[Congressional Record (Bound Edition), Volume 155 (2009), Part 18]
[Senate]
[Pages 23738-23740]
[From the U.S. Government Publishing Office, www.gpo.gov]




          GOVERNMENT CHARGE CARD ABUSE PREVENTION ACT OF 2009

  Mr. BENNET. Mr. President, I ask unanimous consent the Senate proceed 
to the immediate consideration of Calendar No. 163, S. 942.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 942) to prevent the abuse of Government charge 
     cards.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BENNET. I ask unanimous consent the bill be read a third time and 
passed, the motion to reconsider be laid upon the table with no 
intervening action or debate, and any statements be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 942) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                 S. 942

       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 2009''.

     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:
       (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

[[Page 23739]]

     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)), 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 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 
     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.

[[Page 23740]]

       ``(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 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 
     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 Act of 2002 (31 U.S.C. 3321 note).

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