GOV ERNMEN1

Storage cç

RENTAL QUARTERS AND SERVICES TO CIVILIAN

Y 4 OFFICERS AND EMPLOYEES

. f 81/1az9/

964

HEARING

.1" BEFORE THE

COMMITTEE ON

OFFICE AND CIVIL SERVICE

SE OF REPRESENTATIVES

rR

a EIGHTY-EIGHTH CONGRESS

SECOND SESSION

ON

S. 1833

AN ACT TO AUTHORIZE GOVERNMENT AGENCIES TO PROVIDE

QUARTERS, HOUSEHOLD FURNITURE AND EQUIPMENT, UTILITIES, SUBSISTENCE, AND LAUNDRY SERVICE TO CIVILIAN

OFFICERS AND EMPLOYEES OF THE UNITED STATES, AND

FOR OTHER PURPOSES

JUNE 3, 1964

Printed for the use of the

Committee on Post Office and Civil Service

U.S. GOVERNMENT PRINTING OFFICE

33-831 WASHINGTON : 1964

3"t4 23

ig64

'44 11-M1
COMMITTEE ON POST OFFICE AND CIVIL SERVICE

TOM MURRAY, Tennessee, Chairman

JAMES H. MORRISON, Louisiana

THADDEUS J. DULSKI, New York

DAVID N. HENDERSON, North Carolina

ARNOLD OLSEN, Montana

MORRIS K. UDALL, Arizona

DOMINICK V. DANIELS, New Jersey

LINDLEY BECKWORTH, Texas

HARLEY 0. STAGGERS, West Virginia

ROBERT N. C. NIX, Pennsylvania

JOE R. POOL, Texas

EDWARD R. ROYBAL, California

CHARLES H. WILSON, California

ROBERT J. CORBETT, Pennsylvania

H. R. GROSS, Iowa

AUGUST E. JOHANSEN, Michigan

GLENN CUNNINGHAM, Nebraska

GEORGE M. WALLHAUSER, New Jersey

ROBERT R. BARRY, New York

KATHARINE ST. GEORGE, New York

EDWARD J. DERWINSKI, Illinois

ROBERT F. ELLSWORTH, Kansas

HOMER E. ABELE, Ohio

ALBERT W. JOHNSON, Pennsylvania

SUBCOMMITTEE APPOINTED To CONSIDER S. 1833

ARNOLD OLSEN, Montana, Chairman

HARLEY 0. STAGGERS, West Virginia GLENN CUNNINGHAM, Nebraska

ROBERT N. C. NIX, Pennsylvania GEORGE M. WALLHAUSER, New Jersey
CONTENTS

Statement of—

McCart, John A., on behalf of Government Employees' Council, Page AFL-CIO 

Meagher, 8

George, on behalf of the American Federation of Gov- ernment Employees 9

Ryan, William H., president, International Association of Machin- ists, District 44 12 Tiller, Carl W., Office of Budget Review, Bureau of the Budget 5

RENTAL QUARTERS AND SERVICES TO CIVILIAN

OFFICERS AND EMPLOYEES

WEDNESDAY, JUNE 3, 1964

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE OF THE

COMMITTEE ON POST OFFICE AND CIVIL SERVICE,

TV ash,ing ton, D .0 .

The subcommittee met at 9:30 a.m., in room 215, Cannon House

Office Building, Hon. Arnold Olsen of Montana (chairman of the

subcommittee) presiding.

Mr. OLSEN. The subcommittee will come to order.

This subcommittee was appointed to consider S. 1833, which is based

on an official recommendation of the Bureau of the Budget.

S. 1833 is primarily perfecting legislation which would: (a) Restate

existing authority to provide quarters or housing, and related facilities, for Federal civilian employees and members of the military service

on a rental basis; (b) reinstate a statutory barrier against forced

occupancy of Government rental housing; (e) authorize the President

to issue regulations for more equitable application of the laws relating

to rental quarters and related services; and (d) clarify the applicability of the laws in certain cases not now clearly covered, such as

rent for employees of Government contractors and members of the

uniformed services who occupy housing on a rental basis.

This legislation does not authorize any new construction or acquisition of Government quarters, or in any way alter the basic statutory

policy that employees stationed in the United States and its territories

should pay a reasonable rate for quarters, or pay a reasonable charge

for utilities or other services. Nor does it interfere in any way with

the authority to require military personnel to live in "public quarters"

free of rent, in accordance with normal military practice. This legislation applies only when quarters are occupied on a rental basis and

does not apply to Government quarters that are occupied without cost

to the occupant.

This is the third consecutive Congress that the Bureau of the Budget

has submitted official recommendations on this subject. S. 3486 of

the 86th Congress passed the Senate on June 18, 1960. H.R. 7021 of

the 87th Congress passed the House on August 21, 1961. And now

S. 1833 of the 88th Congress passed the Senate on January 23, 1964.

These bills are substantially identical and there is no known opposition to the legislation. In fact, H.R. 7021 of the 87th Congress passed

the House on the Consent Calendar. .

In view of the lack of any opposition to this legislation in the past,

it is hard to understand why there has been such a delay in obtaining

enactment. An amendment has been prepared as a substitute for the

1
2 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

provisions of S. 1833, which is intended to clarify some of the provisions of the bill. The amendment does not contain any major substantive change in the practical effect of the bill. Copies of this

amendment have been furnished to the Bureau of the Budget and it

is hoped that the Bureau's representatives testifying here today will be

able to indicate whether they have objection to any of the language in

the amendment.

I would like to have inserted in the record at this point a copy of the

Senate-passed bill, a copy of the proposed amendment, and a copy of

the background and purpose of the proposed bill.

(The documents referred to follow:)

[S. 1833, 88th Cong., 2d sessi

AN ACT To authorize Government agencies to provide quarters, household furniture and equipment, utilities, subsistence, and laundry service to civilian officers and employees

of the United States, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the head of each department, independent establishment, and Government corporation may, under such regulation as

the President may prescribe and where conditions of employment or availability

of quarters warrant it, provide, either directly or by contract, civilian officers and

employees stationed in the United States, its territorities and possessions, and

the Commonwealth of Puerto Rico, with quarters (Government owner or leased),

household furniture and equipment, utilities, subsistence, and laundry service.

SEC. 2. Rental rates for any Government owned or leased quarters provided

under authority of section I of this Act, or occupied on a rental basis under

authority of any other provision of law, and charges for any furniture and

equipment, utilities, subsistence, and laundry service made available in connection with the occupancy of such quarters, shall be based on the reasonable value

thereof to the officer, employee, or member of the uniformed services concerned,

in the circumstances under which furnished. Such rates and charges shall be

determined in accordance with such regulations as the President may prescribe,

and the amounts thereof shall be paid by or deducted from the salary of such

officer, employee, or member of the uniformed services, or otherwise charged

against them: Provided, That the amounts of any payroll deductions for such

charges shall remain in the applicable appropriation or fund, but whenever

payments are made by any other method the amounts shall be credited to miscellaneous receipts of the Treasury or to such appropriation or fund as may be

otherwise provided by law.

SEC. 3. Whenever, as an incidental service in support of a Government program, any Government owned or leased quarters, and any related furniture and

equipment, utilities, subsistence, and laundry service are provided, under specific

Government direction, to any person who is not an officer or employee of the

Government or a member of the uniformed services, the rates and charges

therefor, which shall be paid or otherwise credited to the Government, shall

be determined in accordance with section 2 of this Act: Provided, That the

amounts of any such charges shall be credited to miscellaneous receipts of the

Treasury or to such appropriation or fund as may be otherwise provided by law.

SEC. 4. No civilian officer, employee, or member of the uniformed services shall

be required to occupy Government owned or leased rental quarters unless the

head of the agency concerned shall determine that necessary service cannot be

rendered or property of the United States cannot be adequately protected otherwise.

SEC. 5. Section 2 of this Act shall not be construed as repealing or modifying

any provision of law which may authorize the provision, without charge or at

specified rates, of any of the items enumerated in section 1 of this Act, to any

specific civilian officer or employee, or to any class of such officers or employees,

or to such officers or employees under emergency Conditions or to members of

the uniformed services.

SEC. 6. Section 3 of the Act of March 5, 1928 (45 Stat. 193 (5 U.S.C. 75a) ), is

repealed.

Passed the Senate January 23, 1964.

Attest:

FELTON M. JOHNSTON, Secretary.
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

PROPOSED SUBCOMMITTEE AMENDMENT TO S. 1833

3

That, for the purposes of this Act—

(1) "Government" means the Government of the United States of America.

(2) "agency" means—

( A) each executive department of the Government;

(B) each agency or independent establishment in the executive branch

of the Government;

(C) each corporation owned or controlled by the Government, except

the Tennessee Valley Authority; and

(D) the General Accounting Office.

(3) "employee" means a civilian officer or employee of an agency.

(4) "United States" means the several States of the United States of

America, the District of Columbia, the territories and possessions of the

United States, and the Commonwealth of Puerto Rico.

(5) "quarters" means quarters owned or leased by the Government.

(6) "facilities" means household furniture and equipment, garage space,

utilities, subsistence, and laundry service.

(7) "member" and "uniformed services" have the meanings given them

by section 101 of title 37, United States Code.

SEC. 2. Whenever conditions of employment or of availability of quarters

warrant such action, the head of each agency may provide, directly, or by contract, any employee stationed in the United States, with quarters and facilities.

SEC. 3. Rental rates for quarters provided for an employee under section 2

of this Act or occupied on a rental basis by an employee or a member of the uniformed services under any other provision of law, and charges for facilities made

available in connection with the occupancy of such quarters, shall be based on the

reasonable value of the quarters and facilities to the employee or the member of

the uniformed services concerned, in the circumstances under which the quarters

and facilities are provided, occupied, or made available. The amounts of such

rates and charges shall be paid by, or deducted from the salary of, such employee

or member of the uniformed services, or otherwise charged against him in accordance with law. The amounts of payroll deductions for such rates and

charges shall remain in the applicable appropriation or fund, but, whenever

payment of such rates and charges is made by any other method, the amounts

of payment shall be credited to the Government as provided by law.

SEC. 4. Whenever, as an incidental service in support of a program of the

Government, any quarters and facilities are provided, by appropriate authority

of the Government, to any person other than an employee or a member of the

uniformed services, the rates and charges therefor shall be determined in accordance with this Act. The amounts of the payments of such rates and charges

shall be credited to the Government as provided by law.

SEC. 5. An employee or a member of the uniformed services shall not be required to occupy quarters on a rental basis unless the head of the agency concerned shall determine that necessary service cannot be rendered, or that

property of the Government cannot adequately be protected, otherwise.

SEC. 6. The President may issue regulations governing the provision, occupancy, and availability of quarters and facilities, the determination of rates and

charges therefor, and other related matters, as are necessary and appropriate to

carry out the provisions of this Act. The head of each agency may prescribe and

issue such regulations, not inconsistent with the regulations of the President, as

may be necessary and appropriate to carry out the functions of such agency

head under this Act.

SEC. 7. Section 3 of this Act shall not be held or considered to repeal or

modify any provision of law authorizing the provision of quarters or facilities,

either without charge or at rates or charges specifically fixed by law.

SEC. 8. Section 3 of the Act of March 5, 1928 (45 Stat. 193; 5 U.S.C. 75a) , is

hereby repealed.

SEC. 9. The foregoing provisions of this Act shall become effective on the

sixtieth day following the date of enactment of this Act.

Amend the title so as to read: "An Act to authorize Government agencies to

provide quarters and facilities to civilian officers and employees of the Government, and for other purposes."
4 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

BACKGROUND AND PURPOSE OF PROPOSED BILL

To authorize Government agencies to provide quarters, household furniture and

equipment, utilities, subsistence and laundry service to civilian officers and

employees of the United States, and for other purposes

The bill would not authorize any new construction or other acquisition of quarters for any personnel. It would continue the authority, now covered by the

act of March 5, 1928 (5 U.S.C. 75a), to provide quarters, household furniture

and equipment, utilities, subsistence, and laundry service for civilian employees.

It would also provide the basis for fixing rental rates and related charges for

rental housing occupied by members of the uniformed services, but it would

not change the existing authority to provide quarters and related items to such

members. The bill would also apply in those instances (principally involving

certain facilities of the Department of Defense and the Atomic Energy Commission) where non-Government personnel—usually contractors' employees—

occupy Government quarters.

Section 3 of the act of March 5, 1928 (5 U.S.C. 75a), is the only existing law

of general application to civilian employees with respect to providing quarters

and fixing rents. It reads as follows:

"The head of an executive department or independent establishment, where,

in his judgment, conditions of employment require it, may continue to furnish

civilians employed in the field service with quarters, heat, light, household

equipment, subsistence, and laundry service; and appropriations of the character used before March 5, 1928, for such purposes are made available therefor:

Provided, That the reasonable value of such allowances shall be determined

and considered as part of the compensation in fixing the salary rate of such

civilians."

This law established the equitable principle that the Government should

charge employees the reasonable value of quarters and related items furnished

to them. However, it does not by its terms apply to those Government quarters

which are occupied by members of the uniformed services on a rental basis, nor

to those Government quarters which may be occupied by persons who are not

employees of the Government. Moreover, it is not specific enough for agencies to

independently administer it with reasonable uniformity since it sets no detailed

criteria for establishing rents and it does not expressly provide for Governmentwide regulations thereunder. It gives no basis for determining reasonable value;

that is, whether based on the commercial rental rates or comparable facilities,

on the Government's investment in the quarters, or on other factors.

Considerable variation in the interpretation of this 1928 law, and an evident

failure by many agencies to charge their employees with the reasonable value of

the quarters, came to the attention of both the Bureau of the Budget and the

General Accounting Office about 10 years ago. As a result, the Bureau of the

Budget in 1951 issued its Circular No. A-45, which established certain procedures intended to make the various agency practices uniform and more equitable

to both the Government and the employees concerned. This circular prescribed,

as the basic criterion for determining reasonable value for rental purposes, that

rents should be set at levels similar to those prevailing for comparable private

housing located in the same area, after taking into account certain considerations which affect the value of the housing to the recipient, such as isolated

location, and instances where an employee might, for the convenience of the

Government, have to accept quarters of a size or quality beyond that which he

would choose of his own accord. The proposed bill would provide statutory

authority for regulations of the type now precribed by the Bureau of the Budget

circular. The procedure contemplated by this bill is similar to that provided in

other statutes dealing with employee allowances and benefits, such as the Travel

Expense Act of 1949, as amended (5 U.S.C. 835-842), and the Government Employees Training Act (5 U.S.C. 2301 et seq.).

Since 1928, several other laws have been enacted which authorize rental of

quarters to Government personnel. The act of July 2, 1945, as amended (37

U.S.C. 111a), authorized the occupancy of certain quarters on a rental basis

by members of the uniformed services who are authorized to continue to receive

their basic allowances for quarters. Sections 404(f) and 405 of the act of

August 11, 1955, as amended (42 U.S.C. 1594a (f) and 1594b), authorized the

occupancy by civilian personnel, on a rental basis, of Capehart housing and

Wherry housing acquired by the Government, and occupancy of some Wherry

housing by military personnel on that basis. These provisions of law did not
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS 5

specify how the rental rates were to be determined, and the draft bill would provide a basis for such determinations.

Section 407(a) of the act of August 20, 1957 (42 U.S.C. 1594j) , authorizes

the rental of inadequate public quarters to members of the uniformed services,

and provides that such personnel will be paid an adjusted quarters allowance amounting to the net difference between (1) the fair rental value of the inadequate quarters, and (2) their basic allowance for quarters. The section provides that it shall be administered under regulations approved by the President. These regulations have been issued by the heads of the departments concerned, after approval by the Director of the Bureau of the Budget, under a delegation of au- thority from the President in Executive Order No. 10766, dated May 1, 1958. In addition to setting standards of adequacy, these regulations prescribe methods

of setting "fair rental value" on the same basis as required by Budget Circular

No. A-45. The bill would permit these housing rentals to be fixed under the proposed Government-wide regulations which the President would be authorized

to prescribe.

The bill would also permit the President to issue regulations to provide a

similar basis for the determination of charges for household furniture and equipment, utilities, subsistence, and laundry service, where such items are authorized

to be supplied by the Government.

The draft bill also contains a prohibition against employees being required to

occupy Government rental quarters unless a determination has been made that

necessary service cannot be rendered or property of the United States cannot be adequately protected otherwise. Such a prohibition has appeared in annual appropriation act provisions in recent years.

Mr. OLSEN. We will call as the first witness Mr. Carl Tiller of the

Bureau of the Budget, Office of Budget Review.

Mr. Tiller, if it is agreeable with you, we will put your statement in full in the record.

PREPARED STATEMENT OF CARL W. TILLER, OFFICE OF BUDGET REVIEW, BUREAU OF

THE BUDGET

Mr. Chairman and members of the subcommittee, I appreciate the opportunity

to appear before you to discuss S. 1833, a bill to authorize Government agencies

to provide quarters, household furniture and equipment, utilities, subsistence, and laundry service to civilian officers and employees of the United States, and for other purposes.

The bill you are considering today is one which was first proposed by the Bureau of the Budget in 1960 for the purpose of perfecting the existing law which authorizes the Government to provide its employees with quarters and related facilities where this is necessary, and to make reasonable charges for the quarters and facilities it does provide.

A bill for this purpose—S. 3486, 86th Congress—was passed by the Senate on

June 14, 1960. It did not get House action before that Congress adjourned.

In the 87th Congress, the House passed such a bill on August 21, 1961 (then H.R. 7021), but the Senate did not act on it.

This current version, which differs from the earlier bills in minor respects which I will touch upon in a moment, was passed by the Senate on January 23 of this year. We are therefore most pleased that your subcommittee is giving consideration to the bill. It is our hope that we will see favorable action com- pleted in this session.

While this legislation might be regarded by some as merely a "housekeeping"

measure, it is nonetheless rather important housekeeping. The rents and other charges being made for quarters and other services necessarily provided in sup- port of Government programs are in the range of $65 million to $75 million annually. The equitable administration of these charges throughout the Government has been a matter of concern not only to us, but to the General Accounting Office, as well. The matter of inadequate or inequitable charges has been a

subject of several audit reports by the Comptroller General in recent years. This bill will provide a sound basis in clearly stated law to better enable the executive branch to administer the principle of equitable charges.

The present law sets the standard of "reasonable value" for determining the rental rates, but leaves open to varying interpretations the meaning of those words. The Bureau of the Budget some years ago issued its Circular No. A-45

33-8a4-64-----2
6 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

to provide a basis for interpreting those words. We believe that reasonable value

is normally to be measured by the test of comparability—what the employee

would pay for comparable quarters on the open market. The rates should be fair

to both the employee and the Government, and should also maintain fairness

between the employee in Government quarters and the employee who is in private

quarters. The proposed bill more directly fins the need for providing an authoritative interpretation of the law by authorizing the President to issue regulations as appropriate.

The bill would modernize the wording of the 1928 law. For example, the

present law states that the value of the facilities and services being provided is

to be considered in fixing the employee's salary rate. Actually the salary rate

and earnings are not affected by the rentals, but the value of the rental is deducted from earnings in arriving at take-home pay. This would be cleared up

by the bill under consideration.

Another kind of situation is overlooked in existing law. It does not specifically

cover the ease Of employees of Government contractors occupying Government

quarters or being furnished electricity and other facilities and services. We believe the same principle as is applicable to Government employees is applicable in

such cases. Similar problems of lack of clarity sometimes exist when members

of the uniformed services occupy Government-provided rental quarters instead

of "public quarters" or their own privately obtained housing.

Another gap in the present law relates to a matter on which the Congress took

a very clear position, but which is not in permanent law. Appropriation acts

for 1956 through 1959 carried language to limit the circumstances under which

the head of a department or agency could require employees to occupy Government housing.

The specific wording last appeared as a part of section 208 of the appropriations act general provisions (Public Law 85-468), as follows: "Provided further,

That, notwithstanding the provisions of any other law, no officer or employee

shall be required to occupy any Government-owned quarters unless the head of

the agency concerned shall determine that necessary service cannot be rendered

or property of the United States cannot be adequately protected otherwise."

Section 208 was dropped on recommendation of the executice branch in the

1960 appropriation acts. The Director of the Budget reported to the Congress

at that time (January 30, 1959) that "legislation will be proposed to Congress

shortly to clarify the basic laws on this subject and to provide specifically and

on a permanent basis" for the issuance of regulations to continue the existing

policy. This bill would accomplish that. The protection afforded the employee

by the quoted provision would again be placed in the law.

The bill would not otherwise create any new policy, nor would it modify any

provisions of law that the Congress has consistently demonstrated it intends to

apply. For example, it retains, and even reinforces, the principle that a reasonable value would be placed upon the quarters, facilities, or services which the

Government provides, and that reasonable charges would be made to those who

receive them. The system of providing public quarters to members of the uniformed services, or allowances provided in lieu of public quarters, would not be

changed. The laws authorizing quarters and related services to be provided

without charge in foreign countries would remain as they are.

I referred earlier to the changes that appear in S. 1833, as passed in the Senate

this year in comparison with the version passed by the House during the sessions

of the 87th Congress. There are two of these: Wording has been added in consultation with the General Accounting Office, for the purpose of making certain

that the disposition of the proceeds of rents and other charges would not be inadvertently modified. Budgets of the various agencies contemplate a continuation of the present disposition of the receipts. The second change was

brought about by the passage of the Overseas Differentials and Allowances Act

of September 6, 1960 (5 U.S.C. 3032). That law covered the authority for providing quarters in the Trust Territory of the Pacific, enabling us to remove the

reference to the territory as it appeared in the old H.R. 7021.

One final matter. The committee staff has made available to us a committee

print dated May 27 which would recast the bill in a style that conforms more

closely with that used in other recent legislation. We believe the committee

print is an improvement on our earlier version, with one exception. The -ew

draft would remove the Tennessee Valley Authority from coverage of this legislation. We do not believe there is a sound basis for excepting one agency

from such Government-wide legislation. We were informed of the TVA's belief
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS 7

that they have sufficient authority now in. this area and that there is no need

for their inclusion in this bill. However, we have been unable to learn of any

harm that would come to them by their inclusion. In our judgment, Government-wide legislation ought to provide exceptions only where fully -justified.

We would be concerned about the rewrite of the bill if it causes further

delay in the Senate, which has already passed the bill this year. We have

not had any difficulty with the bill since we first proposed it, except for the

always crowded calendar. You, of course, are better judges than we of the

likelihood of additional Senate action this year. We urge that S. 1833 be favorably considered, either in its original form or its amended form, but we are

anxious to obtain enactment this year.

Mr. TILLER. The bill you are considering today was first proposed

by the Bureau of the Budget in 1960. It was passed by the Senate that

year, but the House did not get to act on it in that Congress. In the

succeeding Congress, the House passed a similar bill, but the Senate

did not get to act on it. This year, the Senate passed the bill and it is

now before the House and your subcommittee for action.

Mr. WALLHAUSER. With this lack of enactments, what is the status

of the authority you ask for?

Mr. TILLER. We are not really asking basically for new authority,

but to clarify a number of old existing statutes.

There is one provision in the bill which is not presently in the law.

It is one on which I think other witnesses will also be testifying that

would reenact a provision 'contained in appropriation acts for 4 successive years. It is a provision that—

no officer or employee shall be required to occupy any Government-owned

quarters unless the head of the agency concerned shall determine that necessary

service cannot be rendered or property of the United States cannot be adequately

protected otherwise.

This provision was dropped from the appropriation acts after the

1959 act on the premise that we would get permanent legislation

of the type we are seeking. Therefore, the enactment of this bill will

put that provision back into the law. Otherwise, the enactment of the

bill will primarily serve to clarify existing law and fill in some gaps,

but it will not make any significant change in policy.

Mr. WALLHAUSER. Supposing now you brief for us what the legislation proposes to do.

Mr. TILLER. The proposed legislation will clarify and restate the

law pertaining to the provision-of quarters and related services for

employees which was last contained in a 1928 statute, which is somewhat out of date. The 1928 statute, for example, says that the value

of the facilities and services will be considered in fixing the employee's

salary rate, which is a rather old-fashioned way of saying it. Now

we would say the salary is determined in accordance with the normal

compensation laws and the value of the quarters will be deducted

from his salary in arriving at take-home pay.

The bill will clarify the applicability of the same principle. When

Government provides others with quarters, where necessary, it can

charge a reasonable value. This applies in the case of employees of

Government contractors who occupy Government quarters at construction sites and other operating situations.

The bill will also provide in the case of quarters occupied by military personnel on a rental basis that the same basic principle of reasonable value will be applied. In all of these cases, we will construe

reasonable value" to mean that the employee should pay through
8 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

salary deduction, or otherwise,. approximately the same amount as

he would pay if he were obtaining quarters privately instead of from

the Government. We ought not to make a profit at his expense. He

ought not to be subsidized by us. It is also fair as between employees

who occupy Government quarters and those who must occupy private

quarters. The person in Government quarters ought neither to be

charged more than he would pay otherwise, nor should he come off with

a better result than the employee who is in nongovernment quarters.

We believe the bill, therefore will provide a clear statutory basis for

providing quarters and for making charges.

One other aspect I should mention is that the bill would authorize

the President to issue regulations for the interpretation and enforcement of the principles. This, of course

'

is similar to provisions contained in the laws pertaining to travel, those pertaining to employee

uniforms and a good many other subjects where it is desirable to have

Government-wide regulations to provide further interpretation and

application of the principle which Congress places in the statute.

The committee staff has furnished us with a committee print showing a possible redrafting of the bill to place the language in a format

which more nearly resembles the format now often used for bills of

this type. We believe that the committee print is an improvement on

our earlier version, with one exception. The new draft would remove

the Tennessee Valley Authority from coverage by this legislation. We

do not believe there is a sound basis for excepting one agency from

such Government-wide legislation. In our judgment, legislation of

this type ought to provide exceptions only where they are fully

justified.

We would be concerned about the rewrite of the bill if it causes

further delay in the Senate, which has already passed the bill this

year. We have not had any difficulty with the bill since it was

first proposed several years ago except for the always crowded

calendar.

You, of course, are better judges than we of the likelihood of additional Senate action this year.

In conclusion, we urge that S. 1833 be favorably considered, either

in its original form, or in the amended form suggested by the committee staff, but we are anxious to obtain enactment this year.

Mr. WALLHAUSER. Thank you very much.

Mr. OLSEN. We will now hear from Mr. John A. MeCart.

STATEMENT OF JOHN A. McCART, ON BEHALF OF GOVERNMENT

EMPLOYEES' COUNCIL, AFL-CIO

Mr. McCART. Mr. Chairman and members of the subcommittee, the

Government Employees' Council, representing 27 unions with membership in Federal agencies, desires to express its endorsement of the

measure, which is the subject of this hearing.

The primary purposes of the proposal is to perfect and clarify

existing laws governing provision of rental quarters, furniture, utilities, subsistence, laundry service, and related services to civilian employees.

Section 4 of S. 1833 is the primary point of interest of our council.

It provides that no employee will be required to occupy federally

owned or leased quarters, unless the head of an agency determines
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS 9

that necessary service will be impaired or property cannot be adequately protected.

Similar language appeared in the Supplemental Appropriations

Acts of 1953 and 1955. It was incorporated in the General Government Matters Appropriations Acts from 1956 through 1959 also.

However, it was not included in the 1960 or 1961 statutes. The

Budget Bureau felt agencies were complying well with is Circular

No. A-45 governing charges to employees for quarters and other

services. Circular No. A-45 contained no reference to the controlling

language, which appeared in the earlier appropriations statutes.

During this period when no statutory safeguard existed against

forcing employees to occupy Government quarters, workers were required to use military barracks. While there was nothing inherently,

wrong with the fact that the facilities were military, they were used

also by military personnel. Many were in transit from one base to

another or were arriving and departing for induction, discharge, or

other missions. As a result, the civilian employees were unable to

secure the rest necessary to carry on their assigned duties. Despite

the fact that the employees objected to such assignments, their jobs

required travel to service highly complex radio, radar, and related

equipment. They were confronted with a "take it or leave it" attitude.

Prior to these events, the employees involved were permitted to use

motels or hotels in the vicinity, and were allowed the regular per diem

rate applicable under the travel laws and regulations.

Apparently, the requirement to use military facilities was motivated

by a desire to reduce the amount of money spent for civilian travel.

Viewed from this standpoint, the funds were conserved at the expense

of the civilian workers.

There has been no repetition of these incidents in the recent past.

Yet, the fact that they occurred just a few years ago when the controlling language in the appropriation statutes and regulations was

temporarily omitted leads to the inescapable conclusion that the policy

enunciated in section 4 is essential to safeguard the equities of both

military and civilian personnel.

These factors lead us to request favorable action on S. 1833 and to

recommend especially retention of section 4 as it now appears in the

bill.

The cooperation of the subcommittee in arranging this opportunity

to offer our comments is deeply appreciated.

Mr. OLSEN. We will now hear from Mr. George Meagher.

STATEMENT OF GEORGE MEAGHER, ON BEHALF OF THE AMERICAN

FEDERATION OF GOVERNMENT EMPLOYEES

Mr. MEAGHER. Mr. Chairman and members of the subcommittee, the

bill S. 1833 would correct a situation that has caused inconvenience

and hardship for many Federal employees. The change in Government policy it would bring about with respect to provision of quarters

for civilian employees of the Federal Government is needed. The

AFGE indorses the bill for the inequities it would correct and for the

reason that it would benefit the Government as well through increased

efficiency.

Many employees who must travel a great deal in the regular performance of their duties are required to occupy Government-owned
10 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

or Government-leased quarters. This is true particularly of persons

employed by the military departments. Often, such occupancy is intended as an economy measure. In fact, any possible economy is outweighed by the disadvantages on many occasions of the requirement to

occupy such quarters under conditions which are not conducive to

efficient performance.

It is believed that the bill commends itself for early action by Congress because (1) it would place the use of Government quarters by

civilian Federal employees on a more equitable basis; and (2) in

separate sessions of Congress essentially the same measure has been

approved by both Houses. A similar bill was passed by the Senate

in 1960. Complete approval failed because Congress adjourned before

the House acted. In 1961, the House passed an almost identical measure but the Senate had not acted before adjournment.

,Our approval is given the bill because it would reinstate existing

authority to provide rental housing for civilian employees, but particularly because it would reinstate a statutory barrier against forced

occupancy of Government rental housing. This prohibition was

carried for some years in appropriation acts. It was not so included

in recent years in anticipation of permanent legislation such at S. 1833.

The language of this bill was contained in the General Government

Matters Appropriation Acts for the fiscal years 1956 to 1959, inclusive. It was omitted in 1960 and 1961.

The bill is desirable because it would permit the President to issue

regulations to provide a basis for determination of charges for household furniture and equipment, utilities, subsistence, and laundry service, where such items are authorized to be supplied by the Government.

Because of variation in the interpretation of the basic act of March

5, 1928, and to make certain that reasonable value of quarters was

charged employees, the Bureau of the Budget in 1951 issued Circular

No. A-45 which established certain procedures to make agency practices more uniform and more equitable to both the Government and

employees affected. The basic criterion for determining reasonable

value for rental purposes was that rents should be comparable to private housing in the same area.

Some of the use of quarters provided by the Government involves

highly skilled workers who install and maintain strategically located

electronic devices which have a vital function in the program for national defense. There is often little alternative for an employee but

to stay in Government quarters, but there are many occasions an employee could obtain satisfactory or more desirable quarters at a nearby

motel if it were not for a policy which required him to accept Government accommodations.

Because of the irregular timing of their shifts, these men on electronic maintenance duty are frequently working at the time meals are

scheduled by the mess facility where they are quartered. As a result,

they cannot eat there. In the case of civilian Air Force employees,

there have been instances of inconvenience and hardship when lodged

in a barracks or in bachelor officers' quarters. They were awakened

frequently during the night as soldiers or flying officers enter or leave

the building.

Some of our members have informed our national office that assigned

quarters were in many cases inadequate and that heating was often

insufficient or badly controlled, and that it was not unusual that only
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS 11

one bath was available on each floor for the use of all residents on

that floor.

Policy with respect to quarters is not uniform throughout the Government service. Even where there is no hard-and-fast rule that Government quarters must be used, there are consequences which later do

not redound to the benefit of an employee who refuses to utilize them.

The general policy of the Air Force, for example, is that when an

employee travels to a base where quarters are available, unless he is

there for training, there is no compulsion to live in Government quarters. Their use is preferred by the agency, but it is not mandatory

and no direct punitive action will be taken if an employee exercises

his preference for commercially available accommodations.

Note the fact that there will be no "direct" punitive action taken.

The fact is however, that it does the employee no good to decline the

quarters at base, because he is not likely to be sent on a similar mission in the future which in time can well react unfavorably on his work

status. It is common practice to call for volunteers and to require

employees to indicate in advance their willingness to live in Government quarters if they are available.

A recent Air Force survey indicated that 42 percent of civilian

travel had for its destination a base where quarters were available.

Sampling was made of nearly 300 travel vouchers at 12 Air Force

bases-3 each in 4 principal commands—during a period of 2 to 4

weeks. The average trip was shown to be 6/12days and the average

distance varied from about 400 miles by privately owned automobile

to about 800 miles if the trip was made by airplane.

It would appear that there is a considerable amount of travel that

extends over a week or more. Quarters assume more importance when it is a matter of staying for several days rather than for only one night.

Some employees have found the quarters available unsatisfactory

largely because so often they are not adapted to extend occupancy.

One letter received at our national headquarters indicated the dissatisfaction of a civilian required to be quartered at a military base:

In many instances, Government quarters are used primarily for military.

Civilians must take what is left or second best. We, as civilians, are as loyal

and as vitally interested in the welfare of our country as the military; therefore,

why discriminate?

Many men are required to make trips that extend as long as 180

days. Inasmuch as these employees spend so much time away from

their homes and families, it does seem unfair to penalize them by a

mandatory directive to live on base when on temporary duty. Not

only must they undergo inconvenience, but also cope with the possibility of lowered efficiency resulting from interruption of their sleep at

night and other unsuitable living conditions.

We are convinced that the provisions of S. 1833 should be enacted as

permanent legislation. There appears to be no opposition in the

executive branch, and on more than one occasion similar proposals

were indorsed by the Bureau of the Budget and by the Comptroller

General.

Thank you, Mr. Chairman, for giving us an opportunity to express

our views.

Mr. OLSEN. Are you in favor of the bill?

Mr. MEAGHER. Yes, sir.

Mr. OLSEN. The AFGE endorses the bill?
12 RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS

Mr. MEAGHER. Yes. We are in favor of this provision which does

not require Federal employees to use Government quarters. That

provision is in the bill. The committee staff is familiar with some of

the stories we have told about Federal employees who have been in

this Government housing, particularly in the Air Force. There is the

story of some of our members who were on TDY at an Air Force base.

They were required to go into bachelor officers' quarters, which was a

converted barracks with a partition. Our people went in at 9 or 10

o'clock at night and were sound asleep when in would come the flying

officers about 1 or 2 in the morning who, because of their missions,

obviously would arrive late. In walking into the quarters with their

helmets and flight gear, dropping it around, a few bouncing their

helmets off the wall, our people got a little upset and we had a regular

donnybrook.

These are the kinds of situations that develop when these fellows

are required to stay in quarters which they feel may not be adequate,

particularly for short trips of a week or so.

Mr. OLSEN. Thank you very much.

We will now hear from Mr. William H. Ryan.

STATEMENT OF WILLIAM H. RYAN, PRESIDENT, INTERNATIONAL

ASSOCIATION OF MACHINISTS, DISTRICT 44

Mr. RYAN. Mr. Chairman and members of the subcommittee, my

name is William H. Ryan, and I am president and legislative representative of District 44 of the International Association of Machinists,

AFL-CIO; with offices located in suite 811 in the Railway Labor

Building, 400 First Street NW., Washington D.C.

District 44 of the I. A. of M. is composed of affiliated locals of the

I. A. of M. whose members are employed by the local activities of

various agencies and departments of the Federal Government.

I deeply appreciate the opportunity afforded by this subcommittee

to testify in favor of the enactment of the language contained in section 4 of S. 1833.

The language of section 4 is quoted as follows: "No civilian officer,

employee, or member of the uniformed services shall be required to

occupy Government-owned or leased rental quarters unless the head

of the agency concerned shall determine that necessary service cannot

be rendered or property of the United States cannot be adequately

protected otherwise."

With the exception of the language "-or member of the uniformed

services"; this language first appeared in section 1413 of the Supplemental Appropriation Act of 1953; and was later carried in section 1312

of the Supplemental Appropriation Act of 1955; and section 208 of

the General Government Matters Appropriation Acts of 1956, 1957,

1958 and 1959.

The language was not contained in the General Government Matters Appropriation Acts of 1960 or 1961; because in the opinion of the

Bureau of the Budget, the affected agencies at that time were in general compliance with certain other requirements which were contained

in Bureau of Budget Circular A-45, dated June 3, 1952.

The language that I am testifying in favor of did not appear in

Bureau of Budget Circular No. A-45. 

Commencing in 1960, many of our Federal employee members who

are skilled technicians and mechanics in the Federal civil service,
RENTAL QUARTERS AND SERVICES TO CIVILIAN OFFICERS 13

while on temporary field trips to service and repair aircraft, missiles

and launching mechanisms located at remote military bases were required to occupy substandard living quarters at these bases.

They were, in many instances, required to sleep in barracks billeted

by military personnel who were in terminal status en route to other

military bases, or being inducted or discharged from the military

service. Because of the irregular hours kept by these military personnel, these highly skilled technicians and mechanics were unable

to secure sufficient uninterrupted rest and sleep to condition themselves for a day of efficient and exacting work the following day.

Their living conditions at these Government-owned quarters were

such that many of them wanted to either resign, or request that they

not be given such temporary assignments away from home if they were

to be required to utilize such quarters, even on a temporary basis.

It has been the practice when this language was incorporated in the

aforementioned appropriation acts to let these skilled technicians and

mechanics 'wide in hotels or motels in the close proximity of the

area of their assignment. The standard Government limitation of per

diem was operative for this purpose.

Our organization can appreciate that at times the Government

agencies may not have the amount of travel funds that they desire;

however, we take serious issue with any decision which would jeopardize the living conditions of technicians and mechanics who perform

skilled work which directly bears upon the safety of members of our

military forces, and the security of our Nation. I feel certain that the

members of this subcommittee would not condone an overzealous administrative officer allocating travel per diem funds to favored categories of civilians at the expense of those whose exacting duties require normal uninterrupted rest and sleep.

Early in 1961 when our organization protested the requirement that

civilian personnel be required to utilize Government quarters to the

Secretary of the Air Force, he wisely agreed, upon investigation of all

pertinent facts, that the policy of the Air Force should correlate with

the intent and purpose of the language that I am supporting here

today.

It is our contention that the Congress and the administrative branch

should enact into law the language contained in section 4 of S. 1833;

so that administrators will not be permitted to require civilian officers

and employees of the United States to occupy Government quarters

unless the head of the agency concerned has determined that the

necessary service cannot be rendered, or that property of the United

States cannot be adequately protected, unless such occupancy is required.

I wish at this time to express the appreciation of our organization

for the opportunity to testify on this matter, and I respectfully request in the name of our organization that this language be favorably

reported to the House of Representatives.

I shall be pleased to answer any questions that I am qualified to

respond to. Thank you.

Mr. WALLHAUSER. I have no questions.

Thank you for appearing, Mr. Ryan.

Mr. OLSEN. Thank you very much, Mr. Ryan.

That concludes the general session.

( Whereupon, at 10 a.m., the subcommittee adjourned.)

0
0,1V;Plo,