[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[House]
[Pages 18910-18915]
[From the U.S. 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.

[[Page 18911]]

       (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 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:

[[Page 18912]]

       ``(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
       ``(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

[[Page 18913]]

     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 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.

[[Page 18914]]

  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 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

[[Page 18915]]

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 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.

                          ____________________