Sec. 3. MANAGEMENT OF TRAVEL CARDS
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## 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 contractor-issued travel charge card that is individually billed to each card holder.” > .
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- Pub. L. 105-264
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