velop a plan for using such risk assessments to de-
termine the scope, frequency, and number of peri-
odic audits of purchase cardholders; 
(2) perform periodic audits of purchase card-
holders designed to identify— 
(A) potentially fraudulent, improper, and 
abusive uses of purchase cards; 
(B) any patterns of improper cardholder 
transactions, such as purchases of prohibited 
items; and 
(C) categories of purchases that should be 
made by means other than purchase cards in 
order to better aggregate purchases and obtain 
lower prices; 
(3) report to the head of the executive agency 
concerned on the results of such audits; and 
(4) report to the Director of the Office of Man-
agement and Budget and the Comptroller General 
on the implementation of recommendations made to 
the head of the executive agency to address findings 
during audits of purchase cardholders. 
(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)). 
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(f) RELATIONSHIP TO DEPARTMENT OF DEFENSE 
PURCHASE CARD REGULATIONS.— 
(1) IN GENERAL.—Except as provided by the 
amendments made by paragraph (2), the require-
ments under this section shall not apply to the De-
partment of Defense. 
(2) EXCEPTION.—Section 2784(b) of title 10, 
United States Code, is amended— 
(A) in paragraph (8), by striking ‘‘periodic 
audits’’ and all that follows through the period 
at the end and inserting ‘‘risk assessments of 
the agency purchase card program and associ-
ated internal controls and analyze identified 
weaknesses and the frequency of improper ac-
tivity in order to develop a plan for using such 
risk assessments to determine the scope, fre-
quency, and number of periodic audits of pur-
chase cardholders.’’; and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(11) That the Department of Defense utilizes 
technologies to prevent or identify fraudulent pur-
chases, including controlling merchant codes and uti-
lizing statistical machine learning and pattern rec-
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ognition technologies that review the risk of every 
transaction. 
‘‘(12) That the Secretary of Defense— 
‘‘(A) invalidates the purchase card of each 
employee who ceases to be employed by the De-
partment of Defense immediately upon termi-
nation of the employment of the employee; and 
‘‘(B) invalidates the purchase card of each 
employee who transfers to another agency or 
subunit within the Department of Defense im-
mediately upon such transfer.’’. 
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 sub-
section: 
‘‘(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 es-
tablish and maintain safeguards and internal con-
trols over travel charge cards to ensure the fol-
lowing: 
‘‘(A) There is a record in each executive 
agency of each holder of a travel charge card 
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issued by the agency for official use, annotated 
with the limitations on amounts that are appli-
cable to the use of each such card by that travel 
charge cardholder. 
‘‘(B) Rebates and refunds based on 
prompt payment on travel charge card accounts 
are properly recorded as a receipt of the agency 
that employs the cardholder. 
‘‘(C) Periodic reviews are performed to de-
termine 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 agen-
cy. 
‘‘(E) Each executive agency has specific 
policies regarding the number of travel charge 
cards issued by various organizations and cat-
egories of organizations, the credit limits au-
thorized for various categories of cardholders, 
and categories of employees eligible to be issued 
travel charge cards, and that those policies are 
designed to minimize the financial risk to the 
Federal Government of the issuance of the trav-
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el charge cards and to ensure the integrity of 
travel charge cardholders. 
‘‘(F) The head of each executive agency 
negotiates with the holder of the applicable 
travel card contract, or a third party provider 
of credit evaluations if such provider offers 
more favorable terms, to evaluate the credit-
worthiness of an individual before issuing the 
individual a travel charge card, and that no in-
dividual be issued a travel charge card if the in-
dividual 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 when the individual lacks a credit 
history or the issuance of a pre-paid card when 
the individual has a credit score below the min-
imum credit score established by the agency). 
Each executive agency shall establish a min-
imum credit score for determining the credit-
worthiness of an individual based on rigorous 
statistical analysis of the population of card-
holders and historical behaviors. Notwith-
standing any other provision of law, such eval-
uation shall include an assessment of an indi-
vidual’s consumer report from a consumer re-
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porting agency as those terms are defined in 
section 603 of the Fair Credit Reporting Act. 
The obtaining of a consumer report under this 
subsection is deemed to be a circumstance or 
purpose authorized or listed under section 604 
of the Fair Credit Reporting Act. 
‘‘(G) Each executive agency utilizes tech-
nologies to prevent or identify fraudulent pur-
chases, including controlling merchant codes 
and utilizing statistical machine learning and 
pattern recognition technologies that review the 
risk of every transaction. 
‘‘(H) Each executive agency ensures that 
the travel charge card of each employee who 
ceases to be employed by the agency is invali-
dated immediately upon termination of the em-
ployment of the employee. 
‘‘(I) Each executive agency utilizes manda-
tory split disbursements for travel card pur-
chases. 
‘‘(2) REGULATIONS.—The Administrator of 
General Services shall prescribe regulations gov-
erning the implementation of the safeguards and in-
ternal controls in paragraph (1) by executive agen-
cies. 
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‘‘(3) PENALTIES FOR VIOLATIONS.—The regu-
lations prescribed under paragraph (2) shall provide 
for appropriate adverse personnel actions or other 
punishment to be imposed in cases in which employ-
ees of an executive agency violate such regulations 
or are negligent or engage in misuse, abuse, or fraud 
with respect to a travel charge card, including re-
moval in appropriate cases. 
‘‘(4) ASSESSMENTS.—The Inspector General of 
each executive agency shall— 
‘‘(A) periodically conduct risk assessments 
of the agency travel card program and associ-
ated internal controls and analyze identified 
weaknesses and the frequency of improper ac-
tivity in order to develop a plan for using such 
risk assessments to determine the scope, fre-
quency, and number of periodic audits of pur-
chase cardholders; 
‘‘(B) perform periodic audits of travel 
cardholders designed to identify potentially 
fraudulent, improper, and abusive uses of travel 
cards; 
‘‘(C) report to the head of the executive 
agency concerned on the results of such audits; 
and 
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