(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 section:
(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
annual report to Congress required in section 401 and
make such recommendations as necessary to improve per-
formance of the agency. Each Inspector General shall peri-
odically 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 com-
promise, 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 Director of the Office of
Management and Budget, 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 Director of the Office of Manage-
ment and Budget shall develop guidelines regarding
agreements between agencies and financial institu-
tions under paragraph (1).
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