WAIVER AUTHORITY FOR REQUIREMENT THAT ELECTRONIC TRANSFER OF FUNDS BE USED FOR DEPARTMENT OF DEFENSE PAYMENTS.

SEC. 1008. WAIVER AUTHORITY FOR REQUIREMENT THAT ELECTRONIC TRANSFER OF FUNDS BE USED FOR DEPARTMENT OF DEFENSE PAYMENTS. (a) Authority.—(1) Chapter 165 of title 10, United States Code, is amended by adding after section 2785, as added by section 933(a), the following new section: “§ 2786. Department of Defense payments by electronic transfers of funds: exercise of authority for waivers “With respect to any Federal payment of funds covered by section 3332(f) of title 31 (relating to electronic funds transfers) for which payment is made or authorized by the Department of Defense, the waiver authority provided in paragraph (2)(A)(i) of that section shall be exercised by the Secretary of Defense. The Secretary of Defense shall carry out the authority provided under the preceding sentence in consultation with the Secretary of the Treasury.”.113 STAT. 738 (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 2785, as added by section 933(a), the following new item: “2786. Department of Defense payments by electronic transfers of funds: exercise of authority for waivers.”. (3) Any waiver in effect on the date of the enactment of this Act under paragraph (2)(A)(i) of section 3332(f) of title 31, United States Code, shall remain in effect until otherwise provided by the Secretary of Defense under section 2786 of title 10, United States Code, as added by paragraph (1). (b) Study and Report on DOD Electronic Funds Transfers.—(1) The Secretary of Defense shall conduct a study to determine the following: (A) Whether it would be feasibile for all electronic payments made by the Department of Defense to be routed through the Regional Finance Centers of the Department of the Treasury for verification and reconciliation. (B) Whether it would be feasibile for all electronic payments made by the Department of Defense to be subjected to the same level of reconciliation as United States Treasury checks, including the matching of each payment issued with each corresponding deposit at financial institutions. (C) Whether the appropriate computer security controls are in place in order to ensure the integrity of electronic payments made by the Department of Defense. (D) The estimated costs of implementing— (i) the routing of electronic payments as described in subparagraph (A); (ii) the reconciliation of electronic payments as described in subparagraph (B); and (iii) security controls as described in subparagraph (C). (E) The period that would be required to implement each of the matters referred to in subparagraph (D). (2) Not later than March 1, 2000, the Secretary of Defense shall submit to Congress a report containing the results of the study required by paragraph (1). (3) In this subsection, the term “electronic payment” has the meaning given the term “electronic funds transfer” in section 3332(j)(l) of title 31, United States Code.