
convenience check is assigned an approving official other
than the cardholder 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 such reconciliation to the certifying
official in a timely manner to enable the certifying official
to ensure that the Federal Government ultimately pays only
for valid charges.
(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 governmentwide purchase card
contract entered into by the Administrator of General
Services and in accordance with all laws and executive agency
regulations.
(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 cardholder has a need for the purchase card.
(9) Appropriate training regarding the proper use of
purchase cards is provided to each purchase cardholder in
advance of being issued a purchase card and periodically
thereafter and to each official with responsibility for
overseeing the use of purchase cards issued by an executive
agency in advance of assuming such oversight duties and
periodically thereafter.
(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
cardholders, 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 cardholders.
(11) The executive agency utilizes effective systems,
techniques, and technologies to prevent or identify
fraudulent 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 erroneous, improper, or illegal purchase made with a
purchase card or convenience check by an employee, including,
as necessary, through salary offsets.
(b) Guidance on Management of Purchase Cards.--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 governing the implementation of the
safeguards and internal controls required by 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 improper, erroneous, or
illegal 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 description of each violation.
(B) A description of any adverse personnel action,
punishment, other action taken against the employee for such
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, erroneous, and abusive
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) Definition of Executive Agency.--In this section, the
term ``executive agency'' has the meaning given such term in
section [4(1) of the Office of Federal Procurement Policy Act
(41 U.S.C. 403(1))] 133 of title 41, United States Code,
except as provided under subsection (f)(1).
(f) Relationship to Department of Defense Purchase Card
Regulations.--
(1) In general.--The requirements of subsections (a)
through (d) shall not apply to the Department of Defense.
(2) Conforming amendments.--Section 2784 of title 10,
United States Code, is amended--
(A) in subsection (b), by adding at the end the following
new paragraphs:
``(11) That each purchase cardholder and individual issued
a convenience check is assigned an approving official other
than the cardholder with the authority to approve or
disapprove transactions.
``(12) That the Department of Defense utilizes effective
systems, techniques, and technologies to prevent or identify
fraudulent purchases.
``(13) That the Department of Defense takes appropriate
steps to invalidate the purchase card of each employee who--
``(A) ceases to be employed by the Department of Defense,
immediately upon termination of the employment of the
employee; or
``(B) transfers to another unit of the Department of
Defense immediately upon the transfer of the employee unless
the Secretary of Defense determines that the units are
covered by the same purchase card authority.
``(14) That the Department of Defense takes appropriate
steps to recover the cost of any erroneous, improper, or
illegal purchase made with a purchase card or convenience
check by an employee, including, as necessary, through salary
offsets.
``(15) That the Inspector General of the Department of
Defense conducts periodic assessments of purchase card or
convenience check programs to identify and analyze risks of
illegal, improper, or erroneous purchases and payments and
uses such risk assessments to develop appropriate
recommendations for corrective actions.''; and
(B) by adding at the end the following new subsection:
``(d) Semiannual Report.--The Secretary of Defense and the
Inspector General of the Department of Defense, shall submit
to the Director of the Office of Management and Budget on a
semiannual basis a joint report on illegal, improper, or
erroneous purchases and payments made with purchase cards or
convenience checks by employees of the Department of Defense.
At a minimum, the report shall include the following:
``(1) A description of each violation.
``(2) A description of any adverse personnel action,
punishment, or other action taken against the employee for
such violation.
``(3) A description of actions taken by the Department of
Defense to address recommendations made to address findings
arising out of risk assessments and audits conducted pursuant
to this section.''.
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 cardholder.
``(B) Rebates and refunds based on prompt payment, sales
volume, or other actions by
[[Page S4852]]
the agency on travel charge card accounts are monitored for
accuracy and properly recorded as a receipt of the agency
that employs the cardholder.
``(C) Periodic reviews are performed to determine whether
each travel charge cardholder has a need for the travel
charge card.
``(D) Appropriate training is provided to each travel
charge cardholder and each official with responsibility for
overseeing the use of travel charge cards issued by [an] the
executive agency.
``(E) Each executive agency has specific policies regarding
the number of travel charge cards issued for various
component organizations and categories of component
organizations, the credit limits authorized for various
categories of cardholders, 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 cardholders.
``(F) Each executive agency ensures its contractual
arrangement with each servicing travel charge card issuing
contractor contains a requirement to evaluate the
creditworthiness of an individual before issuing that
individual 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
travel charge card or pre-paid card when the individual lacks
a credit history or has a credit score below the minimum
credit score established by 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 cardholders 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 utilizes 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.
``(I) Each executive agency utilizes, where appropriate,
direct payment to the holder of the travel card contract.
``(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 2011, 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) Penalties for violations.--
``(A) In general.--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.
``(B) Reports on violations.--The guidance prescribed under
paragraph (2) shall require each head of an executive agency
with more than $10,000,000 in travel 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 subparagraph (A) by employees of such
executive agency. At a minimum, the report shall set forth
the following:
``(i) A description of each violation.
``(ii) A description of any adverse personnel action,
punishment, or other action taken against the employee for
such violation or other action.
``(4) Risk assessments and audits.--The inspector general
of each executive agency shall--
``(A) conduct periodic assessments of the agency travel
charge card program and associated internal controls to
identify and analyze risks of illegal, improper, or erroneous
travel charges and payments in order to develop a plan for
using such risk assessments to determine the scope,
frequency, and number of periodic audits of travel charge
card transactions;
``(B) perform periodic analysis and audits, as appropriate,
of travel charge card transactions designed to identify
potentially improper, erroneous, and illegal uses of travel
charge cards;
``(C) report to the head of the executive agency concerned
on the results of such analysis and audits; and
``(D) 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 travel charge card transactions or
programs for compilation and transmission by the Director to
Congress and the Comptroller General.
``(5) Definitions.--In this subsection:
``(A) 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) The term `travel charge card' means any Federal
contractor-issued travel charge card that is individually
billed to each cardholder.''.
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) Items submitted on an employee's travel voucher shall
be compared with items paid for using a centrally billed
account on any related travel to ensure that an employee is
not reimbursed for an item already paid for by the United
States Government through a centrally billed account.
(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. CONSTRUCTION.
Nothing in 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).
Mr. DURBIN. Mr. President, I ask unanimous consent that the
committee-reported amendments be agreed to, the bill, as amended, be
read a third time and passed, the motions to reconsider be laid upon
the table, with no intervening action or debate, and any statements
relating to the matter be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The committee amendments were agreed to.
The bill (S. 300), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
____________________