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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H5412 CONGRESSIONAL RECORD — HOUSE July 31, 2012 

‘‘(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) RELATIONSHIP TO DEPARTMENT OF DEFENSE PURCHASE CARD REGULATIONS.—The requirements of this section shall not apply to the 

Department of Defense. See section 2784 of title 

10 for provisions relating to management of purchase cards in the Department.’’. 

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 19 of title 41, 

United States Code, is amended by adding at the 

end the following new item: 

‘‘1909. Management of purchase cards.’’. 

(b) CONFORMING AMENDMENTS TO DEPARTMENT OF DEFENSE PURCHASE CARD PROVISIONS.—Subsection (b) of section 2784 of title 10, 

United States Code, is amended— 

(1) by moving paragraph (8) to the end of the 

subsection and redesignating that paragraph as 

paragraph (14); 

(2) by redesignating paragraphs (2), (3), (4), 

(5), (6), and (7) as paragraphs (3), (4), (5), (6), 

(7), and (8), respectively; 

(3) by inserting after paragraph (1) the following new paragraph (2): 

‘‘(2) That 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.’’; 

(4) by adding after paragraph (10) the following new paragraphs: 

‘‘(11) That the Department of Defense uses effective systems, techniques, and technologies to 

prevent or identify potential fraudulent purchases. 

‘‘(12) That the Department of Defense takes 

appropriate steps to invalidate the purchase 

card of each card holder who— 

‘‘(A) in the case of an employee of the Department— 

‘‘(i) ceases to be employed by the Department, 

immediately upon termination of the employment of the employee; or 

‘‘(ii) transfers to another unit of the Department, immediately upon the transfer of the employee unless the Secretary of Defense determines that the units are covered by the same 

purchase card authority; and 

‘‘(B) in the case of a member of the armed 

forces, is separated or released from active duty 

or full-time National Guard duty. 

‘‘(13) That the Department of Defense takes 

steps to recover the cost of any illegal, improper, 

or erroneous purchase made with a purchase 

card or convenience check by an employee or 

member of the armed forces, including, as necessary, through salary offsets.’’; and 

(5) by adding at the end the following new 

paragraph: 

‘‘(15) That the Inspector General of the Department of Defense conducts periodic audits or 

reviews of purchase card or convenience check 

programs to identify and analyze risks of illegal, 

improper, or erroneous purchases and payments 

and that the findings of such audits or reviews, 

along with recommendations to prevent abuse of 

purchase cards or convenience checks, are reported to the Director of the Office of Management and Budget and Congress.’’. 

(c) DEADLINE FOR GUIDANCE ON MANAGEMENT

OF PURCHASE CARDS.—The Director of the Office of Management and Budget shall prescribe 

the guidance required by section 1909(b) of title 

41, United States Code, as added by subsection 

(a), not later than 180 days after the date of the 

enactment of this Act. 

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 card holder. 

‘‘(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 card 

holder. 

‘‘(C) Periodic reviews are performed to determine whether each travel charge card holder 

has a need for the travel charge card. 

‘‘(D) Appropriate training is provided to each 

travel charge card holder and each official with 

responsibility for overseeing the use of travel 

charge cards issued by the executive agency. 

‘‘(E) Each executive agency has specific policies regarding travel charge cards issued for 

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 

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 card holders. 

‘‘(F) Each executive agency has policies to ensure its contractual arrangement with each 

travel charge card issuing contractor contains a 

requirement that the creditworthiness of an individual be evaluated before the individual is 

issued 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, prepaid, declining balance, controlled-spend, or 

stored value card when the individual lacks a 

credit history or has a credit score below the 

minimum credit score established by the Director 

of 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 card holders and historical behaviors. Notwithstanding any other provision of 

law, such evaluation shall include an assessment of an individual’s consumer report from a 

consumer reporting agency as those terms are 

defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a). 

‘‘(G) Each executive agency uses 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 (or, in the case of a member of 

the uniformed services, upon separation or release from active duty or full-time National 

Guard duty). 

‘‘(I) Each executive agency shall ensure that, 

where appropriate, travel card payments are 

issued directly to the travel card-issuing bank 

for credit to the employee’s individual travel 

card account. 

‘‘(2) GUIDANCE ON MANAGEMENT OF TRAVEL

CHARGE CARDS.—Not later than 180 days after 

the date of the enactment of the Government 

Charge Card Abuse Prevention Act of 2012, 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) INSPECTOR GENERAL AUDIT.—The Inspector General of each executive agency with more 

than $10,000,000 in travel card spending shall 

conduct periodic audits or reviews of travel card 

programs to analyze risks of illegal, improper, or 

erroneous purchases and payments. The findings of such audits or reviews along with recommendations to prevent improper use of travel 

cards shall be reported to the Director of the Office of Management and Budget and Congress. 

‘‘(4) PENALTIES FOR VIOLATIONS.—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. 

‘‘(5) DEFINITIONS.—In this subsection: 

‘‘(A) EXECUTIVE AGENCY.—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) TRAVEL CHARGE CARD.—The term ‘travel 

charge card’ means any Federal contractorissued travel charge card that is individually 

billed to each card holder.’’. 

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) The executive agency shall ensure that officials with the authority to approve official 

travel verify that centrally billed account 

charges are not reimbursed to an employee. 

(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. DEFINITIONS. 

In this Act: 

(1) EXECUTIVE AGENCY.—The term ‘‘executive 

agency’’ has the meaning given such term in 

section 133 of title 41, United States Code. 

(2) EMPLOYEE.—The term ‘‘employee’’ has the 

meaning given such term in section 2(d)(3) of 

the Travel and Transportation Reform Act of 

1998 (Public Law 105–264; 5 U.S.C. 5701 note). 

SEC. 6. CONSTRUCTION. 

(a) EXECUTIVE AGENCY ACCOUNTING.—Nothing 

in this Act, or the amendments made by this 

Act, shall be construed to excuse the head of an 

executive agency from the responsibilities set out 

in section 3512 of title 31, United States Code, or 

in the Improper Payments Information Act of 

2002 (31 U.S.C. 3321 note). 

(b) PERSONAL INFORMATION.—Nothing in this 

Act, or the amendments made by this Act, shall 

be construed to require the disclosure of personally identifying information that is otherwise 

protected from disclosure under section 552a of 

title 5, United States Code (popularly known as 

the Privacy Act of 1974). 

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


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July 31, 2012 CONGRESSIONAL RECORD — HOUSE H5413 

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

each will control 20 minutes. 

The Chair recognizes the gentleman 

from Utah. 

Mr. CHAFFETZ. Mr. Speaker, I yield 

myself such time as I may consume. 

GENERAL LEAVE

Mr. CHAFFETZ. I ask unanimous 

consent that all Members may have 5 

legislative days within which to revise 

and extend their remarks and include 

extraneous material 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. S. 300 puts commonsense controls on the users of government charge cards which allow Federal 

workers to purchase goods and to travel in a timely and cost-efficient manner. In any economy, but especially the 

one we’re in now, there is no room for 

waste, much less fraud and abuse. 

These safeguards will make all users of 

Federal charge cards accountable for 

their use. 

While the use of charge cards has 

saved the Federal Government both 

time and money when compared to a 

paper reimbursement system, some 

Federal employees have abused their 

purchase and travel card privileges, resulting in unnecessary and sometimes 

fraudulent expenses. 

Numerous GAO reports over the last 

decade have called for additional controls to prevent waste, fraud, and abuse 

in the government charge card program. In 2008, GAO estimated that 

nearly 41 percent of purchase card 

transactions failed to meet basic internal control standards. 

Senator GRASSLEY has put the spotlight on the problematic use of government charge cards for more than a decade, and the GAO has documented 

fraudulent purchases made by Federal 

workers with these cards, including 

jewelry, gambling, cruises, and even 

the tab at gentlemen’s clubs. Government charge cards were used to pay for 

the infamous GSA 2010 Western Regional Conference. 

The Oversight Committee was able to 

work on a bipartisan basis with the 

Armed Services Committee to bring 

Senator GRASSLEY’s bill, S. 300, to the 

floor today. The bill brings needed accountability to the process by which 

the Federal Government manages 

charge cards used by Federal employees. 

S. 300 requires agencies to improve 

their internal controls for government 

charge cards. It is based largely on 

GAO’s recommendations for preventing 

waste, fraud, and abuse. The additional 

safeguards resulting from the bill will 

avoid the waste of millions of dollars of 

taxpayer money on fraudulent or questionable purposes. The controls also 

help ensure the Federal Government 

benefits from rebates available from 

charge card vendors for prompt payment. 

S. 300 requires agency inspectors general to periodically conduct risk assessments and perform audits to identify potential abuse of government 

charge cards. The bill also requires 

agencies to take appropriate disciplinary action, including removal, for 

Federal employees who misuse charge 

cards. This provision responds to GAO 

investigations that found inconsistent 

or nonexistent consequences for Federal employees who abuse these charge 

card privileges. 

I will be placing into the RECORD a 

jurisdictional exchange of letters between the Committee on Armed Services and the Committee on Oversight 

and Government Reform. 

With that, Mr. Speaker, I reserve the 

balance of my time. 

COMMITTEE ON ARMED SERVICES, 

HOUSE OF REPRESENTATIVES, 

Washington, DC, February 14, 2012. 

Hon. DARRELL E. ISSA, 

Chairman, Committee on Oversight and Government Reform, House of Representatives, 

Washington, DC. 

DEAR CHAIRMAN ISSA: I am writing to you 

concerning the bill S. 300, Government 

Charge Card Abuse Prevention Act of 2011, as 

amended. This legislation includes provisions that deal with the Department of Defense policies regarding government charge 

cards which fall within the Rule X jurisdiction of the Committee on Armed Services. 

Our committee recognizes the importance 

of S. 300, and the need for the legislation to 

move expeditiously. Therefore, while we 

have a valid claim to jurisdiction over this 

legislation, the Committee on Armed Services will waive further consideration of S. 

300. I do so with the understanding that by 

waiving consideration of the bill, the Committee on Armed Services does not waive 

any future jurisdictional claim over the subject matters contained in the bill which fall 

within its Rule X jurisdiction. I appreciate 

your willingness to work with the Committee on Armed Services to incorporate 

modifications requested by the Office of the 

Secretary of Defense to the legislation to be 

considered in the House. I request that you 

urge the Speaker to name members of this 

committee to any conference committee 

which is named to consider these provisions. 

Please place this letter and your committee’s response into the Congressional Record 

during consideration of the measure on the 

House floor. Thank you for the cooperative 

spirit in which you have worked regarding 

this matter and others between our respective committees. 

Sincerely, 

HOWARD P. ‘‘BUCK’’ MCKEON, 

Chairman. 

COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM, HOUSE OF REPRESENTATIVES, 

Washington, DC, February 23, 2012. 

Hon. HOWARD P. ‘‘BUCK’’ MCKEON, 

Chairman, Committee on Armed Services, House 

of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: Thank you for your 

letter regarding the Committee on Armed 

Services’ jurisdictional interest in S. 300, the 

‘‘Government Charge Card Abuse Prevention 

Act of 2011,’’ and your willingness to forego 

consideration of S. 300 by your committee. 

I agree that the Armed Services Committee has a valid jurisdictional interest in 

certain provisions of S. 300 and that the 

Committee’s jurisdiction will not be adversely affected by your decision to forego 

consideration of the bill. As you have requested, I will support your request for an 

appropriate appointment of outside conferees from your Committee in the event of 

a House-Senate conference on this or similar 

legislation should such a conference be convened. 

Finally, I will include a copy of your letter 

and this response in the Congressional 

Record during the floor consideration of this 

bill. Thank you again for your cooperation. 

Sincerely, 

DARRELL ISSA, 

Chairman. 

Mrs. MALONEY. Mr. Speaker, I yield 

myself such time as I may consume. 

The serious fiscal challenges facing 

the Federal Government demand that 

agencies do everything they can to operate as efficiently as possible. The 

Federal Government spends billions 

annually through its purchase card 

programs, using purchase cards and 

convenience checks to acquire millions 

of items—everything from paper and 

pencils to computers—and to make 

payments on government contracts for 

a variety of goods and services such as 

vehicles and relocation services. 

The primary responsibility for purchasing these items rests with cardholders and the officials who approve 

their purchases. Because of the position of public trust held by Federal employees, Congress and the American 

people expect cardholders and approving officials to maintain stewardship 

over the Federal funds at their disposal. Specifically, purchase cardholders and approving officials are expected to follow published acquisition 

requirements and exercise a standard 

of care in acquiring goods and services 

that is necessary and reasonable for 

the proper operation of an agency. 

Because every Federal dollar that is 

spent on fraudulent, improper, and 

abusive purchases is a dollar that cannot be used for necessary government 

goods and services, ensuring that purchase cards are used responsibly is of 

particular concern at a time when the 

United States is experiencing substantial fiscal challenges. 

I strongly support Senator GRASSLEY’s bill, on which he has worked 

many years, S. 300, because the legislation will require agencies to establish 

internal control activities over travel 

and charge cards. Agencies will be able 

to perform credit checks on potential 

recipients of travel cards. Agencies will 

also be able to appropriately discipline 

employees who misuse charge cards, including termination of their employment. 

Most importantly, this legislation 

will keep agencies accountable for 

charge card misuse because the inspectors general of each agency will be required to examine charge card use 

twice a year and report any violations 

to the Office of Management and Budget. 

I urge my colleagues to support this 

bill, and I yield back the balance of my 

time. 

Mr. CHAFFETZ. I appreciate the 

great work Senator GRASSLEY has done 

on this bill. I urge its adoption. I think 


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H5414 CONGRESSIONAL RECORD — HOUSE July 31, 2012 

we can do so in a bipartisan way, and I 

urge a ‘‘yes’’ vote. 

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, S. 300, 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, I object to the vote on the ground that a 

quorum is not present and make the 

point of order that a quorum is not 

present. 

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

The point of no quorum is considered 

withdrawn. 

f 

b 1600 

FEDERAL EMPLOYEE TAX 

ACCOUNTABILITY ACT OF 2012 

Mr. CHAFFETZ. Mr. Speaker, I move 

to suspend the rules and pass the bill 

(H.R. 828) to amend title 5, United 

States Code, to provide that persons 

having seriously delinquent tax debts 

shall be ineligible for Federal employment, as amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 828 

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 ‘‘Federal Employee Tax Accountability Act of 2012’’. 

SEC. 2. INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT TAX DEBTS 

FOR FEDERAL EMPLOYMENT. 

(a) IN GENERAL.—Chapter 73 of title 5, 

United States Code, is amended by adding at 

the end the following: 

‘‘SUBCHAPTER VIII—INELIGIBILITY OF 

PERSONS HAVING SERIOUSLY DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT 

‘‘§ 7381. Definitions 

‘‘For purposes of this subchapter— 

‘‘(1) the term ‘seriously delinquent tax 

debt’ means an outstanding debt under the 

Internal Revenue Code of 1986 for which a notice of lien has been filed in public records 

pursuant to section 6323 of such Code, except 

that such term does not include— 

‘‘(A) a debt that is being paid in a timely 

manner pursuant to an agreement under section 6159 or section 7122 of such Code; 

‘‘(B) a debt with respect to which a collection due process hearing under section 6330 

of such Code, or relief under subsection (a), 

(b), or (f) of section 6015 of such Code, is requested or pending; 

‘‘(C) a debt with respect to which a levy 

has been issued under section 6331 of such 

Code (or, in the case of an applicant for employment, a debt with respect to which the 

applicant agrees to be subject to a levy 

issued under such section); and 

‘‘(D) a debt with respect to which relief 

under section 6343(a)(1)(D) of such Code is 

granted; 

‘‘(2) the term ‘employee’ means an employee in or under an agency, including an 

individual described in sections 2104(b) and 

2105(e); and 

‘‘(3) the term ‘agency’ means— 

‘‘(A) an Executive agency; 

‘‘(B) the United States Postal Service; 

‘‘(C) the Postal Regulatory Commission; 

and 

‘‘(D) an employing authority in the legislative branch. 

‘‘§ 7382. Ineligibility for employment 

‘‘(a) IN GENERAL.—Subject to subsection 

(c), any person who has a seriously delinquent tax debt shall be ineligible to be appointed or to continue serving as an employee. 

‘‘(b) DISCLOSURE REQUIREMENT.—The head 

of each agency shall take appropriate measures to ensure that each person applying for 

employment with such agency shall be required to submit (as part of the application 

for employment) certification that such person does not have any seriously delinquent 

tax debt. 

‘‘(c) REGULATIONS.—The Office of Personnel 

Management, in consultation with the Internal Revenue Service, shall, for purposes of 

carrying out this section with respect to the 

executive branch, promulgate any regulations which the Office considers necessary, 

except that such regulations shall provide 

for the following: 

‘‘(1) All due process rights, afforded by 

chapter 75 and any other provision of law, 

shall apply with respect to a determination 

under this section that an applicant is ineligible to be appointed or that an employee is 

ineligible to continue serving. 

‘‘(2) Before any such determination is 

given effect with respect to an individual, 

the individual shall be afforded 180 days to 

demonstrate that such individual’s debt is 

one described in subparagraph (A), (B), (C), 

or (D) of section 7381(a)(1). 

‘‘(3) An employee may continue to serve, in 

a situation involving financial hardship, if 

the continued service of such employee is in 

the best interests of the United States, as determined on a case-by-case basis. 

‘‘(d) REPORTS TO CONGRESS.—The Director 

of the Office of Personnel Management shall 

report annually to Congress on the number 

of exemptions made pursuant to subsection 

(c)(3). 

‘‘§ 7383. Review of public records 

‘‘(a) IN GENERAL.—Each agency shall provide for such reviews of public records as the 

head of such agency considers appropriate to 

determine if a notice of lien (as described in 

section 7381(1)) has been filed with respect to 

an employee of or an applicant for employment with such agency. 

‘‘(b) ADDITIONAL REQUESTS.—If a notice of 

lien is discovered under subsection (a) with 

respect to an employee or applicant for employment, the agency may— 

‘‘(1) request that the employee or applicant 

execute and submit a form authorizing the 

Secretary of the Treasury to disclose to the 

head of the agency information limited to 

describing whether the employee or applicant has a seriously delinquent tax debt; and 

‘‘(2) contact the Secretary of the Treasury 

to request tax information limited to describing whether the employee or applicant 

has a seriously delinquent tax debt. 

‘‘(c) AUTHORIZATION FORM.—The Secretary 

of the Treasury shall make available to all 

agencies a standard form for the authorization described in subsection (b)(1). 

‘‘(d) NEGATIVE CONSIDERATION.—The head 

of an agency, in considering an individual’s 

application for employment or in making an 

employee appraisal or evaluation, shall give 

negative consideration to a refusal or failure 

to comply with a request under subsection 

(b)(1). 

‘‘§ 7384. Confidentiality 

‘‘Neither the head nor any other employee 

of an agency may— 

‘‘(1) use any information furnished under 

the provisions of this subchapter for any purpose other than the administration of this 

subchapter; 

‘‘(2) make any publication whereby the information furnished by or with respect to 

any particular individual under this subchapter can be identified; or 

‘‘(3) permit anyone who is not an employee 

of such agency to examine or otherwise have 

access to any such information.’’. 

(b) CLERICAL AMENDMENT.—The analysis 

for chapter 73 of title 5, United States Code, 

is amended by adding at the end the following: 

‘‘SUBCHAPTER VIII—INELIGIBILITY OF 

PERSONS HAVING SERIOUSLY DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT 

‘‘7381. Definitions. 

‘‘7382. Ineligibility for employment. 

‘‘7383. Review of public records. 

‘‘7384. Confidentiality.’’. 

SEC. 3. EFFECTIVE DATE. 

This Act and the amendments made by 

this Act shall take effect 9 months after the 

date of enactment of this Act. 

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 myself such 

time as I may consume. 

Mr. Speaker, almost every Federal 

employee that I have run into, they’re 

good, hardworking, patriotic people 

trying to do the right thing; but unfortunately we have a few that really 

aren’t doing the right thing. 

I want to highlight a problem that 

we see out there. There are those Federal employees that are delinquent on 

their Federal taxes. Now, this becomes 

egregious, I think, because of the nature of their employment—they’re 

working for the Federal Government, 

they’re being paid by the Federal taxpayers, and yet they’re not paying 

their own Federal taxes. 

Unfortunately, over the course of 

time this situation has not gotten better. People are dealing with very difficult situations, they have adopted 

something or somehow in their life 

they’ve gotten upside down. The nature 

and the spirit of this bill, the bill that 

I am the chief sponsor on, is to find 

those people who are trying to do the 

right thing—they’re trying to rectify 

it, they’re trying to come up with a 

plan—we’re not going after those people. But for the other group of people 

who are just totally ignoring the law 


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