13760 Federal Register / Vol. 62, No. 55 / Friday, March 21, 1997 / Rules and Regulations

temporary quarters is justified in

connection with an employee’s transfer

to a new official station. You may not

authorize a TQSE allowance for

vacation purposes or other reasons

unrelated to the transfer.

§ 302–5.303 What factors should we

consider in determining whether the TQSE

allowance actually is necessary?

The factors you should consider

include:

(a) The length of time the employee

should reasonably be expected to

occupy his/her residence at the old

official station prior to reporting for

duty at the new official station. An

employee and his/her immediate family

should continue to occupy the residence

at the old official station for as long as

practicable to avoid the necessity for

temporary quarters.

(b) The existence of less expensive

alternatives. If a less expensive

alternative to the TQSE allowance exists

that will enable the employee to find

permanent quarters at the new official

station, you should consider such an

alternative. For example, authorize a

househunting trip instead of temporary

quarters if it would cost less overall.

(c) The existence of other

opportunities to arrange for permanent

quarters. Consider whether the

employee had other adequate

opportunity to arrange for permanent

quarters. For example, you should not

authorize temporary quarters if the

employee had adequate opportunity

during an extended temporary duty

assignment to arrange for permanent

quarters.

§ 302–5.304 What factors should we

consider in determining whether to offer an

employee the fixed amount TQSE

reimbursement option?

The factors you should consider

include:

(a) Ease of administration. Actual

TQSE reimbursement requires an

agency to review claims for the validity,

accuracy, and reasonableness of each

expense amount. Fixed amount TQSE

reimbursement does not require review

of expense amounts and is therefore

easier to administer.

(b) Cost considerations. You must

weigh the cost of each alternative.

Actual TQSE reimbursement may

extend up to 120 consecutive days,

while fixed amount TQSE

reimbursement is limited to 30 days.

Actual TQSE reimbursement may be

less expensive, since its ceiling is based

on the standard CONUS rate, while

fixed amount TQSE reimbursement is

based on the locality per diem rate.

However, fixed amount TQSE

reimbursement may be less expensive

because the maximum daily rate under

actual TQSE reimbursement is a higher

percentage of the applicable per diem

rate than fixed amount TQSE

reimbursement.

(c) Treatment of employee. The

employee is allowed to choose between

actual TQSE reimbursement and fixed

amount TQSE reimbursement when you

offer the fixed amount TQSE

reimbursement method. You therefore

should weigh employee morale and

productivity considerations against

actual cost considerations in

determining which method to offer.

§ 302–5.305 What factors should we

consider in determining whether quarters

are temporary?

In determining whether quarters are

‘‘temporary’’, you should consider

factors such as the duration of the lease,

movement of household effects into the

quarters, the type of quarters, the

employee’s expressions of intent,

attempts to secure a permanent

dwelling, and the length of time the

employee occupies the quarters.

Dated: March 17, 1997.

Thurman M. Davis, Sr.,

Acting Administrator of General Services.

[FR Doc. 97–7183 Filed 3–20–97; 8:45 am]

BILLING CODE 6820–34–P

41 CFR Part 302–15

[FTR Amendment 60]

RIN 3090–AG21

Federal Travel Regulation; Property

Management Services

AGENCY: Office of Governmentwide

Policy, GSA.

ACTION: Final rule.

SUMMARY: This final rule amends the

Federal Travel Regulation (FTR) to

allow an agency to pay for property

management services when an

employee transfers in the interest of the

Government. This amendment will save

the Government money when property

management services are substituted for

the sale, at Government expense, of an

employee’s residence.

DATES: This final rule is effective March

22, 1997, and applies to an employee

whose effective date of transfer (date the

employee reports for duty at the new

official station) is on or after March 22,

1997.

FOR FURTHER INFORMATION CONTACT:

Robert A. Clauson, Travel and

Transportation Management Policy

Division (MTT), Washington, DC 20405,

telephone 202–501–0299.

SUPPLEMENTARY INFORMATION: A multiagency travel reinvention task force was

organized in August 1994 under the

auspices of the Joint Financial

Management Improvement Program

(JFMIP) to reengineer Federal travel

rules and procedures. The task force

developed 25 recommended travel

management improvements published

in a JFMIP report entitled Improving

Travel Management Governmentwide,

dated December 1995. On September 23,

1996, the President signed into law the

Federal Employee Travel Reform Act of

1996 (Pub. L. 104–201), which included

8 legislative changes recommended by

the JFMIP to improve travel and the

delivery of relocation services.

This amendment implements section

1714 of the Act which provides the

General Services Administration (GSA)

authority to issue regulations which

authorize agencies to pay for property

management services. This amendment

is written in the ‘‘plain English’’ style of

regulation writing as a continuation of

GSA’s effort to make the FTR easier to

understand and to use.

What are ‘‘property management

services’’?

‘‘Property management services’’ are

services, offered by a company, which

assist a transferee in retaining and

renting, rather than selling, his/her

residence at the old official station.

How may property management

services be obtained?

The employee may obtain the services

directly and be reimbursed, or the

agency may contract with a relocation

services company to provide these

services.

Must an agency authorize payment for

property management services?

No. The agency has the option of

offering this, as one way of managing

the sale of a residence in connection

with a relocation; it is intended to

provide flexibility for agencies and

transferees.

Under what circumstances may an

agency pay for property management

services?

An agency may pay for property

management services when an

employee transfers to a foreign area. An

agency also may pay for property

management services instead of the sale

of an employee’s residence at

Government expense when an employee

assigned to a foreign post of duty is

transferred back to a different
Federal Register / Vol. 62, No. 55 / Friday, March 21, 1997 / Rules and Regulations 13761

nonforeign area official station than the

one he/she left when transferred to a

foreign area.

What is the ‘‘plain English’’ style of

regulation writing?

The ‘‘plain English’’ style of

regulation writing is a new, simpler to

read and understand, question and

answer regulatory format. Questions are

in the first person, and answers are in

the second person. GSA uses a ‘‘we’’

question when referring to an agency,

and an ‘‘I’’ question when referring to

the employee.

How does the plain English style of

regulation writing affect employees?

A question and its answer combine to

establish a rule. The employee and the

agency must follow the language

contained in both the question and its

answer.

GSA has determined that this rule is

not a significant regulatory action for

the purposes of Executive Order 12866

of September 30, 1993. This final rule is

not required to be published in the

Federal Register for notice and

comment. Therefore, the Regulatory

Flexibility Act does not apply. This rule

also is exempt from Congressional

review prescribed under 5 U.S.C. 801

since it relates solely to agency

management and personnel.

List of Subjects in 41 CFR Part 302–15

Government employees, travel and

transportation expenses.

For the reasons set out in the

preamble, 41 CFR part 302–15 is added

to read as follows:

PART 302–15—ALLOWANCE FOR

PROPERTY MANAGEMENT SERVICES

Subpart A—General Rules for the Employee

Sec.

302–15.1 What are ‘‘property management

services’’?

302–15.2 What is a ‘‘nonforeign area’’?

302–15.3 What is a ‘‘foreign area’’?

302–15.4 What are the purposes of the

allowance for property management

services?

302–15.5 In what situations may my agency

authorize payment for property

management services?

302–15.6 Must my agency authorize

payment for property management

services?

302–15.7 What are the income tax

consequences when my agency pays for

my property management services?

302–15.8 Who is not eligible for payment

for property management services?

Subpart B—Payment for Property

Management Services for Employees

Transferred to a Foreign Area Post of Duty

302–15.100 Am I eligible for payment for

property management services under this

subpart?

302–15.101 Will my agency pay for

property management services when I

transfer to a foreign area post of duty?

302–15.102 For what property may my

agency authorize payment under this

subpart?

302–15.103 How long may my agency pay

under this subpart?

302–15.104 If my agency is paying for

property management services under this

subpart and my service agreement

expires, what must I do to ensure that

payment for property management

services continues?

302–15.105 Must I repay property

management expenses my agency paid

under this subpart if I elect to sell my

nonforeign area residence at Government

expense when I am transferred from my

current foreign area post of duty to a

different nonforeign area official station

than the one I left?

Subpart C—Payment for Property

Management Services for Employees

Transferred to a Nonforeign Area From a

Foreign Area

302–15.200 Am I eligible for payment for

property management services under this

subpart?

302–15.201 Under what circumstances will

my agency authorize payment under this

subpart?

302–15.202 When my agency authorizes

payment for me under this subpart, am

I obligated to use such services, or may

I elect instead to sell my residence at

Government expense?

302–15.203 For what property may my

agency authorize payment under this

subpart?

302–15.204 How long may my agency pay

under this subpart?

302–15.205 If my agency authorized, and I

elected to receive, payment under this

subpart, may I later elect to sell my

residence at Government expense?

Subpart D—Agency Responsibilities

302–15.300 What governing policies must

we establish for the allowance for

property management services?

Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a);

E.O. 11609, 36 FR 13474, 3 CFR, 1971–1975

Comp., p. 586.

Subpart A—General Rules for the

Employee

Note to subpart A: Use of the pronouns ‘‘I’’

and ‘‘you’’ throughout this subpart refers to

the employee.

§ 302–15.1 What are ‘‘property

management services’’?

‘‘Property management services’’ are

programs provided by private

companies for a fee, which help an

employee to manage his/her residence

at the old official station as a rental

property. These services typically

include, but are not limited to, obtaining

a tenant, negotiating the lease,

inspecting the property regularly,

managing repairs and maintenance,

enforcing lease terms, collecting the

rent, paying the mortgage and other

carrying expenses from rental proceeds

and/or funds of the employee, and

accounting for the transactions and

providing periodic reports to the

employee.

§ 302–15.2 What is a ‘‘nonforeign area’’?

A ‘‘nonforeign area’’ is the United

States, its territories or possessions, the

Commonwealths of Puerto Rico or the

Northern Mariana Islands, or the former

Canal Zone area (i.e., areas and

installations in the Republic of Panama

made available to the United States

pursuant to the Panama Canal Treaty of

1977 and related agreements (as

described in 22 U.S.C. 3602(a))).

§ 302–15.3 What is a ‘‘foreign area’’?

A ‘‘foreign area’’ means any area that

is not a ‘‘nonforeign area’’, as defined in

§ 302–15.2.

§ 302–15.4 What are the purposes of the

allowance for property management

services?

The purpose is to reduce overall

Government relocation costs when used

instead of sale of the employee’s

residence at Government expense.

When authorized in connection with an

employee’s transfer to a foreign area

post of duty, the purpose is to relieve

the employee of the costs of maintaining

a home in a nonforeign area while

stationed at a foreign area post of duty.

§ 302–15.5 In what situations may my

agency authorize payment for property

management services?

Your agency may authorize payment

when:

(a) You transfer in the interest of the

Government to a foreign area post of

duty; or

(b) You are transferred back to a

different nonforeign area official station

than the one you left when you were

transferred to a foreign area, and you are

otherwise eligible for the sale of your

residence at Government expense.

§ 302–15.6 Must my agency authorize

payment for property management

services?

No, your agency determines when it

is in the Government’s interest to

authorize payment for these services

and what procedures you must follow

when it authorizes such payment.
13762 Federal Register / Vol. 62, No. 55 / Friday, March 21, 1997 / Rules and Regulations

§ 302–15.7 What are the income tax

consequences when my agency pays for

my property management services?

You will be taxed on the amount of

expenses your agency pays for property

management services whether it

reimburses you directly or whether it

pays a relocation services company to

manage your residence. Your agency

must pay you a relocation income tax

(RIT) allowance for the additional

Federal, State and local income taxes

you incur on property management

expenses it reimburses you or pays on

your behalf. You may wish to consult

with a tax advisor to determine whether

you will incur any additional tax

liability, unrelated to your agency’s

payment of your property management

expenses, as a result of maintaining

your residence as a rental property.

§ 302–15.8 Who is not eligible for payment

for property management services?

New appointees, employees assigned

under the Government Employees

Training Act (5 U.S.C. 4109), and

employees transferring wholly within a

nonforeign area.

Subpart B—Payment for Property

Management Services for Employees

Transferred to a Foreign Area Post of

Duty

Note to subpart B: Use of the pronouns ‘‘I’’

and ‘‘you’’ throughout this subpart refers to

the employee.

§ 302–15.100 Am I eligible for payment for

property management services under this

subpart?

Yes, when your transfer to a foreign

area post of duty is in the interest of the

Government and you and/or a

member(s) of your immediate family

hold title to a residence which you

would be eligible to sell at Government

expense under part 302–6 or 302–12 of

this chapter if you were transferred to or

within a nonforeign area.

§ 302–15.101 Will my agency pay for

property management services when I

transfer to a foreign area post of duty?

Yes, when:

(a) Your agency authorizes payment

for your property management services;

(b) You have signed a service

agreement; and

(c) You meet any additional

conditions that your agency has

established.

§ 302–15.102 For what property may my

agency authorize payment under this

subpart?

Payment may be authorized only on

your residence at the last nonforeign

area official station from which you

transferred to a foreign area post of duty.

§ 302–15.103 How long may my agency

pay under this subpart?

Your agency may pay from the time

you transfer to a foreign area post of

duty until one of the following occurs:

(a) You transfer back to an official

station in a nonforeign area;

(b) You complete a service agreement

at your post of duty and remain there,

but do not sign a new service agreement;

or

(c) You separate from Government

service.

§ 302–15.104 If my agency is paying for

property management services under this

subpart and my service agreement expires,

what must I do to ensure that payment for

property management services continues?

You must sign a new service

agreement.

§ 302–15.105 Must I repay property

management expenses my agency paid

under this subpart if I elect to sell my

nonforeign area residence at Government

expense when I am transferred from my

current foreign area post of duty to a

different nonforeign area official station

than the one I left?

No. The authority for your agency to

pay for property management services

under this subpart when you are

transferred to a foreign area is separate

from, and in addition to, the authority

to sell your residence at Government

expense under part 302–6 or 302–12 of

this chapter, or to pay property

management services under subpart C of

this part.

Subpart C—Payment for Property

Management Services for Employees

Transferred to a Nonforeign Area From

a Foreign Area to Subpart C

Note: Use of the pronouns ‘‘I’’ and ‘‘you’’

throughout this subpart refers to the

employee.

§ 302–15.200 Am I eligible for payment for

property management services under this

subpart?

Yes, when:

(a) You transfer in the interest of the

Government back to a different

nonforeign area official station than the

one you left when you transferred to a

foreign area; and

(b) You and/or a member(s) of your

immediate family hold title to a

residence which you are eligible to sell

at Government expense under part 302–

6 or 302–12 of this chapter.

§ 302–15.201 Under what circumstances

will my agency authorize payment under

this subpart?

Your agency will authorize payment

under this subpart when:

(a) Your agency has determined that

payment for property management

services is more advantageous and cost

effective for the Government than sale of

your residence;

(b) You have signed a service

agreement incident to your transfer back

to a nonforeign area; and

(c) You meet any additional

conditions that your agency has

established.

§ 302–15.202 When my agency authorizes

payment for me under this subpart, am I

obligated to use such services, or may I

elect instead to sell my residence at

Government expense?

You are not obligated to use your

authorized property management

services allowance. You have the option

of choosing to sell your residence at

Government expense or to use the

property management services

allowance.

§ 302–15.203 For what property may my

agency authorize payment under this

subpart?

Your agency may authorize payment

only on your residence at the old

nonforeign area official station.

§ 302–15.204 How long may my agency

pay under this subpart?

Your agency may pay for a period not

to exceed two years from your effective

date of transfer.

§ 302–15.205 If my agency authorized, and

I elected to receive, payment under this

subpart, may I later elect to sell my

residence at Government expense?

Yes, provided:

(a) Your agency allows you to change

your election of payment for property

management expenses to an election of

sale of your residence at Government

expense; and

(b) Payment for the sale of your

residence at Government expense is

offset in accordance with your agency’s

policy established under § 302–

15.300(d).

Subpart D—Agency Responsibilities

Note to subpart D: Use of the pronouns

‘‘we’’ and ‘‘you’’ throughout this subpart

refers to the agency.

§ 302–15.300 What governing policies

must we establish for the allowance for

property management services?

You must establish policies and

procedures governing:

(a) When you will authorize payment

for property management services for an

employee who transfers to a foreign area

post of duty;

(b) Who will determine whether

payment for property management

services is appropriate when an

employee transfers to a foreign area post

of duty;
Federal Register / Vol. 62, No. 55 / Friday, March 21, 1997 / Rules and Regulations 13763

(c) The circumstances under which

you will authorize an employee who is

eligible under this part for property

management services to elect the use of

property management services instead

of the sale of his/her residence at

Government expense under part 302–6

or 302–12 of this chapter;

(d) Who will determine whether

payment for property management

services is more advantageous and cost

effective than sale of an employee’s

residence at Government expense;

(e) If and when you will allow an

employee who was offered and accepted

payment for property management

services under subpart C of this part to

change his/her mind and elect instead

to sell his/her residence at Government

expense, and who will make that

determination; and

(f) How you will offset expenses you

have paid for property management

services against payable expenses for

sale of the employee’s residence when

an eligible employee who elected

payment for property management

services later changes his/her mind and

elects instead to sell his/her residence at

Government expense.

Dated: March 17, 1997.

Thurman M. Davis, Sr.,

Acting Administrator of General Services.

[FR Doc. 97–7184 Filed 3–20–97; 8:45 am]

BILLING CODE 6820–34–P

41 CFR Part 302–14

[FTR Amendment 61]

RIN 3090–AG22

Federal Travel Regulation; Home

Marketing Incentive Payments

AGENCY: Office of Governmentwide

Policy, GSA.

ACTION: Final rule.

SUMMARY: This final rule amends the

Federal Travel Regulation (FTR) to

allow an agency to pay a home

marketing incentive to a transferred

employee who uses the agency s

homesale program provided by a

relocation services company under

contract with the Government and who

independently and aggressively

markets, and finds a bona fide buyer for,

his/her residence resulting in

significantly lower fee/expense

payments the agency must make to the

relocation services company. This

amendment will save the Government

money through reduced payments to

relocation services companies and will

increase employee satisfaction with the

relocation process.

DATES: This final rule is effective March

22, 1997, and applies to an employee

whose effective date of transfer (date the

employee reports for duty at the new

official station) is on or after March 22,

1997.

FOR FURTHER INFORMATION CONTACT:

Robert A. Clauson, Travel and

Transportation Management Policy

Division (MTT), Washington, DC 20405,

telephone 202–501–0299.

SUPPLEMENTARY INFORMATION: A multiagency travel reinvention task force was

organized in August 1994 under the

auspices of the Joint Financial

Management Improvement Program

(JFMIP) to reengineer Federal travel

rules and procedures. The task force

developed 25 recommended travel

management improvements published

in a JFMIP report entitled Improving

Travel Management Governmentwide,

dated December 1995. On September 23,

1996, the President signed into law the

Federal Employee Travel Reform Act of

1996 (Pub. L. No. 104–201), which

included 8 legislative changes

recommended by the JFMIP to improve

travel and the delivery of relocation

services.

This amendment implements section

1717 of the Act which provides the

General Services Administration (GSA)

authority to issue regulations which

authorize agencies to pay a home

marketing incentive to a transferred

employee to facilitate sale of the

employee s residence at the old official

station at lower overall cost to the

Government when the employee uses

the agency s homesale program

provided by a relocation services

company under contract with the

Government. This amendment is written

in the ‘‘plain English’’ style of

regulation writing as a continuation of

GSA s effort to make the FTR easier to

understand and to use.

What is a ‘‘homesale program’’?

A program under which a relocation

services company, under contract with

the agency, purchases a transferred

employee s residence at fair market

(appraised) value and then

independently markets and sells the

residence.

What is the ‘‘home marketing incentive

payment’’?

This is a payment an agency makes to

its transferred employee to encourage

the employee to independently and

aggressively market his/her residence

and find a bona fide buyer, thereby

reducing the fee/expenses the agency

must pay the relocation services

company. The amount of the incentive

payment may not exceed five percent of

the price the relocation services

company paid the employee for his/her

residence, or the savings the agency

realized from the reduced fee/expenses

it paid.

Why would an agency want to institute

a home marketing incentive payment

program?

With this type of program, the sum of

the incentive payment and the reduced

payment to the relocation services

company is less than the fee/expenses

the agency must pay the relocation

services company when the company

has to find a buyer for the residence.

What is the ‘‘plain English’’ style of

regulation writing?

The ‘‘plain English’’ style of

regulation writing is a new, simpler to

read and understand, question and

answer regulatory format. Questions are

in the first person and answers are in

the second person. GSA uses a ‘‘we’’

question when referring to an agency

and an ‘‘I’’ question when referring to

the employee.

How does the plain English style of

regulation writing affect employees?

A question and its answer combine to

establish a rule. The employee and the

agency must follow the language

contained in both the question and its

answer.

GSA has determined that this rule is

not a significant regulatory action for

the purposes of Executive Order 12866

of September 30, 1993. This final rule is

not required to be published in the

Federal Register for notice and

comment. Therefore, the Regulatory

Flexibility Act does not apply. This rule

also is exempt from Congressional

review prescribed under 5 U.S.C. 801

since it relates solely to agency

management and personnel.

List of Subjects in 41 CFR Part 302–14

Government employees, Travel and

transportation expenses.

For the reasons set out in the

preamble, 41 CFR part 302–14 is added

to read as follows:

PART 302–14—HOME MARKETING

INCENTIVE PAYMENTS

Subpart A—Payment of Incentive to

the Employee

Sec.

302–14.1 What is a ‘‘homesale program’’?

302–14.2 What is the purpose of a home

marketing incentive payment?

302–14.3 Am I eligible to receive a home

marketing incentive payment?