text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Debt Collection Act Amendments of 
  1993''.
  
  SEC. 2. IMPROVED DEBT COLLECTION PRACTICES.
  
      (a) Use of Collection Agencies.--Section 3718(a) of title 31, 
  United States Code, is amended by striking ``Under conditions'' and all 
  that follows through ``make'' and inserting ``The head of an executive 
  or legislative agency shall make''.
      (b) Salary Offset.--Subsection (a)(1) of section 5514 of title 5, 
  United States Code, is amended by striking ``may be collected'' and 
  inserting ``shall be collected''.
      (c) Disclosure to Consumer Reporting Agencies.--Subsection (f)(1) 
  of section 3711 of title 31, United States Code, is amended by striking 
  ``may disclose'' and inserting ``shall disclose''.
      (d) Administrative Offsets.--Subsection (a) of section 3716 of 
  title 31, United States Code, is amended by striking ``may'' the first 
  place it appears and inserting ``shall''.
      (e) Report to the Internal Revenue Service of Debts Paid in Full.--
  Subchapter II of chapter 37 of title 31, United States Code, is amended 
  by adding at the end the following new section:
  ``Sec. 3720B. Report to the Internal Revenue Service of Debts Paid in 
                Full
      ``The head of a Federal agency shall report any debt that has been 
  paid in full to the Internal Revenue Service promptly after the agency 
  has determined that the debt has been paid in full.''.
      (f) Disclosure by Internal Revenue Service of Address 
  Information.--Section 6103(m)(2)(A) of the Internal Revenue Code of 
  1986 is amended by inserting before the period ``, or any other law 
  granting a Federal agency the authority to collect or compromise a 
  Federal claim against the taxpayer.''.
      (g) Audits and Report of Audit.--
              (1) Audits of federal agencies.--The Comptroller General of 
          the United States shall annually conduct audits of each Federal 
          agency to determine--
                      (A) the amount of debt owed to the agency;
                      (B) the amount of debt owed to the agency that is 
                  delinquent; and
                      (C) any action taken by the agency to recover the 
                  delinquent debt.
              (2) Reports to congress.--The Comptroller General shall 
          submit annually to the Congress a report containing the 
          information obtained through the audits prepared pursuant to 
          paragraph (1).
      (h) Extension of Pilot Debt Collection Project.--
              (1) Extension of pilot project.--Section 5 of Public Law 
          99-578 (31 U.S.C. 3718 note) is repealed.
              (2) Additional reporting requirements.--Section 3718(c) of 
          title 31, United States Code, is amended--
                      (A) in paragraph (2), by striking ``and'' at the 
                  end thereof; and
                      (B) in paragraph (3)--
                              (i) in subparagraph (C), by striking the 
                          period and adding at the end ``; and''; and
                              (ii) by adding after subparagraph (C) the 
                          following new subparagraph:
                      ``(D) the total cost of the pilot program 
                  established by Public Law 99-578 (100 Stat. 3305) as 
                  well as the total amount of debt recovered under that 
                  pilot program.''.
              (3) Use of recovered funds to reduce budget deficit.--
          Section 3718 of title 31, United States Code, is amended by 
          adding at the end the following new subsection:
      ``(g) Except as provided by subsection (d), any amount recovered 
  through a contract entered into under subsection (b) shall be used to 
  reduce the budget deficit of the United States.''.
          Notwithstanding the preceding sentence, a percentage (which is 
          hereafter specified by law) of the amount recovered through 
          such a contract shall be paid to the agency on whose behalf 
          such amount was recovered for use by such agency in collecting 
          indebtedness owed to such agency.
  
  SEC. 3. IMPROVED LOAN ORIGINATION PROCEDURES.
  
      (a) Improved Prescreening Procedures.--
              (1) Chapter 97 of title 31, United States Code, is amended 
          by adding at the end the following new section:
  ``Sec. 9704. Improved prescreening procedures
      ``The head of a Federal agency may not make a loan to a loan 
  applicant until the applicant has been prescreened to determine if the 
  applicant is creditworthy. The determination of creditworthiness shall 
  include an evaluation of the ability and willingness of the applicant 
  to repay the debt, the agency's level of acceptable risk, other agency 
  or Federal Government obligations that could jeopardize or be 
  jeopardized by the loan under consideration, and the existence of other 
  debts owed by the loan applicant to the Federal Government, including a 
  tax delinquent account with the Internal Revenue Service.''.
              (2) Section 6103(m)(2)(A) of the Internal Revenue Code of 
          1986 is amended by striking ``the Secretary may'' and inserting 
          ``the Secretary shall''.
      (b) Denial of Credit to Applicants With Delinquent Debts.--Chapter 
  97 of title 31, United States Code, as amended by subsection (a), is 
  further amended by adding at the end the following new section:
  ``Sec. 9705. Denial of credit to applicants with delinquent debts
      ``The head of a Federal agency may not make a loan to a loan 
  applicant who owes a delinquent debt to the Federal Government, 
  including the Internal Revenue Service.''.
  
  SEC. 4. USE OF ADMINISTRATIVE CHARGES TO IMPROVE CREDIT MANAGEMENT 
                TECHNIQUES.
  
      Section 3717 of title 31, United States Code, is amended by adding 
  at the end the following new subsection:
      ``(i) The Secretary shall deposit in a special fund any amounts 
  received by a Federal agency to cover the cost of processing and 
  handling delinquent claims under subsection (e). The Secretary shall, 
  without further appropriation and upon request by the agency, disburse 
  money from such fund to the agency solely for the use of improving 
  credit management techniques, except that the access of each agency to 
  funds in the special account shall be limited to the amount that the 
  agency received to cover the cost of processing and handling delinquent 
  claims under subsection (e).''.
  
  SEC. 5. TECHNICAL AMENDMENTS.
  
      (a) Chapter 37 Amendments.--The table of sections at the beginning 
  of chapter 37 of title 31, United States Code, is amended by inserting 
  after the item relating to section 3720A the following new item:
  
  ``3720B. Report to the Internal Revenue Service of debts paid in 
                              full.''.
      (b) Chapter 97 Amendments.--The table of sections at the beginning 
  of chapter 97 of title 31, United States Code, is amended by adding at 
  the end the following new items:
  
  ``9704. Improved prescreening procedures.
  ``9705. Denial of credit to applicants with delinquent debts.''.
target: Debt Collection Act Amendments of 1993 - Amends Federal law to require the head of an executive or legislative agency (who, currently, is merely authorized) to:  (1) contract with a collection service to recover indebtedness owed to the United States; (2) collect such indebtedness from Federal employees in installment deductions; (3) disclose certain information to a consumer reporting agency when trying to collect a claim; and (4) collect such a claim by administrative offset. 
  Requires the head of a Federal agency to report promptly to the Internal Revenue Service (IRS) any debt that has been paid in full. 
  Amends the Internal Revenue Code to allow the IRS to disclose address information in accordance with any law granting a Federal claim against a taxpayer. 
  Directs the Comptroller General to report to the Congress after annual audits of each Federal agency on:  (1) the amount of debt owed to the agency; (2) the amount that is delinquent; and (3) action taken by the agency to recover such debt. 
  Repeals the termination date of the pilot debt collection project of the Department of Justice.  Requires the Attorney General to include in the annual report to the Congress on activities to recover indebtedness the total cost of the pilot project and the total amount of debt recovered under it. Requires that recovered funds be used to reduce the Federal deficit. Requires a percentage of recovered funds to be used by the agency in collecting indebtedness. 
  Prohibits the head of a Federal agency from making a loan until the loan applicant has been prescreened to determine creditworthiness. 
  Requires the IRS to disclose address information to a Federal agency for use in collecting a claim. 
  Prohibits the head of a Federal agency from making a loan to a loan applicant who owes a delinquent debt to the Federal Government, including the IRS. 
  Allows the use of administrative charges by the Secretary of the Treasury for improving credit management techniques.
feat_title: Debt Collection Act Amendments of 1993