improving efficiency and economy regarding travel
by employees of the agency.
(2) PLAN FOR IMPLEMENTATION.—(A) The Ad-
ministrator 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 man-
agement centers, travel agents, and electronic res-
ervation and payment systems as required by this
subsection.
(B) The Administrator shall submit the plan re-
quired under subparagraph (A) not later than March
31, 2000.
(c) PAYMENT
OF STATE
AND LOCAL TAXES
ON
TRAVEL EXPENSES.—
(1) IN GENERAL.—The Administrator of Gen-
eral Services shall develop a mechanism to ensure
that employees of executive agencies are not inap-
propriately charged State and local taxes on travel
expenses, including transportation, lodging, auto-
mobile rental, and other miscellaneous travel ex-
penses.
(2) REPORT.—Not later than March 31, 2000,
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 sup-
port 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 ‘‘delin-
quent 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 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 re-
ceived 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 in the con-
tract that the contractor shall be subject to penalties
under the contract—
‘‘(i) if the contractor fails to comply with any
restrictions imposed 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 con-
nection with efforts to collect a debt pursuant to a con-
tract under this subsection by reason of actions that are
required by the contract or by applicable law or regula-
tions.
‘‘(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 col-
lection services, the Secretary of the Treasury shall evalu-
ate bids received through a methodology that considers the
bidder’s prior performance in terms of net amounts col-
lected under Government collection contracts of similar
size, if applicable. The frequency of valid debtor com-
plaints shall also be considered in the evaluation criteria.’’.
(2) COLLECTION BY PROGRAM AGENCY.—Sec-
tion 3718 of title 31, United States Code, is amend-
ed 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 debt-
or’s current employer, the period the debtor has been em-
ployed by the current employer of the debtor, and the com-
pensation received by the debtor from the current em-
ployer of the debtor.
‘‘(i)(1) The head of an executive, judicial, or legisla-
tive agency that contracts with a private collection con-
tractor 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 shall be subject to pen-
alties under the contract—
‘‘(A) if the contractor fails to comply with any
restrictions imposed under applicable law on the col-
lection activities of debt collectors; or
‘‘(B) 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 connec-
tion with efforts to collect a debt owed to an executive,
judicial, or legislative agency, or owed under any loan pro-
gram 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 contrac-
tor’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 col-
lection services, the head of an executive, judicial, or legis-
lative agency shall evaluate bids received through a meth-
odology that considers the bidder’s prior performance in
terms of net amounts collected under government collec-
tion 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 alter-
ing or superseding the provisions of title 11, United
States Code, or section 6103 of the Internal Reve-
nue 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 Code, are each amended
by striking ‘‘Federal agency’’ each place it appears and
inserting ‘‘executive, judicial, or legislative agency’’.
(2) Section 3716(h)(2)(C), of title 31, United States
Code, is amended by striking ‘‘a Federal agency’’ and in-
serting ‘‘an executive, judicial, or legislative agency’’.
(g) CLARIFICATION OF INAPPLICABILITY OF ACT TO
CERTAIN AGENCIES.—Notwithstanding any other provi-
sion of law, no provision in this Act, the Debt Collection
Improvement Act of 1996 (chapter 10 of title III of Public
Law 104–134; 31 U.S.C. 3701 note), chapter 37 or sub-
chapter II of chapter 33 of title 31, United States Code,
or any amendments made by such Acts or any regulations
issued thereunder, shall apply to activities carried out pur-
suant to a law enacted to protect, operate, and administer
any deposit insurance funds, including the resolution and
liquidation of failed or failing insured depository institu-
tions.
(h) CONTRACTS FOR COLLECTION SERVICES.—Sec-
tion 3718 of title 31, United States Code, is amended—
(1) in the first sentence of subsection (b)(1)(A),
by inserting ‘‘, or any monetary claim, including any
claims for civil fines or penalties, asserted by the At-
torney General’’ before the period;
(2) in the third sentence of subsection
(b)(1)(A)—
(A) by inserting ‘‘or in connection with
other monetary claims’’ after ‘‘collection of
claims of indebtedness’’;
(B) by inserting ‘‘or claim’’ after ‘‘the in-
debtedness’’; and
(C) by inserting ‘‘or other person’’ after
‘‘the debtor’’; and
(3) in subsection (d), by inserting ‘‘or any other
monetary claim of’’ after ‘‘indebtedness owed’’.
SEC. 202. BARRING DELINQUENT FEDERAL DEBTORS FROM
OBTAINING FEDERAL BENEFITS.
(a) IN GENERAL.—Section 3720B of title 31, United
States Code, is amended to read as follows:
‘‘§ 3720B. Barring delinquent Federal debtors from
obtaining Federal benefits
‘‘(a)(1) A person shall not be eligible for the award
or renewal of any Federal benefit described in paragraph
(2) if the person has an outstanding nontax debt that is
in a delinquent status with any executive, judicial, or legis-
lative agency, as determined under standards prescribed
by the Secretary of the Treasury. Such a person may ob-
tain additional Federal benefits described in paragraph (2)
only after such delinquency is resolved in accordance with
those standards.
‘‘(2) The Federal benefits referred to in paragraph
(1) are the following:
‘‘(A) Financial assistance in the form of a loan
(other than a disaster loan) or loan insurance or
guarantee.
‘‘(B) Any Federal permit or license otherwise
required by law.
‘‘(b) The Secretary of the Treasury may exempt any
class of claims from the application of subsection (a) at
the request of an executive, judicial, or legislative agency.
‘‘(c)(1) The head of any executive, judicial, or legisla-
tive agency may waive the application of subsection (a)
to any Federal benefit that is administered by the agency
based on standards promulgated by the Secretary of the
Treasury.
‘‘(2) The head of an executive, judicial, or legislative
agency may delegate the waiver authority under para-
graph (1) to the chief financial officer of the agency.
‘‘(3) The chief financial officer of an agency to whom
waiver authority is delegated under paragraph (2) may re-
delegate that authority only to the deputy chief financial
officer of the agency. The deputy chief financial officer
may not redelegate such authority.
‘‘(d) As used in this section, the term ‘nontax debt’
means any debt other than a debt under the Internal Rev-
enue Code of 1986 or the Tariff Act of 1930.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 37 of title 31, United States
Code, is amended by striking the item relating to section
3720B and inserting the following:
‘‘3720B. Barring delinquent Federal debtors from obtaining Federal benefits.’’.
(c) CONSTRUCTION.—The amendment made by this
section shall not be construed as altering or superseding
the provisions of title 11, United States Code.
SEC. 203. COLLECTION AND COMPROMISE OF NONTAX
DEBTS AND CLAIMS.
(a) USE OF PRIVATE COLLECTION CONTRACTORS
AND FEDERAL DEBT COLLECTION CENTERS.—Para-
graph (5) of section 3711(g) of title 31, United States
Code, is amended to read as follows:
‘‘(5)(A) Nontax debts referred or transferred under
this subsection shall be serviced, collected, or com-
promised, or collection action thereon suspended or termi-
nated, in accordance with otherwise applicable statutory
requirements and authorities.
‘‘(B) The head of each executive agency that operates
a debt collection center may enter into an agreement with
the Secretary of the Treasury to carry out the purposes
of this subsection.
‘‘(C) The Secretary of the Treasury shall—
‘‘(i) maintain a schedule of private collection
contractors and debt collection centers operated by
agencies that are eligible for referral of claims under
this subsection;
‘‘(ii) maximize collections of delinquent nontax
debts by referring delinquent nontax debts to private
collection contractors promptly;
‘‘(iii) maintain competition between private col-
lection contractors;
‘‘(iv) ensure, to the maximum extent prac-
ticable, that a private collection contractor to which
a nontax debt is referred is responsible for any ad-
ministrative costs associated with the contract under
which the referral is made.
‘‘(D) As used in this paragraph, the term ‘nontax
debt’ means any debt other than a debt under the Internal
Revenue Code of 1986 or the Tariff Act of 1930.’’.
(b) LIMITATION ON DISCHARGE BEFORE USE OF
PRIVATE COLLECTION CONTRACTOR OR DEBT COLLEC-
TION CENTER.—Paragraph (9) of section 3711(g) of title
31, United States Code, is amended—
(1) by redesignating subparagraphs (A) through
(H) as clauses (i) through (viii);
(2) by inserting ‘‘(A)’’ after ‘‘(9)’’;
(3) in subparagraph (A) (as designated by
paragraph (2) of this subsection) in the matter pre-
ceding clause (i) (as designated by paragraph (1) of
this subsection), by inserting ‘‘and subject to sub-
paragraph (B)’’ after ‘‘as applicable’’; and
(4) by adding at the end the following:
‘‘(B)(i) The head of an executive, judicial, or legisla-
tive agency may not discharge a nontax debt or terminate
collection action on a nontax debt unless the debt has been
referred to a private collection contractor or a debt collec-
tion center, referred to the Attorney General for litigation,
sold without recourse, administrative wage garnishment
has been undertaken, or in the event of bankruptcy, death,
or disability.
‘‘(ii) The head of an executive, judicial, or legislative
agency may waive the application of clause (i) to any
nontax debt, or class of nontax debts if the head of the
agency determines that the waiver is in the best interest
of the United States.
‘‘(iii) As used in this subparagraph, the term ‘nontax
debt’ means any debt other than a debt under the Internal
Revenue Code of 1986 or the Tariff Act of 1930.’’.
TITLE 
III—SALE 
OF 
NONTAX
DEBTS 
OWED 
TO 
UNITED
STATES
SEC. 301. AUTHORITY TO SELL NONTAX DEBTS.
(a) PURPOSE.—The purpose of this section is to pro-
vide that the head of each executive, judicial, or legislative
agency shall establish a program of nontax debt sales in
order to—
(1) minimize the loan and nontax debt port-
folios of the agency;
(2) improve credit management while serving
public needs;
(3) reduce delinquent nontax debts held by the
agency;
(4) obtain the maximum value for loan and
nontax debt assets; and
(5) obtain valid data on the amount of the Fed-
eral subsidy inherent in loan programs conducted
pursuant to the Federal Credit Reform Act of 1990
(Public Law 93–344).
(b) SALES AUTHORIZED.—(1) The head of an execu-
tive, judicial, or legislative agency may sell, subject to sec-
tion 504(b) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661c(b)) and using competitive procedures, any
nontax debt owed to the United States that is adminis-
tered by the agency.
(2) Costs the agency incurs in selling nontax debt
pursuant to this section may be deducted from the pro-
ceeds received from the sale. Such costs may include, but
are not limited to—
(A) the costs of any contract for identification,
billing, or collection services;
(B) the costs of contractors assisting in the sale
of nontax debt;
(C) the fees of appraisers, auctioneers, and re-
alty brokers;
(D) the costs of advertising and surveying; and
(E) other reasonable costs incurred by the
agency.
(3) Sales of nontax debt under this section—
(A) shall be for—
(i) cash; or
(ii) cash and a residuary equity, joint ven-
ture, or profit participation, if the head of the
agency, in consultation with the Director of the
Office of Management and Budget and the Sec-
retary of the Treasury, determines that the pro-
ceeds will be greater than the proceeds from a
sale solely for cash;
(B) shall be without recourse against the
United States, but may include the use of guaran-
tees if otherwise authorized by law; and
(C) shall transfer to the purchaser all rights of
the United States to demand payment of the nontax
debt, other than with respect to a residuary equity,
joint venture, or profit participation under subpara-
graph (A)(ii).
(c) EXISTING AUTHORITY NOT AFFECTED.—This
section is not intended to limit existing statutory authority
of the head of an executive, judicial, or legislative agency
to sell loans, nontax debts, or other assets.
SEC. 302. REQUIREMENT TO SELL CERTAIN NONTAX
DEBTS.
(a) SALE OF DELINQUENT LOANS.—The head of
each executive, judicial, or legislative agency shall sell any
nontax loan owed to the United States by the later of—
(1) the date on which the nontax debt becomes
24 months delinquent; or
(2) 24 months after referral of the nontax debt
to the Secretary of the Treasury pursuant to section
3711(g)(1) of title 31, United States Code. Sales
under this subsection shall be conducted under the
authority in section 301.
(b) SALE OF NEW LOANS.—The head of each execu-
tive, judicial, or legislative agency shall sell each loan obli-
gation arising from a program administered by the agen-
cy, not later than 6 months after the loan is disbursed,
unless the head of the agency determines that the sale
would interfere with the mission of the agency administer-
ing the program under which the loan was disbursed, or
the head of the agency, in consultation with the Director
of the Office of Management and Budget and the Sec-
retary of the Treasury, determines that a longer period
is necessary to protect the financial interests of the United
States. Such loan obligations shall be audited annually in
accordance with generally accepted audit standards. Sales
under this subsection shall be conducted under the author-
ity in section 301.
(c) SALE OF NONTAX DEBTS AFTER TERMINATION
OF COLLECTION ACTION.—After terminating collection
action, the head of an executive, judicial, or legislative
agency shall sell, using competitive procedures, any nontax
debt or class of nontax debts owed to the United States
unless the head of the agency, in consultation with the
Director of the Office of Management and Budget and the
Secretary of the Treasury, determines that the sale is not
in the best financial interests of the United States. Such
nontax debts shall be audited annually in accordance with
generally accepted audit standards.
(d) LIMITATIONS.—(1) The head of an executive, ju-
dicial, or legislative agency shall not, without the approval
of the Attorney General, sell any nontax debt that is the
subject of an allegation of or investigation for fraud, or
that has been referred to the Department of Justice for
litigation.
(2) The head of an executive, judicial, or legislative
agency may exempt from sale any class of nontax debts
if the head of the agency determines that the sale would
interfere with the mission of the agency administering the
program under which the indebtedness was incurred.
TITLE IV—TREATMENT OF HIGH
VALUE NONTAX DEBTS
SEC. 401. ANNUAL REPORT ON HIGH VALUE NONTAX
DEBTS.
(a) IN GENERAL.—Not later than 90 days after the
end of each fiscal year, the head of each agency that ad-
ministers a program that gives rise to a delinquent high
value nontax debt shall submit a report to Congress that
lists each such debt.
(b) CONTENT.—A report under this section shall, for
each debt listed in the report, include the following:
(1) The name of each person liable for the debt,
including, for a person that is a company, coopera-
tive, or partnership, the names of the owners and
principal officers.
(2) The amounts of principal, interest, and pen-
alty comprising the debt.
(3) The actions the agency has taken to collect
the debt, and prevent future losses.
(4) Specification of any portion of the debt that
has been written-down administratively or due to a
bankruptcy proceeding.
(5) An assessment of why the borrower de-
faulted.
(c) DEFINITIONS.—In this title:
(1) AGENCY.—The term ‘‘agency’’ has the
meaning that term has in chapter 37 of title 31,
United States Code, as amended by this Act.
(2) HIGH
VALUE
NONTAX
DEBT.—The term
‘‘high value nontax debt’’ means a nontax debt hav-
ing an outstanding value (including principal, inter-
est, and penalties) that exceeds $1,000,000.
SEC. 402. REVIEW BY INSPECTORS GENERAL.
The Inspector General of each agency shall review the
applicable annual report to Congress required in section
401 and make such recommendations as necessary to im-
prove performance of the agency. Each Inspector General
shall periodically review and report to Congress on the
agency’s nontax debt collection management practices. As
part of such reviews, the Inspector General shall examine
agency efforts to reduce the aggregate amount of high
value nontax debts that are resolved in whole or in part
by compromise, default, or bankruptcy.
SEC. 403. REQUIREMENT TO SEEK SEIZURE AND FORFEIT-
URE OF ASSETS SECURING HIGH VALUE
NONTAX DEBT.
The head of an agency authorized to collect a high
value nontax debt that is delinquent shall, when appro-
priate, promptly seek seizure and forfeiture of assets
pledged to the United States in any transaction giving rise
to the nontax debt. When an agency determines that sei-
zure or forfeiture is not appropriate, the agency shall in-
clude a justification for such determination in the report
under section 401.
TITLE V—FEDERAL PAYMENTS
SEC. 501. PROMOTING ELECTRONIC PAYMENTS.
(a) EARLY RELEASE OF ELECTRONIC PAYMENTS.—
Section 3903(a) of title 31, United States Code, is
amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) provide that the required payment date
is—
‘‘(A) the date payment is due under the
contract for the item of property or service pro-
vided; or
‘‘(B) no later than 30 days after a proper
invoice for the amount due is received if a spe-
cific payment date is not established by con-
tract;’’; and
(2) by striking ‘‘and’’ after the semicolon at the
end of paragraph (8), by striking the period at the
end of paragraph (9) and inserting ‘‘; and’’, and by
adding at the end the following:
‘‘(10) provide that the Director of the Office of
Management and Budget may waive the application
of requirements under paragraph (1) to provide for
early payment of vendors in cases where an agency
will implement an electronic payment technology
which improves agency cash management and busi-
ness practice.’’.
(b) AUTHORITY
TO
ACCEPT
ELECTRONIC
PAY-
MENT.—
(1) IN GENERAL.—Subject to an agreement be-
tween the head of an executive agency and the appli-
cable financial institution or institutions based on
terms acceptable to the Secretary of the Treasury,
the head of such agency may accept an electronic
payment, including debit and credit cards, to satisfy
a nontax debt owed to the agency.
(2) GUIDELINES FOR AGREEMENTS REGARDING
PAYMENT.—The Secretary of the Treasury shall de-
velop guidelines regarding agreements between agen-
cies and financial institutions under paragraph (1).
Æ