Home > 105th Congressional Bills > H.R. 4857 (ih) 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. ...H.R. 4857 (ih) 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. ...
105th CONGRESS
2d Session
H. R. 4857
_______________________________________________________________________
AN ACT
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.
105th CONGRESS
2d Session
H. R. 4857
_______________________________________________________________________
AN ACT
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.
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 1998''.
(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 technical 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 DEBTS OWED TO UNITED STATES
Sec. 301. Authority to sell debts.
Sec. 302. Requirement to sell certain debts.
TITLE IV--TREATMENT OF HIGH VALUE DEBTS
Sec. 401. Annual report on high value debts.
Sec. 402. Review by Inspectors General.
Sec. 403. Requirement to seek seizure and forfeiture of assets securing
high value debt.
TITLE V--FEDERAL PAYMENTS
Sec. 501. Promoting electronic payments.
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.
(a) Repeal.--Section 3515 of title 31, United States Code, is
amended--
(1) in subsection (a)--
(A) by striking ``1997'' and inserting ``1999'';
and
(B) by inserting ``Congress and'' after ``submit
to'';
(2) by striking subsection (e); and
(3) by striking subsections (f), (g), and (h).
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), this
section shall take effect on the date of the enactment of this
Act.
(2) Secretary's waiver authority.--Subsection (a)(1) of
this section shall take effect March 1, 1998.
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, 1999.
(c) Payment of State and Local Taxes on Travel Expenses.--
(1) In general.--The Administrator of General Services
shall 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, 1999, 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 TECHNICAL 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 further 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)(A) The Secretary of the Treasury shall provide that any
contract with a private collection contractor under this subsection
shall include a provision that the contractor shall be subject to
penalties under the contract--
``(i) if the contractor fails to comply with any
restrictions under applicable law regarding the collection
activities of debt collectors; or
``(ii) if the contractor engages in unreasonable or abusive
debt collection practices in connection with the collection of
debt under the contract.
``(B) Notwithstanding any other provision of law, a private
collection contractor under this subsection shall not be subject to any
liability or contract penalties in connection with efforts to collect a
debt pursuant to a contract under this subsection by reason of actions
that are required by the contract or by applicable law or regulations.
``(13) 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 frequency of valid debtor
complaints shall also be considered in the evaluation criteria.
``(14) 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 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 further 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)(1) The head of an executive, judicial, or legislative agency
that contracts with a private collection contractor to collect a debt
owed to the agency, or a guaranty agency or institution of higher
education that contracts with a private collection contractor to
collect a debt owed under any loan program authorized under title IV of
the Higher Education Act of 1965, shall include a provision in the
contract that the contractor--
``(A) shall be subject to penalties under the contract if
the contractor fails to comply with any restrictions imposed
under applicable law on the collection activities of debt
collectors; and
``(B) shall be subject to penalties under the contract if
the contractor engages in unreasonable or abusive debt
collection practices in connection with the collection of debt
under the contract.
``(2) Notwithstanding any other provision of law, a private
collection contractor under this section shall not be subject to any
liability or contract penalties in connection with efforts to collect a
debt owed to an executive, judicial, or legislative agency, or owed
under any loan program authorized under title IV of the Higher
Education Act of 1965, by reason of actions required by the contract,
or by applicable law or regulations.
``(j) 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 frequency of valid debtor
complaints shall also be considered in the evaluation criteria.
``(k) 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
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 in section 362 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.--(1) Sections
3716(c)(6) and 3720A(a), (b), (c), and (e) of title 31, United States
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