A bill to amend chapter 37 of title 31, United States Code, to authorize contracts retaining private counsel to furnish collection services in the case of indebtedness owed the United States.

(Measure passed Senate, amended, roll call #194 (96-1))

Authorizes the Attorney General to make contracts retaining private counsel to furnish legal services in the case of any claim of indebtedness owed the United States. Requires the Attorney General, in making such a contract in any judicial district, to use his best efforts to retain more than one private counsel from among attorneys regularly engaged in private practice in such district.

Prohibits the fee payable for such legal services from exceeding the fee that counsel engaged in the private practice of law in the area typically charge in the collection of claims of indebtedness.

Permits the head of an executive or legislative agency to refer to a private counsel so retained any claims of indebtedness owed the United States arising out of such agency's activities.

Declares that for the purposes of the Fair Debt Collection Practices Act, a private counsel performing collection services under this Act shall be considered a debt collector.

Requires the Attorney General to transmit to Congress an annual report on the activities of the Department of Justice to recover such indebtedness.

Requires the Comptroller General to carry out an annual audit of the actions taken by the Attorney General pursuant to this Act during the preceding 12 months. Requires the Comptroller General to determine the extent to which there is competition among private counsel to obtain contracts pursuant to this Act, the reasonableness of the fees provided in such contracts, and the results of the debt collection efforts. Requires a report to Congress on the findings and conclusions resulting from such audit.

Requires the Attorney General to transmit to Congress a report on the actions taken under this Act within 60 days after the date of enactment.