H. R. 930

One Hundred Fifth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-seventh day of January, one thousand nine hundred and ninety-eight

An Act

To require Federal employees to use Federal travel charge cards for all payments

of expenses of official Government travel, to amend title 31, United States Code,

to establish requirements for prepayment audits of Federal agency transportation

expenses, to authorize reimbursement of Federal agency employees for taxes

incurred on travel or transportation reimbursements, and to authorize test

programs for the payment of Federal employee travel expenses and relocation

expenses.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Travel and Transportation Reform

Act of 1998’’.

SEC. 2. REQUIRING USE OF THE TRAVEL CHARGE CARD.

(a) IN GENERAL.—Under regulations issued by the Administrator of General Services after consultation with the Secretary

of the Treasury, the Administrator shall require that Federal

employees use the travel charge card established pursuant to the

United States Travel and Transportation Payment and Expense

Control System, or any Federal contractor-issued travel charge

card, for all payments of expenses of official Government travel.

The Administrator shall exempt any payment, person, type or class

of payments, or type or class of personnel from any requirement

established under the preceding sentence in any case in which—

(1) it is in the best interest of the United States to

do so;

(2) payment through a travel charge card is impractical

or imposes unreasonable burdens or costs on Federal employees

or Federal agencies; or

(3) the Secretary of Defense or the Secretary of Transportation (with respect to the Coast Guard) requests an exemption

with respect to the members of the uniformed services.

(b) AGENCY EXEMPTION.—The head of a Federal agency or

the designee of such head may exempt any payment, person, type

or class of payments, or type or class of agency personnel from

subsection (a) if the agency head or the designee determines the

exemption to be necessary in the interest of the agency. Not later

than 30 days after granting such an exemption, the head of such

agency or the designee shall notify the Administrator of General

Services in writing of such exemption stating the reasons for the

exemption.

(c) LIMITATION ON RESTRICTION ON DISCLOSURE.—
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(1) IN GENERAL.—Section 1113 of the Right to Financial

Privacy Act of 1978 (12 U.S.C. 3413) is amended by adding

at the end the following new subsection:

‘‘(q) Nothing in this title shall apply to the disclosure of any

financial record or information to a Government authority in

conjunction with a Federal contractor-issued travel charge card

issued for official Government travel.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) is effective as of October 1, 1983, and applies to any records

created pursuant to the United States Travel and Transportation Payment and Expense Control System or any Federal

contractor-issued travel charge card issued for official Government travel.

(d) COLLECTION OF AMOUNTS OWED.—

(1) IN GENERAL.—Under regulations issued by the Administrator of General Services and upon written request of a Federal

contractor, the head of any Federal agency or a disbursing

official of the United States may, on behalf of the contractor,

collect by deduction from the amount of pay owed to an

employee of the agency any amount of funds the employee

owes to the contractor as a result of delinquencies not disputed

by the employee on a travel charge card issued for payment

of expenses incurred in connection with official Government

travel. The amount deducted from the pay owed to an employee

with respect to a pay period may not exceed 15 percent of

the disposable pay of the employee for that pay period, except

that a greater percentage may be deducted upon the written

consent of the employee.

(2) DUE PROCESS PROTECTIONS.—Collection under this

subsection shall be carried out in accordance with procedures

substantially equivalent to the procedures required under section 3716(a) of title 31, United States Code.

(3) DEFINITIONS.—For the purpose of this subsection:

(A) AGENCY.—The term ‘‘agency’’ has the meaning that

term has under section 101 of title 31, United States Code.

(B) EMPLOYEE.—The term ‘‘employee’’ means an

individual employed in or under an agency, including a

member of any of the uniformed services. For purposes

of this subsection, a member of one of the uniformed services is an employee of that uniformed service.

(C) MEMBER; UNIFORMED SERVICE.—Each of the terms

‘‘member’’ and ‘‘uniformed service’’ has the meaning that

term has in section 101 of title 37, United States Code.

(e) REGULATIONS.—Within 270 days after the date of the enactment of this Act, the Administrator of General Services shall

promulgate regulations implementing this section, that—

(1) make the use of the travel charge card established

pursuant to the United States Travel and Transportation System and Expense Control System, or any Federal contractorissued travel charge card, mandatory for all payments of

expenses of official Government travel pursuant to this section;

(2) specify the procedures for effecting under subsection

(d) a deduction from pay owed to an employee, and ensure

that the due process protections provided to employees under

such procedures are no less than the protections provided to

employees pursuant to section 3716 of title 31, United States

Code;
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(3) provide that any deduction under subsection (d) from

pay owed to an employee may occur only after reimbursement

of the employee for the expenses of Government travel with

respect to which the deduction is made; and

(4) require agencies to promptly reimburse employees for

expenses charged on a travel charge card pursuant to this

section, and by no later than 30 days after the submission

of a claim for reimbursement.

(f ) REPORTS.—

(1) IN GENERAL.—The Administrator of General Services

shall submit 2 reports to the Congress on agency compliance

with this section and regulations that have been issued under

this section.

(2) TIMING.—The first report under this subsection shall

be submitted before the end of the 180-day period beginning

on the date of the enactment of this Act, and the second

report shall be submitted after that period and before the

end of the 540-day period beginning on that date of enactment.

(3) PREPARATION.—Each report shall be based on a sampling survey of agencies that expended more than $5,000,000

during the previous fiscal year on travel and transportation

payments, including payments for employee relocation. The

head of an agency shall provide to the Administrator the necessary information in a format prescribed by the Administrator

and approved by the Director of the Office of Management

and Budget.

(g) REIMBURSEMENT OF TRAVEL EXPENSES.—In accordance with

regulations prescribed by the Administrator of General Services,

the head of an agency shall ensure that the agency reimburses

an employee who submits a proper voucher for allowable travel

expenses in accordance with applicable travel regulations within

30 days after submission of the voucher. If an agency fails to

reimburse an employee who has submitted a proper voucher within

30 days after submission of the voucher, the agency shall pay

the employee a late payment fee as prescribed by the Administrator.

SEC. 3. PREPAYMENT AUDITS OF TRANSPORTATION EXPENSES.

(a) IN GENERAL.—(1) Section 3322 of title 31, United States

Code, is amended in subsection (c) by inserting after ‘‘classifications’’

the following: ‘‘if the Administrator of General Services has determined that verification by a prepayment audit conducted pursuant

to section 3726(a) of this title for a particular mode or modes

of transportation, or for an agency or subagency, will not adequately

protect the interests of the Government’’.

(2) Section 3528 of title 31, United States Code, is amended—

(A) in subsection (a) by striking ‘‘and’’ after the semicolon

at the end of paragraph (3), by striking the period at the

end of subsection (a)(4)(C) and inserting ‘‘; and’’, and by adding

at the end the following new paragraph:

‘‘(5) verifying transportation rates, freight classifications,

and other information provided on a Government bill of lading

or transportation request, unless the Administrator of General

Services has determined that verification by a prepayment

audit conducted pursuant to section 3726(a) of this title for

a particular mode or modes of transportation, or for an agency

or subagency, will not adequately protect the interests of the

Government.’’;
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(B) in subsection (c)(1), by inserting after ‘‘deductions’’ the

following: ‘‘and the Administrator of General Services has determined that verification by a prepayment audit conducted pursuant to section 3726(a) of this title for a particular mode or

modes of transportation, or for an agency or subagency, will

not adequately protect the interests of the Government’’; and

(C) in subsection (c)(2), by inserting after ‘‘agreement’’ the

following: ‘‘and the Administrator of General Services has determined that verification by a prepayment audit conducted pursuant to section 3726(a) of this title for a particular mode or

modes of transportation, or for an agency or subagency, will

not adequately protect the interests of the Government’’.

(3) Section 3726 of title 31, United States Code, is amended—

(A) by amending subsection (a) to read as follows:

‘‘(a)(1) Each agency that receives a bill from a carrier or freight

forwarder for transporting an individual or property for the United

States Government shall verify its correctness (to include transportation rates, freight classifications, or proper combinations thereof ),

using prepayment audit, prior to payment in accordance with the

requirements of this section and regulations prescribed by the

Administrator of General Services.

‘‘(2) The Administrator of General Services may exempt bills,

a particular mode or modes of transportation, or an agency or

subagency from a prepayment audit and verification and in lieu

thereof require a postpayment audit, based on cost effectiveness,

public interest, or other factors the Administrator considers appropriate.

‘‘(3) Expenses for prepayment audits shall be funded by the

agency’s appropriations used for the transportation services.

‘‘(4) The audit authority provided to agencies by this section

is subject to oversight by the Administrator.’’;

(B) by redesignating subsections (b), (c), (d), (e), (f ), and

(g) as subsections (d), (e), (f ), (g), (h), and (i), respectively;

(C) by inserting after subsection (a) the following new

subsections:

‘‘(b) The Administrator may conduct pre- or post-payment audits

of transportation bills of any Federal agency. The number and

types of bills audited shall be based on the Administrator’s judgment.

‘‘(c)(1) The Administrator shall adjudicate transportation claims

which cannot be resolved by the agency procuring the transportation

services, or the carrier or freight-forwarder presenting the bill.

‘‘(2) A claim under this section shall be allowed only if it

is received by the Administrator not later than 3 years (excluding

time of war) after the later of the following dates:

‘‘(A) The date of accrual of the claim.

‘‘(B) The date payment for the transportation is made.

‘‘(C) The date a refund for an overpayment for the

transportation is made.

‘‘(D) The date a deduction under subsection (d) of this

section is made.’’;

(D) in subsection (f ), as so redesignated, by striking ‘‘subsection (c)’’ and inserting ‘‘subsection (e)’’, and by adding at

the end the following new sentence: ‘‘This reporting requirement

expires December 31, 1998.’’;

(E) in subsection (i)(1), as so redesignated, by striking

‘‘subsection (a)’’ and inserting ‘‘subsection (c)’’; and
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(F) by adding after subsection (i), as so redesignated, the

following new subsection:

‘‘( j) The Administrator of General Services may provide

transportation audit and related technical assistance services, on

a reimbursable basis, to any other agency. Such reimbursements

may be credited to the appropriate revolving fund or appropriation

from which the expenses were incurred.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall become effective 18 months after the date of the enactment

of this Act.

SEC. 4. REIMBURSEMENT FOR TAXES ON MONEY RECEIVED FOR

TRAVEL EXPENSES.

(a) IN GENERAL.—Title 5, United States Code, is amended

by inserting after section 5706b the following new section:

‘‘§ 5706c. Reimbursement for taxes incurred on money

received for travel expenses

‘‘(a) Under regulations prescribed pursuant to section 5707

of this title, the head of an agency or department, or his or her

designee, may use appropriations or other funds available to the

agency for administrative expenses, for the reimbursement of Federal, State, and local income taxes incurred by an employee of

the agency or by an employee and such employee’s spouse (if filing

jointly), for any travel or transportation reimbursement made to

an employee for which reimbursement or an allowance is provided.

‘‘(b) Reimbursements under this section shall include an amount

equal to all income taxes for which the employee and spouse,

as the case may be, would be liable due to the reimbursement

for the taxes referred to in subsection (a). In addition, reimbursements under this section shall include penalties and interest, for

the tax years 1993 and 1994 only, as a result of agencies failing

to withhold the appropriate amounts for tax liabilities of employees

affected by the change in the deductibility of travel expenses made

by Public Law 102–486.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 57 of title 5, United States Code, is amended

by inserting after the item relating to section 5706b the following

new item:

‘‘5706c. Reimbursement for taxes incurred on money received for travel expenses.’’.

(c) EFFECTIVE DATE.—This section shall be effective as of

January 1, 1993.

SEC. 5. AUTHORITY FOR TEST PROGRAMS.

(a) TRAVEL EXPENSES TEST PROGRAMS.—Subchapter I of

chapter 57 of title 5, United States Code, is amended by adding

at the end the following new section:

‘‘§ 5710. Authority for travel expenses test programs

‘‘(a)(1) Notwithstanding any other provision of this subchapter,

under a test program which the Administrator of General Services

determines to be in the interest of the Government and approves,

an agency may pay through the proper disbursing official for a

period not to exceed 24 months any necessary travel expenses

in lieu of any payment otherwise authorized or required under

this subchapter. An agency shall include in any request to the

Administrator for approval of such a test program an analysis
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of the expected costs and benefits and a set of criteria for evaluating

the effectiveness of the program.

‘‘(2) Any test program conducted under this section shall be

designed to enhance cost savings or other efficiencies that accrue

to the Government.

‘‘(3) Nothing in this section is intended to limit the authority

of any agency to conduct test programs.

‘‘(b) The Administrator shall transmit a copy of any test

program approved by the Administrator under this section to the

appropriate committees of the Congress at least 30 days before

the effective date of the program.

‘‘(c) An agency authorized to conduct a test program under

subsection (a) shall provide to the Administrator and the appropriate committees of the Congress a report on the results of the

program no later than 3 months after completion of the program.

‘‘(d) No more than 10 test programs under this section may

be conducted simultaneously.

‘‘(e) The authority to conduct test programs under this section

shall expire 7 years after the date of the enactment of the Travel

and Transportation Reform Act of 1998.’’.

(b) RELOCATION EXPENSES TEST PROGRAMS.—Subchapter II of

chapter 57 of title 5, United States Code, is further amended

by adding at the end the following new section:

‘‘§ 5739. Authority for relocation expenses test programs

‘‘(a)(1) Notwithstanding any other provision of this subchapter,

under a test program which the Administrator of General Services

determines to be in the interest of the Government and approves,

an agency may pay through the proper disbursing official for a

period not to exceed 24 months any necessary relocation expenses

in lieu of any payment otherwise authorized or required under

this subchapter. An agency shall include in any request to the

Administrator for approval of such a test program an analysis

of the expected costs and benefits and a set of criteria for evaluating

the effectiveness of the program.

‘‘(2) Any test program conducted under this section shall be

designed to enhance cost savings or other efficiencies that accrue

to the Government.

‘‘(3) Nothing in this section is intended to limit the authority

of any agency to conduct test programs.

‘‘(b) The Administrator shall transmit a copy of any test

program approved by the Administrator under this section to the

appropriate committees of the Congress at least 30 days before

the effective date of the program.

‘‘(c) An agency authorized to conduct a test program under

subsection (a) shall provide to the Administrator and the appropriate committees of the Congress a report on the results of the

program no later than 3 months after completion of the program.

‘‘(d) No more than 10 test programs under this section may

be conducted simultaneously.

‘‘(e) The authority to conduct test programs under this section

shall expire 7 years after the date of the enactment of the Travel

and Transportation Reform Act of 1998.’’.

(c) CLERICAL AMENDMENTS.—The table of sections for chapter

57 of title 5, United States Code, is further amended by—
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(1) inserting after the item relating to section 5709 the

following new item:

‘‘5710. Authority for travel expenses test programs.’’;

and

(2) inserting after the item relating to section 5738 the

following new item:

‘‘5739. Authority for relocation expenses test programs.’’.

SEC. 6. DEFINITION OF UNITED STATES.

Chapter 57 of title 5, United States Code, is amended—

(1) in section 5721—

(A) in paragraph (4), by striking ‘‘and’’ following the

semicolon at the end;

(B) in paragraph (5), by striking the period at the

end and inserting a semicolon; and

(C) by adding at the end the following new paragraphs:

‘‘(6) ‘United States’ means the several States, the District

of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the territories and

possessions of the United States, and the areas and installations in the Republic of Panama that are made available to

the United States pursuant to the Panama Canal Treaty of

1977 and related agreements (as described in section 3(a) of

the Panama Canal Act of 1979); and

‘‘(7) ‘Foreign Service of the United States’ means the

Foreign Service as constituted under the Foreign Service Act

of 1980.’’;

(2) in section 5722—

(A) in subsection (a)(2), by striking ‘‘outside the United

States’’ and inserting ‘‘outside the continental United

States’’; and

(B) in subsection (b), by striking ‘‘United States’’ each

place it appears and inserting ‘‘Government’’;

(3) in section 5723(b), by striking ‘‘United States’’ each

place it appears and inserting ‘‘Government’’;

(4) in section 5724—

(A) in subsection (a)(3), by striking ‘‘, its territories

or possessions’’ and all that follows through ‘‘1979’’; and

(B) in subsection (i), by striking ‘‘United States’’ each

place it appears in the last sentence and inserting ‘‘Government’’;

(5) in section 5724a, by striking subsection ( j);

(6) in section 5725(a), by striking ‘‘United States’’ and

inserting ‘‘Government’’;

(7) in section 5727(d), by striking ‘‘United States’’ and

inserting ‘‘continental United States’’;

(8) in section 5728(b), by striking ‘‘an employee of the

United States’’ and inserting ‘‘an employee of the Government’’;

(9) in section 5729, by striking ‘‘or its territories or

possessions’’ each place it appears;

(10) in section 5731(b), by striking ‘‘United States’’ and

inserting ‘‘Government’’; and

(11) in section 5732, by striking ‘‘United States’’ and

inserting ‘‘Government’’.
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SEC. 7. TECHNICAL CORRECTIONS TO THE FEDERAL EMPLOYEE

TRAVEL REFORM ACT OF 1996.

Section 5724a of title 5, United States Code, is amended—

(1) in subsections (a) and (d)(1) and (2), by striking ‘‘An

agency shall pay’’ each place it appears and inserting ‘‘Under

regulations prescribed under section 5738, an agency shall pay’’;

(2) in subsections (b)(1), (c)(1), (d)(8), and (e), by striking

‘‘An agency may pay’’ each place it appears and inserting

‘‘Under regulations prescribed under section 5738, an agency

may pay’’;

(3) by amending subsection (b)(1)(B)(ii) to read as follows:

‘‘(ii) an amount for subsistence expenses, that may

not exceed a maximum amount determined by the Administrator of General Services.’’;

(4) in subsection (c)(1)(B), by striking ‘‘an amount for

subsistence expenses’’ and inserting ‘‘an amount for subsistence

expenses, that may not exceed a maximum amount determined

by the Administrator of General Services,’’;

(5) in subsection (d)(2)(A), by striking ‘‘for the sale’’ and

inserting ‘‘of the sale’’;

(6) in subsection (d)(2)(B), by striking ‘‘for the purchase’’

and inserting ‘‘of the purchase’’;

(7) in subsection (d)(8), by striking ‘‘paragraph (2) or (3)’’

and inserting ‘‘paragraph (1) or (2)’’;

(8) in subsection (f )(1), by striking ‘‘Subject to paragraph

(2),’’ and inserting ‘‘Under regulations prescribed under section

5738 and subject to paragraph (2),’’; and

(9) by striking subsection (i).

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.