The Transportation-Treasury appropriations bill for fiscal
2006 (HR-3058) that is now in a House-Senate conference
requires federal agencies to evaluate the creditworthiness
of an individual before issuing the individual a government
purchase charge card or government travel charge card. The
language, similar to provisions that have been enacted in
the past, is a reaction to instances of abusive spending
of the cards.
Under the provision, an agency may generally not issue a
government purchase charge card or government travel charge
card to an individual that either lacks a credit history
or is found to have an unsatisfactory credit history as a
result of the evaluation. However, there are exceptions
where the card is used to pay travel expenses and the
agency determines there is no suitable alternative payment
mechanism available before issuing the card.
The provision also requires agencies to establish guidelines
and procedures for disciplinary actions to be taken against
card holders for improper, fraudulent, or abusive use of
the cards.
