Government Waste, Fraud, and Error Reduction Act of 1998

TABLE OF CONTENTS:

Title I: General Management Improvements

Title II: Improving Federal Debt Collection Practices

Title III: Sale of Debts Owed to United States

Title IV: Treatment of High Value Nontax Debts

Title V: Federal Payments

Government Waste, Fraud, and Error Reduction Act of 1998 - Title I: General Management Improvements - Amends requirements regarding certain Federal agencies' (executive departments as well as the Environmental Protection Agency and the National Aeronautics and Space Administration) audited financial statements, including to: (1) extend the deadline for the preparation and submission of the first of such statements; and (2) provide for submission of such statements to the Congress and the Director of the Office of Management and Budget (Director). (Currently, such statements are to be submitted to the Director.)

Authorizes the Secretary of the Treasury, if he or she determines that it will not interfere with the engraving and printing needs of the United States, to: (1) produce currency, postage stamps, and other security documents for foreign governments, subject to a determination by the Secretary of State that such production would be consistent with U.S. foreign policy; and (2) produce security documents for States and their political subdivisions.

Amends the requirement regarding payment for Bureau of Engraving and Printing services to require the Secretary to impose charges for such services he or she provides to a foreign government, State, or political subdivision. (Currently, the Secretary imposes charges only for services provided to an agency.)

(Sec. 102) Excludes lodging provided under Federal travel and subsistence expense provisions from an exception which prohibits agency heads from requiring employees or members of the uniformed services to occupy quarters on a rental basis.

Directs each head of an executive agency to require, with respect to travel by agency employees in the performance of their duties, the use by such employees of travel management centers, authorized travel agents, and electronic reservation and payment systems for the purpose of improving efficiency and economy regarding travel by agency employees. Requires the Administrator of General Services to develop a plan regarding implementation of this requirement and to report to the Congress on such plan and the means by which such agency heads plan to ensure that employees use travel management centers, travel agents, and electronic reservation and payment systems.

Title II: Improving Federal Debt Collection Practices - Makes technical amendments to financial management provisions relating to claims of the U.S. Government, including those that permit a State to collect by administrative offset certain payments under the Social Security Act, Black Lung Benefits Act, or railroad retirement laws for past due child support being enforced by a State.

Prohibits the amounts received by a person for performing certain collection services for the Federal Government from being limited by State law.

Sets forth provisions relating to the collection by private collection contractors through the use of garnishment of any debt owed to the United States, including to prohibit a private collection contractor, in attempting to collect through the use of garnishment any such debt, from being 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, and the compensation received by the debtor from such employer.

Requires collection contracts to include conditions under which contractors are: (1) subject to penalties for failures to comply with applicable law or for unreasonable or abusive collection practices; or (2) absolved from liability for damages or attorney's fees in certain cases.

Amends provisions relating to contracts for collection services to authorize the Attorney General to make contracts retaining private counsel to furnish legal services in the case of any monetary claim, including claims for civil fines or penalties. (Under current law, such contracts are made only in the case of any claim of indebtedness owed the United States.)

(Sec. 202) Bars certain delinquent Federal debtors from being eligible for the award or renewal of any: (1) Federal financial assistance in the form of a loan (other than a disaster loan), loan insurance, or guarantee; or (2) Federal permit or license.

(Sec. 203) Prohibits an executive, judicial, or legislative agency head from discharging a debt or terminating collection action on a debt unless: (1) it has been referred to a private collection contractor, a debt collection center, or to the Attorney General for litigation; (2) it has been sold without recourse; (3) administrative wage garnishment has been undertaken; or (4) there is bankruptcy, death, or disability. Permits the Secretary, at an agency's request, to waive the application of such requirement with respect to any debt, or class of debts, if the waiver is in the best interest of the United States.

Title III: Sale of Debts Owed to United States - Allows an executive, judicial, or legislative agency head to sell, using competitive procedures, any nontax debt owed to the United States that is administered by the agency. Specifies that such sales shall: (1) be for cash or cash and a residuary equity, joint venture, or profit participation, if the proceeds will be greater than the proceeds from a sale solely for cash; (2) be without recourse against the United States, but may include the use of guarantees if authorized by law; and (3) transfer to the purchaser all U.S. rights to demand payment of the debt, other than with respect to a residuary equity, joint venture, or profit participation.

(Sec. 302) Sets forth requirements for the sale of certain: (1) delinquent nontax loans; (2) loans; and (3) nontax debts or class of debts.

Title IV: Treatment of High Value Nontax Debts - Requires each agency head that administers a program that gives rise to a delinquent high value nontax debt (a nontax debt having an outstanding value that exceeds $1 million) to submit an annual report to the Congress that lists each such debt.

(Sec. 402) Requires the Inspector General of each agency to: (1) review such annual report to the Congress and make such recommendations as necessary to improve the agency's performance; (2) periodically review and report to the Congress on the agency's debt collection management practices; and (3) as part of such reviews, 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.

Requires the President's Council on Integrity and Efficiency to report to specified congressional committees a summary of the reviews conducted by the Inspectors General.

(Sec. 403) Requires an agency head authorized to collect a delinquent high value nontax debt to promptly seek seizure and forfeiture of assets pledged to the United States in any transaction giving rise to such a debt. Directs an agency, upon determining that seizure or forfeiture is not appropriate, to include a justification for such determination in the annual report.

Title V: Federal Payments - Transfers from the Director to the Secretary responsibility for the prompt payment of proper invoices by Federal agencies.

(Sec. 502) Includes within requirements of the Secretary's regulations regarding Federal payments that a required payment date may be waived to provide for early payment in cases where an agency will implement an electronic payment technology which improves agency cash management and business practice.

Permits an executive agency head, subject to an agreement between the agency head and the applicable financial institution, to accept an electronic payment, including debit and credit cards, to satisfy a debt owed to the agency.