H5410 CONGRESSIONAL RECORD — HOUSE July 31, 2012 

been nine different commissions looking at this. I think it’s a valid recommendation. It still allows for the advice and consent within the Senate. It 

is a duty under the Constitution to do 

this. 

I would encourage adoption of this. I 

think it is common sense. It is what 

our friends in the Senate are asking us 

to do with 79 Senators coming together 

to urge the adoption of this. 

And with that, I yield back the balance of my time. 

FRANK C. CARLUCCI, 

McLean, Virginia, June 1, 2011. 

Hon. HARRY REID, 

U.S. Senate, Hart Senate Office Bldg., Washington, DC. 

Hon. MITCH MCCONNELL, 

U.S. Senate, Russell Senate Office Bldg., Washington, DC. 

Hon. CHARLES SCHUMER, 

U.S. Senate, Hart Senate Office Bldg., Washington, DC. 

Hon. LAMAR ALEXANDER, 

U.S. Senate, Dirksen Senate Office Bldg., Washington, DC. 

DEAR SENATORS REID, MCCONNELL, SCHUMER AND ALEXANDER: I am writing to commend you for your leadership and bipartisan 

approach to tackling one of the great challenges facing our government—presidential 

appointments and nominations reform. 

There is little dispute that the current nominations process has grown too cumbersome 

and complicated, and the number of political 

appointees is too large. S. 679, the Presidential Appointment Efficiency and Streamlining Act, and S. Res. 116 are a promising 

show of progress, and I encourage all Senators to support this bipartisan legislation. 

As former Secretary of Defense (under 

President Reagan), I know the importance of 

having high quality leaders in place within 

an agency. Leaving positions vacant indefinitely as appointees wait to be confirmed is 

not smart management, and is frankly a 

threat to our national security. We need 

strong leaders installed quickly in agencies 

to ensure our government is ready to meet 

the many challenges it faces. S. 679 and S. 

Res. 116 together present a common-sense solution that preserves the important role of 

the Senate in confirming key nominees, but 

unburdens the process by relieving the advice and consent requirement for less critical positions. 

Congress would be wise to act now, before 

the politics of the next election cycle get in 

the way of practical reforms to improve the 

efficiency and effectiveness of our federal 

government. I urge the Senate to swiftly 

pass both S. 679 and S. Res. 116 to ensure our 

government has its senior leaders in place 

within agencies to carry out critical missions. 

Sincerely, 

FRANK CARLUCCI. 

SENATOR FRED THOMPSON, 

Hermitage, TN, April 12, 2011. 

Hon. JOSEPH LIEBERMAN, 

Chairman, Committee on Homeland Security 

and Governmental Affairs, U.S. Senate, 

Washington, DC. 

Hon. SUSAN COLLINS, 

Ranking Republican Member, Committee on 

Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR JOE AND SUSAN, in 2001, when I was 

Chairman of the Senate Committee on Governmental Affairs, we held hearings reviewing the nominations process and potential 

options for reforms. President George W. 

Bush had been in office 10 months and only 

about 60 percent of the government’s top political jobs had been filled—which created 

national security concerns. 

That’s why 1 want to commend you for 

your work on the Presidential Appointment 

Efficiency and Streamlining Act of 2011 

which would eliminate the need for Senate 

confirmation of approximately 200 relatively 

low level positions. We tried to fix this problem when I was chairman, and it still needs 

to be done. 

My experience was that our confirmation 

process led to substantial delay and extraordinary expense for nominees as they are vetted beyond what is necessary even for the 

least sensitive positions. I believe that this 

will result in an increasingly narrow pool of 

potential public servants who are more likely to be wealthy, and already live in the 

Washington, DC, area. 

In 1960, President Kennedy had 286 positions to fill in the ranks of Secretary, Deputy Secretary, Under Secretary, Assistant 

Secretary, and Administrator and by the end 

of the Clinton Administration there were 914 

positions with these titles. Reform would not 

diminish oversight. It would make oversight 

more effective. 

Comprehensive reforms throughout the 

presidential appointment process are needed 

so that the Senate can spend its time focusing on senior nominations and on major priorities such as national defense and tackling 

our budget problems. 

The Senate should take its advice and consent powers seriously, but the number of 

nominations has grown and expanded over 

time—much like the rest of the federal government. I hope your committee will take 

quick action on this legislation and send the 

bill to the full Senate for its consideration. 

The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentleman from Utah (Mr. 

CHAFFETZ) that the House suspend the 

rules and pass the bill, S. 679. 

The question was taken. 

The SPEAKER pro tempore. In the 

opinion of the Chair, two-thirds being 

in the affirmative, the ayes have it. 

Mr. GOHMERT. Mr. Speaker, on that 

I demand the yeas and nays. 

The yeas and nays were ordered. 

The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed. 

f 

THRIFT SAVINGS FUND 

CLARIFICATION ACT 

Mr. CHAFFETZ. Mr. Speaker, I move 

to suspend the rules and pass the bill 

(H.R. 4365) to amend title 5, United 

States Code, to make clear that accounts in the Thrift Savings Fund are 

subject to certain Federal tax levies, as 

amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 4365 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. AMENDMENTS. 

Section 8437(e)(3) of title 5, United States 

Code, is amended in the first sentence— 

(1) by striking ‘‘659)’’ and inserting ‘‘659),’’; 

and 

(2) by striking the period at the end and inserting the following: ‘‘, and shall be subject 

to a Federal tax levy under section 6331 of 

the Internal Revenue Code of 1986.’’. 

SEC. 2. DISPOSITION OF AMOUNTS. 

Any potential revenue gain attributable to 

the enactment of this Act, as determined by 

the Director of the Congressional Budget Office— 

(1) shall be deposited in the general fund of 

the Treasury of the United States; and 

(2) shall be used solely for purposes of deficit reduction. 

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 

Utah (Mr. CHAFFETZ) and the gentlewoman from New York (Mrs. MALONEY) 

each will control 20 minutes. 

The Chair recognizes the gentleman 

from Utah. 

GENERAL LEAVE

Mr. CHAFFETZ. Mr. Speaker, I ask 

unanimous consent that all Members 

may have 5 legislative days within 

which to revise and extend their remarks and include extraneous materials on the bill under consideration. 

The SPEAKER pro tempore. Is there 

objection to the request of the gentleman from Utah? 

There was no objection. 

Mr. CHAFFETZ. I yield such time as 

she may consume to the gentlewoman 

from New York (Ms. BUERKLE), the 

prime sponsor and author of this piece 

of legislation. 

Ms. BUERKLE. Mr. Speaker, I thank 

the gentleman for yielding to me, and 

I rise today in support of my legislation, H.R. 4365, which would make 

Thrift Savings Plans subject to Federal 

tax levies. Currently, TSP accounts are 

not listed in the IRS Code provisions 

identifying property that is exempt 

from tax. This bill makes clear that 

the TSP accounts are to be treated the 

same as 401(k)s and similar retirement 

and savings accounts held by private 

sector employees. 

This bill is about fairness, Mr. Speaker. It will treat Federal employees the 

same as private sector employees. 

H.R. 4365 adds needed clarification to 

existing law and provides guidance to 

the Thrift Board on how to honor IRS 

levies as they arise. In 2010, the Office 

of Legal Counsel at the Department of 

Justice concluded that TSPs are subject to levy. And last week, the Federal 

Retirement Thrift Investment Board, 

which oversees TSP accounts, wrote 

Congress asking that this issue be 

clarified expeditiously, noting that the 

lack of clarity is causing significant 

operational issues. 

At the end of 2010, Mr. Speaker, the 

most recent year for which IRS data is 

available, 279,000 Federal employees 

owed $3.4 billion in Federal taxes. And 

the Joint Committee on Taxation estimates that enacting this legislation 

would increase revenues by $24 million 

over the 2012–2022 period. 

Mr. Speaker, $24 million may seem 

like a small figure to some inside the 

Beltway. However, I believe any savings Congress can produce in today’s 

fiscal environment is significant. 

This is a commonsense solution 

which received bipartisan support in 

the House Oversight and Government 

Reform Committee. Similar legislation 

also received overwhelming support in 

the Senate. I urge passage of this bill. 

Mrs. MALONEY. Mr. Speaker, I yield 

myself such time as I may consume. 


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July 31, 2012 CONGRESSIONAL RECORD — HOUSE H5411 

Mr. Speaker, as a member of the 

Committee on Oversight and Government Reform, I am pleased to join my 

colleagues in the consideration of H.R. 

4365, a bill to amend title 5, United 

States Code, to make clear that accounts in the Thrift Savings Fund are 

subject to Federal tax levies. 

Current law authorizes the Internal 

Revenue Service to levy private sector 

401(k) retirement plans in order to collect unpaid Federal taxes. 

b 1550 

However, due to an existing ambiguity between the Internal Revenue 

Code and the authorizing statute for 

the Federal Thrift Savings Plan, the 

IRS is unable to garnish TSP accounts 

to recover unpaid taxes from Federal 

employees and Members of Congress. In 

light of this statutory confusion, the 

Thrift Savings Plan’s executive director requested clarification from our 

committee back in July of 2011 as to 

whether the TSP should honor Federal 

levies on TSP accounts. 

H.R. 4365 would simply ensure that 

Federal TSP accounts and private sector 401(k) plans receive equal treatment in the area of tax administration 

and enforcement by amending the TSP 

authorizing statute to make clear that 

TSP fund accounts are, in fact, subject 

to Federal tax levies by the IRS. In addition, pursuant to an amendment offered by our distinguished ranking 

member, Mr. CUMMINGS of Maryland, 

and included in the bill as reported by 

our committee, any potential revenue 

derived from the enactment of H.R. 

4365 may be used only for the purposes 

of deficit reduction. 

In supporting this bill, I would note 

that the vast majority of our public 

servants pay their taxes in a responsible and timely manner. In fact, according to the most recent IRS statistics, the tax delinquency rate among 

Federal employees in 2010 was 3.33 percent, far lower than that of the general 

public. 

Mr. Speaker, I urge my colleagues on 

both sides of the aisle to support this 

reasonable legislation, and I yield back 

the balance of my time. 

Mr. CHAFFETZ. Mr. Speaker, this is 

a good, commonsense piece of legislation, and I urge its adoption. 

I yield back the balance of my time. 

The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentleman from Utah (Mr. 

CHAFFETZ) that the House suspend the 

rules and pass the bill, H.R. 4365, as 

amended. 

The question was taken. 

The SPEAKER pro tempore. In the 

opinion of the Chair, two-thirds being 

in the affirmative, the ayes have it. 

Mrs. MALONEY. Mr. Speaker, on 

that I demand the yeas and nays. 

The yeas and nays were ordered. 

The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed. 

GOVERNMENT CHARGE CARD 

ABUSE PREVENTION ACT OF 2012 

Mr CHAFFETZ. Mr. Speaker, I move 

to suspend the rules and pass the bill 

(S. 300) to prevent abuse of Government 

charge cards, as amended. 

The Clerk read the title of the bill. 

The text of the amendment is as follows: 

Amendment: 

Strike out all after the enacting 

clause and insert: 

S. 300 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Government 

Charge Card Abuse Prevention Act of 2012’’. 

SEC. 2. MANAGEMENT OF PURCHASE CARDS. 

(a) GOVERNMENT-WIDE SAFEGUARDS AND INTERNAL CONTROLS.— 

(1) IN GENERAL.—Chapter 19 of title 41, United 

States Code, is amended by adding at the end 

the following new section: 

‘‘§ 1909. 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 card 

holder. 

‘‘(2) Each purchase card holder and individual issued a convenience check is assigned 

an approving official other than the card holder 

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 a summary report to the certifying official in a timely manner of information necessary to enable the certifying official to 

ensure that the Federal Government ultimately 

pays only for valid charges that are consistent 

with the terms of the applicable Governmentwide purchase card contract entered into by the 

Administrator of General Services. 

‘‘(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 Government-wide purchase card contract entered into 

by the Administrator of General Services. 

‘‘(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 card holder has a 

need for the purchase card. 

‘‘(9) Appropriate training is provided to each 

purchase card holder and each official with responsibility for overseeing the use of purchase 

cards issued by the executive agency. 

‘‘(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 

card holders, 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 card holders. 

‘‘(11) The executive agency uses effective systems, techniques, and technologies to prevent or 

identify illegal, improper, or erroneous 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 illegal, improper, or erroneous purchase made with a purchase card or 

convenience check by an employee, including, 

as necessary, through salary offsets. 

‘‘(b) GUIDANCE.—The Director of the Office of 

Management and Budget shall review existing 

guidance and, as necessary, prescribe additional 

guidance governing the implementation of the 

requirements of 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 illegal, 

improper, or erroneous 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 summary description of confirmed violations involving misuse of a purchase card following completion of a review by the agency or 

by the Inspector General of the agency. 

‘‘(B) A summary description of all adverse 

personnel action, punishment, or other action 

taken based on each 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, or erroneous 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 


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