I 
110TH CONGRESS 
1ST SESSION H. R. 1395 
To prevent abuse of Government credit cards. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 7, 2007 
Mr. WILSON of South Carolina introduced the following bill; which was re-
ferred to the Committee on Oversight and Government Reform, and in 
addition to the Committee on Armed Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To prevent abuse of Government credit cards. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Government Credit 
Card Abuse Prevention Act of 2007’’. 
SEC. 2. MANAGEMENT OF PURCHASE CARDS. 
(a) REQUIRED SAFEGUARDS AND INTERNAL CON-
TROLS.—The head of each executive agency that issues 
and uses purchase cards and convenience checks shall es-
VerDate Aug 31 2005 
04:57 Mar 10, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1395.IH
H1395
mstockstill on PROD1PC66 with BILLS
tablish 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 limita-
tions on single transaction and total credit amounts 
that are applicable to the use of each such card by 
that purchase cardholder. 
(2) Each purchase card holder is assigned an 
approving official other than the card holder with 
the authority to approve or disapprove expenditures. 
(3) The holder of a purchase card and each of-
ficial 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 docu-
mentation; and 
(B) forwarding such reconciliation to the 
designated official who certifies the bill for pay-
ment in a timely manner. 
(4) Any disputed purchase card charge, and 
any discrepancy between a receipt and other sup-
porting documentation and the purchase card state-
ment of account, is resolved in the manner pre-
VerDate Aug 31 2005 
04:57 Mar 10, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1395.IH
H1395
mstockstill on PROD1PC66 with BILLS
scribed in the applicable Governmentwide 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 pay-
ment on purchase card accounts are monitored 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 is provided to each 
purchase cardholder and each official with responsi-
bility for overseeing the use of purchase cards issued 
by an executive agency. 
(10) The executive agency has specific policies 
regarding the number of purchase cards issued by 
various organizations and categories of organiza-
VerDate Aug 31 2005 
04:57 Mar 10, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1395.IH
H1395
mstockstill on PROD1PC66 with BILLS
tions, the credit limits authorized for various cat-
egories 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 pur-
chase cardholders. 
(11) The executive agency utilizes technologies 
to prevent or identify fraudulent purchases, includ-
ing controlling merchant codes and utilizing statis-
tical machine learning and pattern recognition tech-
nologies that review the risk of every transaction. 
(12) The executive agency invalidates the pur-
chase card of each employee who— 
(A) ceases to be employed by the agency 
immediately upon termination of the employ-
ment of the employee; or 
(B) transfers to another unit of the agency 
immediately upon the transfer of the employee. 
(13) The executive agency takes steps to re-
cover the cost of any improper or fraudulent pur-
chase made by an employee, including, as necessary, 
through salary offsets. 
(b) MANAGEMENT OF PURCHASE CARDS.—The head 
of each executive agency shall prescribe regulations imple-
VerDate Aug 31 2005 
04:57 Mar 10, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1395.IH
H1395
mstockstill on PROD1PC66 with BILLS
menting the safeguards and internal controls in subsection 
(a). The regulations shall be consistent with regulations 
that apply Governmentwide regarding the use of purchase 
cards by Government personnel for official purposes. 
(c) PENALTIES FOR VIOLATIONS.—The regulations 
prescribed under subsection (b) shall provide for appro-
priate adverse personnel actions or other punishment to 
be imposed in cases in which employees of an executive 
agency violate such regulations or are negligent or engage 
in misuse, abuse, or fraud with respect to a purchase card, 
including imposition of the following penalties: 
(1) In the case of an employee who is suspected 
by the executive agency to have engaged in fraud, 
referral of the case to the United States Attorney 
with jurisdiction over the matter. 
(2) In the case of an employee who is found 
guilty of fraud or found by the executive agency to 
have egregiously abused a purchase card, dismissal 
of the employee. 
(d) RISK ASSESSMENTS AND AUDITS.—The Inspec-
tor General of each executive agency shall— 
(1) periodically conduct risk assessments of the 
agency purchase card program and associated inter-
nal controls and analyze identified weaknesses and 
the frequency of improper activity in order to de-
VerDate Aug 31 2005 
04:57 Mar 10, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1395.IH
H1395
mstockstill on PROD1PC66 with BILLS